Dear valued client,
Markets were indecisive this week following another round of peace talks between Russia and Ukraine. The talks have received mixed reviews; one day, progress is said to have been made, the next more bombs are falling on Ukraine and there is said to have been an attempted poisoning of Ukrainian and Russian officials advocating strongly for a swift resolution. No concrete agreements have been reached as the war is set to enter its 6th week. Market performance as a whole in the month of March has been optimistic, having recovered much of its losses since the beginning of the conflict in Europe.
In economic news, the Wall Street Journal reported an increase of 431,000 jobs in the month of March, indicating a strengthening of the labor market as it continues to recuperate from the pandemic. The U.S. unemployment rate sits at 3.6%. Worrisome news from the Commerce Expenditures Department shows an increase in its index, demonstrating that people’s purchases and expenses have not slowed despite rising inflation. This is a key consideration in central banks’ decision on interest rates hikes.
In commodity news, the Biden Administration has stated it will release 1 million barrels of oil every day for the next six months. This release will come from their oil stockpiles, the Strategic Petroleum Reserve (SPR). Their aim is to flood the market with supply to temper soaring gas prices. A short-term solution that could have major repercussions in the medium to long term.
In crypto news, Axie Infinity – an online game where players battle to earn crypto – suffered a massive hack of digital assets last week. The hack drained $617M worth of the Ethereum cryptocurrency from their network. Axie Infinity’s network was exposed to much more risk because it is “off-chain” nature as opposed to the more secure, and expensive, ‘blockchain’ that is typically used with crypto mining and dispersion. It will be interesting to see if gaming platforms that have incorporated crypto into the user experience will tighten the security screws given the number of assets at stake.
I would like to share Dave Ramsey’s 5 Keys to Building Wealth I read about this week. With a net worth of over 100M, Dave is a radio personality I enjoy following. He also has an interesting YouTube channel.
5 Keys to Building Wealth:
1. Have a written plan for your money (BUDGET).
– 93% of millionaires said they stick to the budgets they create.
2. Get out, and stay out of debt (mortgage is acceptable).
– Your most powerful wealth-building tool is your income. The less of your income going to the bank or credit card companies the better.
3. Live on less than you make.
– The typical millionaire has never carried a credit card balance in their lives.
4. Save for retirement
– 15% of your income.
5. Be outrageously generous.
*The earlier you start building wealth the better.
Although Villanova is playing in the Final 4 Saturday night, my most anticipated game for the evening is the Duke vs. UNC matchup. These two powerhouses have never before met in the NCAA tournament. The stakes are high. Duke could end UNC’s season, and UNC could end Coach K’s career.
Have a terrific weekend,
PW
“The greatest glory in living lies not in never falling, but in rising every time we fall.” – Nelson Mandela
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