Market Moment
Glen Eagle®: America’s Women-Owned Trading Desk®  

  • On Friday 136 countries, including Ireland, agreed to a global minimum tax rate of 15% for large companies. Theoretically, this new agreement will cover 90% of the global economy, but many analysts question its real impact. It's likely that not every country will be able to get their legislatures to implement the new tax rate by the 2023 deadline. If it does get passed by most countries, tech hardware, some media services, and healthcare companies look like they may be the most exposed.
  • The KBW Bank Index is up almost 40% this year (more than 2x the S&P500's performance). Some of this growth has been spurred on by the belief that interest rates will rise when the Federal Reserve begins to taper. In fact, three quarters of the bank index has risen 10% or more since September 22nd when Chairman Powell indicated the tapering would start sooner than some expected.  
  • Investors that want exposure to the cannabis industry are often forced to buy Canadian companies since few companies that have operations in the US are publicly traded. This may be problematic since the marijuana industry in Canada is becoming less profitable. Currently there are more than 500 companies competing in Canada and there is enough indoor cultivation to supply 200% of country's demand. Additionally, the cannabis market is expected to be 5x larger in the US compared to Canada by the end next year.  
  • Roughly 60% of all new ETFs that were launched in 2020 and 2021 have been actively managed. This equated to 379 new funds, which is more active ETFs than the total of the last ten years combined. While passive funds still make up 96% of the entire ETF business, data shows that active funds are attracting 11% of all new funds.
Reuters - Global tax deal seeks to end havens, criticized for "no teeth"
Bloomberg - U.S. Bank Stock May Be Too Hot With Earnings Season Nearing
WSJ - Canada's Pot Companies Are Missing the Best Party
Barrons - Active ETFs Finally Start to Shine. What Investors Need to Know

Economic Calendar

Monday:Columbus Day
Tuesday: Small business index (Sept) , Job openings (Aug)
Wednesday: Consumer price index (Sept), Core CPI (Sept), FOMC minutes
Thursday: Producer price index (Sept)
Friday: Retail Sales (Sept),Import Price index (Sept), Consumer sentiment index (Oct), Business inventories (Sept)
US Futures
S&P 4369.50 -0.29%
DOW 34,554 -0.21%
NASDAQ 14,751.50 -0.38%

World Markets
FTSE 7111.80
NIKKEI 28,498.20 +1.60%
Hang Seng 25,325.09
3 Mo 0.051%
10YR 1.612%
30 YR 2.166%

Euro $1.155
Pound $1.361
Yen $112.99

Gold 1752.70
WTI Crude 81.40 +2.58
Silver 22.53

Upcoming Earnings Calls

Monday - no notable
Tuesday - no notable
Wednesday - JPM, BLK, FRC, DAL
Thursday - BAC, DPZ, WBA, PGR, UNH, WFC, MS, C, AA

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

Ansie Monaghan
Carol Ann Fernandez

Glen EagleWealth, LLC
4422C Route 27
PO Box 399
Kingston, NJ 08528
(609) 631-8231

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