June 2021 Reflection
“For every action, there is an equal and opposite reaction.”
June saw another familiar catalyst: inflation - the reduction of purchasing power. On June 16th, Federal Reserve Chairman Jerome Powell held a news conference detailing fiscal policy plans. Since COVID-19 rocked the markets and economy last year (read: the financial market is not the economy and vice-versa), the central bank helped stabilize our financial system. There are several ways to accomplish this, but the two main ways are keep interest rates low (increasing the purchase rate of bonds) and reduce the banking reserve requirement to zero (allowing banks to lend more). However, these actions do not occur within a vacuum. A wise man once said “For every action, there is an equal and opposite reaction.” That opposite reaction is inflation and financial markets do not like inflation above the annual 2% benchmark. To our investors, we’ll continue to watch the Fed’s decisions as those will directly impact our ability to reach 70% returns this year.
In other news, I’m pleased to announce Craw Park Capital was accepted into a startup accelerator! This 16-week program takes founders from around the world (36 companies in cohort 7) and provides education on various aspects of developing a startup that is conscious of all stakeholders. I believe this accelerator is just the resource required to take CPC to the next level and help us structure our offering the right way to reach our mission!
Thank you again for sharing your most precious asset: time.
PS: If you would like to help us - please tell someone about our hedge fund, forward this website to a family member or friend, & if you're connected to an institution that invests (think college endowment or teacher retirement fund, etc.) please introduce us - we want to help as many people as possible!
Johnathan L. Manning
Founder & CEO
Craw Park Capital
912.434.4834
...Better to Show, than Tell.
www.CrawParkCapital.com