Biden's "New Deal".... Since President Biden's inauguration, one major theme has emerged: spend big on America. Biden's ambitious "Build Back Better" plan involves proposed investments at a scale we haven't seen for decades. On the "Build Back" side: a $1.9T stimulus to speed up recovery — plus, a "Buy American" executive order to boost purchases of US-made goods and services. On the "Better" side, the Biden admin is crafting a massive infrastructure package that could cost $3T. It includes spending on roads, bridges, and clean energy infrastructure. Now, economists are predicting a much faster recovery than previously expected.
The Swinging Bull Market... This year, the only question asked more than "did you get vaxed" is "are we in a bubble?" The stock market has continued its surge, with the S&P 500 and the Dow hitting fresh records this month. But there's a key difference between this quarter and last year: as the economy recovers and interest rates rise, investors are moving away from tech and into "Recovery Stocks" (aka: cyclical stocks). These are stocks in industries that tend to do well when the economy is growing (and vice versa). Think: travel, construction, retail, and banking. The cyclical-heavy Dow is up 8% this quarter — the tech-heavy Nasdaq index is up barely 2%.
Crypto "Mainstream-ification"... Cryptocurrencies and alternative assets reached a peak of social relevance. In January, bitcoin hit its "big $40K" record, pushing the total value of the crypto market above $1T for the first time. It continued surging through March, as corporate investors like Tesla, MassMutual, and Square bought in. Retail investors poured into crypto too, on apps like Robinhood (aka: us) and Coinbase (which is now going public at a $68B valuation). Paypal said it will let users shop with crypto — and Tesla will now let you buy a Model 3 with bitcoin. Meanwhile, the NFT craze underscored the power of the blockchain, and an appetite for alt investments.