Investors Insight - Week of 03.29.2021 Report.pdf - Preston Buhrmaster

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WEEKLY INVESTORS INSIGHT REPORT MARCH 29, 2021 - APRIL 2, 2021 PREPARED BY PRESENTED BY Preston Buhrmaster Venerated Capital Group Austin Verde WEEKLY INVESTORS INSIGHT REWIND MARCH 29, 2021 - APRIL 2, 2021 INVESTORS INSIGHT 1 A Recap of Last Week WEEKLY REWIND ▲ 1.66% ▲ 1.24% ▲ 1.39% S&P 500 NASDAQ DOW The U.S. Stock Market has exhibited slight gains over the previous trading week. The major Indexes recorded slight price Increases of over 1% but less than 2% on the week. The S&P500 recorded the largest gains of the three with a weekly gain of $65.02 or 1.66%. The past week was the one year anniversary of the market bottom that resulted from the economic downfall of the COVID-19 pandemic. Since then, market performance has been exceptionally strong and poses a positive outlook In the coming months. The market rebound observed has been fueled by expectations for economic recovery and a forecasted Increase In corporate profits In the coming months. As we near the end of march, nearly a quarter of 2021 Is officially In the books. Over this time, the stock market has shown a solid gain, though the coming months will show the true results of the recovery efforts and their effect on the economy. Vaccine development and distribution has given way to some normalcy as lockdowns and social distancing restrictions begin to ease nationwide. As vaccine distribution continues to ramp-up, the economic outlook remains positive, signaling continued growth In the markets. INVESTORS INSIGHT 2 A Recap of Last Week WEEKLY REWIND ▲ 1.66% ▲ 1.24% ▲ 1.39% S&P 500 NASDAQ DOW One of the most notable gainers over the previous week occurred In the bond market as the ten-year Treasury yields rose to a 14-month high. This resulted from Increasing concerns of Inflation and the Impact of the stimulus. stimulus checks recently reached the bank accounts of millions of people nationwide and much of those funds are expected to be Invested In the stock market as well as cryptocurrencies. This poses another opportunity for gains across the markets as the stimulus works Its course. The U.S. labor market has shown little Improvement over the past few months, showing a slow recovery so far this year. Unemployment Is only decreasing In small numbers as pandemic related restrictions and the resulting economic detriment take their toll. GDP growth Is also expected to pick up In the coming months as the overall economic outlook shows positive signs as recovery efforts further. INVESTORS INSIGHT 3 A Recap of Last Week WEEKLY REWIND ▼ 0.67% ▼ 0.57% ▼ 1.27% US Oil Gold Silver U.S. Crude Oil prices slightly retreated over the past week as a few key events weighed In on the price per barrel. Lockdowns across the globe, both relaxing and renewed have played a role In energy consumption. Decisions that may result from the OPEC+ policy meeting as well as the giant cargo ship blocking the Suez Canal also hold significance In the movement of oil prices In the coming week. The cargo ship that has been blocking the Suez Canal for around a week Is now reported to have been partially freed as of Sunday evening, March 28. According to the chairman of the organization that operates the waterway, the next step Is to straighten the ship's course. At the time of this publication, there are currently no details In relation to when the ship will be set back on Its course. Once the ship Is freed and set back on Its course, It will enable the waterway to reopen and function as normal, which will enable global trade to resume as normal. Since the ship began blocking the canal, more than 400 ships have been backed up and the economic impact of such amounts to over $9 billion on a daily basis according to the Associated Press. The blockage has complicated global trade and created stagnation In the markets as we await the ship to be freed In the coming days. INVESTORS INSIGHT 4 A Recap of Last Week WEEKLY REWIND ▼ 0.67% ▼ 0.57% ▼ 1.27% US Oil Gold Silver An oil refinery on Java iIsland In Indonesia reportedly caught on fire early morning Monday, March 29. The fire Is said to have injured at least 5 people and caused nearly 1,000 nearby residents to evacuate and seek safety. The refinery Is located 110 miles east of Jakarta, the capital of Indonesia. The company that operated the refinery stated that hundreds of people had been evacuated from the area and suggested that the fire may have been the result of a lightning strike that occurred during a storm. The company also said that the fire would not jeopardize their fuel supply, which supplies the Jakarta area. The company Is said to have enough gasoline on hand to supply the country for four weeks. Gold