E Tuesday Talk: Doing The Suez

As the Ever Given was finally freed toward the end of the market day in the U.S., on Monday markets in New York barely moved. The S&P closed at 3,971, down 0.09%, the Dow closed at 33,171, up 0.3% and the Nasdaq Composite closed at 13,060, down 0.6%.

Robert Schwemmer for NOAA's National Ocean Service, Wikipedia

Currently market futures for all 3 indices continue to inch between green and red. Aside from Apple (AAPL) Monday's most actives were not in the Technology sector.

Source: The New York Times

TalkMarkets contributors continue to look for positive signs in the markets as well search for low spots, many related to the continued lockdowns in Europe. 

Contributor Ivan Kitov in his article Economically, Italy Dropped Into The Mid-1990s drops an additional "bombshell" of an idea suggesting that both France and Italy also, exit the EU. In particular he charts how "bad" the EU has been for the Italian economy since inception.

"Since the introduction in the EU of a monetary union (around 1995), Italy has been suffering the worst period with several consecutive economic falls. In this blog, I recommended France and Italy to leave the EU as Germany squeezes them like a python. The 2020 COVID-19 pandemic for Italy was much worse than for Germany...The COVID-19 situation in 2021 is not promising with the third wave coming before the end of the second wave. Therefore, the Italian economy has clear long-term economic and financial problems...The trend in the rate of economic growth is negative since 1970, but the years after 2000 are the worst – just above or below the zero line."

Check out the full article for Kitov's detailed charts which draw a grim picture.

John R. Mousseau in his article The Bond Market’s “Return To Normalcy” which is also a primer in bond yields, recalls how President Harding coined the term "Normalcy" and ends with a very positive list of financial indicators. The very educational heart of the article about the current and historical behavior of government and municipal bonds merits reading.

"President Warren G. Harding made the term “return to normalcy” famous in the 1920 presidential election when he used the phrase as a campaign theme, promising to bring America back to what it was prior to World War I and the Spanish Flu pandemic, which gripped the nation and the world from 1918 to early 1920. Some people said that Harding should have used the word normality instead of normalcy; but Harding, a former newspaper editor, stuck to normalcy; and the catchphrase entered the pantheon of American political slogans."

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Adam Reynolds 1 month ago Member's comment

I read that for every hour that ship was stuck in the canal, $400 million was lost by the shipping industry. An industry that was already reeling from the pandemic and that ship was stuck for a WEEK! I bet someone is getting fired for that!

William K. 1 month ago Member's comment

There really does need to be a few more rules about how large ships are handled when passing through this waterway. The disaster certainly could have been prevented.