By Eric Schopf
The first quarter of 2021 gave investors a little bit of everything. We saw a second impeachment of Donald Trump, the inauguration of Joe Biden, two more shots of fiscal stimulus, multiple Covid-19 vaccines, the rise of retail investors and meme stocks, unseasonable weather patterns and the collapse of a hedge fund masquerading as a family investment office. Through it all, the stock market maintained a bullish stance with the Standard & Poor’s 500 delivering a total return of 6.2%. The improving outlook for the economy was confirmed by the bond market as interest rates rose sharply. The yield on the 10-Year U.S. Treasury note spiked to 1.74% from 0.92% at year end.
By Eric Schopf
Wells Fargo & Co. is a diversified, community-based financial services company. It offers banking, insurance, investments, mortgages and consumer and commercial finance. WFC operates through three segments: Community Banking, Wholesale Banking and Wealth & Investment Management. The Community Banking segment offers diversified financial products and services for consumers and small businesses including checking and savings accounts, credit and debit cards and automobile, student and small business lending. The Wholesale Banking segment provides financial solutions to businesses across the United States and globally. The Wealth & Investment Management segment includes personalized wealth management and investment and retirement products and services. The company was founded in 1852 and is headquartered in San Francisco, CA. Today, WFC operates over 5,900 branches across thirty-nine states and the District of Columbia. Wells Fargo is one of the largest banks in the country with $1.9 trillion in assets.
By Barbara Rishel
On March 31, 2021, President Biden released details for a proposed American Jobs Plan – a $2.7 trillion package aimed at addressing a range of issues, including transportation and other infrastructure, climate change, caregiving and housing. If approved by the Congress, the plan would represent one of the largest investments in the nation’s infrastructure in history, although the scope of the proposal goes beyond what is traditionally thought of as “infrastructure”. As a means of fully offsetting the cost of the package, the Administration has proposed increasing the corporate tax rate from 21% to 28%.
Greetings from Tufton Capital, where the tinsel has been packed away, the winter weather has formally arrived, and your team of investment professionals has been busy closing the books on a year that will never be forgotten. (more…)
By Eric Schopf
The stock market posted strong returns in the fourth quarter. The Standard and Poor’s 500 reached record levels in December and finished the year with a total return of 18.4%. The recovery from the March 20 low was a robust 65.2%. The 10-year U.S. Treasury yield continued to march higher with a year-end yield of 0.92%. The yield is up from a low-water mark of 0.50% in March and 0.68% at the beginning of the quarter. We are, however, still a long way from the 1.92% yields offered at the beginning of the year.
By Scott Murphy
Over the past decade we have seen incredible growth in our reliance on technology and the impact it has on our daily lives. Technology has moved away from the individual PC in a closed environment to an always on, interconnected world where the real time delivery of technology applications and data through the internet and 5G communications platforms is an absolute must. The worldwide Covid-19 pandemic has further pushed the limits on this need to be connected. Whether using Zoom for “work-from-home” demands or keeping in touch with family for non-traditional Thanksgiving celebrations, the need to remain connected for social and business reasons has never been more important. Like it or not, the concept of “cloud computing” is slowly making its way into our daily lexicons.
By Ted Hart
One hundred years ago, our country embarked on a decade now referred to as the “Roaring Twenties”, a period that encapsulated a new era of consumerism and extravagance to the American culture. New technologies and mass production made new products more affordable to the middle class. Armed with the right to vote, American women felt liberated to try out new fashion trends, which gave rise to the widespread use of makeup. A new trend in the American home emerged with an increased desire for home furnishings and decor.
In a 1946 essay, George Orwell laid out his six rules for writing. The first five—including such gems as “never use . . . a jargon word if you can think of an everyday English equivalent”—reflect the famed author’s expert approach to his craft. But it is the final command that stands out. “Break any of these rules,” Orwell instructs, “sooner than say anything outright barbarous.”
