What we’re reading (3/1)
“Global Stocks Rise After US Stimulus Package Passes And Falling Bond Yields Reignite Risk Appetite” (Business Insider). “Global shares rose on Monday, buoyed by the passing of US President Joe Biden's $1.9 trillion spending package and by a retreat in bond yields, which soothed some concern among investors about a potential shift in the Federal Reserve's ultra-accommodative monetary policy.”
“Fed’s Brainard Urges Steps to Address Weaknesses in Short-Term Funding Markets” (Wall Street Journal). “Regulators should continue to advance reforms to the financial system to address vulnerabilities revealed by the coronavirus-induced market turmoil a year ago, Federal Reserve Gov. Lael Brainard said Monday.”
“Not Just Tesla: Tech Analyst Says Electric Vehicle Stocks Could Soar 50% This Year” (CNBC). “Electric vehicle stocks could climb up to 50% this year, according to Wedbush analyst Daniel Ives, who thinks there’s enough room in the market for more than just Tesla. ‘In my opinion EV stocks could be up another 40- 50% this year, given what we’re seeing in terms of a green tidal wave globally,’ Ives told CNBC’s ‘Street Signs Europe’ Monday.”
“Biden’s Bubble Risk: A Reckoning In Markets As The Economy Recovers” (Politico). “It’s a bizarre environment that’s confounding even the most seasoned economists and investors: an unusual mix of sentiment seen in 1999, just before the dot-com bust, the period a decade ago after the 2008-09 financial crisis, and the early years of the roaring 20s after the pandemic a century ago that concluded with the crash of 1929.”
“Warren Revives Wealth Tax, Citing Pandemic Inequalities” (New York Times). “Senator Elizabeth Warren, Democrat of Massachusetts, plans to introduce legislation on Monday that would tax the net worth of the wealthiest people in America, a proposal aimed at persuading President Biden and other Democrats to fund sweeping new federal spending programs by taxing the richest Americans. Ms. Warren’s wealth tax would apply a 2 percent tax to individual net worth — including the value of stocks, houses, boats and anything else a person owns, after subtracting out any debts — above $50 million. It would add an additional 1 percent surcharge for net worth above $1 billion.”
