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BIG TECH SHOWS ITS RESILIENCE • PAGE 10 VOL.CII NO.31 AUGUST1,2022 $5.00 m o c s. nt pri e djr w. w w or 8 d.00 e0 mitt43- per0-8 ot 80 ctions nment at SSOOLLVVIINNGG duart op Reprs de alter. eprint the ot edit or Barron's r FFOOOODD only. Do ne contact CCRRIISSIISS e as se mercial untent, pl Withworldhungerontherise, o wefoundfourinnovativecompanies mc cose thatcouldmakeadifference. ersonal non-print or licen 63142 > Plus:HowPAtoGiEnSve1s4t,in18farmland. pe or o r FT C O N T E N T S 08.01.22 VOL.CII NO.31 P.14 P.28 P.5 Finding Solutions for This Rally Can’t Be Trusted Up&DownWallStreet: the Food Crisis We’re Still In for a Slog CoverStory:Companiessuchas TheTrader:WallStreet’slatestupswingshouldbeviewedasanopportunity TradersthinktheFedisalmost Deere,Corteva,andICLcould torebalanceyourportfolioinpreparationforfurtherturmoilahead. donetightening.They’rewrong. playabigroleinaddressingthe ByNICHOLASJASINSKI ByRANDALLW.FORSYTH worseningglobalfoodshortage. HotFunintheSummertime By RESHMAKAPADIAAND P.10 ALROOT JulywasthebestmonthforstockssinceNovember2020,afteramiserablefirsthalf. Tech Trader: Big Tech Bondsbounced,too. Winners and Losers P.18 Changeforfirsthalfof2022 Invest in Farmland AmazonandMicrosoftareproving ChangeforJuly theirvalue—unlikeIntelandMeta. as an Inflation Hedge iSharesCoreU.S. ByERICJ.SAVITZ S&P500 NasdaqComposite AggregateBondETF Farmlandhasdelivered dependablereturnsinrockytimes. P.24 AnewcropofREITsandETFs Income: How to Play makesiteasierthanevertobuyin. 12.3% REITs as Rates Rise By LAURENFOSTER 9.1% ByLAWRENCEC.STRAUSS P.11 2.4% Worrying Ourselves P.25 m o Into Recession Economy: Be Careful c nts. Americansarebracingfora What You Wish for epri downturn,inturnboostingthe IftheFedisindeedreadytoslow w.djr chancesthatrecessiontalkcould -10.9% ratehikes,itwouldn’tbegood. w becomeself-fulfilling. ByLISABEILFUSS w or ByMEGANCASSELLA 8 P.31 ed.000 P.12 -20.6% Euro Trader: Food and mitt43- Six Utility Stocks for Energy in One Stock per0-8 Growth and Safety -29.5% ot 80 ByRUPERTSTEINER oductions npartment at UinannatimdtlhiEteiyssxysesteulooaccnrhk’sssatmsihllNaalvreokexoehtktEercrlodhau,eutaE—ppn.watenerdlgly, Source:Bloomberg PE.m31erging Markets: Reprs de ByALROOT Taiwan Semi Is on Top alter. eprint P.13 PA.6260/40 Portfolio BonarFroonx’sBRusoiunnesdstable ByCRAIGMELLOW ot edit or Barron's r WCohuyldODpeonudboleor Stock SQ&tiAll:MInvaesktmeesnStmeannsageer WSaatutcrhdaoyurorwSeueknldyayTVats1h0oaw.m. PSo.tnr3iC2kionngsuPmriceer:FAruTgraalditey e only. Do nase contact BFoconoyollilBlnionIewLghL-hoUAompuLe:sPiTsnEehglRelemTnraecrwaknleytw.peraotfhitearbale PZahcoktoWgriattpmhabny RahBpiiygcphhNraoiICnradcfHlhaBOtfeioLorrnAnas.StneJieAnraSdIoiNsfcSpueKsrsIseisstheinstly oiCnrEt1eO1r:v3Jia0eswoa.nmwLi.tiEhbTeRr.toTyy.hailsCwaereibkb,eaann BPy.3S3TEVENM.SEARS se ChristoniHaggins, cial unt, pl P.22 pKofraolhedyrudacr,toiinopsnopnmeiccaatnsllaylgageyrreorawstn P.23 IRnedveixew&Preview PP..84 CWhinanrteinrsgathnedMLoasrekrestPP..3356 CCoomuldmKodeeitpieFs:aPllirnicges mernte Heeding the Lesson lJeualyfy2g3r,e2e0n2s2o,natFKriadlaeyra,’s Funds: ETF Guardrails Mailbag P.55 ResearchReports P.37 ome co of 1970s Inflation vinerOtriclaanldfaor,mFlian.gfacility for Nervous Investors InsideScoop P.34 ByMYRAP.SAEFONG cs ersonal non-print or licen hsRTooehwsbeearBsdvtaaecgcoakfuvlaloSdtiitdohonaerlyispn:imtUtohindleada1rye9r’ms7s0tFiasestndagdekoirenta.gl Aetthoxacnbhteuapwfnofegtbreern-leotterisdaasdleoegsfda.“iTdfnuhesnfeiadntrsreeaducdsaoeep-usoptofcefpoditms.ioen”s ©OBMthuAoe2rRn0AndR2meaOw2yeN.rsD’EiSpcodaa(wipUstoe,SJrrNPosiaeSnalwear0ensY4d1o4&0rP-0k7Cu%,0boN0lmsi.)cYo(a.pIuSt1ari0Socn0neNy3dH,16fI0e.nr7aoPc7dme.-qr8Asui0oulald3srRi9ttcaei)agirPnlhssau:tbpbs1lo2leiRss1c1heteaeAsrgdveteierfeinpvevuaeedeirddmy.oaifllts. POH.at5hn4edrCVaonic’tesB:eMFuosrkc’esd or po re ByKENNETHG.PRINGLE ByDEBBIECARLSON Cchhaicnogpeeset,oMBAararnodn’ost,h2e0r0mBauilrinngetotfRfidce.,sC.hPiocsotpmeaes,tMeAr:0S1e0n2d0address ByCARLISSCHATMAN FT w 0 03 August1,2022 BARRON’S 3 _p 2 b w 2 1 3 0 0 0 _0 _w 0 0 3 0 0 _1 ________xa2 0 2 2 _0 1 .p d f 1 THE CONSUMER STAPLES SECTOR OF THE S&P 500 IN ONE ETF SectorSPDRsallowyoutoinvestinpiecesoftheS&P500.LikeConsumerStaples.Whileaddingdiversificationandreducingsinglestockrisk.These ETFscombinethediversificationofamutualfundandthetrackingofanindexwithtransparencyandliquidity. m o c s. nt pri XLP e djr CONSUMERSTAPLESSECTORSPDRETFTOP10HOLDINGS* w. w w or CompanyName Symbol Weight 8 d.00 Procter&Gamble PG 15.46% e0 mitt43- Coca-Cola KO 11.00% per0-8 ot 80 PepsiCo PEP 10.33% ctions nment at CostcoWholesale COST 9.52% duart Walmart WMT 4.46% op Reprs de MondelezInt'l MDLZ 4.43% alter. eprint PhilipMorrisInt'l PM 4.31% ot edit or Barron's r *oCfo6m/3p0o/2n2e.nPtsleaansdesweeeigwhetibnsgitseafsor AClotrlgiaate-Palmolive MCOL 33..4906%% only. Do ne contact dtoacilhyaunpgdea.tes.Holdingssubject EsteeLauderA EL 3.04% e as Aninvestorshouldconsiderinvestmentobjectives,risks,chargesandexpensescarefullybeforeinvesting.Toobtainaprospectus,whichcontainsthisandotherinformation,call1-866-SECTOR-ETFor cial usnt, ple vThiseiSt&wPw50w0.,sSePcDtRos®r,sapnddrSse.lcecotmSe.cRtoeraSdPDthRse®parreorsepgeisctetruesdctraardeemfualrlkysboefSfotarnedianrdve&sPtoinorg’s.FinancialServicesLLC.andhavebeenlicensedforuse.ThestocksincludedineachSelectSectorIndexwereselectedbythecompilationagent. mernte TheircompositionandweightingcanbeexpectedtodiffertothatinanysimilarindexesthatarepublishedbyS&P.TheS&P500Indexisanunmanagedindexof500commonstocksthatisgenerallyconsideredrepresentativeoftheU.S. mco stockmarket.Theindexisheavilyweightedtowardstockswithlargemarketcapitalizationsandrepresentsapproximatelytwo-thirdsofthetotalmarketvalueofalldomesticcommonstocks.Investorscannotinvestdirectlyinanindex. oe TheS&P500Indexfiguresdonotreflectanyfees,expensesortaxes.Ordinarybrokeragecommissionsapply.ETFsareconsideredtransparentbecausetheirportfolioholdingsarediscloseddaily.Liquidityischaracterizedbyahighlevel cs 30-Jul-22 03:35:2 or personal non-o reprint or licen oSgAfeeLltnPereaScrdtaPiSlnoleygrcettafoxcoprtleiSivroPiitDeSynR.ocsleuagrteiroesnautsbejDrevicsottltraoitbriliuistkytos.Drs,iivmIneirclsa.i,rfaitcoartethigoonissedteooferesstdnoocbtkrseo,lkiimnecirnl-uaddteeinatglheterh,roiissskedoriefsgetarxirpbdeuirnitegonsrchfionorgrt-tinsheveleliSsntegmleaecnndttSlmoesacsretgosinr.SacPcDoRunTrtumsati.ntenance.AllETFsaresubjecttorisk,includingpossiblelossofprincipal.Fundsfocusingonasinglesector 6 FT 4 BARRON’S August1,2022 I N D E X Ourindexlistssignificantcompaniesmentionedinstoriesandcolumns, ForCustomerService,call1(800)544-0422,orgoto plusResearchReports,andCorrections&Amplifications.The customercenter.barrons.com.Forreprintsofarticles, referencesaretothefirstpageoftheiteminwhichthecompanyis call1(800)843-0008,orgotodjreprints.com. mentioned. A AdvancedMicroDevices...............9,10,31 IngersollRand..............................9 LockheedMartin..........................34 N NewellBrands.............................30 AES.......................................12 Intel................................8,10,31,35 Lowe's.....................................32 NextEraEnergy...........................12 Airbnb......................................9 IntercontinentalExchange..................9 NovoNordisk...............................9 AlexandriaRealEstateEquities...........24 InvitationHomes..........................25 MMarathonPetroleum........................9 Nvidia.....................................31 AlibabaGroupHolding..............8,9,31,35 MarriottInternational......................9 AllyFinancial..............................37 J JetBlueAirways............................8 MasTec....................................34 O OccidentalPetroleum.......................9 Alphabet.................................8,10 McDonald's.................................8 OfferpadSolutions.........................13 Amazon.com...........................8,10,35 K Kalera.....................................16 McKesson..................................9 OpendoorTechnologies....................13 AmerisourceBergen.........................9 Kellogg.....................................9 MetaPlatforms........................8,10,35 Orkla......................................31 Amgen......................................9 MetLife.....................................9 Apple.................................8,10,31 L LifeStorage...............................24 Microsoft.................................8,10 P ParamountGlobal...........................9 AristaNetworks............................9 LocalBounti...............................16 Moderna....................................9 PayPalHoldings........................8,9,34 ArmstrongWorldIndustries...............30 PeabodyEnergy............................9 AT&T.....................................25 PlugPower................................35 Procter&Gamble..........................8 B BectonDickinson ..........................9 Prologis...................................24 BioceresCropSolutions....................16 PrudentialFinancial........................9 BlackRock.................................16 Block.......................................9 Q Qualcomm.................................31 BlueWaterVaccines.......................35 BookingHoldings...........................9 RupertMurdochExecutiveChairman,NewsCorp R RegeneronPharmaceuticals.................9 BP..........................................9 RobertThomsonCEO,NewsCorp AlmarLatourCEO,DowJones Roku......................................35 Brightcove.................................34 SENIORVICEPRESIDENT,BARRON’SGROUPMaeM.Cheng S SamsungElectronics.......................31 C CapriHoldings............................30 SBACommunications.......................9 ASSOCIATEPUBLISHER,BARRON’SGROUPDanShar CassevaSciences..........................35 Sempra.....................................9 MANAGINGEDITOR,BARRON’SGROUP DavePettit Caterpillar..................................9 Semtech...................................37 Cigna.......................................9 Shopify....................................35 m s.co CClNorHoxIn..d.u.s.t.r.i.a.l.........................................................159 EDITORINCHIEFDavidCho SSiiemmoennPsr.o.p.e.r.t.y..G..r.o.u.p...........................................1.29 nt Coca-Cola...................................8 EXECUTIVEEDITORBobRose SENIORMANAGINGEDITORLaurenR.Rublin Snap.......................................10 pri ConocoPhillips..............................9 SolarEdgeTechnologies.....................9 w.djre CCoonrtsetvealla..ti.o.n..E..n.e.r.g.y..............................................1162 