By Eric Schopf
The stock market continued marching higher in the third quarter. The Standard and Poor’s 500 provided a total return of 8.9% and finished the quarter with a year-to-date return of 5.6%. The strong returns came despite a mild correction that set the market back 7% in the first three weeks of September. Prior to the September correction, the S&P 500 was at an all-time high. Interest rates held steady with the 10-year U.S. Treasury bond closing at 0.68%, little changed from 0.65% at the end of June. The stock market stands in sharp contrast to an economy that is slowly healing from what we hope is a once in a lifetime pandemic. The “V” shaped recovery in the stock market has been compared to a “K” shaped economic recovery. Companies and individuals doing well continue their upward trajectory while those most negatively impacted by the virus fall further behind. Although the stock market has reached record highs, averages continue to be driven by large growth companies. Broader market strength will be a positive sign that the economy is normalizing.
By Barbara Rishel
On April 1, 2020, United Technologies (ticker: UTX) merged with Raytheon Corporation (ticker: RTN) and is now Raytheon Technologies (new ticker: RTX). As part of this transaction, United Technologies spun off its two non-aerospace and defense businesses, Otis Corp (OTIS) and Carrier Corp (CARR) in a tax-free transaction to its shareholders. For every share of UTX owned, shareholders received one share of RTX, one half of a share in OTIS, and one share of CARR in place of UTX, which no longer exists as an independent company. Raytheon Technologies’ CEO is the highly respected former CEO of United Technologies, Greg Hayes.
By Randy McMenamin
Receiving dividend payments from your equity holdings every quarter is similar to collecting interest on money in a savings account. It’s very nice but it’s not exciting. Buying a stock and betting its share price will increase is much more exhilarating. There are, however, several advantages of owning dividend-paying stocks.
Let me begin with what matters most – your family’s health. In these humbling times – times in which young couples are married on the front lawn, and new fathers are locked out of the delivery room – one cannot help but be reminded of life’s true priorities. As the pandemic continues to visit disquiet and disruption upon families around the world, it is my sincere hope that this letter finds you and your loved ones in good stead.
By Eric Schopf
“There are three kinds of lies: lies, damned lies and statistics.” This phrase, popularized by Mark Twain, was right on point during the second quarter. Unbiased and accurate information regarding the coronavirus has been diluted by myriad sources tainted by political, economic or self-interest motives. The confusion sowed by half-truths and lies has resulted in uncertainty and false starts in objectively moving from economic lockdown to open-for-business. COVID-19’s source, transmission, treatment and morbidity patterns have been just one aspect of this disinformation flow. A dearth of testing and the stealth nature of the virus have created an environment ripe for deceit. True infection rates remain unknown. Even unemployment data, gathered and disseminated by the United States Bureau of Labor Statistics, a unit of the U.S. Department of Labor, was corrupted when it classified many people as employed but absent from work when in fact they were actually unemployed. This misclassification resulted in a reported unemployment rate of 14.7%, although it actually reached 19.5% during the quarter.
By Rick Rubin
In response to the COVID-19 pandemic that spread across the U.S., the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law by President Trump on March 27, 2020. The CARES Act is a $2 trillion emergency fiscal stimulus package designed to help battle the disruptive economic effects of COVID-19 for individuals, businesses, healthcare providers and state and local governments.
By Barbara Rishel
Corning’s fascinating history as a specialty glass manufacturer goes back 170 years. It was the partner of choice for Thomas Edison to manufacture the bulb-shaped glass encasement for his NEW incandescent lamp in 1879. Headquartered in Corning, NY, Corning’s products and innovations touch many different aspects of our lives; some in ways you might not expect. Some of the earlier inventions include cathode ray tubes (CRTs) for TVs in the early days of television in the 1950s, PYREX, Corning Ware and Corelle cookware, Steuben Art Glass and windows on the Hubble Space Telescope. Corning’s glass has been on every manned U.S. space flight since 1962. More recent inventions include flat screen TV glass, fiber optics, bendable glass for watches/wearables, antimicrobial glass for touch screens and high-quality vials for vaccines and healthcare.
