Three Things (5/2)
May 2, 2022
The below content and projections are the opinion of the authors. Any conclusions or takeaways are their own. This should not be considered as investment advice. Investing involves the risk of loss and returns are not guaranteed.
1) Warren Buffett buys $51 billion worth of stock in first quarter amid broad market slide
- Berkshire Hathaway disclosed the purchase of over $51 billion of stock in Q1 ahead of its annual meeting on Saturday; netting out the sale of stocks during the quarter, Berkshire increased its equity holdings by $41 billion.
- During Q1, Berkshire also bought insurance giant Alleghany for $11.7 billion, its biggest acquisition since 2016.
- Berkshire ended the quarter with $106 billion in cash on its balance sheet, the lowest level since Q3 2018.
Titan’s Takeaway: One of Buffett’s most famous quotes encourages investors to be fearful when others are greedy, and greedy when others are fearful. Perhaps investors are offered some solace by seeing Buffett follow his own advice, loading up on stocks during what remains one of the most challenging environments in some time.
2) Employment costs rise at fastest pace on record in sign that inflation pressures are likely to persist
- The employment cost index rose 1.4% in the first quarter and 4.5% over the prior year period, the most in the history of this data series.
- The employment cost index includes the cost to employers of wages and benefits, not just hourly earnings captured in the monthly jobs data.
- Excluding government jobs, private sector wages rose 5% from the same period last year.
Titan’s Takeaway: Commodity markets and supply chains remain stressed by Covid-related challenges and war in Europe, suggesting some global price pressures may not persist indefinitely. More consumers earning more money to spend on goods and services, however, suggests demand isn’t likely to wane quickly, even in the midst of surging prices.
3) China prepares to ease crackdown on tech companies as economy worsens amid Covid outbreaks
- China’s top internet regulator is set to meet this week to discuss its regulatory campaign, according to the WSJ.
- New rules limiting young people’s time spent on mobile apps are expected to be delayed.
- Covid-related lockdowns in Shanghai and the specter of similar actions in Beijing have led to forecasters downgrading outlooks for economic growth this year.
Titan’s Takeaway: It may seem a trite observation, but China’s economic programs are always rooted in political convenience first and economic outcome second. And with recent Covid lockdowns threatening to stop China’s economic growth in its tracks, the politics of reigning in a profligate tech sector have quickly moved to unsteady ground.
Cash Management
© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.
Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.