August 24: Inflation still appears as mostly a supply-side phenomenon which is exacerbated from time-to-time by strict, zero Coved tolerance from the Chinese government that leads to shipping port shutdowns. September will see supplemental unemployment end in all States which will ameliorate the supply-side constraints in the U.S. to some degree. The Delta variant is causing more trouble than anticipated but may be ready to peak by the end of August. However, schools pose a problem in that in-class instruction will extend this wave of the pandemic, all else held constant. Luckily schools are rapidly responding to the now 1 in 100 or so school children testing positive and spreading the virus: Schools are moving to distance learning once again. In Oklahoma, where I live, some schools have directly flaunted our Governor’s irresponsible and naive prohibition against mask mandates in various ways. Such civil disobediance is yet another positive.

Leading economic indicators — a more objective predictor of future economic activity — forecast continued economic growth and stability through the rest of this year. This doesn’t rule out a correction in the markets though. Yet, it doesn’t seem reasonable to worry all that much about it. Pick stocks and funds that are still doing well within the context of market highs and generally sideways trading and you can still produce portfolio gains. That said, consider the stocks KSS, ZIM, ITOCY, AOSL, CVLG, BVH, TMST, NEXA, ABG, PAG, LAD, GPI, and WIRE for growth. For dividends, take a look at AGNC, NLY, LUMN, and APAM. The 5 top performing ETFs at this time are: IYH, XLV, VHT, VIG, and DGRO.

Recently I moved some cash in my BLOCKFI account into Bitcoin, Lite Coin, and Ethereum. So far, this momentum trade appears to be working out quite well. I don’t expect to hold these positions for ever but do see the potential for quick gains before switching back to cash at 8% and then holding that until another momentum trade opportunity arises.

Until next time, Good Investing!