EDIDTEOPRUIATLYDEDIRIETCOTROSRA,MleAxGEAuZleI,NBEenPhLielvRisooohsnevelt SSopniryitGAriorulipne..s............................................................318 w Cummins...................................9 Starbucks...................................9 w CVSHealth.................................9 MANAGINGEDITOR,DIGITALMattBemer MANAGINGEDITOR,ENTERPRISEBrianHershberg Sunrun....................................35 or MANAGINGEDITOR,NEWSJoeWoelfel 8 D DaVita......................................9 T TencentHoldings..........................31 d.00 Deere ..................................15,21 ASSISTANTMANAGINGEDITORSHenryCutter,MelGray,AnitaHamilton,MaryRomano,RobertSabat Tesla......................................32 e0 mitt43- DDeenvosno.E.n..e.r.g.y...........................................................3.19 ASSOCIATEEDITORSAndrewBary,DarenFonda,RandallW.Forsyth,JackHough,ReshmaKapadia,EricJ.Savitz T3Mev.a.P..h.a.r.m..a.c.e.u..ti.c.a.l.s..........................................8.,3259 per0-8 DukeEnergy...............................9 SENIORWRITERSBillAlpert,LisaBeilfuss,LaurenFoster,TaeKim,JoeLight,ElizabethO’Brien, Twitter....................................10 ot 80 DuPont.....................................9 AlRoot,AviSalzman,LawrenceC.Strauss oductions npartment at E EeEEBldaeaticsoytonr.no....nI..inc..t..eA..r..rn..ta..st...i..o...n....a...l...............................................................................................1..2999 SaRbrEiPnOaRETscEoRAbSanrgJ,aeNclaoicbPhAaoldluaemslmJbaoas,ninT,seLkrueii,ssCaaaRBllieuvltamrsa,KnCe,ooMnwenngo,arMnSaCmracistLhsea,ljJloaaic,eo,JbEanvSeioetnHLein.uCs,hhSihon,aeJi,naKcakaMrDiiseshnhmtkoiannV,,CJaoansrjhlaenNtoianthEanng-lKisahz,is, UV UUVebnreitlreevxTePerch.ha.n.ro.ml.oa.gc.ie.e.us.t..ic..a..l..s.................................................................998 alter. Repreprints de EEEElmnuittcLeeolrisrglaleyyt....C....o...m......m.....u....n...i..c...a....t..i..o....n...s.......................................................................9...,.3.14298 STORYEDITORSCCaOmPiYllaDIEmSpKeMriaiclih,EaedlLJI.DiBnEu,AErSlriniEngDMhITacmOCR,aRrMtihcahyt,atSrPtdaecRteyersOscozingonl,oR,uRpoebretrSttTeeiniteerlm(Laonndonbureauchief) WWWWWeaailslrlmitnaeeamrrrnstBD.Cr.ioo.gss.i...t.a.D..li...s...c...o...v...e...r...y.......................................................................................8999 ot edit or Barron's r F EEFaxxrepmleodlnaian.d.G.P.r.oa.ur.pt.n..e..r..s........................................................................9..,21.219 SENIORAUDIOMANADGEEPRUMTYetDteIGLIüTtAzhLøMftANDAIGGIITNAGLEPDRIOTODRUCZEoReSSzRaotbhemrtaCryushing,ClareMcKeen Y WYYuEomrTl!dIBHWroarlneddsitnslg.in.sg....E....n..t..e..r..t..a..i.n..m....e..n...t.....................................33.095 e only. Do nase contact FFFFFoorliudrroeedtninltniMicteeyetro.NEtG.oan.rr.teo.i.rou..gn.p.y.a..Hl....I.o..n..l.d.f..o.i..nr...mg....s..a....t....i..o....n........S......e....r....v.....i...c....e....s.............................1....28989 DIRECTODRIROEFCPTHROOERST,ADEOAREGRSTRICADGHPINRHD&EIYCRVTSEISOaCUrRTiAOnSLaRRSFoPKibnareukirseltitlniCsnteoeLYnineunneoPzllylHysD,ONERTSiEOcISkGEENHDADIaRTlIlCORaHEmRECS,RTSHOuDaRelaNinCeghCLehalmasveeazS,cNhiicfofleSilver Z Zoetis....................................9,21 se mercial untent, pl G GGGeeilnneaeedrraaSllcMEieloentccoterrssic...............................................................................8..,..3879 NEWSeditors@bSAaTDrAVrToEInRSsTT.cIIoCSmISNMGSATSNAEATRIGVSEITCRIECMSSMibcAahraNreAolnGTsE.sKRtaoStksJoa@smzbkeasarrHoS.nTBsAa.TclomISmeTrI,CCWUIASaNTrdODSMa.ErMrRecSnGECuRhiVniImeCsasE800-544-0422 mco GladstoneLand............................21 oe GlobalPayments............................9 GLOBALHEAD,WEALTH&ASSETMANAGEMENT JackOtter cs personal non-eprint or licen HI HIIICnmofLpnraienGsyjtwrr.ou.eu.clpl.tu.I..rn..e.t.e.&..r..n..Ea..t.n.i.o.e.n.r..ag..ly.....A......l.t..e....r...n....a...t...i.v...e....s..........................33317674 Aofmtehreicaadsv,eNrteisweBHUianYrda.e'Soswvrarr.ehdkoorsoq,rtnudiluN’sebseai.nsrYoir.sctg.rePra1ipiorpns0utst:rp0ibtaom1al3dni2sr6eat1hrm.sa1wetBtdaeieAtarrh:ivk:rnooerSoouBnnefnteaunD’sserdyorpeorwoeaeanfcds’rJsi,tdeoah$rrnilesev2peess2esAssur3mambtc.nhhejieEdesarcinscnirtttiiagosgitrseonhea,s.tftefNhUntidloeeinoaitwstaBtooetparYolsipiraoc.rlaliiroBtckccenaa,oc’dbrsenNrl,pmteo.e2Ytnarn.0’aasnt1n0tueo(0UsaBf0ccSdtua3rhvPrirp6neidSste.r,st0ptPicstu4soeeRbh4prrilod-o’iisec7u.d,sa0loidCcto0riadohbf)leniesw(cIrSo.chapopSOicocpeNcnshyeolty1raa,mi0grgMpeph7euAata7bepnv-l0diaia8ce1iia0bddl0at3y2ibbao9D0lytne).oCsPfowerhufolibfJacm-olonaisnptdhaheededeserdve,&AeseMdrsvCtveiAesoedre.rya,tmeinMIsnndeinvocne.gnotladtoDshnaphiedryeaer.mlcEwmltdcuioatoishrti,nloti1pnsrni2rgtaooi1tltpo1uabeftnfAeeridcvpaeerPeocsnupsc.ubterReaolpigcedotaeguaft.ucntieholAcadenelrl or o r FT August1,2022 BARRON’S 5 U P & D O W N W A L L S T R E E T Thelatesthikeraisedthefed-fundsrangeto 2.25%-2.50%,movingitclosertotheyear-end 20223.40%and2023peak3.80%theFedexpects. Stocks Rally on Hopes peakonJune14—aheadofthat 0.07%,whilethe10-yearTIPSwas month’sFOMCmeeting.Andjust yielding0.11%. beforetheannouncementofthecom- Freemoneyisjustthestimulant mittee’slatestmovesonWednesday neededtoboostanimalspiritsinrisk That Rate Hikes Are afternoon,thebenchmark10-year markets,andstocksjustclosedout yieldwasdown14basispoints. theirbestmonthsinceNovember Butwhatisstrikingisthatwhile 2020.ThemajorU.S.stockindexes Treasuryyieldshavefalleninthe areupnicelyfromtheirJune16lows Moving Nearer an End wakeofthepasttworatehikesby (hitacoupleofdaysafterthepeaksin Powell&Co.,bondmarketexpecta- Treasuryyields).Thegainsrange tionsoffutureinflationactuallyhave fromjustunder10%fortheDow increased.Thatkeenobservation JonesIndustrialAveragetomorethan comesfromChristopherVerrone, 16%fortheNasdaqComposite,with M StrategasResearchPartners’headof theS&P500index’s12.5%risejust technicalstrategy,whodeemsthisthe aboutsplittingthedifference.The arketscanstay 1/100thofapercentagepoint.) mostrevealingthingtohaveemerged last-mentionedadvanceisaboutaver- irrationallon- Atthesametime,FedChairman thispastweek. ageforabear-marketrallysince1950, gerthanyou JeromePowell,inhispost-FOMCmeet- Theanticipatedfive-yearinflation Verronenotesinaclientvideo. canremain ingnewsconference,allowedthatfu- ratefiveyearsfromnow(inother Butinvestorsareprobablyoverly solvent,John tureincreasesarelikelytobesmaller. words,duringthesecondfiveofthe complacentaboutcentralbankers’ Maynard Thelatestraisedthefed-fundsrangeto next10years)hasmovedup30basis desiretoavoidbeinglabeledasan- Keynesfa- 2.25%-2.50%.Thatmovesitcloserto pointssincePowell’spost-FOMC otherBurnsandwishingtofollowin m mouslyobserved.Unlikemostpracti- the3.40%year-end2022and3.80% newsconferenceandabout50basis Volcker’sgiantfootsteps,according o c s. tionersofthedismalscience,Keynes 2023peakenvisionedintheFed’smost pointsoverthepastmonthorso,Ver- toanincisivereportfromtheglobal eprint wcaamseantoatchtaivteinsspiegchutltahtoerh,aanrddwnoayd.oubt BFoyrRsyatnhdallW. rtieocnesn,tsSuubmmmittaerdyaotfitEscJounnoemcoicnPfarbo.jec- rthoenemoabrskeertviesss.aFyrionmg:tIhfatht,ehFeeidnefrearls, becyoFnroemyaicBsetaeammisaht.TSLombard,led w.djr Financialmarkets,fromstocksto Thedualhikestotaling150basis Reserveisabouttopivottothedovish Deceleratingpricesforgoods,nota- w bondstocryptocurrencies,havebeen pointshavebeenfollowedbystunning side,itwon’tstampouttheinflation blyfoodandenergy,willmakecoming w or exuberantlately—irrationallyso,one dropsinTreasuryyields,however, bedevilingus. inflationreadingsappearbenign,as 8 mightargue—onthepremisethatthe suggestingthattheinterest-ratemar- Concomitantwiththisriseininfla- thiscolumnhaspointedoutprevi- ed.000 FederalReserveisnearitsmaximum ketsarelookingaheadtotheeventual tionexpectations,realinterestrates ously.CracksinChina’sproperty mitt43- degreeofpolicyrestraint.Thatmight peakinFed-setrates.Inparticular, inthemarketforTreasuryinflation- marketandaEuropeanrecessionwill per0-8 beadelusion,onthepartofthemar- thebenchmark10-yearnote’syield protectedsecuritieshaverevertedto addtowhattheTSLombardteam ot 80 kets,theU.S.centralbank,orboth.In hasgoneintoreverse,falling85basis nearzeroorless.Thefive-yearTIPS callsa“mirage”ofeasinginflation. ductions nartment at tpmhlaeearmksaeentatrnaitnlilmtieeers,l,uilnidfvetiesnskgtontrhosweasnrpeaiersnitbjsoeoayrfin-thge points,to2.642%onFriday,fromits onFridaywasyieldinganegative soSofoowpneoaaliskcnythemessal,aktbehorersymacroaenrlkcikelutedlsyhe.toowbslisnigknass op bullswhilefrustratingtheursine IftheFedwon’t,likeVolcker,accept Reprs de typesamongus. aperiodoflabormarket“slack”(in alter. eprint moBstudtoifntehteigbhetlieenfitnhgaitsthacecFuerdaties,athl-e oanthyesruwboserdqus,ehnitgehasuinnegmwpoluoyldmreinskt), ot edit or Barron's r csthhenaottrrthaoalfsbqbauenaskesthwWionugalltdlhSbeterseosetatorpainnpgdiniMgnffalaairntion rbweorionitsveti.ignEogvreianntifnlaagstiptohrneicdceorsewodfnitgtcohyoecdllseineaean,sdteh,ey only. Do ne contact SfcohtlrileeoefwtA.inIrntghotuhtrheeBeruxwranmosrp,dlwse,hoiotfwfoovoreumrlsedarwbFeethde saenrdDviiecnsefplcaitoteisottnsh,,edwsreiilvcleornnemubynadirnrisusitnmigcskw,yP.aogwesell e as double-digitinflationofthe1970s, contendsthatFedpolicyiscloseto cial usnt, ple rcaotnhqeuretrheadnatnhaotvoerfhPeaauteldVoelccokneor,mwyhion tthheererluesstivraei“nnsenuotrraslp”uprosinthtetheactonneoim-y. mernte theearly1980s,albeitwithback-to- TheFed’sJuneSummaryofEco- personal non-comeprint or license co hardLevine/Alamy boCtwafaoerctmAgeikmkesmt,retermih,tacttoeatheesrteecosbhiluFyoiifgennt7dhegs5edl.ytrbhiattaelesslOsikesugepppyreaoenfpriensMhditezesaderrtahkhali-eihsfkteuepanaaddstst WaeaotRinhrbntoehhsNdocseiulekaeemrtewrpetafsineheknYwlfeoayloleaotprmrcetkrlieoraroC,s,inrneaekls,adrinkeuettetmesr- ne2toaq.fo5ruamT%gienhli,itceabrrutProathiurrnuaoaggmsjlheerbl.cfayetetiedeeon,-qnfcutusohannpeldcutFusotesrrdtraht’eshteneeetcsaluwtotirmn2irt.ghea3-nt%riettustno or o r Ric theJunemeeting.