ARTICLES

An Alternative To Money Market Funds

June 2023

MARKET OVERVIEW
May is behind us and the Nasdaq and S&P 500 markets enjoyed their third straight positive month!! Unfortunately, the Dow Jones Industrial Average had a losing month ending its 2 month winning streak. Friday’s Nonfarm Payroll Report was surprisingly strong and the markets roared on the news. More good news occurred during Friday’s action when the White House said that President Biden would sign the debt ceiling increase legislation which he did on Saturday, June 3rd. Thus, the DJIA ended Friday with a gain of 701 points. As of the close of trading on Friday June 2, the DJIA was up 1.86% year to date while the S&P 500 was up 11.53% and the Nasdaq was up 26.51% year to date. The VIX ended trading Friday at 14.60 while the yield on the 10 Year US Treasury ended with a yield of 3.69%.

ECONOMIC SUMMARY
Last Friday’s Nonfarm Payroll Report (NFP) was strong as 339,000 jobs were added, well above the estimate of 190,000 jobs. Note that employment for the prior two months was revised up by a combined 93,000 jobs. The U-3 unemployment rate jumped to 3.7%, an increase of 0.3% from April.. Meanwhile, the U-6 rate moved up slightly to 6.7% last month. The Labor Participation Rate held steady with the prior month’s 62.6% level. Meanwhile, Average Hourly Earnings dipped slightly to 4.3% in this month’s report, year over year. The next NFP report arrives on July 7.

FEDERAL RESERVE
The Fed met on May 2-3 and raised the overnight lending rate by a quarter point. Some economists felt the Fed would pause at this meeting due to the collapse of Silicon Valley Bank, Signature Bank and First Republic. Nevertheless, the Fed continued with another rate increase. The overnight rate moved to a range of 5% to 5.25%. Last Friday's strong jobs report will probably see the Fed raise rates by another quarter point at the next Fed meeting June 13-14..

STOCKS TO WATCH
There is a growing movement in America to prevent or cure a variety of diseases and disabilities. My dear friend Lou Weisbach and Dr. Richard Boxer are the Co-Founders of the American Center for Cures “ACC”. This organization will fully fund a separate entity in the private sector. It will be run by some of America’s top CEOs entrusted with the responsibility of finding cures or treatments for a variety of diseases and disabilities such as Alzheimer’s. Parkinson’s, Heart Disease, Blindness, Mental Health, Diabetes, most types of Cancer and other maladies.

The plan will have the FED issue $750 billion of bonds which will fund each unit with about a $36 billion budget. Every American, regardless of race, creed, wealth or politics will know there is an entity working to either treat or cure their condition. Tom Price, America’s former Secretary of Health said that if the ACC is fully launched, it will rival the greatest accomplishments in US history!! Note that the ACC is gaining traction. Last February, Pres. Biden appointed a 6 member team to the National Cancer Advisory Board. One of the appointees is Dr. Richard Boxer, a 3 time cancer survivor and a faculty member of the UCLA medical school. Dr Boxer has had a highly distinguished career in medicine and is now Co_Founder of ACC.

Now is the time for our political leaders at every level to know how important this issue is to all Americans and motivate them into action and legislation. Learn more about the ACC’s efforts by visiting their website: www.theamericancenterforcures.org. All of the compounds developed that are not curative or preventative will be licensed to Big Pharma. Just imagine how hugely profitable this would be for our pharmaceutical companies as new cures and treatments are developed!!

My weekly radio show is on holiday and will return in September on WWPR 1490 AM. My prior radio shows and columns are available here.

If you are unhappy with the returns now offered by money market funds feel free to contact us.

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