Letters to the Editor from Barron’s

I agree with Nicholas Jasinski that the variant may temporarily affect travel, hotel and restaurant stocks, but they will rebound.

I would say the most prudent course of action in light of such uncertainty on so many fronts is exemplified by the words of Howard Marks of Oaktree Capital Management: “Go ahead, but with caution. “

Chris Bentsen, on Barrons.com

Omicron mold release

For the publisher:

I suspect it will take a few years for the changes induced by the pandemic to die down (“Omicron is going to hurt the US economy. Why the pain won’t last,” December 23). So many changes are underway: supply chains, housing choices, remote working, employment options, medical practices, health insurance, education choices, purchasing decisions. We won’t know for a while.

John Hooge, on Barrons.com

Congratulations, Dr Marks

For the publisher:

The difficulty of coming up with such monumental decisions in the face of moderate uncertainty and evolving science is obvious (“FDA Prepared for Variant Like Omicron. Meet the Man Behind the Push,” December 23). Thank goodness there are people on board as brilliant and dedicated as Dr. Peter Marks. The public should realize that this is a phenomenon never before seen with precision, and that facts are changing around the world on a daily (hourly?) Basis. I think everything will be fine in due course.

Dr Jon Perlman, on Barrons.com

Regional banks

For the publisher:

In the second part of Jack Hough’s Streetwise column for December 23, Ebrahim Poonawala of Bank of America Securities says it’s time to favor regional banks, which derive a higher percentage of their profits from traditional loans than the big banks. power stations. He loves KeyCorp and Citizens Financial Group.

For investors who don’t want to bet on a specific stock, Nicholas Jasinski’s full article on the 2022 market outlook (“Don’t expect big stock market returns next year as rates rise. interest increases ”, December 17) had Gargi Chaudhuri of BlackRock. recommend the iShares US Regional Banks exchange-traded fund, whose holdings include KeyCorp and Citizens Financial Group.

However, just like other bank ETFs, regional or not, US Regional is trading near its all-time high. So it might be good to wait for a drop caused by something (a new Covid-19 problem, rate increases pushing the whole market down, etc.) before intervening in the long term.

Ron Minarik, mystic, Connecticut.

Quiz 2022

For the publisher:

The year 2022 will be tumultuous and volatility will reign supreme (“What will happen in 2022? Barron Annual forecasting challenge ”, 23 December). There is a giant correction ahead for the stock market, and therefore caution is the key to making money.

The only way Warren Buffett can quit is if he dies, so if that doesn’t happen F should be the correct answer to question 16.

Good quiz, but I think 2022 will be extremely difficult to predict due to so many negative factors that the market will be facing.

John Mackel, on Barrons.com

Two views of IBM

For the publisher:

In his essay Other Voices (“30 years after the fall of the Soviet Union, Capitalism kept an imperfect promise”, December 23), Vitaliy Katsenelson briefly mentions some of the characteristics of the industry (IBM, GE, Xerox, Kodak, Polaroid) and their thinking. that they had a God-given right to success.

For more than a quarter of a century with IBM, for my part, I can verify that this is true. Many executives thought and commented loudly that IBM had a divine right to a 60% market share and a 10% price difference “just because of those three initials.”

Talk about arrogance.

Ira Gross, Boca Raton, Florida

For the publisher:

It’s no surprise that it takes an immigrant to see America through a clear lens, and Katsenelson does it wonderfully. His next note to Barron, However, these will be sweet excuses for prematurely including IBM on its has-been list.

Stanley Goldstein, New York

Option trading

For the publisher:

“The options market is now a casino. By Steven M. Sears. Here’s how to bet wisely ”(The Striking Price, December 22) highlights the huge increase in options trading. He advises caution.

For years, we’ve followed his advice for selling out-of-the-money puts on high quality companies we want to own. For our family, these are the 140 or so dividend champions that are the big American corporations that have been increasing their dividends for 25 years or more.

Typically we sell puts on champion price drops. The premiums are high now, and we have always richly supplemented our income by following the wise advice of Sears.

Patrick J. Keogh, Amelia Island, Florida.

Send letters to: [email protected] To be considered for publication, correspondence must bear the author’s name, address and telephone number. Letters are subject to editing.

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