(Abasispointis stillspending. long-runinflationtargetof2%.Butas FT 6 BARRON’S August1,2022 Up&DownWallStreet(continued) Explore JosephCarson,theformerchiefeconomist orCLOs,derivativesthatsliceanddice atAllianceBernstein,writesonhis corporateloans. LinkedInblog,thesamepolicyratecan’tbe Thosearemainlyinstitutionalsectors deemedneutralwheninflationisrunning ofthecreditmarketnotreadilyaccessible at9%,asitisnow,ratherthan2%. tomostindividualinvestors.Butanac- What’s Next Powellwon’thavehis“whateverit cessiblearrayofclosed-endandother takes”moment—toinvokethewordsof exchange-tradedfundsalsoinvestin formerEuropeanCentralBankPresident theseinstruments,albeitwithwidely MarioDraghi—beforetheNovembermid- varyingresults. termelections,Carsoncontends.Fed- MarkGrant,thechiefglobalstrategist in Health Care fundsfuturesanticipateanother100ba- atCollierSecurities,poresoverscoresof sispointsinrateincreasesbyyearend, suchfundseveryweekinsearchofthose to3.25%-3.50%.Themarketthenexpects thatpaydouble-digitannualyieldseach cutsin2023.Butthatwoulddelaythe month.Hiscorefocusistoprovideretir- ultimatepeakratesneededtoquellinfla- eeswithincomethatmorethankeeps tion.Andthat’ssomethingthecurrently pacewithinflation,forbasicliving ebullientmarketsaren’tdiscounting. expensesornicetiessuchasgoing T outtodinneroronvacation.Alterna- rickle-downeconomicsliveson tively,ifinvestorsreinvestthosemonthly forindividualinvestorstrying payouts,themoneyshouldcompoundat Genomics & togarnerinterestincome.While arapidclip. theFedhasincreaseditskey Tobesure,mostofhispickshavesuf- Biotechnology ETF federal-fundsrateto2.25%-2.50%from feredsharp,double-digitnegativetotal basicallynilearlierthisyear,“highyield” returnsthisyearinthesteepselloffsthat GNOM banksavingsaccountshaveboostedtheir hitallequityandcreditsectors.Butmost ratesbyonlyathirdtohalfasmuch,to haveexperiencednicereboundsinthepast m lessthan2%—farbelowwhatshort-term monthorso,alongwithstocksandthe o s.c Treasurybillspay.“Highyield”istothese high-yieldbondmarket.Andtheyhave nt accountswhat“lite”istobeer,something maintainedtheirpayouts—animportant epri that’ssatisfyingonlywhenthere’snothing criterionforGrant’spicks—withonly djr elsetoslakeyourthirst. minorchanges. w. w Bondsalsocomeupratherlighton Withinthefixed-incomesectors,Grant w or incomeaftertheiryields’sharpdropin likesOxfordLaneCapital(ticker:OXLC), 8 recentweeks.Thebenchmark10-year EaglePointCredit(ECC),andXAIOcta- d.00 Treasurynote’syieldwasdownmorethan gonFloatingRate&AlternativeIncome e0 permitt0-843- 1 (888) 493-8631 82.067b%asoisnpTohinutrssfdraoym,withsilmeitdh-eJuynieeldpeoanktthoe ThiegrhminTcormusets(fXroFmLTC).LTOhse,swehdiecrhivceatmheeir ot 80 GLOBALXETFS.COM two-yearTreasury—thematuritymost underpressureearlierthisyear. oductions npartment at s5rie6sneBbsaoiitnstiihvsceoyptniooesilenudxtmsspaeeorrcvetepervrdaitchFseteasldtyosrbpvaeeatlerno,tcwhhtoeathn2m.eg8oe97ss.%—t1%.slid vbCeornneAtddimoistnoeSanclttgorlercavslto,eesrMgeaidgae-ersekdn(-AlldiokCafeuPnsn)a,AdnEsbdarinthdoinmnghIoV-nryaecinoecclomdene- Reprs de Beyond Ordinary ETFs® recent12months,soinrealtermsthey LimitedDurationIncome(EVV),and alter. eprint Investinginvolvesrisk,includingthepossiblelossofprincipal.Theinvestable aorpetiwmeilsltibcefluowturzeerion.flGativioennethxpeeecxttarteiomnesly t(PheFNPi)m.HceoaIlnsocofamvoerSstsroamteegcyoFnvuenrdtibIlIe ot edit or Barron's r uicnonwmivehpriecshteittoihofenc,oFrmuanppdaidninioevbsessinotslwemshcaiceyhnbcGeeNsoOufMbpjermocadtyutocintrvsaepasindtdmcshaeayrnbvgieceelsimsi,nitloetedscs.hTonhfoeilnoctogeymll,epincattuneainelsse eibnmeftlbtaeetridovdnae-ldpureino,tateshcotoesudersyceioeclluldersai,tgiTuerseeoAafsnfuedrrryaew cicbloolusesei&dn-,IetnnhdceosV,miinrect(luNusdCCiVnog)naVvneidrrttiutisbslcCeoor&pnoIvrneacrtote-me e only. Do nase contact CppGrrNaoorOpdeeuMfructtilysiloypnncrosoon,tnea-dscniitddvioeecnrrhssta,ifihneeevgdoeF.lsuvininndgb’siunisdniunvseetsrsystmsctyeacnnledtsaorabdnjsedacgntiodvveferser,nqrmuiseeknnfttanrceetwgourpsla,rotcidohunac.rtges BsthhaearFryyuperrasterhep’lseolrofriftorfeusidtnthlotaanhsletfthwhceraeesredikcsitrk.emasptaeredkctesrtousmmdeu,arthitn-eg ftFveoeuarvtntuedinrbetIludeIri(&enNinIBCntaZocr)ro,eoammns’eeswr.(gAeAilnnVlgadKsmf)Ao,arpdrrtkvheeevotnisboteuoCwnsoldiylnsli,-ng mmercial uscontent, ple afgonloudbneadxlxipneettfnhsse.ceFosumbne.dfR’oserfaeudilnltovhreessptuirnmogsm.pTaehrcyitsupasrnocdsapraeedfcudtuliltysio,bnweahfloiicrnehfoianrrmveeaastvtiioannigla.cbalnebaet tvfhrriieaegycwhteGivtrhue-qinosudppalpaaliocsthrtytwuhpneoigerihtktiile,oisgDn.hsoItnuoebdfalttehChLeNeinsBrpeeCelCacituEnivltOaeetrlJiy-veef-- tcchooevmTreehre’ese(dsVVe-cGiaarIrlt)leu.CasEmGFolsontbghatahlteMGfurixalentidt--SliinkecceostomarneIdannt-hdat ersonal non-coprint or license SacDonhismdatrrmaiebrsiuesotsinofioonEntTCsiFnowsd.iiavllriedreubdaoullucygerhertedateunerdnmsse.odDldifsratortimbmutatherekdeFbtuypnSrdiEc.IeBInr(onvokeetstrNmaAgeVen)ts gmnborflaeaatm-rhdBkieeneachdgnriengdddhoasiwm-tiynsneigeeslblc,edtyh-oBsedresogbcuattohovbnraeld,ettashhdn,uaindgdmeittaaobsrl.srttW-hehuaeepidtutyhtopoobppudeeeteornnud- oii“nnhffvfielgearhsttmiomynoieen.nlBdtth”sel,slyatthbpoeeafylya.olalBuc:ttUusnathllliayktedssetoasmeyraevheoettahhdeerof pe or o r tranchesofcollateralizedloanobligations, email:[email protected] FT August1,2022 BARRON’S 7 A CUSTOM EVENT THE 2022 CRYPTO INVESTOR SERIES How to Get Exposure to Crypto Assets Wednesday, August 3 | 3:00 - 3:50 p.m. ET Cryptocurrencies continue to attract investor David LaValle interest, even as market volatility over the past Global Head of ETFs Grayscale Investments few months has made it imperative for financial advisors to have trusted avenues to learn Bart Smith more about investing in these digital assets. Global Head of Digital Asset Strategy m Susquehanna o c In the second webinar co-hosted by Barron’s s. nt pri and Grayscale, we’ll discuss the different In Conversation With e djr ways to invest in cryptocurrencies, including w. w April Ferrell w purchasing coins directly, investing in or Global Managing Director, Asset Management 8 crypto investment products, buying stocks d.00 Barron’s Group e0 mitt43- of companies with crypto on their balance per0-8 sheets, and more. Find out why even ot 80 ctions nment at tforardcirtiyopntaolcausrrseentcmieasniangreertsiraermeefinntdainccgoaunptlas.ce duart op Reprs de alter. eprint ot edit or Barron's r Register Now only. Do ne contact BARRONS.COM/GRAYSCALE2022 e as se cial unt, pl mernte o mc oe ersonal non-cprint or licens TThhiesBisaarrocuns’stonmewesvreonotmcrweaatsendobtyinBvaorlvroend’sinCtuhsetopmroSdtuucdtiioon,aocfothmismeevrecniatl.departmentatBarron’s. pe or o r FT 8 BARRON’S August1,2022 R E V I E W 32,845.13 484.52 2.64% DowIndustrials:+945.84 DowGlobalIndex:+15.21 10-yearTreasuryNote: -0.14 A Sunny July SHE SAID Amazon.comandWalmartreduced “The latest bear guidanceinthefaceofinflationanda strongdollar;Walmartissueditssec- market rally in ondprofitwarningin10weeks.Solid techearningssentstocksupbefore our view is full of theFederalReserveraisedratesand lefthintsofnear-futureeasing.Stocks wishful thinking.” continuedtheirgiddyJulyrun,even afternewsthattheeconomyshrank LisaShalett,MorganStanleyWealth forthesecondconsecutivequarter. Management’schiefinvestment Ontheweek,theDowindustrialsrose strategist 2.97%,to32,845.13;theS&P500was up4.26%,to4130.29;andtheNasdaq Compositegained4.7%,to12,390.69. The Fed Raises TheFedhikedfederal-fundratesby COPING WITH FALLING STOCKS 0.75%,to2.25%-2.5%.ChairmanJe- Gen Z Greets romePowellwasvaguelydovishon futuremovesanddidn’tthinkareces- THE NUMBERS sionhadbegun.Adaylater,gross m 29 domesticproductfellby0.9%,mostly s.co The Bear % oninventoryreductions,triggering nt adebateoverwhethera“technical” epri recessionwasarealrecession. djr PercentageofS&P500 afteritagreedtoaplantoshipgrainout ww. earningsthatcomefrom The Earnings Beat: Big Hitters ofUkraine.Gazpromsaiditwouldcut w or Welcometoabearmarket,GenZ.SomeGenZersmayre- overseasandarethus GoldmanSachswarnedoftheeffect flowsthroughNordStream1toGermany 8 callthe2008recessionandtheshortCovidcrash,but exposedtoastrongdollar ofastrongdollaronearningsasthe to20%ofcapacity,claimingmaintenance d.00 mostlythey’veseenstocksrise.TakeEllaGupta,whofirst 8.1 busiestweekofearningsseasonbegan. issues,renewingfearsofwintershort- mitte43-0 investedatage10.Withherparents’help,shetookhalfof % Mostly,techbeat,retailmissed.Micro- ages.Gaspricesrose,andEuropean per0-8 theprofitsofabracelet-makingbusinessandbought soft,Alphabet,Apple,andAmazon Unionenergyministersmettodiscuss ot 80 stocks.At14,sheopenedaRothIRA,afterstartingherfirst wereupbeat,butIntelwarnedonprof- securingmoresupplies. oductions npartment at fsjoaublrlGivcnleegeyna.“nsZTaienyhrgsse,rtdhelei’askntetaamGllooiutnrposetftatrfhu,eaaamnrreeahninnatdslvf.euNosnftocoGwerre,stna.atAiZn1n7ta,ydIs,n”huvselthesssee—teossaapygsesetdo.sicaks Dst$oarolleopswii1nensnJteu6lwnevesefilrnsogimnlec-pefraAimoprirlymilho2on0mt2h0e, GiPotnsre.oncUcoentnreisarlule&mEveleGerrcaastmnpredibcnCl,deaoinbncdegaa.-3tMC,MboculDbateomwantai.asrGslndeeed’nsd;,- AClizhneinn$aa14’lss8ceobnifltlriDoaenlbaianlnMlkoaasnaksiidnfoigtrwprooupldermtyodbei-- Reprs de 18to24—haveinvested,with26%buyingstocks.That T eralMotorsmissed,butFordbeat. velopersandhelpcompleteunfinished alter. eprint mtioankeasttthhaetmagme.oGreefninZainscaialslloyaacsoticviealt-hmanedainaygepnrieorratgieonne.rIan- MmeedtaiaProlauttfowrimthsitssufsirtastinqeudatrhteerslyocloiasls-. pmraokjeecittss…pArilmibaarbyaliGstrinoguipnHHoolndginKgonwgi,ll e only. Do not edit or ase contact Barron's r avtZw7o3eGhui%snSittecvietnnohiedlgfslZm,itGnootshinerugoneshrnYabvtZlopieennuyiaponeT,retvhufacbeoarbasrelnettfuoowoamwrbfnissrserdeetelrq.ciosakAkuptdehiogceBeRnrkdraodeenavudreckipndtdtortitievahtssoethiseesnlaayl,kslviadutt.ehhrtMtthiavhasnieaneryynydkteyhfealooeedrsnua,it.rocrnTAnoecdiklmnekdtdsdTheprioaGanstkr,e-e.nd Ftt2riavillellioidnne,%tbhlote,wwdeooswrtlndin’s8s7se%tvoe,cntkoyo$ef2an.r4esga- CAptbBeiaihhclgslhieisOopaecnddsiolmfothAohfirphteteshaomteeiygmtuAiuvcisucehhong-enduersdes.sltuabrcyetieolclder,sfspescra,ioetCudnorucniecngtagrione$nsd5s2 aotBfDboosniaidrggntacaiidkutvrlarkmyedlesp,iusatwtsspnrotehu-acdaFliloslcerunshsbipeet.erddtAtasoiw’ssslloimeFoabfefaTbiwnsAbaXshatnnehi’mskdtteerJGaiUauktdrcpa.noekSstiu.agVMapahcon.“taa.yl.dsrSopaehwaCglsamebchbnruiiadsnella”… byGuerinBlask mmercial uscontent, ple wbirteo’sitotihjrmue2smet8ren%sn.o“ttoAsnfoGullouaetntnoicofXensdestr,u”asf,tsfaaJo.gyPnes.ssMAo4nco2inratgeloamL5n7ee.,sd“atIientar’ds,isfg2ooe5rxt%mctoeeolrblfehebneastabhadyodrovtfice; Dgmlareriongcwgelinstinhetvffieanrnocsttmeoocrrcsioeonismnd,pf-oaqanlunleinaieogrsftGettrhrDiemP- sismnucagibetstniacicdxteiuecorsrvn,ee$dar2bitt4oshu,beati,nnllWedioxe$nts2dft0oeV0rciamrbdgiaeiln.lniIiouannfaSafceodtnrur.ra-- TiWafhEseeaubtUrepol.ulKpitle.leaaoonnfpfdreaivrFnaartalaoltnlro-csseEhEwlauornitelelMmltsaueakrtsegkaeb’nsrodaatonrOddcnrsJeeee-aaftftes n;Photograph cose anddigestible,sosomeofthenuancegetslost.” JoeManchinbackedanewSenate Bezos’spaceventures…TheWallStreet Stei personal non-eprint or licen d“oWfohlAlhaoserldn-fcoienorvsgeGtriuatIvpfpoetrarua,rtgshcihheneagl’ossaennngaodttsetdprooamcenks,i”,cdIksuhdineoegdsi.tiaSlwyihgsiee,tnhseocnteuhgnoeadngineisnsttegoinncatkibosi.nt TdyBooaauilgryrel,iostsntNiegsunn.mctuoobpmeprw/ospdhobecdyraecsBvtasaesrrtorsorna’st taRanuxd,sscspliiaemn’sadtBiene-gcah,rparnHegsuecgrbisipllt.ion-drug, JiAasoftiuberrurwniFlaadrlyiorsnengfpitnaoiearsrtltelaypdkuwetlhloienandtPSEoapullyiitorP.itNattleMA…xtiJarehnltiuaBngreledumsleee:nt strationbyElias or o r like91-year-oldWarrenBuffett.