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April 8, 2021
Dear WEALTHTRACK Subscriber,Have you noticed how rampant speculation is? Random investors seem to be making money hand over fist in numerous assets: disruptive companies like Tesla whose stock has soared 600% in the last 12 months, old economy stocks like video retailer GameStop up nearly 6,000% propelled by traders on commission-free trading platforms like Robinhood. These are not isolated events. The zeitgeist is becoming very bullish. The S&P 500 closed at its19th record of 2021 today, propelled higher by big tech names including the largest by market capitalization, Google’s parent Alphabet, Amazon.com, Apple and Microsoft. According to The Wall Street Journal each has “climbed more than 6% this month after stumbling in March.” There are billions of dollars being wagered on initial public offerings, newly minted companies going public for the first time. $167 billion worth hit the market last year, half of that, or $80+ billion was raised through SPACs, the special purpose acquisition companies, or blank-check firms that go public with the intent of merging with unidentified private startups. In the first quarter of 2021 SPACs raised another $95 billion! Then there is Bitcoin, up nearly 700% in the last 52 weeks, setting new records along with other cryptocurrencies. And let’s not forget the art market. Recently a software-created digital piece of art titled “Everydays: the First 5000 Days” was auctioned for $69.3 million at Christie's. According to The New York Times: “ the JPG was ‘minted,’ in February as a ‘nonfungible token,’ or NFT… the first purely digital NFT sold by Christie’s, and it offered to accept payment in Ethereum, another first for the 255-year-old auction house.” I will add, the Times headline read “NFT Mania Gathers Pace” and the article noted that $69 million was more than paintings by acknowledged masters like Turner, Seurat and Goya. Do you feel like you are missing out? Has the world moved on? No, it has not according to this week’s guest. In part 2 of our interview with financial thought leader, Richard Bernstein he makes a compelling case for long-term fundamental investing. Bernstein is Chief Executive and Chief Investment Officer of Richard Bernstein Advisors, where he oversees or advises over $12 billion in assets, largely in multi-asset allocation strategies for financial advisors using ETFs. He also oversees two mutual funds under the Eaton Vance name. In his previous life as Merrill Lynch's long-time Chief Investment Strategist he was inducted into the highly selective Institutional Investor’s “Hall of Fame” for his 18-year tenure on its prestigious “All-America Research Team.” Rich has also been a regular since WEALTHTRACK’s launch in 2005. We’ve weathered our share of booms and busts over the years. He will discuss some time-tested strategies to invest successfully through both conditions. In this week’s EXTRA feature, Bernstein shares what activities he is looking forward to the most post-pandemic and also a mentor’s inspiring advice. As always if you miss the show on public television, you can watch it on our website over the weekend. You can also find the WEALTHTRACK podcast on Stitcher and SoundCloud as well as iTunes and Spotify. Thank you for watching, have a great weekend and make the week ahead a healthy, profitable and productive one. Best regards, Consuelo | 
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