• President Biden has reiterated during his campaign that he wants to increase taxes on those earning more than $400,000. Only 2.6% of all U.S. households are above that income threshold. Yet that is equivalent to 3.4 million households (33% more than in 2019). 1
• Money fund assets have surged by 25% since the beginning of last year, reaching $6.5 trillion. This flight to safety however may not pay off over the long term since stocks have outperformed cash by about 6% annually going all the way back to 1901. *2
• Larger companies are performing better than smaller companies in good and bad markets. The Russell 2000 small-cap index rose less than 5% in the first quarter, compared to a 10% rise for the S&P 500. This month the index has fallen 8.3% vs. a 5.5% decline for the S&P. *3
• The dollar has surged by approximately 9% against the Japanese yen, reaching a level unseen since the 1990s. This may decrease Japanese investor's willingness to buy US treasuries which is a problem since Japan is the largest foreign holder of treasuries. 4

1. WSJ – “The Americans Crossing Biden's $400,000 Tax Line"
2. Barrons – “Money Market Funds Look Like a Tempting Place for Your Cash, But Don't Make This Mistake."
3. WSJ- "Big Stocks Won When Markets Rose. They Are Winning Again in the Selloff."
4. WSJ - "They Bet Against the Dollar. Now They're Paying the Price."

*Past performance is not indicative of future performance

Economic Calendar

Monday:

None scheduled

Tuesday:

S&P flash U.S. services PMI (Apr), S&P flash U.S. manufacturing PMI (Apr), New home sales (Mar)

Wednesday:

Durable-goods orders (Mar), Durable-goods minus transportation (Mar)

Thursday:

GDP Q1, Initial jobless claims (Apr), Advanced U.S. trade balance in goods (Mar), Advanced retail inventories (Mar), Advanced wholesale inventories (Mar), Pending home sales (Mar)

Friday:

Personal income (nominal) (Mar), Personal spending (nominal), PCE index, PCE (year-over-year), Core PCE index, Core PCE (year-over-year), Consumer sentiment (final) (Apr)

Upcoming Earnings Calls

Monday - SAP, VZ, HDB, CDNS, TFC

Tuesday - V, TSLA, PEP, GE, NVS

Wednesday - META, TMO, IBM, NOW, T

Thursday- MSFT, GOOGL, MRK, AZN, CAT

Friday - XOM, CVX, ABBV, FMX, IBN

Client Focused Trading® for large institutions, pensions, hedge funds, wealthy families, and private equity for over 30 years.

Glen Eagle Wealth, LLC is a member FINRA and SIPC

This desk commentary is for informational purposes only

Carol Ann Fernandez

Rob Michel

Grier Vacek

Glen Eagle Wealth, LLC

4422C Route 27

PO Box 399

Kingston, NJ 08528

(609) 631-8231