—SabrinaEscobar RussianmissileshitOdessatwodays gainingregulatoryapproval. Illu FT August1,2022 BARRON’S 9 P R E V I E W Tuesday TheBureauofLaborStatisticsreleasesthe SignupfortheReview& JobOpeningsandLaborTurnoverSurvey. Expectationsarefor11.1millionjobopenings Previewdailynewsletterat onthelastbusinessdayforJune,154,000fewerthaninMay. Barrons.com/reviewpreview Monday 8/1 BectonDickinson,Block,Cigna, ConocoPhillips,DukeEnergy,Eli AristaNetworks,DaVita,Devon Lilly,ExpediaGroup,FidelityNa- Energy,GlobalPayments,SBA tionalInformationServices,Inter- Communications,SimonProperty continentalExchange,Kellogg, Group,andWilliamsCos.report NovoNordisk,ParamountGlobal, earnings. Sempra,VertexPharmaceuticals, WarnerBros.Discovery,andZoetis TheCensusBureaureportscon- holdcallstodiscussquarterlyresults. structionspendingstatisticsforJune. Consensusestimateisfora0.2% TheBankofEnglandannouncesits monthlyriseintotalconstruction monetary-policydecision.Tradersare outlays,toaseasonallyadjustedan- pricingina50%chancethatthecen- nualrateof$1.78trillion. tralbankwillraiseitskeyinterestrate byahalf-percentagepoint,to1.75%. TheInstituteforSupplyManage- mentreleasesitsManufacturingPur- TheDepartmentofLaborreports chasingManagers’IndexforJuly. initialjoblessclaimsfortheweek A STILL-LIMITED FUTURE Economistsforecasta52.2reading, endingonJuly30.Thefour-week Coal Is Hot— slightlylowerthanJune’s53,which averageforclaimsis249,250—the PeakCoal wasthelowestintwoyears. highestlevelsincelatelastyear. Coalproductionhasbeenrising m co Until It’s Not despiteclimate-changeconcerns. Tuesday 8/2 Friday 8/5 s. nt GlobalCoalProduction, pri 2014to2022 e AdvancedMicroDevices,Airbnb, WesternDigitalandWestinghouse w.djr 10milliontons BP,Caterpillar,Cummins,Du- AirBrakeTechnologiesreport w Pont,Eaton,ElectronicArts, earnings. w or Coalhasbeenfadingforadecade.Butin2021,itroared 8 GileadSciences,MarathonPetro- 8 back;morewasusedtogenerateelectricitythaninanyother leum,MarriottInternational,Oc- TheBureauofLaborStatistics ed.000 year,notesBP’sannualstatisticalreviewofworldenergy. 6 cidentalPetroleum,PayPalHold- releasesthejobsreportforJuly. mitt43- Thisisn’tgoodforclimatechange.Coalaccountedfor ings,PrudentialFinancial,S&P Economiststhinktheeconomyadded per0-8 58%ofU.S.power-sectorcarbonemissionsin2021,despite 4 Global,SolarEdgeTechnologies, 250,000jobs,aftera372,000in- ductions not artment at 80 mtogiefoanenkle.eirGncatgtlroiioubcnpiat,lyjlmuyi,snoctr2oae0aqtl2hup1aa,rnrsotadaeyunrscyoBefodPftu,haaeernlrsedcsuoopsruoedrwdc1eei0n.r,e2ed4le43c6ttre%ircaiowtfyaegtleet-nchteroriuacri-tsy 02 2014 ’15 ’16 ’17 ’18 ’19 ’20 ’21 WSantanerobduunncckeesqs,uadanradteyUrlby8err/es3Tueltcsh.nologies crnareetaearsiasefhionarlJefu-ccnaesent.tTtuohrreyeumlonwaeimnofpu3lno.6cyh%ma.enngted op Thisyearcouldproduceanotherrecord.Electricityde- ot edit or alter. ReprBarron's reprints de mpfrrsoieursratipeicnorp,eidnplsnyeligr-asceanchucnotepasoani,tlcnthsaploeydnlraemhsnliwianottyssi1estt4olcehe-vhcyneatetvreroaerifcrgechiayohtiyratissglrgo.hoeeuSsnfnro.aeecmGwregasaelatosabicboraolaneenm,l;dptppworcoaoohownj.aeeiNenclertscasgacth.aunrGasurvsaepnuelrrc-bmdighcsea,aetlsainsatnyuydetieds RTEinhneteehrtsegrtypooachskRatsoyafoelbualiytrgpoacrcoseaodl.mthineeSr&PPea5b0o0dy AHeIMnBmoegalteeydLrr,iisniEfsoegnol,sltuM,eRrCrocaglednoyBerd,roe,EnrxMxga,eecC,lnKRoV,neeSBsg,soeHFonooenekra,rtilniotnhnge,t, MCAAABDoevffflivioasisolceiBna(mCutQEaedn2sdge)ceiMratgnday(enQ((gaQ2Qg2)e2)rE)s(aQ2r)ningsConsensusEsti$m143112a.....5279t3008e51 Yea$r04571a.....g6906500o923 only. Do ne contact rceoianClsoftaaaclt’iislnirtgiise1es6—cdotouorldmdelaaanlstwtffoiotshrsmiRl-uofruseseiltahpcaluanntattisny—geaignra,cselmufldoaiwinlsgs.Dseavneral P20eB2aO0bDotYody2E0Sn2Pe2Xr,gYyeaarntdotDheatSe&P500, PBhraanrmdsarceelueatisceaelasr,nainndgsY.um! PVMCioonrortneeaErndeaosrntsRi(enQeag2sltn)oyn(sQPa2ug)es51.Estimate 00..7188 00..8205 e as Bakal,Ceres’seniorprogramdirectorofclimateandenergy: TheISMreleasesitsServicesPMI cial usnt, ple “imYeptobretaynotntdotfhoactu,scooanl’tshreebfaocutnthdasthnoeuwldrbeneeswhoarbtl-eligveende.rIat’tsion 320000% f5o3r.3Jurelya.dTinhge,ctownosepnosinutssclaelslsisthfoanrain DMay JuneConstructionSpending Consensu0s.2E0s%t LastP-0e.r1i0o%d ommere conte ein iisnlmesossetxinpsetnasnivceesthaalrneaedxyis,tminagkcinoagl-thaencdligmasa-tfeirfeodregceansterinattiohne 100 Jthurneee.TcohnesSeecruvtiivceesmPoMntIhhsaasnfdalilsenatfoitrs TWTH JJJuuunnneeeJTFOaracLdtToeSrByJaOolbardnOecpresenings 11-,$18750,.103.20b%0il 11-,2$5845,.105.60b%0il For personal non-cTo reprint or licens IllustrationbyEliasSt ehEbnliaenelaslcFeinrtoorr’snrtgico.aycmpTtotioahsrewlaeuocsepcfttrooei1tsdmcs1ek2mcpms%ta,oaintnrnihyniybenritigsbihngoboevhopueptmseeialtrrdsoahitirntnasiyosg.tehnCabsesrooe,.mealb—anleruAmdptaviriniunoisdmSfewirbta-aoPaltbrzotettlmheelao,rabjnybunogusfd-atttycei$tir3lmiti.e”s S--21o00u000rce2s0:2In0ternational2E0n2e1rgyAgency2;0F2a2ctSet TAlowlhibeuastbrlaesvGderloasuiynpcHe8Mo/4ladyinogf,2A0m20g.en, FF-UfC-aonaFnrllieendmsnawosdl;JJJrhaopeuuuart-llnihtaPyyneettrfUNhreowCwenloroiwmymeninsmwmfaseiantu.epirbianmomalardonnyreiyPr;ca-rmoraabg-CntyoRoeesrurneet.doctovtd,olcitliRBsmstoimeaamdrterienosnga’resecfoErneaoesmtEecirconnr.eoapm-oAirdctSvs2$oa42un02rcc.,3e00ed.:60b;F%0ialctSet $37222,3.03.60b%0il 10 BARRON’S August1,2022 T E C H T R A D E R Earningsseasonhasofferednewclarityonthe valueofBigTech.WhyAmazon,Alphabet,and Microsoftremainstrongbuys. Big Tech’s Reminder: cameinalittleshyofWallStreet $100billioninvestmentinnewfabs. estimates,duetotheimpactof ThatprojectwillhelptheU.S.reduce currency,Russia,slowingPCand itsrelianceonAsianchipproducers, advertisingsales,andsoon.Whatshe anditmightbeaprofitablemovefor Earnings Still Matter didinthatmomentwascutthrough Intelinthelongrun,butit’snosure thecluttertowhatmattersmost: thing.Whilethestockischeap,the Short-termtroublesaside,Microsoft’s risksaredeep.Intelinvestorsface businessisdoingjustfine.With yearsofuncertainty. Hood’sencouragement,Microsoft FacebookparentMetaPlatforms T shareholders,andinvestorsmore (META)shareshavesomeofthesame broadly,begantolookpastthe characteristics.Rightnow,thestock heworld’smost enterprisesoftwarebusiness.That recessiontobettertimesahead. looksbroken.June-quarterresults importanttech said,headingintothequarter,there Thefutureisbetterforsome missedestimates,andtheSeptember companiesall wereworriesthatbroadereconomic thanothers:Amazonprovidedthe guidancewasworse.TikTokis reportedtheir weaknessmightslowcloudgrowth. week’sotherbigsurprise,actually stealingattentionandaddollars,and quarterlyresults Butthebearshaditwrong—AWS beatingitsownoutlookforbothsales Metastillstruggleswithadtargeting. thispastweek,and, grew33%,inlinewithestimates. andoperatingincome,despite LikeIntel,thestocklooks ineachcase,the Microsoft’s(MSFT)Azurecloud softnessinitsonlinestores.Amazon’s statisticallycheap,reflectingthe damagefromaslowingglobal businessexpanded46%,adjustedfor retailbusinesshasbeenhurtbyshort- considerableuncertaintyaboutthe economywasinstarkevidence.The currency.AndAlphabet’s(GOOGL) termeconomictrends,butthe company’sfuture.CEOMark witch’sbrewofrisinginterestrates, ByEricJ.Savitz GoogleCloudrevenuejumped36%,to companystilldominatese-commerce. Zuckerberg’sratherperplexingfocus higherfuelcosts,theRussianassault $6.3billion.Notcoincidentally,I’d Thatsaid,Amazonbulls(likeme) onthemetaversecontinuestolook m onUkraine,lingeringsupply-chain arguethatAmazon,Microsoft,and havebeeninsistingforsometimenow likeasignthatthecompanyisdeeply o s.c issues,andtheU.S.dollar’ssurgeis Alphabetarethemostappealingof thatthecompany’sfuturewillbe worriedaboutitscoresocial- nt infectingeverytechbusiness.“We’ll thetechgiantsforlong-terminvestors. drivenbyAWSandadvertising,note- networkingbusiness.Metanowfeels epri allgotogetherwhenwego,”asthe Enterprisespendingcontinues tailing.Amazon’sbestbusinessesare likealotteryticket,notastockpick. djr greatTomLehreroncesang.Financial apace:Indeed,maybethesinglebest stillintheirearlydays,andtherecent Andthenthere’sApple:Apple w. w calamityisthegreatequalizer. momentforthefinancialmarketsthis bearishsentimentseemspoisedfora (AAPL)edgedpastWallStreet w or Buttheweek’sbatchofearnings pastweekcamewhenMicrosoftChief turnaround. estimatesfortheJunequarter,thanks 8 reportsalsomadeclearthatevery FinancialOfficerAmyHoodsaidon Sentimentisalsoimprovingfor inparttolower-than-expectedsupply d.00 itemonthatfamiliarlistofeconomic thecompany’searningscallthatshe Alphabet.Overalladspendingis constraints,whichspurredhigher- e0 mitt43- woeswilleventuallyrecede,leaving seesdouble-digitgrowthforboth softening,butsearchadvertisingis than-expectediPhoneandiPadsales. per0-8 behindindividualcorporatestories, revenueandoperatingincomeforthe holdingupwell.Indeed,dollarsare AndApplesaiditsrevenuegrowth ot 80 somestrongerthanothers. June2023fiscalyear.UntilHood flowingawayfromFacebook,Snap shouldaccelerateintheSeptember oductions npartment at sffoaedreAeminvrseger.t.whFSaueoteimwnlpeaaryoir,tcehbecuesertshsiiastivosweuno?ebnseI’teatnsrluaesratelready mwaafdfelinthgaotnprMedicircotisoonft,’isnqvueastroterrs,wwehriech cdi(nSouNfneotArtimnoPuAa),etpiatopnonldeha’aTsbvrwoeeuistttrttroueiuscretbi(rloTesn’WtsoanroTglnRients)ei,hnwagrhianidcghs qssthteurreaovrlniotcgenergas,-ndstdeeergsgmpmriotesewntosti.rlnoyTgwhiisenernsctgooarwmlolewpadatbhnbiytainsfhueai,ztsbzsyua.t Reprs de receding,forinstance.Andinthechip BigTech'sRebound activity,andtowardGoogleand Beforethepandemic,salesofMacs alter. eprint ihnadvuesbtreye,nwroerprliaecsedabboyuftesahrosrotfageexscess Eteacrhnignigasntsse.asonhasofferednewhopeformostofthe Aowmnaezxonpr,ewshsiiocnhsroelfyshonopcpoinnsgumers’ aTnhderieP’sholinttelesbhuadzzsstoopfparedabgoruowtainng. e only. Do not edit or ase contact Barron's r shhadtaubaaakpondsTeupgpahitetlwryisrwso.asvlehuyhiasderarkreroneedsni.nvomHtagfhlsoeduesrsieoetseauloaaisfstertloseaeo—nlroalskhai,fsenabfwocsdulraatwtlrwhrihteehyeaartdeetyciht 11055% AAAMMlmpeipcptharaloazePobsnolea.ftcttfoomrms isfmqdnleuueutraeceFicortprohuteu:ersatsIrttoon’sirsot.ritvhrneeGeadlesos’lsur,iuonsca(glI,etnlaNstedidhtmTSsesbCeahpuat)koordrrerwocgethcu-eesltturbeses,atllratiewrmlss.lsofhternhalu’iltssnwdnoeoll AcwictEPhaaaphherlrlpsootmalhnakemo,neniAsodso1tn4pwamhg,ppiswiglptxewhhahe’serldhiyecmtahnrevteoctaiealhssyllltusijgtsiueeymit.dasiIlhtnplctmet’oowssarm.otdothAanrpsenktelahrttitnsneosy,aguaadogwonynhndaeys.t cial usnt, ple leaTdehresr.e’snorecessioninthe 0 s2h2%yoifnetxhpeeqctuaatriotenrs,,awrietfhlescatlieosndoofwthne panroddiutsctndexotmbiingatthesinagmreamtuarienmseanrtkieret,ly mernte cloud:Asregularreaderswillrecall, sharpslowdowninPCdemandand unclear. mco I’vebeenconsistentlybullishabout thecompany’sowncontinued YoubuyApplesharesbecauseyou cose thepowerofcloudcomputing.Last -5 competitivelossestoAdvanced havefaithinthebrand,TimCook,and ersonal non-print or licen wAfAoemmceuakaszz,eoIdonnwoW.nrcooetthbmeeSa(letolierncvnkgige-cttrehe:sryA,mwfMehcaZhticuNahrr)em,Iasboofut -10July25 July29 MoAdueMiltcalDoyrosoa,kDnarldelevmwmihacaieinnlseasg(tAcreoysMmitnhDpgrl)oet.ouxIn,geathxesplp’iastrnobddautittcslets tcsthhtoyeenlsecpuoogmmwampeerrabndoleyfe,m’tsbhuahenticsdnltoo.euIrittidh’cseoanrnboditilotiasteysMstiidoteethda.ar-Fvivoeer pe or o r continuetoviewastheworld’sbest Source:FactSet contractchipmakingbusinesswitha Apple,yougottabelieve. 