All posts by James Cannon

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]businessdistrict.com

S & P 500 Index Reaches New High

Economy, ,

One of the most highly watched indices of the US stock market, the S&P 500 closed on Tuesday, August 18th, at a record 3,389.78, close to 3 points above its previous high that was set last February 19th.

And the S & P 500 was not alone. The NASDAQ also climbed to a new record, passing its previous June high, while the Dow Jones Industrial Average came within just 5% of its own February peak.

After the pandemic began to negatively affect the US and world economy, the stock market took an unprecedented nosedive, losing about one third of its value. But US stocks have been on the rebound since the US central bank announced a banquet of innovative economic support directives on March 23rd.

One analyst was surprised by the speed and strength of the market’s recovery, especially since the country is still faced with a pandemic that is ravaging many locations across the country, with many businesses closing and enormous numbers of people losing their jobs.

Observers believe the recovery is partly explained by actions taken by the Federal Reserve and other kinds of stimulus plus investors who are sure the economy will eventually get back on track and see the stock market as a good place to make money on that prediction.

Driving the stock market’s positive performance are to a large extent technology stocks. Apple, Microsoft, and Amazon are among those companies that have benefited from lockdowns as people shelter at home and use their devices and internet more than ever. Cloud computing and machine learning companies have also benefited.

“We would not be flirting with all-time highs were it not for technology,” said Terry Sandven, chief equity strategist at US Bank Wealth Management.

JSW Committed to US Business Despite Obstacles

Commodities

JSW Steel Ltd, India’s most valuable steelmaker, announced its plans to overhaul its US operations. The decision comes at a time when a vision of profits is far from clear.

Two years ago, the company had planned to invest $1 billion in the US to strengthen its global reach. An economic slowing and tariffs inflicted by President Trump, and then the outbreak of the pandemic put an end to the expansion plan.

The company says it will spend the coming year “structurally fixing” its facilities since the coronavirus has caused “the lowest spread of US steel prices seen in the last decade,” said Parth Jindal, the director of US operations.

“Our plan is to reduce the losses and be extremely frugal and focus on completing these projects,” Jindal added. “From next year onward, we truly believe the U.S. operations will be well-positioned to be earnings accretive to JSW Steel.”

JSW has also hired a new CEO for its US division. Mark Bush replaced the previous CEO, John Hritz. Hritz will take over leading strategy and legal affairs.

The JSW Group is still fighting with the Trump administration over import tariff waivers. Nevertheless, when asked if the company would eventually pull its business out of the US Jindal answered that JSW is “very committed” to staying in the US.

“Once the modernization projects are completed and we bring down our cost curve, then we see no reason why the U.S. business can’t generate positive earnings,” he said. “It still remains an important part of our organization and all efforts are on to turn around the operations at the moment.”

Masks Mess with Facial Recognition Systems

Tech News, ,
Woman wearing face mask.

Now that we are out of lockdown and cautiously venturing back into society, masks have become a new fact of life. Although some people are refusing to wear them despite a study showing that when the mask order went into effect in New York City the new coronavirus case rate began to plunge by 3% per day, the vast majority are complying.

Along with social distancing and frequent hand washing, mask-wearing has proven the best way to prevent rampant COVID-19 infections, however, masks have some disadvantages. Many people are finding it difficult to recognize what otherwise would be familiar faces among the masked multitude. In addition to thwarting human facial recognition, masks are making it almost impossible for computer facial recognition systems to function.

The National Institute for Standards and Technology began a study to understand how facial recognition programs perform when faces are partially masked. In the meantime, some companies have tried to deal with the new situation.

A few companies that work with law enforcement agencies have experimented with creating algorithms that home in on eyebrows and eyes.

The NIST says under ideal conditions the best facial recognition systems fail only 0.3% of the time. This rate changes radically when conditions are not ideal, for instance when the face belongs to someone who is not the “ideal” race, age, or gender. With masks the ideal recognition failure rate skyrockets to 5% or more. The agency added that when asked to deal with masked faces, “many otherwise competent algorithms failed between 20% to 50% of the time.”

