EASTERN AVENUE cayman compass Your most trusted news source Established 1965 $1 | Funding local journalism | Weekly, 21-27 May 2021 Cracking cold cases Exclusive Compass series profi les unsolved murders. Page 12 Photo: Alvaro SereyMatinees (matinee price before 6pm) • Seniors $8.00 (Mon-Fri before 6pm) Additional charges apply per 3D/VIP tickets 640-FILM (640-3456) Cayman Cinema@cbcinema6cbcinema6 SATURDAY NIGHT: For your viewing pleasure, minors under the age of 18 will not be admitted to any film starting after 6pm, unless accompanied by their parent. WHAT’S PLAYING THIS WEEK GODZILLA VS. 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Compass Centre, Shedden Road, George Town, Cayman Islands SEND US YOUR VIEWS OR NEWS: P.O. Box 1365 Grand Cayman, KY1-1108 Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@compassmedia.ky ADVERTISE WITH US: T: (345) 949-5111 E: sales@compassmedia.ky W: caymancompass.com PUBLISHER KATHLEEN CAPETTA EDITORINCHIEF KEVIN MORALES weather Friday Forecast FORECAST Partly cloudy to cloudy skies with a 40% chance of showers and possible thunder. SEA STATE Moderate to rough with wave heights of 4 to 6 feet. caymancompass.comfacebook.com/caycompass cayman_compass@cayCompassCayman Compass WINDS East to northeast at 15 to 20 knots. 87°F HIGH 77°F LOW SAT 87°F HIGH 77°F LOW SUN 89°F HIGH 78°F LOW MON 89°F HIGH 78°F LOW TUES 89°F HIGH 78°F LOW WED 89°F HIGH 78°F LOW FRI 89°F HIGH 78°F LOW FIND US ONLINE Caymancompass.com Facebook.com/Caycompass cayman_compass@cayCompassCayman Compass Screenwriter loses appeal against quarantine breach sentence The Grand Court on 20 May upheld the prison sentence of Thomas Michael, a visiting screenwriter, who was imprisoned for 30 days for removing a government-issued wrist monitor while in quarantine. For more on this story, which was developing at press time, visit caymancompass.com. COVID-19 update As of 19 May, Cayman had 18 active cases of COVID-19, all incoming travellers who are currently in isolation. None of the cases are symptomatic and none have required hospitalisation. Cayman has recorded 574 COVID-19 cases overall, with 554 considered recovered. To date, 75,284 Pfi zer- BioNTech vaccines have been administered, with 40,778 people – 63% of the estimated population of 65,000 – receiving at least one dose; 53% have completed the two-dose course. Following a “historical correction”, Public Health on 19 May annnounced that 192 fi rst doses and 469 second doses were added to Cayman’s cumulative vaccination total, in addition to the vaccinations administered on that day. As of 18 May, 823 people were in isolation, either at a government facility or in their homes. Public Health continues to encourage members of the community who have not yet been vaccinated to come forward to get their fi rst dose before 9 June, to meet the expiration date of the last batch of vaccines that were delivered to Cayman. Lands Commission objects to Dart PAD application The Public Lands Commission has registered a formal objection to Dart’s proposed planned area development (PAD) for the land north of Governor’s Harbour. The commission, responding to queries from the Cayman Compass about its position on the PAD, said it has reviewed the application and submitted comments to the Central Planning Authority as they relate to the project. In its view, “the blocking of 24 public rights of ways over private land as proposed in this development is not supported by the Public Lands Commission”. The PAD planning application, submitted by Dart’s Crymble Landholdings Ltd back in March, seeks permission for a mixed-use, resort and residential development over 157 acres. The new town development, according to the original application, is designed to span an area from the Cayman Islands Yacht Club to Seven Mile Beach, and would involve cutting a canal under the Esterley Tibbetts Highway bridge. Lockhart: Work on mental health facility progressing Work on Cayman’s long-term residential mental health facility in East End is continuing to progress apace and is on track for opening at year’s end, Mental Health Commission chairman Dr. Marc Lockhart confi rmed. Lockhart, speaking with the Compass, said the project has been moving forward and work continues at the High Rock, East End site. “We’re more than halfway complete with the overall project,” he said. Lockhart said last week he met new Health Minister Sabrina Turner and “she’s on board, fully committed to continuation of the project”. He also said he met with the ministry chief offi cer and hospital offi cials, who will need to clarify the fi nal details of the next steps. Cayman Airways captains pilot last fl ight together As Cayman Airways flight KX2402 from Cayman Brac landed at Owen Roberts International Airport on 15 May, it was greeted with more pomp and circumstance than usual. It was the fi nal fl ight as Cayman Airways pilots for Captain Kris Bergstrom and Captain Leroy McLaughlin. Bergstrom worked for the airline for 37 years – 33 of them as a captain – and McLaughlin worked there for 21 years. Cayman Islands Fire Service trucks welcomed them with arcs of water, as the plane taxied to the gate, offi cially marking the beginning of their retirement. Well-wishers and family members were allowed airside to cheer their arrival, alongside Cayman Airways staff. Front, from left, Kris Bergstrom, Leroy McLaughlin, and Fabian Whorms, CEO of Cayman Airways.