thoughts as we finish this 1st Week of June 2021
Copper…Dr. Copper, is the metal with a PhD in Economics: it has the ability to predict the overall health of the economy. Investopedia.
Covid has changed almost every facet of our lives and one area most evident is in the conversations Baby Boomers, Millennials and Gen-Zers are having. Who knew that time, at home, in front of their computers, would spark interest in investing, as it has?
It is a daily challenge to embrace many of the headlines and determine which are dangerous, short-term fads…and which we need to spend more time researching to bring you credible information. Several years ago, older investors would not typically be having conversations with their kids about the stock market but thanks to social media and easy-to-access investing apps, that has changed.
67% of advisors say their clients are confused by their adult children who are encouraging them to invest in cryptocurrencies or “meme stocks.” While 58% of advisers said their clients are curious about cryptocurrency, or meme stocks, 89% of advisers noted that clients do not understand the volatility of these types of investments.
54% of advisers said that they “refuse” to let their clients invest in these types of investments but know…it is not my job to “refuse” to “let” you invest in something you are interested in! Financial advisers surveyed see the greatest risks over the next six months in cryptocurrencies (34%), followed by bonds (29%), and meme stocks (19%). BTW…a meme stock is one that sees a price increase primarily fueled by social media attention, not company performance. One example is the cryptocurrency Dogecoin, which Elon Musk recently touted on SNL as “a joke.” 😊 Trust we will bring you the information you need to make investment decisions that are right for you.
Required Disclosures: Always read the fine print!
The foregoing content reflects the opinions of Sustainable Advisors Alliance LLC and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that any statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance any investment plan or strategy will be successful.
One of the reasons I use technical analysis (like money flows) is you can watch trends as they are developing: pictures don’t lie, and they are worth 1000 words! One place where we can see economic growth in action is copper: it is a linchpin of the old energy economy AND it has s a crucial role in the new green one too. Cables made of the metal are still the most cost-effective means of transmitting electricity from solar and wind sources, and it is a key material in charging stations and the electric vehicles that use them. There is no decarbonization without copper and some call it the new oil.
😲 Why does this matter to you? An electric vehicle contains as much as 180 pounds of copper, four times the amount in an internal-combustion-engine vehicle. Onshore wind turbines use about four times as much copper as power plants fired by fossil fuels per megawatt of electricity. Offshore wind farms are even more copper-intensive; they need thick copper cables to transmit power onshore. Supplies are already tight as the global economy recovers but it is predicted that a rise in green energy demand could lead to significant shortages. Now at $4.50 a pound it could hit $6.80 by 2025, BOA strategist Michael Widmer predicts. Again, INFLATION.
Estimates are now that Schwab's / TD Ameritrade integration won’t be complete until 2023. While the deal closed last fall, with an estimate of it taking 18 – 36 months, it seems it won’t occur until 2023—at the earliest.
😲 Why does this matter to you? Local Schwab offices now have a TD Ameritrade sign: service agents must be able to help clients of both custodians. Schwab has told advisors they will receive “more details and updates” before the end of the month, but they will run two separate custodial platforms “for the coming year, plus.” The negative impact on YOU will be minimal as the extra stress will fall on SAA team members! We are seeing slower wait times and delays in completing usual tasks, but it will be like a duck swimming: we’ll be paddling to make your financial life flow smoothly with few irritations seen on your part! We’ll coach you as the website goes through the changes we expect will come but I’m very happy that TD will bring new enhancements to you.
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