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BIG TECH SHOWS ITS RESILIENCE • PAGE 10 VOL.CII NO.31 AUGUST1,2022 $5.00 m o c s. nt pri e djr w. w w or 8 d.00 e0 mitt43- per0-8 ot 80 ctions nment at SSOOLLVVIINNGG duart op Reprs de alter. eprint the ot edit or Barron's r FFOOOODD only. Do ne contact CCRRIISSIISS e as se mercial untent, pl Withworldhungerontherise, o wefoundfourinnovativecompanies mc cose thatcouldmakeadifference. ersonal non-print or licen 63142 > Plus:HowPAtoGiEnSve1s4t,in18farmland. pe or o r FT C O N T E N T S 08.01.22 VOL.CII NO.31 P.14 P.28 P.5 Finding Solutions for This Rally Can’t Be Trusted Up&DownWallStreet: the Food Crisis We’re Still In for a Slog CoverStory:Companiessuchas TheTrader:WallStreet’slatestupswingshouldbeviewedasanopportunity TradersthinktheFedisalmost Deere,Corteva,andICLcould torebalanceyourportfolioinpreparationforfurtherturmoilahead. donetightening.They’rewrong. playabigroleinaddressingthe ByNICHOLASJASINSKI ByRANDALLW.FORSYTH worseningglobalfoodshortage. HotFunintheSummertime By RESHMAKAPADIAAND P.10 ALROOT JulywasthebestmonthforstockssinceNovember2020,afteramiserablefirsthalf. Tech Trader: Big Tech Bondsbounced,too. Winners and Losers P.18 Changeforfirsthalfof2022 Invest in Farmland AmazonandMicrosoftareproving ChangeforJuly theirvalue—unlikeIntelandMeta. as an Inflation Hedge iSharesCoreU.S. ByERICJ.SAVITZ S&P500 NasdaqComposite AggregateBondETF Farmlandhasdelivered dependablereturnsinrockytimes. P.24 AnewcropofREITsandETFs Income: How to Play makesiteasierthanevertobuyin. 12.3% REITs as Rates Rise By LAURENFOSTER 9.1% ByLAWRENCEC.STRAUSS P.11 2.4% Worrying Ourselves P.25 m o Into Recession Economy: Be Careful c nts. Americansarebracingfora What You Wish for epri downturn,inturnboostingthe IftheFedisindeedreadytoslow w.djr chancesthatrecessiontalkcould -10.9% ratehikes,itwouldn’tbegood. w becomeself-fulfilling. 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POH.at5hn4edrCVaonic’tesB:eMFuosrkc’esd or po re ByKENNETHG.PRINGLE ByDEBBIECARLSON Cchhaicnogpeeset,oMBAararnodn’ost,h2e0r0mBauilrinngetotfRfidce.,sC.hPiocsotpmeaes,tMeAr:0S1e0n2d0address ByCARLISSCHATMAN FT w 0 03 August1,2022 BARRON’S 3 _p 2 b w 2 1 3 0 0 0 _0 _w 0 0 3 0 0 _1 ________xa2 0 2 2 _0 1 .p d f 1 THE CONSUMER STAPLES SECTOR OF THE S&P 500 IN ONE ETF SectorSPDRsallowyoutoinvestinpiecesoftheS&P500.LikeConsumerStaples.Whileaddingdiversificationandreducingsinglestockrisk.These ETFscombinethediversificationofamutualfundandthetrackingofanindexwithtransparencyandliquidity. m o c s. nt pri XLP e djr CONSUMERSTAPLESSECTORSPDRETFTOP10HOLDINGS* w. w w or CompanyName Symbol Weight 8 d.00 Procter&Gamble PG 15.46% e0 mitt43- Coca-Cola KO 11.00% per0-8 ot 80 PepsiCo PEP 10.33% ctions nment at CostcoWholesale COST 9.52% duart Walmart WMT 4.46% op Reprs de MondelezInt'l MDLZ 4.43% alter. eprint PhilipMorrisInt'l PM 4.31% ot edit or Barron's r *oCfo6m/3p0o/2n2e.nPtsleaansdesweeeigwhetibnsgitseafsor AClotrlgiaate-Palmolive MCOL 33..4906%% only. Do ne contact dtoacilhyaunpgdea.tes.Holdingssubject EsteeLauderA EL 3.04% e as Aninvestorshouldconsiderinvestmentobjectives,risks,chargesandexpensescarefullybeforeinvesting.Toobtainaprospectus,whichcontainsthisandotherinformation,call1-866-SECTOR-ETFor cial usnt, ple vThiseiSt&wPw50w0.,sSePcDtRos®r,sapnddrSse.lcecotmSe.cRtoeraSdPDthRse®parreorsepgeisctetruesdctraardeemfualrlkysboefSfotarnedianrdve&sPtoinorg’s.FinancialServicesLLC.andhavebeenlicensedforuse.ThestocksincludedineachSelectSectorIndexwereselectedbythecompilationagent. mernte TheircompositionandweightingcanbeexpectedtodiffertothatinanysimilarindexesthatarepublishedbyS&P.TheS&P500Indexisanunmanagedindexof500commonstocksthatisgenerallyconsideredrepresentativeoftheU.S. mco stockmarket.Theindexisheavilyweightedtowardstockswithlargemarketcapitalizationsandrepresentsapproximatelytwo-thirdsofthetotalmarketvalueofalldomesticcommonstocks.Investorscannotinvestdirectlyinanindex. oe TheS&P500Indexfiguresdonotreflectanyfees,expensesortaxes.Ordinarybrokeragecommissionsapply.ETFsareconsideredtransparentbecausetheirportfolioholdingsarediscloseddaily.Liquidityischaracterizedbyahighlevel cs 30-Jul-22 03:35:2 or personal non-o reprint or licen oSgAfeeLltnPereaScrdtaPiSlnoleygrcettafoxcoprtleiSivroPiitDeSynR.ocsleuagrteiroesnautsbejDrevicsottltraoitbriliuistkytos.Drs,iivmIneirclsa.i,rfaitcoartethigoonissedteooferesstdnoocbtkrseo,lkiimnecirnl-uaddteeinatglheterh,roiissskedoriefsgetarxirpbdeuirnitegonsrchfionorgrt-tinsheveleliSsntegmleaecnndttSlmoesacsretgosinr.SacPcDoRunTrtumsati.ntenance.AllETFsaresubjecttorisk,includingpossiblelossofprincipal.Fundsfocusingonasinglesector 6 FT 4 BARRON’S August1,2022 I N D E X Ourindexlistssignificantcompaniesmentionedinstoriesandcolumns, ForCustomerService,call1(800)544-0422,orgoto plusResearchReports,andCorrections&Amplifications.The customercenter.barrons.com.Forreprintsofarticles, referencesaretothefirstpageoftheiteminwhichthecompanyis call1(800)843-0008,orgotodjreprints.com. mentioned. A AdvancedMicroDevices...............9,10,31 IngersollRand..............................9 LockheedMartin..........................34 N NewellBrands.............................30 AES.......................................12 Intel................................8,10,31,35 Lowe's.....................................32 NextEraEnergy...........................12 Airbnb......................................9 IntercontinentalExchange..................9 NovoNordisk...............................9 AlexandriaRealEstateEquities...........24 InvitationHomes..........................25 MMarathonPetroleum........................9 Nvidia.....................................31 AlibabaGroupHolding..............8,9,31,35 MarriottInternational......................9 AllyFinancial..............................37 J JetBlueAirways............................8 MasTec....................................34 O OccidentalPetroleum.......................9 Alphabet.................................8,10 McDonald's.................................8 OfferpadSolutions.........................13 Amazon.com...........................8,10,35 K Kalera.....................................16 McKesson..................................9 OpendoorTechnologies....................13 AmerisourceBergen.........................9 Kellogg.....................................9 MetaPlatforms........................8,10,35 Orkla......................................31 Amgen......................................9 MetLife.....................................9 Apple.................................8,10,31 L LifeStorage...............................24 Microsoft.................................8,10 P ParamountGlobal...........................9 AristaNetworks............................9 LocalBounti...............................16 Moderna....................................9 PayPalHoldings........................8,9,34 ArmstrongWorldIndustries...............30 PeabodyEnergy............................9 AT&T.....................................25 PlugPower................................35 Procter&Gamble..........................8 B BectonDickinson ..........................9 Prologis...................................24 BioceresCropSolutions....................16 PrudentialFinancial........................9 BlackRock.................................16 Block.......................................9 Q Qualcomm.................................31 BlueWaterVaccines.......................35 BookingHoldings...........................9 RupertMurdochExecutiveChairman,NewsCorp R RegeneronPharmaceuticals.................9 BP..........................................9 RobertThomsonCEO,NewsCorp AlmarLatourCEO,DowJones Roku......................................35 Brightcove.................................34 SENIORVICEPRESIDENT,BARRON’SGROUPMaeM.Cheng S SamsungElectronics.......................31 C CapriHoldings............................30 SBACommunications.......................9 ASSOCIATEPUBLISHER,BARRON’SGROUPDanShar CassevaSciences..........................35 Sempra.....................................9 MANAGINGEDITOR,BARRON’SGROUP DavePettit Caterpillar..................................9 Semtech...................................37 Cigna.......................................9 Shopify....................................35 m s.co CClNorHoxIn..d.u.s.t.r.i.a.l.........................................................159 EDITORINCHIEFDavidCho SSiiemmoennPsr.o.p.e.r.t.y..G..r.o.u.p...........................................1.29 nt Coca-Cola...................................8 EXECUTIVEEDITORBobRose SENIORMANAGINGEDITORLaurenR.Rublin Snap.......................................10 pri ConocoPhillips..............................9 SolarEdgeTechnologies.....................9 w.djre CCoonrtsetvealla..ti.o.n..E..n.e.r.g.y..............................................1162 EDIDTEOPRUIATLYDEDIRIETCOTROSRA,MleAxGEAuZleI,NBEenPhLielvRisooohsnevelt SSopniryitGAriorulipne..s............................................................318 w Cummins...................................9 Starbucks...................................9 w CVSHealth.................................9 MANAGINGEDITOR,DIGITALMattBemer MANAGINGEDITOR,ENTERPRISEBrianHershberg Sunrun....................................35 or MANAGINGEDITOR,NEWSJoeWoelfel 8 D DaVita......................................9 T TencentHoldings..........................31 d.00 Deere ..................................15,21 ASSISTANTMANAGINGEDITORSHenryCutter,MelGray,AnitaHamilton,MaryRomano,RobertSabat Tesla......................................32 e0 mitt43- DDeenvosno.E.n..e.r.g.y...........................................................3.19 ASSOCIATEEDITORSAndrewBary,DarenFonda,RandallW.Forsyth,JackHough,ReshmaKapadia,EricJ.Savitz T3Mev.a.P..h.a.r.m..a.c.e.u..ti.c.a.l.s..........................................8.,3259 