We the People: Political Pawns...?

7-7 Market Highlights (January 20 - January 26, 2019)

We, the people of America, once again, exploited as the helpless political pawns by the party ideologues.  Clearly, it was evident by the anguished, tormented 800,000+ furloughed federal workers as the ideological and political mayhem lingers. Party heads, facelessly, pontificated the welfare of the people who voted them into the office. Really caring...? What happened to the promise of service, trust, and protection?  Rather savage projection of the party power tainted with self-serving rhetoric reigned at the expense of the People. The government shutdown had much more negative spiritual impact on the perilous people as it has on the business and the world community.  Now, kicking the budget fight for three more weeks will not make People feel safe, secure, and credulous…  Really, do you think the life of American people, migrants at the border, the global community affected by the trade war and political pugilism has gotten better?  Hmmmm…

Meanwhile, China may be feeling the negative effects of the trade war and slowing of its own domestic economy, but it has not slowed down on the strategic aim of the global dominance. China is focusing on cyber warfare, air and naval force projections, and expansionism around the world. But America is so deeply, myopically, entrenched in political dysfunctions, not realizing strategic rapprochement of China, Russia and other countries around the world… Some say the cold war is getting hot. And, many are saying China will dominate the world very shortly. What say ye?

Market closed early on Friday, 1/25/2019 @:  DOW: 24,737.20;   S&P 500: 2,664.76; NASDAQ: 7,164.86;  Gold: $1,301.90; Oil: $53.56; US 10-Year: 2.748% 

Here are the highlights of the 4th week of 2019:   

1.   Pelosi: No State of the Union.    House Speaker Nancy Pelosi said Democrats has effectively blocked President Donald Trump from giving his State of the Union in the House chamber until the government is open. Trump pledged 'alternative' event after Pelosi blocks State of the Union. Earlier, Trump told Pelosi he would give his address as planned next week. The White House and Congress struggled to break an impasse over the president's demand for $5.7 billion to build his proposed border wall.  The impasse looms, but Democrats actions are not surprising blocking Trump's State of the Union address. The House Speaker Nancy Pelosi wins now, though historically unprecedented.  Trump conceded on the State of the Union. Now what will happen to the State of the Union address since, as of Friday, Trump signed the temporary CR until February 15?  This is a perfect example of an ideological political power grab at all cost.  Be damned the American value and history, be damned people of America…

2.   Economic Toll by Shutdown.             US economy now growing at less than 2% due to shutdown, JP Morgan says. JP Morgan economists cut their first-quarter growth forecasts for a second time in two weeks due to the government shutdown. The economists now see sub-trend growth of 1.75% but they expect a bounce back in the second quarter to boost that period by a quarter point if the government reopens. The economists say each week of the shutdown results in a reduction in the growth of 0.1 to 0.2 percentage points, and they reduced first-quarter growth from an estimated 2%.  Fortunately/unfortunately…, Dow gains for a fifth straight week after deal reached to temporarily re-open the government. President Donald Trump announced that he reached a continuing resolution deal with Congress to reopen the U.S. government. The temporary deal will fund the government for three weeks until February 15.  Example: Government shutdown postponed the debut of Delta's brand-new A220 jets, preventing the airline from getting the federal approvals it needed to start flying the planes at the end of the month as planned...

3.   China Military Strategy Evolving: Air, Sea, and Cyberspace.        China's military strategy shift sparks new concerns.  State news agency reports the Chinese land army now makes up less than half of the total number of troops, as China boosts its military power in the air, sea and cyberspace. China’s Plan for tech dominance is advancing, business groups say, as ‘Made in China 2025’ is Beijing’s industrial plan to dominate high-tech industries including robotics, aerospace and computer chips. The Trump administration argues China is using the plan to give its tech companies unfair advantage over foreign rivals. But what is it exactly?  Two influential U.S. business groups have issued a report detailing how China is moving ahead with a technology policy set to be a key point of contention in the U.S.-China trade talks that resume next week in Washington.

