MARKETS: YEAR-TO-DATE - MBrew 05-03-21(Warren Buffet)

 

MARKETS: YEAR-TO-DATE

Nasdaq 13,962.68 +8.34%

S&P 4,181.17 +11.32%

Dow 33,874.85 +10.68%

Bitcoin $56,407.77 +94.50%

10-Year 1.625% +70.6 bps

Apple $131.46 -0.93%

*Stock data as of market close, cryptocurrency data as of 7:00pm ET. Here's what these numbers mean.

Markets: It’s the first trading day in May, and if stocks continue to do what they’ve been doing all year...your 401(k) will be happy. Our stock spotlight is Apple, only because it’s been all over the news recently. Economy: On Meet the Press, Treasury Secretary Janet Yellen played down the threat of inflation due to the Biden administration’s Hulk-level spending plans. “I don’t believe that inflation will be an issue, but if it becomes an issue, we have tools to address it.” You Won't Find Buffett on r/WallStreetBets There’s the “stocks only go up” crowd...and then there’s Berkshire Hathaway CEO Warren Buffett and his longtime business partner Charlie Munger. The two investing icons, 90 and 97 years old respectively, pushed back on some of the hottest trends in investing during the company’s annual shareholder meeting Saturday.  A few hot takes... Bitcoin: “Of course I hate the bitcoin success,” Munger said, citing the cryptocurrency’s use for criminal enterprises. “I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization.”  Robinhood: Buffett said Robinhood’s platform for retail investors was “taking advantage of the gambling instincts of society, and it isn’t admirable. It creates its own reality for a while, and nobody tells you when the clock is going to strike 12 and it all turns to pumpkins and mice.”  SPACs: “It’s a killer,” Buffett said about the rise of special purpose acquisition companies. Buffett said SPACs have made it even harder for Berkshire to strike a deal at an attractive price. “Frankly we’re not competitive with that. It won’t go on forever.” Dogecoin: Jk, no one asked about dogecoin, but they should have.  What else happened at the meeting?  Buffett admitted to a few mistakes, including selling some Apple stock. Buffett called Apple an “extraordinary business,” and it still remains the company’s largest stock holding. He also addressed the healthcare venture he tried to start with JPMorgan and Amazon that folded this year. “We were fighting a tapeworm in the American economy and the tapeworm won,” Buffett said. As for his decision to pull out of the airline sector early in the pandemic, Buffett is perfectly comfortable with that.  Big picture  With its commitment to value investing, Berkshire Hathaway believes a “slow and steady” approach will prove the best option in the long run. But since the start of the pandemic, the S&P 500 has doubled up Berkshire Hathway’s stock gain, raising concerns that Buffett and Co. are out of touch with the new, tech-driven economy.