per0-8 DukeEnergy...............................9 SENIORWRITERSBillAlpert,LisaBeilfuss,LaurenFoster,TaeKim,JoeLight,ElizabethO’Brien, Twitter....................................10 ot 80 DuPont.....................................9 AlRoot,AviSalzman,LawrenceC.Strauss oductions npartment at E EeEEBldaeaticsoytonr.no....nI..inc..t..eA..r..rn..ta..st...i..o...n....a...l...............................................................................................1..2999 SaRbrEiPnOaRETscEoRAbSanrgJ,aeNclaoicbPhAaoldluaemslmJbaoas,ninT,seLkrueii,ssCaaaRBllieuvltamrsa,KnCe,ooMnwenngo,arMnSaCmracistLhsea,ljJloaaic,eo,JbEanvSeioetnHLein.uCs,hhSihon,aeJi,naKcakaMrDiiseshnhmtkoiannV,,CJaoansrjhlaenNtoianthEanng-lKisahz,is, UV UUVebnreitlreevxTePerch.ha.n.ro.ml.oa.gc.ie.e.us.t..ic..a..l..s.................................................................998 alter. Repreprints de EEEElmnuittcLeeolrisrglaleyyt....C....o...m......m.....u....n...i..c...a....t..i..o....n...s.......................................................................9...,.3.14298 STORYEDITORSCCaOmPiYllaDIEmSpKeMriaiclih,EaedlLJI.DiBnEu,AErSlriniEngDMhITacmOCR,aRrMtihcahyt,atSrPtdaecRteyersOscozingonl,oR,uRpoebretrSttTeeiniteerlm(Laonndonbureauchief) WWWWWeaailslrlmitnaeeamrrrnstBD.Cr.ioo.gss.i...t.a.D..li...s...c...o...v...e...r...y.......................................................................................8999 ot edit or Barron's r F EEFaxxrepmleodlnaian.d.G.P.r.oa.ur.pt.n..e..r..s........................................................................9..,21.219 SENIORAUDIOMANADGEEPRUMTYetDteIGLIüTtAzhLøMftANDAIGGIITNAGLEPDRIOTODRUCZEoReSSzRaotbhemrtaCryushing,ClareMcKeen Y WYYuEomrTl!dIBHWroarlneddsitnslg.in.sg....E....n..t..e..r..t..a..i.n..m....e..n...t.....................................33.095 e only. Do nase contact FFFFFoorliudrroeedtninltniMicteeyetro.NEtG.oan.rr.teo.i.rou..gn.p.y.a..Hl....I.o..n..l.d.f..o.i..nr...mg....s..a....t....i..o....n........S......e....r....v.....i...c....e....s.............................1....28989 DIRECTODRIROEFCPTHROOERST,ADEOAREGRSTRICADGHPINRHD&EIYCRVTSEISOaCUrRTiAOnSLaRRSFoPKibnareukirseltitlniCsnteoeLYnineunneoPzllylHysD,ONERTSiEOcISkGEENHDADIaRTlIlCORaHEmRECS,RTSHOuDaRelaNinCeghCLehalmasveeazS,cNhiicfofleSilver Z Zoetis....................................9,21 se mercial untent, pl G GGGeeilnneaeedrraaSllcMEieloentccoterrssic...............................................................................8..,..3879 NEWSeditors@bSAaTDrAVrToEInRSsTT.cIIoCSmISNMGSATSNAEATRIGVSEITCRIECMSSMibcAahraNreAolnGTsE.sKRtaoStksJoa@smzbkeasarrHoS.nTBsAa.TclomISmeTrI,CCWUIASaNTrdODSMa.ErMrRecSnGECuRhiVniImeCsasE800-544-0422 mco GladstoneLand............................21 oe GlobalPayments............................9 GLOBALHEAD,WEALTH&ASSETMANAGEMENT JackOtter cs personal non-eprint or licen HI HIIICnmofLpnraienGsyjtwrr.ou.eu.clpl.tu.I..rn..e.t.e.&..r..n..Ea..t.n.i.o.e.n.r..ag..ly.....A......l.t..e....r...n....a...t...i.v...e....s..........................33317674 Aofmtehreicaadsv,eNrteisweBHUianYrda.e'Soswvrarr.ehdkoorsoq,rtnudiluN’sebseai.nsrYoir.sctg.rePra1ipiorpns0utst:rp0ibtaom1al3dni2sr6eat1hrm.sa1wetBtdaeieAtarrh:ivk:rnooerSoouBnnefnteaunD’sserdyorpeorwoeaeanfcds’rJsi,tdeoah$rrnilesev2peess2esAssur3mambtc.nhhejieEdesarcinscnirtttiiagosgitrseonhea,s.tftefNhUntidloeeinoaitwstaBtooetparYolsipiraoc.rlaliiroBtckccenaa,oc’dbrsenNrl,pmteo.e2Ytnarn.0’aasnt1n0tueo(0UsaBf0ccSdtua3rhvPrirp6neidSste.r,st0ptPicstu4soeeRbh4prrilod-o’iisec7u.d,sa0loidCcto0riadohbf)leniesw(cIrSo.chapopSOicocpeNcnshyeolty1raa,mi0grgMpeph7euAata7bepnv-l0diaia8ce1iia0bddl0at3y2ibbao9D0lytne).oCsPfowerhufolibfJacm-olonaisnptdhaheededeserdve,&AeseMdrsvCtveiAesoedre.rya,tmeinMIsnndeinvocne.gnotladtoDshnaphiedryeaer.mlcEwmltdcuioatoishrti,nloti1pnsrni2rgtaooi1tltpo1uabeftnfAeeridcvpaeerPeocsnupsc.ubterReaolpigcedotaeguaft.ucntieholAcadenelrl or o r FT August1,2022 BARRON’S 5 U P & D O W N W A L L S T R E E T Thelatesthikeraisedthefed-fundsrangeto 2.25%-2.50%,movingitclosertotheyear-end 20223.40%and2023peak3.80%theFedexpects. Stocks Rally on Hopes peakonJune14—aheadofthat 0.07%,whilethe10-yearTIPSwas month’sFOMCmeeting.Andjust yielding0.11%. beforetheannouncementofthecom- Freemoneyisjustthestimulant mittee’slatestmovesonWednesday neededtoboostanimalspiritsinrisk That Rate Hikes Are afternoon,thebenchmark10-year markets,andstocksjustclosedout yieldwasdown14basispoints. theirbestmonthsinceNovember Butwhatisstrikingisthatwhile 2020.ThemajorU.S.stockindexes Treasuryyieldshavefalleninthe areupnicelyfromtheirJune16lows Moving Nearer an End wakeofthepasttworatehikesby (hitacoupleofdaysafterthepeaksin Powell&Co.,bondmarketexpecta- Treasuryyields).Thegainsrange tionsoffutureinflationactuallyhave fromjustunder10%fortheDow increased.Thatkeenobservation JonesIndustrialAveragetomorethan comesfromChristopherVerrone, 16%fortheNasdaqComposite,with M StrategasResearchPartners’headof theS&P500index’s12.5%risejust technicalstrategy,whodeemsthisthe aboutsplittingthedifference.The arketscanstay 1/100thofapercentagepoint.) mostrevealingthingtohaveemerged last-mentionedadvanceisaboutaver- irrationallon- Atthesametime,FedChairman thispastweek. ageforabear-marketrallysince1950, gerthanyou JeromePowell,inhispost-FOMCmeet- Theanticipatedfive-yearinflation Verronenotesinaclientvideo. canremain ingnewsconference,allowedthatfu- ratefiveyearsfromnow(inother Butinvestorsareprobablyoverly solvent,John tureincreasesarelikelytobesmaller. words,duringthesecondfiveofthe complacentaboutcentralbankers’ Maynard Thelatestraisedthefed-fundsrangeto next10years)hasmovedup30basis desiretoavoidbeinglabeledasan- Keynesfa- 2.25%-2.50%.Thatmovesitcloserto pointssincePowell’spost-FOMC otherBurnsandwishingtofollowin m mouslyobserved.Unlikemostpracti- the3.40%year-end2022and3.80% newsconferenceandabout50basis Volcker’sgiantfootsteps,according o c s. tionersofthedismalscience,Keynes 2023peakenvisionedintheFed’smost pointsoverthepastmonthorso,Ver- toanincisivereportfromtheglobal eprint wcaamseantoatchtaivteinsspiegchutltahtoerh,aanrddwnoayd.oubt BFoyrRsyatnhdallW. rtieocnesn,tsSuubmmmittaerdyaotfitEscJounnoemcoicnPfarbo.jec- rthoenemoabrskeertviesss.aFyrionmg:tIhfatht,ehFeeidnefrearls, becyoFnroemyaicBsetaeammisaht.TSLombard,led w.djr Financialmarkets,fromstocksto Thedualhikestotaling150basis Reserveisabouttopivottothedovish Deceleratingpricesforgoods,nota- w bondstocryptocurrencies,havebeen pointshavebeenfollowedbystunning side,itwon’tstampouttheinflation blyfoodandenergy,willmakecoming w or exuberantlately—irrationallyso,one dropsinTreasuryyields,however, bedevilingus. inflationreadingsappearbenign,as 8 mightargue—onthepremisethatthe suggestingthattheinterest-ratemar- Concomitantwiththisriseininfla- thiscolumnhaspointedoutprevi- ed.000 FederalReserveisnearitsmaximum ketsarelookingaheadtotheeventual tionexpectations,realinterestrates ously.CracksinChina’sproperty mitt43- degreeofpolicyrestraint.Thatmight peakinFed-setrates.Inparticular, inthemarketforTreasuryinflation- marketandaEuropeanrecessionwill per0-8 beadelusion,onthepartofthemar- thebenchmark10-yearnote’syield protectedsecuritieshaverevertedto addtowhattheTSLombardteam ot 80 kets,theU.S.centralbank,orboth.In hasgoneintoreverse,falling85basis nearzeroorless.Thefive-yearTIPS callsa“mirage”ofeasinginflation. ductions nartment at tpmhlaeearmksaeentatrnaitnlilmtieeers,l,uilnidfvetiesnskgtontrhosweasnrpeaiersnitbjsoeoayrfin-thge points,to2.642%onFriday,fromits onFridaywasyieldinganegative soSofoowpneoaaliskcnythemessal,aktbehorersymacroaenrlkcikelutedlsyhe.toowbslisnigknass op bullswhilefrustratingtheursine IftheFedwon’t,likeVolcker,accept Reprs de typesamongus. aperiodoflabormarket“slack”(in alter. eprint moBstudtoifntehteigbhetlieenfitnhgaitsthacecFuerdaties,athl-e oanthyesruwboserdqus,ehnitgehasuinnegmwpoluoyldmreinskt), ot edit or Barron's r csthhenaottrrthaoalfsbqbauenaskesthwWionugalltdlhSbeterseosetatorpainnpgdiniMgnffalaairntion rbweorionitsveti.ignEogvreianntifnlaagstiptohrneicdceorsewodfnitgtcohyoecdllseineaean,sdteh,ey only. Do ne contact SfcohtlrileeoefwtA.inIrntghotuhtrheeBeruxwranmosrp,dlwse,hoiotfwfoovoreumrlsedarwbFeethde saenrdDviiecnsefplcaitoteisottnsh,,edwsreiilvcleornnemubynadirnrisusitnmigcskw,yP.aogwesell e as double-digitinflationofthe1970s, contendsthatFedpolicyiscloseto cial usnt, ple rcaotnhqeuretrheadnatnhaotvoerfhPeaauteldVoelccokneor,mwyhion tthheererluesstivraei“nnsenuotrraslp”uprosinthtetheactonneoim-y. mernte theearly1980s,albeitwithback-to- TheFed’sJuneSummaryofEco- personal non-comeprint or license co hardLevine/Alamy boCtwafaoerctmAgeikmkesmt,retermih,tacttoeatheesrteecosbhiluFyoiifgennt7dhegs5edl.ytrbhiattaelesslOsikesugepppyreaoenfpriensMhditezesaderrtahkhali-eihsfkteuepanaaddstst WaeaotRinhrbntoehhsNdocseiulekaeemrtewrpetafsineheknYwlfeoayloleaotprmrcetkrlieoraroC,s,inrneaekls,adrinkeuettetmesr- ne2toaq.fo5ruamT%gienhli,itceabrrutProathiurrnuaoaggmsjlheerbl.cfayetetiedeeon,-qnfcutusohannpeldcutFusotesrrdtraht’eshteneeetcsaluwtotirmn2irt.ghea3-nt%riettustno or o r Ric theJunemeeting.(Abasispointis stillspending. long-runinflationtargetof2%.Butas FT 6 BARRON’S August1,2022 Up&DownWallStreet(continued) Explore JosephCarson,theformerchiefeconomist orCLOs,derivativesthatsliceanddice atAllianceBernstein,writesonhis corporateloans. LinkedInblog,thesamepolicyratecan’tbe Thosearemainlyinstitutionalsectors deemedneutralwheninflationisrunning ofthecreditmarketnotreadilyaccessible at9%,asitisnow,ratherthan2%. tomostindividualinvestors.Butanac- What’s Next Powellwon’thavehis“whateverit cessiblearrayofclosed-endandother takes”moment—toinvokethewordsof exchange-tradedfundsalsoinvestin formerEuropeanCentralBankPresident theseinstruments,albeitwithwidely MarioDraghi—beforetheNovembermid- varyingresults. termelections,Carsoncontends.Fed- MarkGrant,thechiefglobalstrategist in Health Care fundsfuturesanticipateanother100ba- atCollierSecurities,poresoverscoresof sispointsinrateincreasesbyyearend, suchfundseveryweekinsearchofthose to3.25%-3.50%.Themarketthenexpects thatpaydouble-digitannualyieldseach cutsin2023.Butthatwoulddelaythe month.Hiscorefocusistoprovideretir- ultimatepeakratesneededtoquellinfla- eeswithincomethatmorethankeeps tion.Andthat’ssomethingthecurrently pacewithinflation,forbasicliving ebullientmarketsaren’tdiscounting. expensesornicetiessuchasgoing T outtodinneroronvacation.Alterna- rickle-downeconomicsliveson tively,ifinvestorsreinvestthosemonthly forindividualinvestorstrying payouts,themoneyshouldcompoundat Genomics & togarnerinterestincome.While arapidclip. theFedhasincreaseditskey Tobesure,mostofhispickshavesuf- Biotechnology ETF federal-fundsrateto2.25%-2.50%from feredsharp,double-digitnegativetotal basicallynilearlierthisyear,“highyield” returnsthisyearinthesteepselloffsthat GNOM banksavingsaccountshaveboostedtheir hitallequityandcreditsectors.Butmost ratesbyonlyathirdtohalfasmuch,to haveexperiencednicereboundsinthepast m lessthan2%—farbelowwhatshort-term monthorso,alongwithstocksandthe o s.c Treasurybillspay.