- Photo: Taneos Ramsay Thomas Michael, right, a visiting screenwriter, lost his appeal against a 30-day jail sentence. - Photo: Andrel Harris news in brief cayman compass 2 N news FRIDAY, 21 MAY 2021Request for Expressions of Interest Internal Auditor for CCRIF SPC CCRIF SPC now invites eligible firms (“Consultants”) to indicate their interest in providing Internal Audit Services on behalf of CCRIF SPC through the Audit and Risk Management Committee (ARMC) of the Board. The Internal Audit provider is responsible for providing an independent appraisal of all CCRIF’s activities, financial and otherwise. It is responsible for evaluating and reporting to the Board of CCRIF, through the ARMC, and providing them with assurance on the arrangements for governance, risk management, control, quality of data and value for money. The Consultant should have specialized audit expertise. Interested Consultants should provide information (brochures, description of similar assignments, experience in similar conditions, general qualifications and number of key staff etc.) demonstrating that they have the required qualifications and relevant experience to perform the Services. Interested Consultants are required to declare conflicts of interest. Interested firms may obtain the full request for expressions of interest at: https://www.ccrif.org/reoi-internal-auditor-ccrif-spc For further information on CCRIF SPC, please visit the CCRIF web site at www.ccrif.org. Expressions of interest must be submitted via email to: procurement@ccrif.org by June 4, 2021. Email receipts will be issued for all submissions meeting the deadline. Firms will be shortlisted based on the required qualifications and relevant experience. RESHMA RAGOONATH rragoonath@compassmedia.ky Jackie Neil was no stranger to mental health issues touching her wider family, but the mother-of-two never expected that these challenges would eventually reach her inner circle. However, in 2014, life changed for her when Hurricane Ivan struck Cayman, triggering a mental breakdown in a close relative who had been off-island at the time. “The predisposition to mental illness was there and then hearing on the news CNN announced that the Cayman Islands is no more… when he heard that... ” Neil said, her voice trailing off and tears welling. “He’s never gone back to school. He has been able to work. He’s been able to hold down part-time jobs… he’s well now, but it certainly changed the way of life for him.” Mission for change begins That episode brought to Neil’s doorstep the reality of the lack of facilities on island for those struggling with mental health challenges. “The fact that my relative, who [had] some serious mental illness, was living at home with me and it was causing chaos in the home environment… our relationships were strained. I did not understand him. He didn’t understand me and I always said, I wish I had somewhere for him to go to live on island, where he would be with people of like mind, his peers, and somebody just to see that they were safe,” said Neil. Instead, her relative was sent to Jamaica for treatment. That started her rollercoaster ride through the Cayman health system, leading to years of separation between her and the family member, something she does not want others to have to go through. It was the motivation for her to establish a group home and create a movement for change in Cayman – ‘LOUD Silent Voices’. Next month, her mission will come to fruition when she opens the doors to Cayman’s first mental health group home, made possible through the donation of a $500,000 property in Mount Pleasant, West Bay. “One of the things that I said was, I want to have a place where people that have a mental illness can go be in a safe space, with people to care for them, support them towards independent living because they can, some of them can, and then build that family relationship,” she said. Neil, the records and coding manager at the Health Services Authority, said that working with Mental Health Commission chairman Dr. Marc Lockhart and other mental health professionals through LOUD Silent Voices will not only provide a physical space for clients, but also support families in need. “The caregiver support group will work on the family, teach