SPACs: THE FUTURE OR A FAD?

There was a record volume of Special Purpose Acquisition Company (SPAC) Initial Public Offerings (IPO) in the first quarter, but questions remain about the sustainability of the trend. The record volume was most likely a result of the stock market surge over the last twelve months or so — many private companies were looking to access the public markets quickly. However, the SPAC growth slowed in April, at least in part due to the SEC. SPACs represented about 21% of global equity issuances in the first quarter, but only 3%…

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INVESTMENT COMMENTARY – FIRST QUARTER, 2021

The US economy contracted by 2.3% last year as a result of the pandemic. Economic activity dropped precipitously in late March of 2020 and then rebounded strongly in the 3rd Quarter. Much of the contraction obviously related to the curtailment of in-person activities such as dining, travel, and entertainment. Consensus forecasts, which assume the vaccines protect against COVID variants and prevent another wave of infection, call for the economy to grow 6-7% this year. However, we expect the economic recovery to exceed expectations due to pent-up demand...

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TAX DAY EXTENDED TO MAY 17

The IRS extended the individual federal income tax filing deadline for the 2020 tax year from April 15th to May 17th. The postponement provides needed time for tax preparers and taxpayers to navigate the unique and challenging circumstances related to the pandemic. Since the announcement, additional details have become available, and it is important to understand how they may impact you. Based on information available on March 24th, the summary below highlights the changes to filing and payment details for individual taxpayers.What has changed:2020 federal income tax return filing deadline…

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RISING RATES EXPOSE RISK IN FIXED INCOME

In recent years, the bulk of investors’ attention has been seized by the rising equity markets. The fixed income markets’ low yields and the expectations this would persist for the foreseeable future struggled to draw attention away from equities. In our view, this allowed complacency and a false sense of security to creep into fixed income markets. The recent move higher in interest rates has exposed the underappreciated risks present in the fixed income market.The 10-year Treasury yield reached its closing low for 2020 of about 50 basis points (bps)…

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