“Highyield”istothese high-yieldbondmarket.Andtheyhave nt accountswhat“lite”istobeer,something maintainedtheirpayouts—animportant epri that’ssatisfyingonlywhenthere’snothing criterionforGrant’spicks—withonly djr elsetoslakeyourthirst. minorchanges. w. w Bondsalsocomeupratherlighton Withinthefixed-incomesectors,Grant w or incomeaftertheiryields’sharpdropin likesOxfordLaneCapital(ticker:OXLC), 8 recentweeks.Thebenchmark10-year EaglePointCredit(ECC),andXAIOcta- d.00 Treasurynote’syieldwasdownmorethan gonFloatingRate&AlternativeIncome e0 permitt0-843- 1 (888) 493-8631 82.067b%asoisnpTohinutrssfdraoym,withsilmeitdh-eJuynieeldpeoanktthoe ThiegrhminTcormusets(fXroFmLTC).LTOhse,swehdiecrhivceatmheeir ot 80 GLOBALXETFS.COM two-yearTreasury—thematuritymost underpressureearlierthisyear. oductions npartment at s5rie6sneBbsaoiitnstiihvsceoyptniooesilenudxtmsspaeeorrcvetepervrdaitchFseteasldtyosrbpvaeeatlerno,tcwhhtoeathn2m.eg8oe97ss.%—t1%.slid vbCeornneAtddimoistnoeSanclttgorlercavslto,eesrMgeaidgae-ersekdn(-AlldiokCafeuPnsn)a,AdnEsbdarinthdoinmnghIoV-nryaecinoecclomdene- Reprs de Beyond Ordinary ETFs® recent12months,soinrealtermsthey LimitedDurationIncome(EVV),and alter. eprint Investinginvolvesrisk,includingthepossiblelossofprincipal.Theinvestable aorpetiwmeilsltibcefluowturzeerion.flGativioennethxpeeecxttarteiomnesly t(PheFNPi)m.HceoaIlnsocofamvoerSstsroamteegcyoFnvuenrdtibIlIe ot edit or Barron's r uicnonwmivehpriecshteittoihofenc,oFrmuanppdaidninioevbsessinotslwemshcaiceyhnbcGeeNsoOufMbpjermocadtyutocintrvsaepasindtdmcshaeayrnbvgieceelsimsi,nitloetedscs.hTonhfoeilnoctogeymll,epincattuneainelsse eibnmeftlbtaeetridovdnae-ldpureino,tateshcotoesudersyceioeclluldersai,tgiTuerseeoAafsnfuedrrryaew cicbloolusesei&dn-,IetnnhdceosV,miinrect(luNusdCCiVnog)naVvneidrrttiutisbslcCeoor&pnoIvrneacrtote-me e only. Do nase contact CppGrrNaoorOpdeeuMfructtilysiloypnncrosoon,tnea-dscniitddvioeecnrrhssta,ifihneeevgdoeF.lsuvininndgb’siunisdniunvseetsrsystmsctyeacnnledtsaorabdnjsedacgntiodvveferser,nqrmuiseeknnfttanrceetwgourpsla,rotcidohunac.rtges BsthhaearFryyuperrasterhep’lseolrofriftorfeusidtnthlotaanhsletfthwhceraeesredikcsitrk.emasptaeredkctesrtousmmdeu,arthitn-eg ftFveoeuarvtntuedinrbetIludeIri(&enNinIBCntaZocr)ro,eoammns’eeswr.(gAeAilnnVlgadKsmf)Ao,arpdrrtkvheeevotnisboteuoCwnsoldiylnsli,-ng mmercial uscontent, ple afgonloudbneadxlxipneettfnhsse.ceFosumbne.dfR’oserfaeudilnltovhreessptuirnmogsm.pTaehrcyitsupasrnocdsapraeedfcudtuliltysio,bnweahfloiicrnehfoianrrmveeaastvtiioannigla.cbalnebaet tvfhrriieaegycwhteGivtrhue-qinosudppalpaaliocsthrtytwuhpneoigerihtktiile,oisgDn.hsoItnuoebdfalttehChLeNeinsBrpeeCelCacituEnivltOaeetrlJiy-veef-- tcchooevmTreehre’ese(dsVVe-cGiaarIrlt)leu.CasEmGFolsontbghatahlteMGfurixalentidt--SliinkecceostomarneIdannt-hdat ersonal non-coprint or license SacDonhismdatrrmaiebrsiuesotsinofioonEntTCsiFnowsd.iiavllriedreubdaoullucygerhertedateunerdnmsse.odDldifsratortimbmutatherekdeFbtuypnSrdiEc.IeBInr(onvokeetstrNmaAgeVen)ts gmnborflaeaatm-rhdBkieeneachdgnriengdddhoasiwm-tiynsneigeeslblc,edtyh-oBsedresogbcuattohovbnraeld,ettashhdn,uaindgdmeittaaobsrl.srttW-hehuaeepidtutyhtopoobppudeeeteornnud- oii“nnhffvfielgearhsttmiomynoieen.nlBdtth”sel,slyatthbpoeeafylya.olalBuc:ttUusnathllliayktedssetoasmeyraevheoettahhdeerof pe or o r tranchesofcollateralizedloanobligations, email:[email protected] FT August1,2022 BARRON’S 7 A CUSTOM EVENT THE 2022 CRYPTO INVESTOR SERIES How to Get Exposure to Crypto Assets Wednesday, August 3 | 3:00 - 3:50 p.m. ET Cryptocurrencies continue to attract investor David LaValle interest, even as market volatility over the past Global Head of ETFs Grayscale Investments few months has made it imperative for financial advisors to have trusted avenues to learn Bart Smith more about investing in these digital assets. Global Head of Digital Asset Strategy m Susquehanna o c In the second webinar co-hosted by Barron’s s. nt pri and Grayscale, we’ll discuss the different In Conversation With e djr ways to invest in cryptocurrencies, including w. w April Ferrell w purchasing coins directly, investing in or Global Managing Director, Asset Management 8 crypto investment products, buying stocks d.00 Barron’s Group e0 mitt43- of companies with crypto on their balance per0-8 sheets, and more. Find out why even ot 80 ctions nment at tforardcirtiyopntaolcausrrseentcmieasniangreertsiraermeefinntdainccgoaunptlas.ce duart op Reprs de alter. eprint ot edit or Barron's r Register Now only. Do ne contact BARRONS.COM/GRAYSCALE2022 e as se cial unt, pl mernte o mc oe ersonal non-cprint or licens TThhiesBisaarrocuns’stonmewesvreonotmcrweaatsendobtyinBvaorlvroend’sinCtuhsetopmroSdtuucdtiioon,aocfothmismeevrecniatl.departmentatBarron’s. pe or o r FT 8 BARRON’S August1,2022 R E V I E W 32,845.13 484.52 2.64% DowIndustrials:+945.84 DowGlobalIndex:+15.21 10-yearTreasuryNote: -0.14 A Sunny July SHE SAID Amazon.comandWalmartreduced “The latest bear guidanceinthefaceofinflationanda strongdollar;Walmartissueditssec- market rally in ondprofitwarningin10weeks.Solid techearningssentstocksupbefore our view is full of theFederalReserveraisedratesand lefthintsofnear-futureeasing.Stocks wishful thinking.” continuedtheirgiddyJulyrun,even afternewsthattheeconomyshrank LisaShalett,MorganStanleyWealth forthesecondconsecutivequarter. Management’schiefinvestment Ontheweek,theDowindustrialsrose strategist 2.97%,to32,845.13;theS&P500was up4.26%,to4130.29;andtheNasdaq Compositegained4.7%,to12,390.69. The Fed Raises TheFedhikedfederal-fundratesby COPING WITH FALLING STOCKS 0.75%,to2.25%-2.5%.ChairmanJe- Gen Z Greets romePowellwasvaguelydovishon futuremovesanddidn’tthinkareces- THE NUMBERS sionhadbegun.Adaylater,gross m 29 domesticproductfellby0.9%,mostly s.co The Bear % oninventoryreductions,triggering nt adebateoverwhethera“technical” epri recessionwasarealrecession. djr PercentageofS&P500 afteritagreedtoaplantoshipgrainout ww. earningsthatcomefrom The Earnings Beat: Big Hitters ofUkraine.Gazpromsaiditwouldcut w or Welcometoabearmarket,GenZ.SomeGenZersmayre- overseasandarethus GoldmanSachswarnedoftheeffect flowsthroughNordStream1toGermany 8 callthe2008recessionandtheshortCovidcrash,but exposedtoastrongdollar ofastrongdollaronearningsasthe to20%ofcapacity,claimingmaintenance d.00 mostlythey’veseenstocksrise.TakeEllaGupta,whofirst 8.1 busiestweekofearningsseasonbegan. issues,renewingfearsofwintershort- mitte43-0 investedatage10.Withherparents’help,shetookhalfof % Mostly,techbeat,retailmissed.Micro- ages.Gaspricesrose,andEuropean per0-8 theprofitsofabracelet-makingbusinessandbought soft,Alphabet,Apple,andAmazon Unionenergyministersmettodiscuss ot 80 stocks.At14,sheopenedaRothIRA,afterstartingherfirst wereupbeat,butIntelwarnedonprof- securingmoresupplies. oductions npartment at fsjoaublrlGivcnleegeyna.“nsZTaienyhrgsse,rtdhelei’askntetaamGllooiutnrposetftatrfhu,eaaamnrreeahninnatdslvf.euNosnftocoGwerre,stna.atAiZn1n7ta,ydIs,n”huvselthesssee—teossaapygsesetdo.sicaks Dst$oarolleopswii1nensnJteu6lwnevesefilrnsogimnlec-pefraAimoprirlymilho2on0mt2h0e, GiPotnsre.oncUcoentnreisarlule&mEveleGerrcaastmnpredibcnCl,deaoinbncdegaa.-3tMC,MboculDbateomwantai.asrGslndeeed’nsd;,- AClizhneinn$aa14’lss8ceobnifltlriDoaenlbaianlnMlkoaasnaksiidnfoigtrwprooupldermtyodbei-- Reprs de 18to24—haveinvested,with26%buyingstocks.That T eralMotorsmissed,butFordbeat. velopersandhelpcompleteunfinished alter. eprint mtioankeasttthhaetmagme.oGreefninZainscaialslloyaacsoticviealt-hmanedainaygepnrieorratgieonne.rIan- MmeedtaiaProlauttfowrimthsitssufsirtastinqeudatrhteerslyocloiasls-. pmraokjeecittss…pArilmibaarbyaliGstrinoguipnHHoolndginKgonwgi,ll e only. Do not edit or ase contact Barron's r avtZw7o3eGhui%snSittecvietnnohiedlgfslZm,itGnootshinerugoneshrnYabvtZlopieennuyiaponeT,retvhufacbeoarbasrelnettfuoowoamwrbfnissrserdeetelrq.ciosakAkuptdehiogceBeRnrkdraodeenavudreckipndtdtortitievahtssoethiseesnlaayl,kslviadutt.ehhrtMtthiavhasnieaneryynydkteyhfealooeedrsnua,it.rocrnTAnoecdiklmnekdtdsdTheprioaGanstkr,e-e.nd Ftt2riavillellioidnne,%tbhlote,wwdeooswrtlndin’s8s7se%tvoe,cntkoyo$ef2an.r4esga- CAptbBeiaihhclgslhieisOopaecnddsiolmfothAohfirphteteshaomteeiygmtuAiuvcisucehhong-enduersdes.sltuabrcyetieolclder,sfspescra,ioetCudnorucniecngtagrione$nsd5s2 aotBfDboosniaidrggntacaiidkutvrlarkmyedlesp,iusatwtsspnrotehu-acdaFliloslcerunshsbipeet.erddtAtasoiw’ssslloimeFoabfefaTbiwnsAbaXshatnnehi’mskdtteerJGaiUauktdrcpa.noekSstiu.agVMapahcon.“taa.yl.dsrSopaehwaCglsamebchbnruiiadsnella”… byGuerinBlask mmercial uscontent, ple wbirteo’sitotihjrmue2smet8ren%sn.o“ttoAsnfoGullouaetntnoicofXensdestr,u”asf,tsfaaJo.gyPnes.ssMAo4nco2inratgeloamL5n7ee.,sd“atIientar’ds,isfg2ooe5rxt%mctoeeolrblfehebneastabhadyodrovtfice; Dgmlareriongcwgelinstinhetvffieanrnocsttmeoocrrcsioeonismnd,pf-oaqanlunleinaieogrsftGettrhrDiemP- sismnucagibetstniacicdxteiuecorsrvn,ee$dar2bitt4oshu,beati,nnllWedioxe$nts2dft0oeV0rciamrbdgiaeiln.lniIiouannfaSafceodtnrur.ra-- TiWafhEseeaubtUrepol.ulKpitle.leaaoonnfpfdreaivrFnaartalaoltnlro-csseEhEwlauornitelelMmltsaueakrtsegkaeb’nsrodaatonrOddcnrsJeeee-aaftftes n;Photograph cose anddigestible,sosomeofthenuancegetslost.” JoeManchinbackedanewSenate Bezos’spaceventures…TheWallStreet Stei personal non-eprint or licen d“oWfohlAlhaoserldn-fcoienorvsgeGtriuatIvpfpoetrarua,rtgshcihheneagl’ossaennngaodttsetdprooamcenks,i”,cdIksuhdineoegdsi.tiaSlwyihgsiee,tnhseocnteuhgnoeadngineisnsttegoinncatkibosi.nt TdyBooaauilgryrel,iostsntNiegsunn.mctuoobpmeprw/ospdhobecdyraecsBvtasaesrrtorsorna’st taRanuxd,sscspliiaemn’sadtBiene-gcah,rparnHegsuecgrbisipllt.ion-drug, JiAasoftiuberrurwniFlaadrlyiorsnengfpitnaoiearsrtltelaypdkuwetlhloienandtPSEoapullyiitorP.itNattleMA…xtiJarehnltiuaBngreledumsleee:nt strationbyElias or o r like91-year-oldWarrenBuffett.