them the skills, how A mother’s mission: The journey to open a mental health group home PLEASE TURN TO PAGE 8» LOUD Silent Voices President Jackie Neil stands outside the mental health group home in West Bay that she has been working to open for the community. – Photo: Taneos Ramsay. cayman compass news N news FRIDAY, 21 MAY 2021 31234567 89 101112 13 1415 16 171819 20 212223 2425 1234567 89 101112 13 1415 16 171819 20 212223 2425 ACROSS 1 Evolve (7) 5 Pale purple (5) 8 Affect a superior manner (3,2,4) 9 Small spot (3) 10 Enormous (4) 12 Enumerate (8) 14 Disconnect (6) 15 A flatfish (6) 17 Value too highly (8) 18 Stratum of coal (4) 21 Cereal’s fruiting spike (3) 22 Bear examination (4,5) 24 Colourless liquid solvent (5) 25 Depart from main subject (7) DOWN 1 Intensity (5) 2 Evaluate (3) 3 Narrow rural road (4) 4 A hedging plant (6) 5 Expert (8) 6 Being shot at (5,4) 7 Lacking moderation (7) 11 Seek a place to hide (2,2,5) 13 A very hot day (8) 14 Bishop’s see (7) 16 Unemotional (6) 19 Customs, manners (5) 20 Booty (4) 23 Bond (3) The Compass Crossword Puzzle The Compass universal kakuro Puzzle 16697 The numbers in the black cells are clues. Numbers above the slash are across clues. Number below the slash are down clues. The goal is to enter digits 1 - 9 in the white cells to add up to the number clues. You cannot enter any digit more than once when adding up to clue. TODAY'S SOLUTIONS Puzzle 16697 ACROSS: 1 Develop, 5 Mauve, 8 Put on airs, 9 Dot, 10 Huge, 12 Rehearse, 14 Detach, 15 Plaice, 17 Overrate, 18 Seam, 21 Ear, 22 Hold water, 24 Ether, 25 Digress. DOWN: 1 Depth, 2 Vet, 3 Lane, 4 Privet, 5 Masterly, 6 Under fire, 7 Extreme, 11 Go to earth, 13 Scorcher, 14 Diocese, 16 Stolid, 19 Mores, 20 Swag, 23 Tie. Beach erosion and sargassum. The sea took back sand and damaged seawalls on Seven Mile Beach. The Marriott, Royal Palms, Coral Beach, Governors Beach and Public Beach have all suffered sand deprivation. ‘Renourishing’ beachfront properties with sand, an initiative proposed by the previous government, didn’t happen. Will the new premier, Wayne Panton, continue that ‘Plan Cayman’ for the renourishment of Cayman’s beaches? As to sargassum invading the Cayman Islands: Seaweed is seaweed is seaweed, and it besieges Caribbean islands unmercifully. Deal with it! Sargassum is such a small price to pay for living in paradise! Nan Socolow I would greatly appreciate if the [Compass] staff could look at, and perhaps take a vote on, the font size you use. Perhaps a darker, bolder font. I have recently suffered a eye injury and the mobile version, even on the largest iPhone, is difficult to read. I wonder how many others struggle as well. Reading the Compass when I’m off-island is my morning ritual with coffee, so thank you. Robert Gavitt The following has been edited for space. To read the full version, go to caymancompass.com. I write this for two reasons. First, I hope it will encourage my fellow Evangelical Christians to remember, as the psalmist stated, that “Our God is a God of salvation, and to God, the Lord, belong deliverances from death” (Psalm 68:20). I will state categorically that every discovery that has saved human lives is from God. Science is not the purview of atheists; science belongs to God, the Creator and sustainer of the universe (and the sustainer of life). The second reason that I feel compelled to write this is because I am becoming increasingly embarrassed by some of the chatter that I hear in the Evangelical camp –which in essence is just an echo chamber – people choosing to speak and listen to only that which they are already convinced of. If that attitude had prevailed during the days of William Jenner and Louis Pasteur, where would the science of immunology be today? On the one hand, local Evangelical and other conservative Christians express their distress that those who cartoon Vaccine prize - By Caymanman Evangelical Christians need to get vaccinated wish to promote non-Christian views of human sexuality are ignoring science in preference of their feelings, while on the other hand many of us operate along the same lines when it comes to COVID-19 vaccination. I assume that by now most of us will have read and heard enough about vaccines to know what they are. As a Christian pastor, I believe that since God is in the business of saving lives, and not taking them, that he chose two committed Christian men to bring about the initial gains in vaccination and immunology that we enjoy today. The smallpox vaccine was at the hands of Edward Jenner, a committed follower of Christ. The breakthrough for the Rabies vaccine in 1885 can be credited to Louis Pasteur, the celebrated French microbiologist and chemist, honoured as ‘the father of bacteriology’. Pasteur was a devout Christian, whose work set the stage for some of the greatest advances in medical