and silver both began the trading week In the red after falling In the Asia Pacific session. Both are trading around or below the 1% mark, noting slight declines. The dollar index was slightly positive with gains of 0.11%. With the Ever Given being successfully re-floated In the Suez Canal, hopefully ships stranded on either side can start moving again. The U.S. Trade Representative Tai stated that the U.S. Isn't ready to lift tariffs on Chinese imports in the near future. Tensions between the two countries remain especially high as the extremities of the Uighur Muslims remains a pressing topic of discussion. INVESTORS INSIGHT 5 A Recap of Last Week WEEKLY REWIND ▼ 0.67% ▼ 0.57% ▼ 1.27% US Oil Gold Silver It can be noted that investors are showing a rising appetite for riskier assets as economic recovery and Increasing vaccination rates are making a dent In metal's safe-haven status. The dollar began the week on a strong note as U.S. economic strength and vaccine rollout reflect positively on overall sentiment. A stronger dollar makes It more expensive to purchase gold for holders of other currencies. It is also Important to note that U.S. consumer spending fell by the most In 10 months over the month of February. This Is largely the result of a delayed second round of stimulus checks to middle and lower-income households. The strength of the dollar as well as the overall sentiment In the markets will play a key role on the prices of commodities In the coming week. INVESTORS INSIGHT 6 A Recap of Last Week WEEKLY REWIND ▲ 2.96% ▲ 2.16% ▲ 2.23% BTC ETH LTC ▲ 0.33% ▲ 3.19% ▼ 6.64% XRP BCH DOGE Leading the news for the week In the cryptocurrency realm Is that Visa officially became the first major payments network to settle transactions with the stablecoin, USDC. USDC Is a cryptocurrency that Is pegged to the U.S. dollar In a 1:1 ratio and Is based on the ethereum blockchain. Visa has plans to make this available to additional partners later this year. Visa Is said to be partnering with 35 digital currency platforms, a list which Includes Coinbase, BlockFi and Crypto.com. This should fuel bullish momentum In the cryptocurrency markets further as the move signals further adoption. Upon the headlines being released about Visa, the price of Bitcoin jumped above the $57,000 mark. The IPO filing of Coinbase, the largest cryptocurrency exchange In the U.S., should also continue to continue bullish momentum In the cryptocurrency space. The Increase In Investment appeal of bitcoin and other cryptocurrencies as a result has led to continued Increases In price, with projections continuing to rise for the coming months. With the majority of major market cap coins showing slight gains over the previous trading week, this news Is expected to continue to momentum upward across the market. INVESTORS INSIGHT 7 NEWS INVESTORS INSIGHT STORIES MARCH 29, 2021 - APRIL 2, 2021 INVESTORS INSIGHT 8 This Week's Top News NEWS STORIES Cargo Ship Blocking Suez Canal Has Been Partially Freed: According to reports late Sunday, March 28, the cargo ship that has been blocking the Suez Canal for nearly a week has been partially freed. New Mideast Crude Contract May Test OPEC's Grip: Abu Dhabi allowed trading of a futures contract linked to its flagship grade of crude for the first time Monday in a debut that could test OPEC’s grip on oil prices. Banks Continue To Tumble After U.S. Fund Flops: A margin call triggered on Friday of U.S. investor Archegos Capital Management continued to ripple through markets. France Probes Missing Greensill Loan to GFG Smelting Plant: The disappearance of a loan provided by failed startup lender Greensill Capital to a French aluminum smelting plant linked to industrialist Sanjeev Gupta’s GFG Alliance Ltd. is the focus of a preliminary investigation in France. Oil Spikes As White House Eyes Suez Canal Energy Impact: The shipping vessel stuck in the Suez Canal may escalate into a crisis for U.S. energy markets and the White House is paying close attention. SomaLogic To Go Public through SPAC Merger In $1.23B Deal: SomaLogic Inc said on Monday it will merge with activist investor Keith Meister-backed special purpose acquisition company in a deal that values the protein analysis company at $1.23 billion. INVESTORS INSIGHT 9 This Week's Top News NEWS STORIES The Eurozone Weakness: The European Union delayed unnecessarily the approval of vaccines that had already been tested and confirmed by US and UK health authorities, but also implemented a rigid, complicated, and tedious process in reaching commercial agreements with the vaccine supplying companies. Erdoganistan - New Islamic Superepower?: Both Khomeini and Erdogan seem to have been committed to erasing secularism and ties with Western culture from their