—SabrinaEscobar RussianmissileshitOdessatwodays gainingregulatoryapproval. Illu FT August1,2022 BARRON’S 9 P R E V I E W Tuesday TheBureauofLaborStatisticsreleasesthe SignupfortheReview& JobOpeningsandLaborTurnoverSurvey. Expectationsarefor11.1millionjobopenings Previewdailynewsletterat onthelastbusinessdayforJune,154,000fewerthaninMay. Barrons.com/reviewpreview Monday 8/1 BectonDickinson,Block,Cigna, ConocoPhillips,DukeEnergy,Eli AristaNetworks,DaVita,Devon Lilly,ExpediaGroup,FidelityNa- Energy,GlobalPayments,SBA tionalInformationServices,Inter- Communications,SimonProperty continentalExchange,Kellogg, Group,andWilliamsCos.report NovoNordisk,ParamountGlobal, earnings. Sempra,VertexPharmaceuticals, WarnerBros.Discovery,andZoetis TheCensusBureaureportscon- holdcallstodiscussquarterlyresults. structionspendingstatisticsforJune. Consensusestimateisfora0.2% TheBankofEnglandannouncesits monthlyriseintotalconstruction monetary-policydecision.Tradersare outlays,toaseasonallyadjustedan- pricingina50%chancethatthecen- nualrateof$1.78trillion. tralbankwillraiseitskeyinterestrate byahalf-percentagepoint,to1.75%. TheInstituteforSupplyManage- mentreleasesitsManufacturingPur- TheDepartmentofLaborreports chasingManagers’IndexforJuly. initialjoblessclaimsfortheweek A STILL-LIMITED FUTURE Economistsforecasta52.2reading, endingonJuly30.Thefour-week Coal Is Hot— slightlylowerthanJune’s53,which averageforclaimsis249,250—the PeakCoal wasthelowestintwoyears. highestlevelsincelatelastyear. Coalproductionhasbeenrising m co Until It’s Not despiteclimate-changeconcerns. Tuesday 8/2 Friday 8/5 s. nt GlobalCoalProduction, pri 2014to2022 e AdvancedMicroDevices,Airbnb, WesternDigitalandWestinghouse w.djr 10milliontons BP,Caterpillar,Cummins,Du- AirBrakeTechnologiesreport w Pont,Eaton,ElectronicArts, earnings. w or Coalhasbeenfadingforadecade.Butin2021,itroared 8 GileadSciences,MarathonPetro- 8 back;morewasusedtogenerateelectricitythaninanyother leum,MarriottInternational,Oc- TheBureauofLaborStatistics ed.000 year,notesBP’sannualstatisticalreviewofworldenergy. 6 cidentalPetroleum,PayPalHold- releasesthejobsreportforJuly. mitt43- Thisisn’tgoodforclimatechange.Coalaccountedfor ings,PrudentialFinancial,S&P Economiststhinktheeconomyadded per0-8 58%ofU.S.power-sectorcarbonemissionsin2021,despite 4 Global,SolarEdgeTechnologies, 250,000jobs,aftera372,000in- ductions not artment at 80 mtogiefoanenkle.eirGncatgtlroiioubcnpiat,lyjlmuyi,snoctr2oae0aqtl2hup1aa,rnrsotadaeyunrscyoBefodPftu,haaeernlrsedcsuoopsruoedrwdc1eei0n.r,e2ed4le43c6ttre%ircaiowtfyaegtleet-nchteroriuacri-tsy 02 2014 ’15 ’16 ’17 ’18 ’19 ’20 ’21 WSantanerobduunncckeesqs,uadanradteyUrlby8err/es3Tueltcsh.nologies crnareetaearsiasefhionarlJefu-ccnaesent.tTtuohrreyeumlonwaeimnofpu3lno.6cyh%ma.enngted op Thisyearcouldproduceanotherrecord.Electricityde- ot edit or alter. ReprBarron's reprints de mpfrrsoieursratipeicnorp,eidnplsnyeligr-asceanchucnotepasoani,tlcnthsaploeydnlraemhsnliwianottyssi1estt4olcehe-vhcyneatetvreroaerifcrgechiayohtiyratissglrgo.hoeeuSsnfnro.aeecmGwregasaelatosabicboraolaneenm,l;dptppworcoaoohownj.aeeiNenclertscasgacth.aunrGasurvsaepnuelrrc-bmdighcsea,aetlsainsatnyuydetieds RTEinhneteehrtsegrtypooachskRatsoyafoelbualiytrgpoacrcoseaodl.mthineeSr&PPea5b0o0dy AHeIMnBmoegalteeydLrr,iisniEfsoegnol,sltuM,eRrCrocaglednoyBerd,roe,EnrxMxga,eecC,lnKRoV,neeSBsg,soeHFonooenekra,rtilniotnhnge,t, MCAAABDoevffflivioasisolceiBna(mCutQEaedn2sdge)ceiMratgnday(enQ((gaQ2Qg2)e2)rE)s(aQ2r)ningsConsensusEsti$m143112a.....5279t3008e51 Yea$r04571a.....g6906500o923 only. Do ne contact rceoianClsoftaaaclt’iislnirtgiise1es6—cdotouorldmdelaaanlstwtffoiotshrsmiRl-uofruseseiltahpcaluanntattisny—geaignra,cselmufldoaiwinlsgs.Dseavneral P20eB2aO0bDotYody2E0Sn2Pe2Xr,gYyeaarntdotDheatSe&P500, PBhraanrmdsarceelueatisceaelasr,nainndgsY.um! PVMCioonrortneeaErndeaosrntsRi(enQeag2sltn)oyn(sQPa2ug)es51.Estimate 00..7188 00..8205 e as Bakal,Ceres’seniorprogramdirectorofclimateandenergy: TheISMreleasesitsServicesPMI cial usnt, ple “imYeptobretaynotntdotfhoactu,scooanl’tshreebfaocutnthdasthnoeuwldrbeneeswhoarbtl-eligveende.rIat’tsion 320000% f5o3r.3Jurelya.dTinhge,ctownosepnosinutssclaelslsisthfoanrain DMay JuneConstructionSpending Consensu0s.2E0s%t LastP-0e.r1i0o%d ommere conte ein iisnlmesossetxinpsetnasnivceesthaalrneaedxyis,tminagkcinoagl-thaencdligmasa-tfeirfeodregceansterinattiohne 100 Jthurneee.TcohnesSeecruvtiivceesmPoMntIhhsaasnfdalilsenatfoitrs TWTH JJJuuunnneeeJTFOaracLdtToeSrByJaOolbardnOecpresenings 11-,$18750,.103.20b%0il 11-,2$5845,.105.60b%0il For personal non-cTo reprint or licens IllustrationbyEliasSt ehEbnliaenelaslcFeinrtoorr’snrtgico.aycmpTtotioahsrewlaeuocsepcfttrooei1tsdmcs1ek2mcpms%ta,oaintnrnihyniybenritigsbihngoboevhopueptmseeialtrrdsoahitirntnasiyosg.tehnCabsesrooe,.mealb—anleruAmdptaviriniunoisdmSfewirbta-aoPaltbrzotettlmheelao,rabjnybunogusfd-atttycei$tir3lmiti.e”s S--21o00u000rce2s0:2In0ternational2E0n2e1rgyAgency2;0F2a2ctSet TAlowlhibeuastbrlaesvGderloasuiynpcHe8Mo/4ladyinogf,2A0m20g.en, FF-UfC-aonaFnrllieendmsnawosdl;JJJrhaopeuuuart-llnihtaPyyneettrfUNhreowCwenloroiwmymeninsmwmfaseiantu.epirbianmomalardonnyreiyPr;ca-rmoraabg-CntyoRoeesrurneet.doctovtd,olcitliRBsmstoimeaamdrterienosnga’resecfoErneaoesmtEecirconnr.eoapm-oAirdctSvs2$oa42un02rcc.,3e00ed.:60b;F%0ialctSet $37222,3.03.60b%0il 10 BARRON’S August1,2022 T E C H T R A D E R Earningsseasonhasofferednewclarityonthe valueofBigTech.WhyAmazon,Alphabet,and Microsoftremainstrongbuys. Big Tech’s Reminder: cameinalittleshyofWallStreet $100billioninvestmentinnewfabs. estimates,duetotheimpactof ThatprojectwillhelptheU.S.reduce currency,Russia,slowingPCand itsrelianceonAsianchipproducers, advertisingsales,andsoon.Whatshe anditmightbeaprofitablemovefor Earnings Still Matter didinthatmomentwascutthrough Intelinthelongrun,butit’snosure thecluttertowhatmattersmost: thing.Whilethestockischeap,the Short-termtroublesaside,Microsoft’s risksaredeep.Intelinvestorsface businessisdoingjustfine.With yearsofuncertainty. Hood’sencouragement,Microsoft FacebookparentMetaPlatforms T shareholders,andinvestorsmore (META)shareshavesomeofthesame broadly,begantolookpastthe characteristics.Rightnow,thestock heworld’smost enterprisesoftwarebusiness.That recessiontobettertimesahead. looksbroken.June-quarterresults importanttech said,headingintothequarter,there Thefutureisbetterforsome missedestimates,andtheSeptember companiesall wereworriesthatbroadereconomic thanothers:Amazonprovidedthe guidancewasworse.TikTokis reportedtheir weaknessmightslowcloudgrowth. week’sotherbigsurprise,actually stealingattentionandaddollars,and quarterlyresults Butthebearshaditwrong—AWS beatingitsownoutlookforbothsales Metastillstruggleswithadtargeting. thispastweek,and, grew33%,inlinewithestimates. andoperatingincome,despite LikeIntel,thestocklooks ineachcase,the Microsoft’s(MSFT)Azurecloud softnessinitsonlinestores.Amazon’s statisticallycheap,reflectingthe damagefromaslowingglobal businessexpanded46%,adjustedfor retailbusinesshasbeenhurtbyshort- considerableuncertaintyaboutthe economywasinstarkevidence.The currency.AndAlphabet’s(GOOGL) termeconomictrends,butthe company’sfuture.CEOMark witch’sbrewofrisinginterestrates, ByEricJ.Savitz GoogleCloudrevenuejumped36%,to companystilldominatese-commerce. Zuckerberg’sratherperplexingfocus higherfuelcosts,theRussianassault $6.3billion.Notcoincidentally,I’d Thatsaid,Amazonbulls(likeme) onthemetaversecontinuestolook m onUkraine,lingeringsupply-chain arguethatAmazon,Microsoft,and havebeeninsistingforsometimenow likeasignthatthecompanyisdeeply o s.c issues,andtheU.S.dollar’ssurgeis Alphabetarethemostappealingof thatthecompany’sfuturewillbe worriedaboutitscoresocial- nt infectingeverytechbusiness.“We’ll thetechgiantsforlong-terminvestors. drivenbyAWSandadvertising,note- networkingbusiness.Metanowfeels epri allgotogetherwhenwego,”asthe Enterprisespendingcontinues tailing.Amazon’sbestbusinessesare likealotteryticket,notastockpick. djr greatTomLehreroncesang.Financial apace:Indeed,maybethesinglebest stillintheirearlydays,andtherecent Andthenthere’sApple:Apple w. w calamityisthegreatequalizer. momentforthefinancialmarketsthis bearishsentimentseemspoisedfora (AAPL)edgedpastWallStreet w or Buttheweek’sbatchofearnings pastweekcamewhenMicrosoftChief turnaround. estimatesfortheJunequarter,thanks 8 reportsalsomadeclearthatevery FinancialOfficerAmyHoodsaidon Sentimentisalsoimprovingfor inparttolower-than-expectedsupply d.00 itemonthatfamiliarlistofeconomic thecompany’searningscallthatshe Alphabet.Overalladspendingis constraints,whichspurredhigher- e0 mitt43- woeswilleventuallyrecede,leaving seesdouble-digitgrowthforboth softening,butsearchadvertisingis than-expectediPhoneandiPadsales. per0-8 behindindividualcorporatestories, revenueandoperatingincomeforthe holdingupwell.Indeed,dollarsare AndApplesaiditsrevenuegrowth ot 80 somestrongerthanothers. June2023fiscalyear.UntilHood flowingawayfromFacebook,Snap shouldaccelerateintheSeptember oductions npartment at sffoaedreAeminvrseger.t.whFSaueoteimwnlpeaaryoir,tcehbecuesertshsiiastivosweuno?ebnseI’teatnsrluaesratelready mwaafdfelinthgaotnprMedicircotisoonft,’isnqvueastroterrs,wwehriech cdi(nSouNfneotArtimnoPuAa),etpiatopnonldeha’aTsbvrwoeeuistttrttroueiuscretbi(rloTesn’WtsoanroTglnRients)ei,hnwagrhianidcghs qssthteurreaovrlniotcgenergas,-ndstdeeergsgmpmriotesewntosti.rlnoyTgwhiisenernsctgooarwmlolewpadatbhnbiytainsfhueai,ztsbzsyua.t Reprs de receding,forinstance.Andinthechip BigTech'sRebound activity,andtowardGoogleand Beforethepandemic,salesofMacs alter. eprint ihnadvuesbtreye,nwroerprliaecsedabboyuftesahrosrotfageexscess Eteacrhnignigasntsse.asonhasofferednewhopeformostofthe Aowmnaezxonpr,ewshsiiocnhsroelfyshonopcpoinnsgumers’ aTnhderieP’sholinttelesbhuadzzsstoopfparedabgoruowtainng. e only. Do not edit or ase contact Barron's r shhadtaubaaakpondsTeupgpahitetlwryisrwso.asvlehuyhiasderarkreroneedsni.nvomHtagfhlsoeduesrsieoetseauloaaisfstertloseaeo—nlroalskhai,fsenabfwocsdulraatwtlrwhrihteehyeaartdeetyciht 11055% AAAMMlmpeipcptharaloazePobsnolea.ftcttfoomrms isfmqdnleuueutraeceFicortprohuteu:ersatsIrttoon’sirsot.ritvhrneeGeadlesos’lsur,iuonsca(glI,etnlaNstedidhtmTSsesbCeahpuat)koordrrerwocgethcu-eesltturbeses,atllratiewrmlss.lsofhternhalu’iltssnwdnoeoll AcwictEPhaaaphherlrlpsootmalhnakemo,neniAsodso1tn4pwamhg,ppiswiglptxewhhahe’serldhiyecmtahnrevteoctaiealhssyllltusijgtsiueeymit.dasiIlhtnplctmet’oowssarm.otdothAanrpsenktelahrttitnsneosy,aguaadogwonynhndaeys.t cial usnt, ple leaTdehresr.e’snorecessioninthe 0 s2h2%yoifnetxhpeeqctuaatriotenrs,,awrietfhlescatlieosndoofwthne panroddiutsctndexotmbiingatthesinagmreamtuarienmseanrtkieret,ly mernte cloud:Asregularreaderswillrecall, sharpslowdowninPCdemandand unclear. mco I’vebeenconsistentlybullishabout thecompany’sowncontinued YoubuyApplesharesbecauseyou cose thepowerofcloudcomputing.Last -5 competitivelossestoAdvanced havefaithinthebrand,TimCook,and ersonal non-print or licen wAfAoemmceuakaszz,eoIdonnwoW.nrcooetthbmeeSa(letolierncvnkgige-cttrehe:sryA,mwfMehcaZhticuNahrr)em,Iasboofut -10July25 July29 MoAdueMiltcalDoyrosoa,kDnarldelevmwmihacaieinnlseasg(tAcreoysMmitnhDpgrl)oet.ouxIn,geathxesplp’iastrnobddautittcslets tcsthhtoyeenlsecpuoogmmwampeerrabndoleyfe,m’tsbhuahenticsdnltoo.euIrittidh’cseoanrnboditilotiasteysMstiidoteethda.ar-Fvivoeer pe or o r continuetoviewastheworld’sbest Source:FactSet contractchipmakingbusinesswitha Apple,yougottabelieve. B FT

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