See a Penny (or a Million of Them) – Pick it Up
In the second half of 2020, Alphabet began buying back C shares, which caused C to regularly trade at a slight premium to A, a reversal of the historical norm. In actual dollars, this meant the C shares traded at $2,511 while the A shares were $2,402.
Shanghai Surprise is a 1986 movie about a con man, a nurse, and a coveted supply of opium. Markets got a Shanghai Surprise of their own in the third quarter, as China’s “common prosperity” movement led to crackdowns on myriad industries.
Q4 2020 Market Commentary
In the fourth quarter of 2020 the November 9 Covid-19 vaccine data prompted a shift in the market on that day, as the cards were turned over on Pfizer’s/BioNtech’s candidate. The positive efficacy data led to a strong rally in lowly-valued stocks and shares of companies that had been negatively affected by the pandemic.
Third Quarter Commentary: The Beat Goes On
The beat went on in the third quarter as growth stocks once again shone, propelling the S&P 500 to a 9% gain. The market continues to be narrow, with the index being carried by a relatively small number of companies. While the index is up this year, the average stock is down. This is generally considered to be unhealthy.
Second Quarter 2020: What A Short Strange Trip It's Been
In 1976, Grateful Dead released “What a Long Strange Trip It’s Been.” The second quarter felt like a long strange trip, except it took place over just three months. We entered the quarter trying to flatten the curve, did so, and saw the economy reopen and social distancing restrictions relaxed to a degree.