respective countries; to heading a battle against Saudi Arabia for supremacy of the Islamic world and to re-Islamizing their societies. REITs Rally As Rates Retreat: Real estate equities - both REITs and homebuilders - delivered strong gains as interest rates pulled back. The broad-based Equity REIT Index gained 2.6% led by residential and technology REITs. Hedge Fund Failure Slams Credit Suisse And Other Banks: Major global banks could be hit with billions of dollars in losses after a US investment firm was forced to dump shares last week when it got into financial trouble. INVESTORS INSIGHT 10 WEEKLY INVESTORS INSIGHT OVERVIEW MARCH 29, 2021 - APRIL 2, 2021 INVESTORS INSIGHT 11 This Week's Key Takeaways WEEKLY OVERVIEW U.S. Economic Calendar WEEK OF MARCH 29 - APRIL 2 Tuesday, March 30 09.00am | Dallas Fed Manufacturing Index Prev. 17.2 10.00am | Fed Waller Speech Tuesday, March 30 09.00am | Case-Shiller National Home Price Index (YoY) : January Prev. 10.4% 10.00am | Consumer Confidence Index: March Prev. 91.3% Wednesday, March 31 08:15am | ADP Employment Report: March Prev. 117k 9:45am |. Chicago PMI: March Prev. 59.5 10:00am | Pending Home Sales Index: February Prev. -2.08% Thursday, April 1 08.30am | Initial Jobless Claims (Regular State Program): March 27 Prev. 684k 08:30am | Continuing Jobless Claims (Regular State Program): March Prev. 3.87m 09.45am | Markit Manufacturing PMI (final): March 10.00am | ISM Manufacturing Index: March Prev. 60.8% 10.00am | Construction Spending: February Prev. 1.7% Varies | Motor Vehicle Sales (SAAR): March Prev. 15.7m Friday (March 26): 08.30am | Nonfarm Payrolls: March Prev. 379k 08.30am | Unemployment Rate: March Prev. 6.2% 08.30am | Average Hourly Earnings: March Prev. 0.2% INVESTORS INSIGHT 12 This Week's Key Takeaways WEEKLY OVERVIEW What To Expect This Week: Throughout this week, a lot is happening that could make the markets choppy starting as early as tomorrow. The first quarter is winding down, meaning pension funds and big time investors will be shifting their portfolios around, creating volatility. On Wednesday, Joe Biden plans to shed some light on his infrastructure plan which will obviously have an impact on the market for the future. The March employment report is also set to be released on Good Friday, and it is estimated to show a growth in over 600,000 jobs in the past month alone. Depending on the moves these managers make, Biden’s infrastructure plan, and the job report, the market can see volatility as really so much could happen. The market could soar in the direction of the strongest numbers we have seen, things could offset, or there could be a significant drop. Investors need to be extra diligent this week; as it may be time to sell holdings that have seen their run, and look to holdings that would benefit from Biden’s infrastructure plan. It is important to find strong investments that will survive even if there is a dip in the overall market as they are generally resilient when things are negative overall, and will soar when things are positive overall. INVESTORS INSIGHT 13 This Week's Key Takeaways WEEKLY OVERVIEW What To Expect This Week: The family office of former Tiger Management trader Bill Hhwang was responsible for the unprecedented selling of over $20 billion worth of shares on Friday, according to Individuals directly familiar with the trades. Large moves have already been noted In Asia and Europe as Nomura Holdings Inc. tumbled after warning of a significant potential loss. Credit Suisse fell after stating that It may face a loss In the first fiscal quarter due to a U.S. hedge fund client defaulting in margin calls. Global coronavirus cases continued to rise for the fifth straight week, witHH the death toll. continuing to accelerate. The U.K. Is said to be relaxing some restrictions related to the ongoing pandemic and the U.S. reached the mark. of 3 million doses administered for the past three days. The big focus for the coming. week Is the data set to be released. In Friday's nonfarm payroll's report, with economists expecting more than 600,000 positions to have been added this month. INVESTORS INSIGHT 14 WEEKLY INVESTORS INSIGHT ANALYSIS MARCH 29, 2021 - APRIL 2, 2021 INVESTORS INSIGHT 15 Company Overview & Analysis IN-DEPTH ANALYSIS Microsoft closed out Friday at an average cost price of $236.32; $9.81 from its 52 week high of $246.13. Approaching its 52 week high, investors may wonder if there will be a sell off, or if this stock has more room to run; and our analysts predict it has room to run, a lot more. In just the last 5 years, technology giant, Microsoft, is up well over 300% providing generous returns for their investors overall. Not to mention, Microsoft reported strong financials as they boasted an increase in over 20% of