Friendly Giants?

Aug 11, 2020 | Mark Ryan


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Good afternoon.

 

The Canucks could clinch their play-in tonight in the strange summer round of the NHL playoffs. I’m a homer, but they’re an impressive young squad. So far so good.

 

In our weekly Global analysis:

  • Look Up. Look Wayyyy Up: The five largest stocks in the S&P 500 (Apple, Google, Microsoft, Amazon, and Facebook) have outmarched market returns for some time now. We look at why this is concerning and why it isn’t. Patience is required for holders of diversified equity portfolios.
  • What to expect from the U.S. economic rebound – 3rd Quarter GDP should snap back from Q2’s record low, but if we drill into the monthly consumption forecasts we see a more muted trend going forward.
  • Regional highlights: How Canada’s recovery is taking shape; Earnings in Europe better than expected; Growing divide between China and the U.S.

Full Story Here: Global Insight Weekly

 

Trivia & Scope:

  • After market close today, the combined value (market cap) of these five companies (none of which existed a few years ago) was about 6.97 Trillion US dollars.
  • If things go about as expected, in response to COVID-19, (which didn’t exist a few months ago), the US Congress will stimulate markets with at least 4 trillion dollars to help revitalize the economy, over and above Federal Reserve interventions in a similar range (it’s a moving target).

It’s Just Rumors:

  • Despite appearances, the five primary owners of the aforementioned five massive companies are in no way related to the five cardigan-wearers from the old SCTV Skit: “Five Neat Guys,” who, in any event, could never hold a candle to the Schmenge Brothers.

The blueberries are spectacular out there.

 

Have a great weekend.

 

Go Canucks!

 

Mark