Hey Guys – it’s GOOD FRIDAAAAAAAAAAY! Grab the bun and cheese or fried fish and let’s get reading!
Watching Biden & Harris in their first couple of months, feels like they have been doing this a year or longer already… Its already clear as a beautiful beach, that this leadership team has not come to romp. The duo or tag team feels already like something out of Rambo. Just when you did not think it could get any better after blazing the trail of the stimulus checks, that I have been branded as “STIMMYS” in the U.S. and globally, team Rambo has announced a new Bazooka Plan of Action.
Who would have thought so much could have happened by Biden in this short period of time?
So, to re-cap, we got a settling down of the U.S. economics, clearer FED messages, a whopping approved US$ 1.9 Trillion stimulus plan, and now, the big whammy, this week, a more than US$ 2 Trillion Infrastructure Plan, and recovery economic package. The resulting impact and output of this, is that everyone globally is now watching the U.S. again, and not only China as U.S. had fallen off the radar for some time economically, but the U.S. is very much so in the headlines again now, from a macro standpoint since January 2021 and continuing. Do not be surprised, even after this US$ 2 Trillion or more announcement, if there is more to come in 2021 and beyond.
What are we taking away from this?
- This should keep the Dow/ S&P/ Nasdaq HAPPY for now’ stock markets like $$$ and they like “spending”
- The massive infrastructure plan, is over 8 years… yes, they snuck that in there, so big optics number, but its over 8 years… very smart of them
- In the finer details, besides, transportation, bridges, broadband, and the items we would expect, there is also a carve out for the elderly, so although the HEADLINEreads infrastructure, this is very well thought out, well crafted and strategic economic recovery package by the Dems here,
- Overall, it is a powerhouse move, and a Bazooka move in the U.S.
Its also putting pressure on many global governments including emerging market governments and developing countries…
Citizens in their respective countries are seeing this, wide and far, and everywhere, and saying, not only what are we getting also, raising the conversation further about “income inequality” but also if U.S. is spending to get out of this, should our leadership or countries be spending too? Despite commentary about inflation concerns or affordability, the U.S. is demonstrating powerful moves and a slogan of building back and some creative financing also.
All of this despite their own economic analyst concerns, of the US$ 10-year treasury hitting 1.77% this week, and to re-iterate inflation headline thoughts…
The Markets:
- The bulls locally just are not here for the time being, unless you are focused on pharma/ healthcare, food, manufacturing, distribution, and logistics. Everything else is a bit sideways or down.
- Things are a bit boring now as we await another earnings period to come out, and semi-lockdowns have dampened markets, and short trading weeks…
- As we said in a recent ItsMoney, confidence is key, and semi-lockdowns lead to lower revenues and EBITDA, that in turn should hamper some of Q1 results and potentially Q2 results (calendar)… let us see. Be aware and be on the look out for this.
- FosRich has been a sneaking stock, it has quietly jumped above J$ 5/ share on market rumours of an APO. Carried in the media recently and on ICinsider. Their track record to date and their trajectory seems to be remarkably like Derrimon. If one believes in that and if so, they are on good footing and their future is bright…
- Based on the sectors we continue to see doing well as Covid still hits Jamaica, keep watching and looking out for next earnings reports for:
- Mailpac,
- Indies Pharma,
- Caribbean Cream,
- Derrimon,
- Seprod,
- GraceKennedy
- U.S. markets, ItsMoney spoke late last year to the cruise line and the airline industry and some of the stocks, and about a Quarter later or so, talk about a rally, especially as the vaccine sets in. WOW!
- Airline index in U.S. is about 20% + YTD,
- Select U.S. stocks such as American Air, is up approximately 59% YTD,
- Select U.S. cruise stocks such as Carnival Corp, is up approximately 30% YTD,
Happy Good Friday and think about your blessings.
Be awesome!
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ITSMONEYMARK 