science. Over the years I myself have received multiple vaccinations for all sorts of pathogens. In reality, each year more than 10 million vaccinations are administered to American infants (those 1 year old and under). Thankfully, because of vaccination as a medical tool, smallpox – a disease that caused fatalities in 30%-40% of cases – has now been declared as eradicated. But vaccines are not perfect; even if they were, human bodies and immune systems are not. So, despite its effectiveness, there were adverse events associated with the smallpox vaccine. According to some sources, an average of 28 persons out of every million who received the smallpox vaccine had life-threatening reactions to it, with a mortality rate of one to two people per million. This reality of adverse events associated with vaccinations in general must be appreciated in the greater reality that smallpox, polio, and many other vaccines are the single greatest lifesaving medical intervention and invention in human history. Thanks be to God for his great mercy. And I now encourage my Christian brothers and sisters to celebrate the fact that science is of God, as is medicine, as is vaccination, and in faith trust him to preserve your life when you act unselfishly to be vaccinated. Pastor M. Alson Ebanks Difficult to read Compass on phone ‘Renourish’ Cayman’s beaches Letters to the editor Alson Ebanks cayman compass 4 news N news FRIDAY, 21 MAY 2021butterfieldgroup.com *Terms and conditions apply. See website for details. Butterfield Bank (Cayman) Limited is licensed to conduct banking and investment business by the Cayman Islands Monetary Authority. Address 12 Albert Panton Street, George Town, Grand Cayman, Cayman Islands. Until 11 July 2021, use your Butterfield Mastercard® debit or credit card for a chance to win one of hundreds of gift vouchers for dining at local restaurants. Every purchase will enter you into the draw automatically. Plus, three lucky cardholders will win a four-night stay at a local hotel. Visit our website to learn more. Perks, by . 197413-Ad-Compass-FP-Mastercard.indd 12/8/21 2:30 PM cayman compass 5 FRIDAY, 21 MAY 2021What if saving the world was your everyday challenge? © 2021 E YGM Limit ed. All R igh ts R es erv ed. 2104-3753828. ED None . Better Working World Data Challenge An annual global data science challenge for university students and young professionals, using data and artifical intellience to find tangible solutions to real-world problems, and help buid a better world. Don’t just predict the future. Build a better one. learn more at ey.com/datasciencechallenge cayman compass 6 FRIDAY, 21 MAY 2021In memory of the late Honourable Thomas Jefferson, former Financial Secretary and Leader of Government Business, the Cayman Islands Monetary Authority is proud to issue a scholarship award for persons wishing to pursue a Bachelor’s or Master’s Degree in a Finance related field from an accredited institution. The scholarship will be a maximum of CI$25,000.00 per annum for a maximum of four (4) years. The Thomas Jefferson Memorial Scholarship THE SUCCESSFUL APPLICANT SHOULD: • Be Caymanian born / Cayman Status Holders. • Be accepted into an accredited university programme, as a full-time student (taking at least (12) credit hours per semester). • Have a minimum of five CXC passes, or SAT score of at least 950 for Bachelor’s Degree; or a Bachelor’s Degree with an overall GPA of 3.0 for a Master’s Degree. • Be willing and able to work with the Authority during school breaks. • Possess excellent ethics, character and an authentic interest in the Authority. • Be committed to contributing to the continual advancement of the Financial Services Industry. • Be willing and committed to work as a member of the CIMA team for a term equal to the time of study. Scholarship Application Form and additional information can be obtained at: https://www.cima.ky/internship-scholarship Submit application and all required documents to Human Resources Division | Cayman Islands Monetary Authority SIX, Cricket Square, George Town Or via email to Scholarships@cima.ky (Scholarship Application Form and the name of the applicant noted as the subject- 10MB attachment limit) APPLICATION DEADLINE IS FRIDAY, 4TH JUNE 2021 CAYMAN ISLANDS MONETARY AUTHORITY April one of the hottest in 142 years The National Oceanic and Atmospheric Administration said April 2021 was the ninth warmest April since 1879. “The average global temperature in April was 1.42 degrees F… above the 20th-century average of 56.7 degrees F,” according to a NOAA statement. NOAA said the increase in temperature also coincided with a 5.8% reduction in arctic sea ice, which translates to a decrease of 267,000 square miles. 