Investment Management

Is America waking up from its COVID slumber? The number of people getting vaccinated is increasing daily. Yesterday, Governor Greg Abbott of Texas eliminated the mask mandate, and he's allowing businesses to open up at 100% capacity. Mississippi is doing the same. President Biden anticipates most Americans will receive the vaccine by May. Are we ready for another Roaring Twenties?

Interest rates are rising. Year to date, the yield on the US 30-Year Treasury bond is up 24%, and from the July low, it has risen 75%. Though rates are near historical lows, they can rise quickly. When rates rise, bond prices fall, and at some point, they will threaten stocks as investors search for decent returns with less risk.

GameStop stock soared to all-time highs last week on the wings of social media traders. The Reddit traders put the short squeeze on GME and almost destroyed two high profile short-selling firms. At one point, GameStop had risen more than 1,600%! On Twitter, Reddit Investors said, "It is the common man vs.

Gamestop stock has soared more than 1,750% over the past few weeks, led by an army of Robinhood traders utilizing sites like Reddit and WallStreetBets. These social media warriors knocked one hedge fund manager to its knees as Gamestop soared to dizzying heights.

Yesterday was a dark day for our country. I watched in horror as an angry mob stormed the Capitol Building, besieging the capitol police. Certifying the Electoral College votes is typically a ceremonial event, administered without fanfare, but not yesterday as rioters forced Congress members to put on gas masks and flee the chamber. The last time unruly thugs stormed the Capitol Building was 1812, 209 years ago.

In a low-income, zero-interest rate world incorporating an option writing strategy may give your account a boost.  Writing options on stocks you own or want to own is an excellent way to increase your income without altering your asset allocation strategy or investment plan. If you own individual stocks, this could be a strategy for you. 

A few individual stocks are soaring this year, like Zoom, Peleton, DraftKings, Pinterest, and Bill.com – each one up more than 225%, with Zoom leading the way, rising almost 500%, far outpacing the Dow's gain of 7.75%. It seems logical to sell boring index funds to buy high flyers; after all, who wouldn't want to earn 500%?

It's the season of Wall Street predictions, so I'm throwing my hat into the ring to offer 21 projections (guesses) for 2021. If I predict all 21 correctly, I'm sure to garner immense fame and fortune. I may even be herald as the next great futurist with book deals, movie offers, and television appearances to follow. If I'm wrong and all my ideas fail, there's no downside because most forecasters are wrong about the future.

Election day has come and gone, and pollsters once again missed their mark. In 2016, they forecasted a Clinton landslide, and she lost. This year, Biden was projected to win by double digits, and a blue-wave would overtake the House and Senate. The election is not officially over, but it won't be a double-digit victory, and we did not experience a blue-wave. Same as it ever was.

A young ruler wanted a majestic garden with towering trees. He met with his gardener to share his vision. His gardener recommended planting 100 giant Sequoia trees to surround his land. The Sequoia is the most massive tree in the world, fitting for a young ruler. The ruler was pleased with the suggestion, and he authorized the project.