Hope you are all doing well. The NASDAQ rose more than 3%, posting its third weekly gain in a row and joining the S&P 500 in record territory. The latter index added 1% for the week while the Dow finished down fractionally after retreating from a record closing high that it set on Wednesday. On this day 83 years ago we entered World War II. I have broken down this week’s update using quotes from perhaps FDR’s most famous speech delivered Dec. 8, 1941.
A date which will live in infamy
For crypto investors Thursday will be a date that lives in infamy. The price of Bitcoin, the most widely traded cryptocurrency, climbed above $100,000. The price briefly reached as high as $103,900 before slipping to around $101,000 on Friday afternoon. At the start of November, Bitcoin was trading around $70,000. The move in crypto gives new meaning to Alan Greenspan’s famous term “irrational exuberance”. This price of Bitcoin is not based on fundamentals, could it move higher on investor euphoria, possibly. However, I think it’s best to remain on the sidelines because at some point the rug will get pulled from underneath it. If you are fortunate enough to own crypto, now is a good time to take some profit.
The people of the United States have already formed their opinions and well understand the implications.
The post election bump in consumer sentiment continued. It’s important because we are entering the holiday season. When consumers are optimistic about the economic outlook, those expectations can lead to an increase in spending. So that could mean a strong holiday season for retailers. U.S. consumer sentiment reached its highest level since last May. Friday’s preliminary reading from the University of Michigan’s Consumer Sentiment Index showed the gauge rising to 74.0, up from November’s already elevated final reading of 71.8.
With the unbounding determination of our people we will gain the inevitable triumph.
Our economy should have entered a recession during the Fed’s rate hiking cycle, but it didn’t. The reason our economy has triumphed is that Americans are working and prospering. The labor market posted a monthly gain of 227,000 jobs for November which topped economists’ expectations. November’s annual wage growth continued to be strong at 4.0% while the unemployment came in close to full employment at 4.2%.
If you’d like to speak about your investments or your plan, my calendar link is below and you can schedule a phone or zoom appointment.