2020 hurricane season continues to be record-setting Last year’s Hurricane Zeta has been reclassifi ed from Category 2 to Category 3, making it a major storm. The reclassifi cation of Zeta brings the total number of major storms for the 2020 season to seven, tying the 2005 season for the most in recorded history. According to NOAA, Zeta directly caused the death of seven people, and racked up $US4.4billion in damages. Active storm season prompts early tropical outlook Forecasters at the National Hurricane Center in Miami, Florida, released their Atlantic tropical outlook two weeks early, on 15 May. It was prompted by the rapid development of storms over the past six years. Kerry Powery, Cayman Islands National Weather Service chief meteorologist, said a compromise led to the change. “There were talks about changing the offi cial start date of the Atlantic hurricane season, during our last regional hurricane conference, which was held online because of the COVID situation,” said Powery. “Those discussions were shut down, but as a fall back they moved the start date of the tropical outlook to May 15.” Forecasters tracking area of interest near Bermuda Weather forecasters are now predicting the non-tropical low pressure system fi rst fl agged on 19 May will become a short-lived subtropical cyclone by the weekend. The National Hurricane Center in Miami, in its afternoon update on 20 May, upgraded its projection on the system – now called disturbance 1 – to a 90% chance of cyclone formation in fi ve days and 80% chance in 48 hours. The NHC said the non-tropical low pressure system was forecast to develop 650 miles east-northeast of Bermuda by Friday, 21 May and produce gale-force winds. If the system develops into a sub-tropical storm it will be called Ana, the fi rst on the offi cial list of storm names for 2021. It is the fi rst area of interest for forecasters in the Atlantic basin as the region prepares for the offi cial start of hurricane season on 1 June. Weather Round Up cayman compass 7 FRIDAY, 21 MAY 2021to cope with somebody with a mental illness, teach them how to take care of themselves while they’re taking care of their loved one. And then the group home will facilitate that independent living for the client,” she said. Neil said the home will accommodate Needs Assessment Unit clients, all of whom will be funded with NAU rent benefi ts and food vouchers, while private clients will be self-funded. She said the name of the home will be decided by the fi rst residents living there. Making a difference Lockhart said the group home will work in tandem with the soon-to-be-completed long-term residential mental health facility and will assist those who may be falling through the cracks in the system. “This is actually the fi rst mental health group home in the Cayman Islands and this will help to serve as a step down, [referring to] those that have been hospitalised... in the short term and realise that they don’t need to go to the long-term care facility, but at the same time they’re not fully ready to go back into the community and could be here for a while,” he explained. He said the home completes the circle of mental health care in Cayman by having an acute facility – which is already at the hospital – the long-term care facility, and then a group home. “That’s the transition point as the last step, before going back into the community,” he said. The home, he said, does not change the commission’s plan of getting the long-term care facility completed. “That’s going to be a major contribution to the overall mental health system in the Cayman Islands, bringing back people that are overseas, and going a long way to improving mental health overall. So, this in no way deters us or dilutes our drive forward to get that long-term care facility open,” he added. Dr. Arline McGill, HSA Department of Psychiatry head and vice chair of LOUD Silent Voices, said the home will have space for fi ve women and four men and will have strict criteria for admission. “The criteria refl ect that the person has to be an adult, so they have to be 18 years or older. They have to have a mental illness background and have a treatment team that we can actually refer to,” she said, noting the home would take referrals for admission and staff would be consulting with the treatment professionals “to determine how to move forward” with the clients. In addition, residents at the group home must have the capability to work and the desire to better themselves and be able to do so. McGill said it was “fantastic” to see the home coming to fruition as it has been something sorely lacking for local mental health patients in the transition stage before rejoining the community. “We have been so concerned about this type of client for years. We’re very happy to have the other houses that deal with our substance users, and we’re very happy to have a long-term facility [for] our more chronic patients, but [these clients] have the