The Ukrainian people have mounted a courageous defense of their country. Let's keep them in our thoughts and prayers as they struggle to preserve their freedom.
The Financial Times is providing its coverage of the war in Ukraine free of charge. So if you want a European view of what's happening in Ukraine from the FT, try this link.
Stocks Soar
Stocks sold off sharply Thursday (2/24) morning, then began an impressive rally that continued into Friday. It's probably too soon to declare the correction over but as I suggested Thursday morning, stocks tend to respond positively to the reality of war. I'll have more to say on the stock market after February's trading ends - stay tuned...
Inflation Watch
The Fed's "favorite" inflation measure is the personal consumption expenditures (PCE) price index. On Friday this index hit its highest annual gain, 5.2%, since 1983! Here's the release from the BEA:
Earlier in the week, this article reached my email: Rents reach ‘insane’ levels across US with no end in sight, R.J. Rico, The Associated Press. I'm not sure where this reporter has been because rents have been rising (and in some cases soaring) across the nation for months now. Look what happened in 2021:
Rents on a national average basis rose 13.5% last year, well above inflation overall. In some markets (mostly warmer climates) rents were up more than 20%! The increase was also much faster than wages putting a real crimp on renters' budgets.
None of this sounds like good news to me...
Pay Raises!
Here is a sampling of recent dividend hikes:
Universal Display (OLED) $0.30 +50%
Danaher (DHR) $0.25 +19%
Thermo Fisher Scientific (TMO) $0.30 +15%
Home Depot (HD) $1.90 +15%
Louisiana-Pacific (LPX) $0.22 +22%
If you own any of these stocks, you got a pay raise!
Investing in dividend-paying stocks can be a good way to keep up with inflation. But you need to make sure those dividends are at least keeping pace with inflation which right now is around 5-6%.
It's Out!
Warren Buffett's annual letter to the shareholders of Berkshire Hathaway. Here's the link: 2021 Letter to Shareholders.
Buttonwood Updates:
Take a look at this week's Chart Attack!. There are a couple of maps of Ukraine along with the usual charts and graphs. If you wish to get Chart Attack! in your email (because you don't get enough emails already) let me know via the "questions and comments" button below. Remember, you must be a subscriber to view a Chart Attack!
New books have been added to the bookstore including a biography of John von Neumann, the father of digital computing (among other things). You can get a copy using this link to Amazon: The Man from the Future: The Visionary Life of John von Neumann by Ananyo Bhattacharya
And Finally,
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