Commentary for the week ending 04/10/2021

 One more comment on the infrastructure bill.  Every time someone questions the items truly unrelated to infrastructure like child care, the government representative brings up broadband (about $100 billion of the bill).  I think most people would agree that improving broadband is important and I also agree it should be part of the bill.  But not the other unrelated items!  Mentioning broadband is just another attempt at obfuscation by the administration.  

 

Now, on to the funds.  Did you hear the news that Alibaba (BABA) settled “antitrust” claims by the Chinese government for $2.8 billion?  As I mentioned in previous posts, the Chinese government is loathe to kill the “golden goose” of Alibaba as it provides significant revenue and many Chinese businesses depend on Alibaba for distribution (and hence, jobs),  So, the Chinese government wants to let Alibaba know it is the “boss” but doesn’t want to destroy it.  Therefore, hold your shares if you have them and perhaps add more.

 

As for the rest of the stocks in the growth portfolio, I am disappointed by the performance of Lulu Lemon and Olli, but I still recommend them.  Let’s hold on and I bet that they will recover by year’s end.  

 

On the income portfolio, again, don’t forget dividends!  It is difficult to include them in the return figures, but dividends play an important part of total return calculations, so the overall return of the fund is even greater than the figures quoted in the performance figures.  

 

So, folks that is about all for now.  Happy investing!  And stay safe, wear your mask, and get your shot!  The economy will improve as more people do the same – and more importantly you will stay healthy!

 

Dan

 

  

 

 

 

 

Leave a Comment