Monday morning briefing: GameStop starts a controversy
The U.S. Bureau of Economic Analysis announced U.S. gross domestic product expanded 4.0%, annualized, over the fourth quarter of 2020. This was the second consecutive quarterly expansion after falling in the second quarter. But the news was not all good. Growth in consumer spending slowed in the fourth quarter, which was concerning for economists who were expecting consumer spending to be a key driver of the recovery.
U.S. Federal Reserve Board holds target range steady at 0.00% to 0.25%: Federal Reserve leaves interest rates and asset purchases unchanged, sees growth slowing
The U.S. economy shrinks over 2020: U.S. economy shrank 3.5% in 2020
Canada’s economy expands more than expected in November: Statistics Canada says economy grew 0.7% in November
The changing portfolio: Traditional portfolios won’t cut it anymore, endowments and foundations say
Reasons for optimism in 2021: What’s ahead for the markets in 2021?
Calling on companies to reduce climate-risk exposure: BlackRock raises the temperature on climate risk
Reasons for hope
Positive results from Novavax’s phase-three trials: Novavax says COVID vaccine is more than 89% effective
Many Americans are saving more and spending less: Pandemic has led to better financial habits, KeyBank finds
Bringing people good news stories: Winnipeg woman focused on spreading good news during pandemic
Adapting your business
Choosing the right successor can help your company last well into the future: Choosing a successor: 5 lessons learned in our own succession planning process
The benefits of using an advisor: 12 reasons investors need living, breathing advisors
Bringing together scale and voice: How to create massive awareness and meaningful connection
Chart of the week: GameStop starts a controversy
It was a wild ride for many retail stocks last week, particularly GameStop Corp., which was at the centre of a battle between retail day traders and institutional short-sellers.
A Reddit chat room for day traders initiated interest in GameStop, and these day traders began taking long positions in the company. A subsequent rally pushed the market capitalization of GameStop to the top half of all companies listed on the S&P 500 Index. The rally also forced many short sellers to exit their positions with substantial losses. Trading platforms, like Robinhood and others, temporarily halted trading in GameStop, which raised the ire of some U.S. government officials. Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
A look at the top-performing hedge funds last year: These are the world’s top-performing hedge funds of 2020
SPAC’s are wasting no time finding companies: SPAC glut powers exit spree for PE- and VC-backed companies
Helping advisors build ESG portfolios: Fidelity introduces tech to help advisors offer ESG strategies
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: January 26 edition
News and notes (Canada)
CI purchases another large RIA: CI Financial buying $23B Chicago RIA
Fidelity launches new ETFs: Fidelity launches balanced ETFs
Charitable giving dropped in 2020: More than a quarter of charities received no donations last year, RBC says
Rental vacancies increased last year: CMHC: Rental vacancies, prices edged up as COVID-19 spread across Canada