Andiamo
Posted on Sunday, May 21st, 2023
You didn’t hear from us last week because we were in Florence and Rome Italy. The whole family went. During Covid, we missed out on celebrating 2 high school graduations, one college graduation, and our 25th wedding anniversary. So, we felt that it was time to do something special. We love Italy and Italian food so off we went – Andiamo. We took some amazing tours of the Uffizi Gallery and the Vatican Museum, but the highlight was probably the cooking class we took at the foot of the Ponte Vecchio. We learned to make fresh pasta and gelato while taking in a view that could not be beaten. We had pasta (and wine) at just about every meal, and both were fantastic. (Diane is a little upset with me as I came back 2 lbs. lighter. We did a lot of walking.) Truthfully, as I reflect on the trip it was the time spent with Diane and the kids that was our highlight. Time is our most precious commodity especially when we spend it making memories together.
The market is looking to break out of its recent range as we approach 4200 on the S&P. A break of 4200 could force investors to chase it despite the terrible position of the consumer and the looming recession as FOMO turns up the heat. According to the Speaker of the House Kevin McCarthy, the government has 11 days’ worth of cash left to operate and then the government will be in technical default. Putting politics aside – this is what is important. Our government thrives on crisis because that is where the leverage is. They will take this to the brink as it increases various players’ leverage. It will get fixed but when it gets fixed, and the initial euphoria dies down the reality is that as the Treasury replenishes its TGA account it will drain cash from the system. That will be a headwind for markets. The markets had a tailwind as the account was wound down. That and the banking crisis injected cash into the system. That tailwind is now becoming a headwind.
A move above 4200 sucks people back into the market. The market likes to make a fool out of the most people possible. On another note, let’s continue to be diligent when it comes to the latest scams. They are only getting bolder and more sophisticated so if you have any doubts about anything just call me. Check out the latest from Schwab below.
A new scam campaign combining computer pop-up messages and phone calls is now threatening your clients. This advanced scheme combines elements of electronic tech support scams with impersonations of real personnel at the Federal Reserve and Schwab to attempt to obtain your clients’ assets and sensitive data.
The scam works as follows:
- Clients receive a pop-up message appearing to be from either Microsoft or Apple warning that their computers have been compromised.
- The popup instructs clients to call a provided “tech support” number that of course connects them to a fraudster.
- After speaking with the fraudsters, they will be contacted by someone claiming to work for Schwab as a “security officer”, who informs them their Schwab account is “compromised”. In order to protect them, the Schwab employee impersonator tells the client they must transfer their funds into an account in “federal custody”, and their money will be returned in three business days, once their account has been “encrypted” for safety.
- Once the client follows these instructions, their money disappears.
To make the story believable, clients are receiving personalized paper letters in the mail that purport to be from the Federal Reserve, referencing the real name and titles of genuine Schwab personnel, tech company employees, and FDIC analysts who are supposedly the individuals contacting them by phone. The letter encourages clients to verify each person’s identity through their LinkedIn profiles, making the scam even more convincing.
Steps you can take to protect your clients and firm:
In the face of this intense threat landscape, please review what you can do to help below.
- Remind clients not to click on links or call based on instructions from a computer pop-up.
- Encourage clients to always verify the phone numbers for tech support providers independently.
- Educate clients never to grant remote access to their Schwab accounts to anyone.
- Verify all requests verbally with the client.
“Short term volatility is greatest at turning points and diminishes as a trend becomes established.”– George Soros
I think we aspire less to foresee the future and more to be a great contingency planner… you can respond very fast to what’s happening because you thought through all the possibilities, – Lloyd Blankfein
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. – Winston Churchill
To learn more about us and Blackthorn Asset Management LLC visit our website at www.BlackthornAsset.com .
Disclosure: This blog is informational and is not a recommendation to buy or sell anything. If you are thinking about investing consider the risk. Everyone’s financial situation is different. Consult your financial advisor.