their total assets proving they are a company headed in the right direction. While investors obviously may not want to rely on just one aspect to pick a stock, it’s never a bad idea to check a company’s EPS. Microsoft has a strong streak of reporting a steady increase in their earnings per share for years now. In 2017, Microsoft reported an overall EPS of 3.66, in 2018, that rose to 3.94, in 2019, that rose to 5.14, and in 2020 that rose to 5.85. This means that since 2017, there has been an increase of over 60% in the company’s earnings per shares. With Microsoft’s P/E Ratio rising over 35 now, our analysis tells us Microsoft is not overvalued whatsoever, but rather, investors believe Microsoft will continue to be a major player all across the globe for years to come. Recently, it’s been reported that there have been talks of Microsoft purchasing the well known calling and messaging app Discord for $10 Billion. With more than 100 million monthly users and an evaluation at $3.5 billion last year this could also be something to look at as Microsoft wants to expand, and has the capital to do so. INVESTORS INSIGHT 16 Company Overview & Analysis IN-DEPTH ANALYSIS Last week, Microsoft also officially launched their decentralized identity platform “ION” with a goal to authenticate online ID’s using the bitcoin blockchain. Therefore, proving in just another way, Microsoft is always looking for innovative ways to grow, which is a great sign for investors. Taking all of this into account our analysts award Microsoft with a Strong Buy rating as we believe their strong financials, continuous consumer growth, and their variety of key offerings they provide will make this stock a bargain below $250 for the long term; ensuring that once again, Microsoft is a Strong Buy. INVESTORS INSIGHT 17 Company Overview & Analysis IN-DEPTH ANALYSIS On this past Friday, Bank of America finished the week up about 1.8%, closing out the week at an average cost price of $38.68. Close to their 52 week high, investors ponder the thought of a sell off or wonder if this stock will go higher. Our analysis determines BAC is a strong stock to add to your portfolio, especially if you acquire it at the right price as you can take advantage of their solid dividend payout as well. To date, BAC stock is up over 182% in the past 5 years, and has proven over the years to be a major player in both Banking and Investment Services. Just last week, BAC took part in being associated with some big names such as Citigroup and HSBC Holdings to arrange calls with bond investors. This came as the London Stock Exchange readied massive three currency bond offerings, and BAC took part in this, demonstrating how much BAC does asides from providing a savings account. In 2020 BAC’s EPS was reported at 2.75, which is an increase of 50.49% compared to their EPS of 1.82 back in 2017. This demonstrates BAC’s steady growth while paying out a dividend each of these years; which is a good point to note. In fact, BAC’s dividend yield is currently around 1.9% and they provide their shareholders with an annual dividend of about $0.72. This is definitely something to take into account as BAC has increased their dividend payout over the years, and has maintained a strong streak going with their shareholders, which is just another incentive in owning a share of this company. INVESTORS INSIGHT 18 Company Overview & Analysis IN-DEPTH ANALYSIS BAC has a P/E Ratio of about 20 to date, which our analysts take as a positive thing, as overall investors believe BAC is capable of generating positive long term returns. This company is our analyst’s favorite Bank franchise to acquire for your portfolio as their solid dividend payout, unique versatility as more than just a regular bank, and the steady growth they display makes a piece of this company worth having. At a target price of $40, BAC is rated a Buy, but it would be smart for investors to wait on a little dip, and watch for when the dividend gets confirmed. INVESTORS INSIGHT 19 THE INVESTORS INSIGHT ENDING WWW.VENERATEDCAPITALGROUP.COM The Weekly Market Update is published every Monday, before the market opens. The content contained in this report is shared for informational purposes only and should not be interpreted as specific investment or financial advice. Investors should base decisions on their own research, knowledge, strategies, objectives and financial situation. The information shared through Venerated Capital Group consists of our own ideas, opinions, and speculative hypotheses on the market. Always do your own research and due diligence before investing or trading. Take any advice shared through Venerated Capital; Group, or any of its entities, at your own risk. 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