E Normal Slowness

Today the speeded-up news cycle settled down to normal slowness and we have 2 corporate results. Several shares have been shoved down by the first moves by the Biden Administration, which mostly were greeted positively, with a couple of exceptions. First is the ban on the Keystone pipeline delivering oil from Canada to the US. While the cancelation is a proof of green credentials it is also scary. Canada doesn't like the move and other pipelines—including Aramco's in Saudi Arabia—are now under a cloud. Any oil or gas stock is under pressure.

The other trick issue is how much stimulus is going to be spread and paid for. Janet Yellin in her testimony yesterday suggested “curtailing” crypto-currencies like bitcoin to fund “going big” with payouts. Bitcoin dropped to new lows for the quarter in Britain as a result. This came just as Blackrock began offering bitcoin futures, a less risky way to own crypto money, without passwords.

But gold, the other haven, after falling yesterday, fell a bit today. The stock market which hit a new high yesterday is flat today. This reflects the risk from Biden's plan to double the minimum wage, and extract more in taxes on the wealthy to fund more help to the 50% of the US population left behind. While not many of us are in the top bracket which gained the most—Thomas Piketty would say because top brass rock star executives can demand excessive salaries and perquisites while those lower down in the company get flat or lower wages—most stock investors are among the rich, despite the alleged new poorer players using Robinhood.

Financials that reported good earnings over the past 2 days are now under a cloud, almost all down.

Latin American Mercado Libre MELI, -2.5%; BP plc -3.6%: Royal Dutch Shell RDS-B -3.34%; Schlumberger SLB reporting tomorrow-5%. Algonquin AQN which offers green power, is up 0.73%.

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William K. 1 month ago Member's comment

Thanks for all of the information, and the insights.