State of The Mess

With so much going on in the world today, it can be difficult to keep track of the next new component of this mess we find ourselves in. From pipeline hacking to inflation, here is some of the most important information on the state of it all.

Colonial Pipeline The Colonial Pipeline that shut down due to a ransomware attack last week, began to resume its deliveries to all of its markets. After the pipeline hacking, the east coast was thrusted into a sudden gas shortage, causing alarm amongst many. Rising fear caused consumers to rush to the pumps, only causing the issue to compound. A statement directly from Colonial Pipeline released on Twitter on May 13th, 2021 says, “Colonial Pipeline can now report that we have restarted our entire pipeline system and that product delivery has commenced to all markets we serve.” Although some markets might continue to experience some interruption, the pipeline has taken steps to return to business as usual. This may take several days, but the solution has been implemented.

Inflation Many of us have been discussing rising inflation recently. Our rapidly accelerating economy, monetary economic stimulus, and the Fed’s strategy to allow inflation to rise above the normal 2% target has all caused concern over the issue. It is common to think about the worst possible scenario, but it is not necessary to have overblown fears around inflation. Although we have just seen the largest jump in United States inflation since 2008, we believe that the surge will calm down and cap at or below 3%.

Market Shift In the midst of the chaos in the world, we are seeing a shift in the market from growth-based companies to better-value companies.

General Uneasiness

In Summary

Warren Buffett once said that it is wise for investors to be “fearful when others are greedy, and greedy when others are fearful.”