Market Commentary — April 25, 2022

The major U.S. market indices ended lower last week, with Value outpacing Growth and Large Caps trailing their smaller-cap peers, thanks in part to Netflix’s 35% implosion on global subscription losses. More importantly, it was revealed that everyone on the planet is using the same username and password (hyperbole, but it’s a problem nonetheless).

PMI (Purchasing Managers Index) came out indicating that while business activity slowed in April, the 55.1 figure (vs 57.7 in March) is still well above the 50 threshold signaling business expansion.

The Fed is still talking hawkishly about its desire to curb inflation by raising interest rates and reducing its balance sheet. While Fed Chair Jerome Powell is still telegraphing a 50 basis point hike in May, James Bullard, President of the St. Louis Fed was talking like 75 bps was a possibility. The problem with inflation, however, is that much of it is being driven by pandemic-related supply dislocations, labor shortages, and the war in Ukraine. These are not variables the Fed has any control over.

In ETF news, Defiance filed for an inverse fund that bets against Amplify’s Transformational Data Sharing ETF (BLOK). Spot Bitcoin ETFs are coming to Australia as Cosmos and 21Shares aim to debut funds this week. Simplify has filed for a Bitcoin Risk-Managed Income ETF that uses options. Grayscale makes a fresh push for SEC approval for its GBTC to become a bitcoin ETF. And finally, on 4/20, Roundhill launched a cannabis ETF with the ticker WEED.

Have a great week everyone as Q1 2022 earnings season kicks into high gear with mega-cap tech names like Apple, Microsoft, Alphabet, Meta aka Facebook, and Amazon all reporting.

Jane Edmondson
CEO and Co-Founder

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