4.   Chinese Take Over Subic Bay of Philippines?  Philippines are worried over a bankruptcy that sparks concerns of Chinese firms taking over a former US naval base. Philippine officials are exploring ways to take over a shipyard located on Subic Bay, which used to be a U.S. naval base, to prevent Chinese companies from buying the site. Some officials are fearful of a Chinese presence in the area following Beijing's aggressive behavior in the neighboring South China Sea even after losing court case in 2016. It's not clear if President Rodrigo Duterte is comfortable with the idea of the Philippine Navy taking over operations of the shipyard. He's been pushing for more Chinese investment in his country. What would be President Duterte’s move now? Critics say Duterte is making geopolitical concessions in the international waterway in exchange for the promise of Chinese capital that has yet to materialize. Manila still rely on foreign investment as it struggles to raise interest from domestic investors. What would the Chinese move be…?

5.   Venezuela Breaking Diplomatic with US.  Venezuela, Maduro started a second term on Jan. 10 following a widely-boycotted election last year that many foreign governments described as a sham. Now, Maduro says Venezuela is breaking relations with the US, gives American diplomats 72 hours to leave the country. Earlier, the Trump said it recognizes opposition leader Juan Guaido as the country's interim president, an opposition leader Juan Guaido declared himself as the interim president. Guaido wins over the backing of the Washington and many Latin American nations and prompting socialist Nicolas Maduro to break relations with the United States. U.S. President Trump formally recognized Guaido shortly after his announcement and praised his plan to hold elections. That was swiftly followed by similar statements from Canada and a slew of right-leaning Latin American governments, including Venezuela's neighbors Brazil and Colombia. Venezuela is facing its hyperinflationary economic collapse. Venezuela, for now has two presidents… Let’s hope for the safety of American people at the embassy, and let’s pray for the people in Venezuela. Let there be no blood on the streets. Amen.

6.   Preparing for 5G.         The building wave of 5G-IoT-AI is as inevitable as it is enormous... And, the rollout of 5G will enable a rapid rise of IoT and AI, changing everything, again, for CIOs. The impending rollout of 5G networks will enable a more rapid scaling of Internet of Things (IoT) and artificial intelligence (AI) platforms. This signals a major turning point in a digital transformation in the enterprise, as technology leaders will be challenged to leverage these changes to boost the customer experience while protecting endpoints and data. Deloitte predicts the number of mobile providers launching 5G networks globally will double from 25 to 50 by the end of next year. The CIO of a major enterprise communications company agreed, and say, “Consumers will pull 5G into the enterprise, without a doubt.”  Really, consumers drove the smartphone revolution and the enterprise adoption naturally followed. There will be, however, more challenges for CIOs: Beyond building improved customer experience and better security. What are the products and services these technologies will enable and how can they be monetized?

7.    Jobs Most In-Demand for 2019.          With an ever-aging U.S. population and advances in medical care, health-care professions top the list of in-demand jobs for 2019, according to a report from jobs site CareerCast. The U.S. unemployment rate is below 4%, leaving many employers struggling to fill positions. In fact, last year there were more openings than there were people looking for jobs. Below are the top seven jobs with the most anticipated growth over the next five years, listed from highest to lowest salary. 1) Application software developer, Annual median salary: $101,790, Growth outlook through 2024: 31%. 2) Medical services manager, Annual median salary: $98,350, Growth outlook through 2024: 20%. 3) Registered nurse, Annual median salary: $70,000, Growth outlook: 15%. 4) Medical technologist, Annual median salary: $51,770, Growth outlook: 14%.  5) Construction laborer, Annual median salary: $34,350, Growth outlook: 12%. 6) Nursing assistant, Annual median salary: $27,520, Growth outlook: 11%. 7) Home health aide, Annual median salary: $23,210, Growth outlook through 2024: 47%. 

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These are my researches and analysis on the highlights of the week. Perhaps you should take a closer look at them, do additional research and analysis if these are interesting to you. This “7–7 Market Highlights” is presented for general knowledge, the resource for management, and perhaps as a tool for career development, and building wealth. As always, “Think for Yourself”, you decide on your own final analysis and position. 

Mahalo. I welcome your thoughtful comments, “like” notes, and “share” of this publication. 

~ S. Vincent Shin

   www.linkedin.com/in/vshin

Reference and Image credits to Bloomberg News, Getty, AP, Reuters, CNBC..., and special thanks to Image & Visual Consultant @U.Y.