Fast Facts
Teeing Off- after a University of Missouri study found that playing golf just once a month reduces the risk of premature death by about half, likely because it provides stress relief, the stimulation of competition, and a bit of exercise.
Return To Sender- An Ohio man was inundated with 55,000 letters—copies of the same student loan statement sent out when the lender experienced a technical “glitch.” Dan Cain had to make two trips in the family truck to his local post office in order to ferry the 79 plastic bins of letters back to his garage. Officials from the College Avenue Student Loan Co. later apologized for the error. “I just hope it doesn’t happen again,” Cain said. “I might just have to return to sender.”
Humans Are Amazing- A South Carolina man who is paralyzed from the waist down has set a new world record for the fastest marathon run in a robotic exoskeleton suit. Adam Gorlitsky, 33, completed the Charleston Marathon in 33 hours, 16 minutes, and 28 seconds—three hours faster than the previous record. His battery-powered exoskeleton propels his legs forward while Gorlitsky uses his upper body and a pair of walking poles to maintain his balance. It’s exhausting work, and Gorlitsky’s hands were numb for days after the race. But he’s delighted with his feat, saying, “Your adversities will never define who you are.”
Weekly Focus – Think About It
“A hangover is the wrath of grapes.”
–Dorothy Parker, American poet
The Markets
Many stock markets around the world moved higher last week.
Investors’ optimism in the face of economic headwinds has confounded some in the financial services industry. Laurence Fletcher and Jennifer Ablan of Financial Times cited several money managers who believe investors have become complacent. One theory is investors’ buy-the-dip mentality has become so firmly ingrained that any price drop is seen as a buying opportunity, regardless of share price valuation.
Another theory is investors remain confident in the face of declining economic growth expectations because they expect central bankers to save the day:
“Key stock markets are hovering close to record highs even while the death count from the China-centered virus rises and travel in, out, and around the country remains heavily restricted, hurting the outlook for domestic and international companies. Regardless, stumbles in stocks are quickly reversed. To some traders, this is proof that investors believe major central banks will pump more stimulus into the financial system.”
Ben Levisohn of Barron’s doesn’t think investors in U.S. stocks are complacent. He wrote:
“Yes, [investors have] decided to stay invested in U.S. stocks, but compare it with the other options. Emerging market stocks near the epicenter of the outbreak? Treasury notes with yields of just 1.59 percent? Cash? But, they haven’t sat idly by, either. They’ve dumped the stocks most exposed to coronavirus and to a slowing economy – things like energy, cruise lines, airlines, steel.”
Treasury bond markets are telling a less optimistic story than stock markets. The U.S. treasury bond yield curve has flattened in recent weeks. On Friday, 3-month treasuries were yielding 1.58 percent while 10-year treasuries yielded 1.59 percent. When there is little difference between yields for short- and long-term maturities, the yield curve is considered to be flat.
Historically, the slope of the yield curve – a line that shows yields for Treasuries of different maturities – is believed to provide insight to what may be ahead for economic growth. Normal yield curves may indicate expansion ahead, while inverted yield curves suggest recession may be looming. Flat yield curves suggest a transition is underway.
WHAT’S YOUR FAVORITE REMEDY FOR A HANGOVER? Consuming too much alcohol comes with an unwelcome side effect: the hangover. Symptoms of a hangover typically include dehydration, fatigue, vertigo, headache, nausea, and muscle aches. If you’ve ever had one you may understand the growing market for hangover treatments.
By one estimate, Americans experience 2.6 billion hangovers each year. That may be why market research analysts think hangover remedies have the potential to become a billion-dollar industry. The Washington Post reported the number of recovery (and ‘precovery’) treatments has ballooned during the past three years. So far, the hangover remedy industry has:
• Offered treatments that include water-soluble tablets, capsules, beverages, and patches.
• Attracted $10 million of Silicon Valley venture capital.
• Birthed start-ups that generate strong sales during the first few months of operations.
The hangover market is small potatoes when compared to the market for alcoholic beverages ($1.4 trillion). However, the market for non-alcoholic cocktails is growing, too. In New York City, booze-free bars charge $13 a pop for dry cocktails.
Here’s a question: Are alcohol-free drinks a precovery hangover solution or a beverage?
Best regards,
John Klevens, CFP ®
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This material is intended to provide general financial education and is not written or intended as tax or legal advice and may not be relied upon for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. This material is for informational purposes only and is not an offer to sell or a solicitation to buy any securities.
Securities and Advisory Services offered by John Klevens through KMS Financial Services, Inc. Member FINRA/SIPC and an SEC Registered Investment Adviser. Klevens Capital Management and KMS are separate and unaffiliated.
Portions of this newsletter have been prepared by Peak Advisor
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* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
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* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
Sources:
The Week Magazine
https://markets.ft.com/data/world (Click on ‘Global indices’ at the bottom left of the map and choose ‘5 day’) (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/02-18-20_FinancialTimes-Global_World_Markets_Indices-Footnote_1.pdf)
https://www.ft.com/content/8732e814-4e82-11ea-95a0-43d18ec715f5 (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/02-18-20_FinancialTimes-Investor_Complacency_Sets_in_While_Coronavirus_Spreads-Footnote_2.pdf)
https://www.barrons.com/articles/dow-jones-industrial-average-gained-1-this-week-as-stocks-ignore-the-coronavirus-51581726118?mod=hp_DAY_1 (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/02-18-20_Barrons-The_Dow_Jones_Industrial_Average_Gained_1_Percent_this_Week-Let_It_Ride-Footnote_3.pdf)
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/textview.aspx?data=yield
https://www.investopedia.com/terms/y/yieldcurve.asp
https://www.health.harvard.edu/staying-healthy/7-steps-to-cure-your-hangover-and-ginkgo-biloba-whats-the-verdict
https://www.washingtonpost.com/business/2019/12/19/drinking-with-no-consequences-this-was-year-hangover-hack/
https://www.businessinsider.com/bars-no-alcohol-sober-dry-january-nyc-2020-1
https://www.goodreads.com/quotes/370656-a-hangover-is-the-wrath-of-grapes