Embrace the Pause

08/30/21 • 32 min

Enlightenment - A Herold & Lantern Investments Podcast

August 30th, 2021, Season 3 Episode 32
"Enlightenment" - A Herold & Lantern Investments Podcast featuring Mr. Keith Lanton, President.
With little activity in the market, Keith deems it appropriate to begin this episode with several peaceful quotes from the late great John Lennon, which promote the philosophy of being open to all life has to offer with excitement and acceptance. Amidst this stagnation, however, a bit of anticipatory anxiety looms as the nation awaits Friday's Federal Reserve employment report - one that is more consequential than usual. This will be the Fed's next major announcement following last week's annual Jackson Hole Symposium, in which Chairman Jerome Powell stated that Fed hikes are unlikely in the foreseeable future. In other news, Keith notes that oil prices have risen, albeit marginally, in the wake of Hurricane Ida's wrath in the Gulf Coast. Across the Pacific, an additional shipment of contaminated Moderna COVID-19 vaccination samples arriving in Tokyo have driven the company's stock price down. And in promising news to all, Apple has hinted that its iPhone 13 could support Low Earth Orbit (LEO) satellites, which would allow for calls and messages to be made even in the absence of cellular service. Keith goes on to make mention of the energy sector's upward spiral in the past week, and discusses the current rise of bank stocks in light of prognostication that the yield curve will continue to remain steep. Another major topic of discussion in the podcast is China's floundering market, which, as Keith notes, has dropped by 20 percent in a matter of six months. The United States has, consequently, been withdrawing a significant amount of money out of China. Barron's has been vocal as of late, recommending to prospective speculators to move towards small companies and mutual funds as a means to mitigate risk. They further suggest investing in variable interest entities (VIEs) and exchange traded funds (ETFs), and moving away from American depositary receipts (ADRs) due to associated regulatory risks. Lastly, small-cap stock Plantronics (POLY) is coming under very high recommendation from Barron's due to the hybrid work environment that it permits. Director of Fixed Income Brad Harris steps in to conclude the podcast with some advice on the bond market, stating that, given the uneventful week, bond investors would be best off reviewing their portfolios and investing exclusively in high-grade bonds for the time being.
We hope you enjoy the show and share it with colleagues and friends.
Press interviews or market commentaries, please contact Keith or Sal Favarolo directly at 631-454-2000 to schedule a time.

** For informational and educational purposes only, not intended as investment advice. Views and opinions are subject to change without notice.
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Previous Episode

Listen Up!

August 23rd, 2021, Season 3 Episode 31
"Enlightenment" - A Herold & Lantern Investments Podcast featuring Mr. Keith Lanton, President.
In this episode, Keith begins by emphasizing the importance of listening and interpersonal communication, a luxury that society is increasingly allowing to slip through its fingers in favor of mobile technology and virtual communication. Keith then goes on to discuss the emergence of the COVID-19 Delta variant and the market's concern around it, as well as the ramifications of President Biden's recent withdrawal of American troops from Afghanistan. Transitioning to the financial sector, Keith makes a stark juxtaposition between prevailing interest rates and equity markets, with the former being at a record low and the latter being at an all-time high. This comes as the market awaits Federal Reserve Chairman Jerome Powell's upcoming symposium speech in Jackson Hole, Wyoming, which is now being conducted virtually. Keith concludes with Barron's touting of big tech stocks, calling them "unstoppable" as they are so deeply tied and embedded into the digital world and the global economy. Director of Fixed Income Brad Harris closes the podcast, offering some predictions and insight as to what points may be raised in Chairman Powell's upcoming symposium.
We hope you enjoy the show and share it with colleagues and friends.
Press interviews or market commentaries, please contact Keith or Sal Favarolo directly at 631-454-2000 to schedule a time.

Next Episode

Dare We Time the Market?

September 7th, 2021, Season 3 Episode 33
"Enlightenment" - A Herold & Lantern Investments Podcast featuring Mr. Keith Lanton, President.
In this episode, Keith begins by making a blanket statement that the technique of attempting to time the stock market through extrapolation of future price movements tends to have low success rates and destroy wealth. One of the major reasons for the systematic failure of this technique, he states, is because the market is front-end loaded, and the majority of loss comes within the first 40 days of a bear market. It is a more prudent technique to, instead, stick with a diversified long-term plan. Keith subsequently goes on to discuss Barron's market projections, which, for the time being, are neutral with an upward bias. Barron's states that we may be approaching a correction, but not a bear market. The prospect of a market correction has caused some apprehension due to (1) the possibility of the Federal Reserve tapering and (2) the fact that the Biden administration may hike personal and corporate tax, which would affect earnings. In other news, BMW has said that its chip shortage is expected to last six more months, and, as of last week, the S&P 500 was up a striking 21% for the year. Keith then notes that there is a very large percentage of the population that is doing its own trading on platforms such as Robinhood and Fidelity, and, as such, people need to gain a better understanding of how these platforms work. Keith concludes the podcast by discussing Barron's projections that the biotech sector might be next in line for an uptick, citing a few new companies with innovative new experiments and technologies in areas such as depression treatment, genetic testing, and T-cell treatments.
We hope you enjoy the show and share it with colleagues and friends.
Press interviews or market commentaries, please contact Keith or Sal Favarolo directly at 631-454-2000 to schedule a time.