Michelle Smith crisis as opportunity

Crisis as Opportunity: Advice from Certified Divorce Financial Analyst Michelle Smith

Economy, Education, Lifestyle, Uncategorized, , , ,

A recent wealth management podcast interviewed Source Financial CEO, Michelle Smith. Smith’s unique experience as a long-time financial advisor, premier money manager, divorcee, and co-parent of a child with special needs is insightful and informative. Of the many lessons learned from this interview, perhaps the most pertinent are those that relate to our current Covid-19 reality as well.

Surround Yourself With Positivity

According to Smith, any big crisis brings out the best and worst in us and those around us. When her son was born and she received his Down syndrome diagnosis, she channeled all her energy toward doing what needs to get done. Her husband at the time, however, didn’t make that switch. As she helps many separated couples navigate the corona emergency, she sees those who are rallying and figuring out how to co-parent during a lockdown, and others who are fighting more and harping on old grudges. When she was a new mom, Smith says she used her own positive nature to propel herself forward. She also made sure to leave no room for negativity in her life and surrounded herself with those who shared her optimism. She extends this advice now too: the familial and financial realities of this crisis are not easy, but if you remain positive and focus on action, things don’t have to be catastrophic.

Ask for Help

Divorce is not something anyone should do alone. Individuals going through a divorce must surround themselves with capable legal and economic professionals to ensure their best interests are fairly represented. Encouragement and love from family and friends provide guidance and support. Smith has dedicated her career to helping women build a financially stable and sustainable life after their marriage. The same is true for co-parenting a child with special needs: it takes a village. Now, more than ever, we are seeing the value of community. We all need to get comfortable asking for help and letting our virtual, and literal, villages be there for us when we need them. The key, according to Smith, is to be specific with our requests.

Focus on Shared Goals

Even as a marriage crumbles, it is important to focus on the values and objectives that once brought you together. Remember the respect you have for one another and direct that toward the settlement. Your ex-spouse is not someone you will ever be “rid” of, especially if you share children, so keep things cordial and constructive. Now is an opportunity to rethink the tactics of decoupling: nobody wants to prolong the process of divorce or excessively litigate matters. Mediation, with the right professionals and the proper mindset, can yield fair, equitable, and civil outcomes for all involved. As more families (married, divorced, or otherwise) spend increased amounts of time together during this crisis, concentrating on shared goals – like cohesion, health, monetary sense—can be empowering.

Amazon Introduces No-Check-Out Grocery Store

Tech News, ,
Colorful Carts, courtesy
Jim

Since 2015 Amazon has been working on providing customers with a fun visit to the grocery store that leaves out entirely the waiting online and bagging of groceries at the checkout. Now the dream is finally a reality.

In Woodland Hills, a suburb of Los Angeles, customers with Amazon accounts use their smartphones to sign in to use “Dash Carts,” high-tech shopping carts equipped with sensors and cameras with computer vision, and a built-in scale to weigh produce. All the technology is cleverly hidden, so customers feel like they are just shopping, and not part of a sci-fi experiment.

The Dash Cart also has a scanner for coupons, and a display that shows what is in the cart and how much it all will cost when you finally “Just Walk Out.” Removing an item placed in the cart is automatically accounted for in the total, as are the items added to the cart. Not needing to check-out when customers are done shopping also allows them to bag their purchases as they shop.

When it is time to leave, shoppers exit the store vie the Dash Cart lane. Amazon then automatically charges the credit card that is linked to their Amazon account. Receipts are sent via email.

Amazon has been experimenting with the technology at their “Amazon Go” stores, where take-out meals and snacks can be purchased without bothering about a cashier. But the sheer scale of Amazon’s “Just Walk Out” grocery stores makes this a milestone for the company.

“You need to be able to add that and keep track of all of that and it just increases the complexity,” Dilip Kumar, Amazon’s vice president of physical retail and technology, said. “Plus, the weighing component of it also has to be very robust to be able to allow for a very accurate receipt experience for a customer.”