MARKETS: YEAR-TO-DATE 6-13-21

 

MARKETS: YEAR-TO-DATE

Nasdaq 14,069.42 +9.16%

S&P 4,247.44 +13.08%

Dow 34,479.60 +12.65%

Bitcoin $38,905.50 +34.15%

10-Year 1.453% +53.4 bps

Ethereum $2,519.50 +241.49%

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

Markets: Bitcoin got a boost yesterday after Elon Musk said Tesla would accept bitcoin transactions again once miners started using "reasonable" amounts of clean energy. Still, it significantly lags its crypto sibling ethereum in gains this year. World: After 12 years, Benjamin Netanyahu is no longer the prime minister of Israel. That job now belongs to Naftali Bennett, a right-wing leader and millionaire tech entrepreneur who formed a coalition with parties across the political spectrum.

MARKETS: YEAR-TO-DATE - Morning Brew 06-07-2021 (Globalist Tax Regulators)

 

Good morning. Some exciting news to share: The Brew's total headcount has now passed 100 people! And just to think that four years ago a single large pizza could feed the entire company.  If you want to be one of the next 100 employees, check out our open positions here.

MARKETS: YEAR-TO-DATE Nasdaq 13,814.49 +7.19% S&P 4,229.89 +12.61% Dow 34,756.39 +13.56% Bitcoin $36,691.68 +26.52% 10-Year 1.570% +65.1 bps Oil $69.36 +42.96% *Stock data as of market close, cryptocurrency data as of 11:00pm ET. Here's what these numbers mean. Markets: If things go well today, the S&P could hit an all-time high—it sits less than 0.2% away. Oil prices start the week at a two-year high. Economy: Higher interest rates would “actually be a plus for society’s point of view and the Fed’s point of view,” Treasury Secretary Janet Yellen told Bloomberg yesterday. Yellen was defending President Biden’s spending proposals, arguing that any inflation triggered by more government spending can be shrugged off.

TAXES Teamwork Makes the Corporate Tax Dream Work  Alex Wong/Getty Images On Saturday, the finance ministers from G7 nations announced their support for a global corporate minimum tax of 15%, which would require companies to pay at least a 15% rate in each country they operate in. It represents one of the biggest attempts to bring an outdated global tax system from black-and-white into Technicolor.   The backstory: Multinational companies have been taking advantage of existing tax rules by shuffling money between jurisdictions with super-low rates. The IMF estimates that 40% of all foreign direct investment is “phantom” in nature, meaning it’s money that passes through empty corporate shells, often for the purposes of lowering a company’s tax bill.  This scheming is not in the best interests of countries that want to collect more taxes from large corporations. The Biden administration estimates a global minimum tax system would lead to $500 billion in additional tax revenue for the US over the next decade.  But wait, there’s more In addition to the 15% minimum tax, the agreement by the G7 (which, by the way, is composed of Canada, France, Germany, the US, Italy, Japan, and the UK) calls for an extra tax on profits from the “largest and most profitable multinational enterprises.”  The provision is meant to address European leaders’ concerns that they can’t sufficiently tax tech giants like Facebook and Google, because while those companies make tons of money in Europe, they are based in the US and pay taxes there. Now comes the hard part The G7 ministers will have to sell their plan to other countries, such as Ireland, that oppose the 15% minimum tax. Ireland has managed to attract lots of tech jobs due to its low corporate tax rate of 12.5%, and it won’t want to give up that competitive advantage.   Zoom out: The teamwork shows that the US and its European allies are putting some of the bad blood of the Trump years behind them. But any new tax system will take years to implement and will surely create headaches of its own.

MARKETS: YEAR-TO-DATE 05-24-21 MBrew

 May 24, 2021

MARKETS: YEAR-TO-DATE

Nasdaq 13,470.99 +4.52%

S&P 4,155.86 +10.64%

Dow 34,207.84 +11.77%

Bitcoin $33,871.06 +16.79%

10-Year 1.619% +70.0 bps

Ethereum $2,071.16 +180.72%

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

Markets: While the stock market takes nights and weekends off, the crypto market is a circus that runs 24/7. Prices for cryptocurrencies continued to tumble over the weekend, with bitcoin dropping to nearly 50% below its peak. Covid-19: New daily cases in the US are at their lowest levels since June of last year. And new evidence emerged that may support the hypothesis that Covid-19 leaked from a lab: According to a US intelligence report viewed by the WSJ, three researchers from China’s Wuhan Institute of Virology became so ill they sought hospital care in November 2019.

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.

MARKETS YTD PERFORMANCE - 03/15/21 MBrew

 

MARKETS YTD PERFORMANCE

NASDAQ 13,319.86 + 3.35%

S&P 3,943.34 + 4.99%

DOW 32,778.64 + 7.10%

GOLD 1,725.80 - 9.24%

10-YR 1.629% + 71.00 bps

OIL 65.56 + 35.40%

*As of market close. Here's what these numbers mean.

Markets: Energy has recently replaced tech as the mitochondria of the S&P 500. The sector has gained 80% since early November, fueled by a rebound in the price of crude oil.