hardest time. Sometimes the problem is that they have to be in an acute unit for a lot longer than necessary because we are trying to sort out housing for them. So, this is going to be a solution to that problem,” she said. HSA community psychiatric nurse Dympna Carten is also involved with the group home project and is looking forward to the benefi ts the community will derive from its opening. “This has been needed for a very, very long time. I’ve been working in mental health in the Cayman Islands for the last 23 years and many of our individuals, many of our patients, are disenfranchised because they have nowhere to go. There’s nowhere that’s a kind of a halfway house between a hospital, if you’re recovering from an acute episode, to a home and this really is a halfway house, so it’s a tremendous stepping stone,” she said. For more information or to donate funds to LOUD Silent Voices, call Jackie Neil at 922-3847 or email info@lsv.support. BRITCAY INSURANCE SCHOLARSHIP Are you a young Caymanian considering a career in the growing Insurance industry? British Caymanian Insurance Company Limited (CG BritCay) wants to hear from you. The CG BritCay Insurance Scholarship has a maximum value of US$25,000 p.a. for up to two (2) years towards tuition, books, accommodation, airfare and meals. Caymanians or permanent residents with a minimum GPA of 3.0 or higher, who are undergraduate students entering their junior or senior year at an accredited university, and pursuing studies in the following concentrations may apply: • Insurance • Risk Management • Actuarial Science • Mathematics • Economics • Business or Commerce Your career in insurance could start with a US$25,000 scholarship. To learn more or apply go to https://cayman.cgcoralisle.com/scholarship or email us at KY_HR_Manager@cgcoralisle.com. Deadline: 31st May 2021 British Cayman Insurance Company Limited BritCay House, 236 Eastern Avenue, P.O. Box 74, George Town, Grand Cayman KYI-1102 12 Kirkconnell Street, P.O. Box 254, Stake Bay, Cayman Brac KY2-2101 Grand Cayman Tel: 949-8699 | Cayman Brac Tel: 948-1760 A member of Coralisle Group Ltd. CONTINUED FROM PAGE 3 WATCH THE VIDEO ONLINE CAYMANCOMPASS.COM Team behind the group home: Angella James, Dympna Carten, Jasmine Powell, Dr. Arline McGill, Mental Health Commission chairman Dr. Marc Lockhart, Kenneth Figueira and LOUD Silent Voices president Jackie Neil. – Photo: Reshma Ragoonath cayman compass 8 news N news FRIDAY, 21 MAY 2021Despite some recent choppiness, stock market averages continue to hover near their all-time highs – but that masks a subtle shift occurring beneath the surface. Lately, cyclical stocks, or those most dependent on economic strength for profits, have been consistently outperforming growth stocks. In 2020, investors were rewarded by playing defence as dependable growth stocks massively outperformed economically sensitive issues during the worst months of the pandemic. Over a large part of 2020, consumers stayed at home either by choice or in compliance with government-mandated mobility restrictions. The ‘stay at home’ theme favoured more innovative growth sectors such as internet-based eCommerce, telehealth and digital streaming. But that trend has suddenly reversed in a shift which could continue for a while longer. Market practitioners know that stock prices tend to lead economic results by up to six months. In this case, even though the global economy has not fully recovered from last year’s recession, many of the hardest hit sectors of the market have already rebounded sharply. As vaccines continue to be rolled out and the news flow on COVID-19 cases and deaths becomes increasingly positive, further progress is likely. Value stocks are typically more closely tied to economic activity than growth stocks. Mature companies in slower growing industries tend to trade at lower price multiples of earnings and cash flow, placing them in the value category. In contrast, higher growth companies typically command premium prices as investors expect these companies to grow earnings and cash flows faster. Since the beginning of the year, the Russell 1000 value index is up 14.1% versus just 1.3% for the Russell 1000 growth index, representing outperformance of 12.8%, as of this writing. The most economically sensitive sectors, including energy, financials and small cap stocks, have performed substantially better than the market on the back of improving global growth prospects. Given the high efficacy of our vaccines, distribution rates and inoculation percentage levels are key statistics to watch. According to Bloomberg data, more than 1.19 billion doses of the vaccines have been administered across 175 countries, representing the largest vaccination campaign in history. In the US, 248 million doses have been given so far with a recent run rate of about 2.19 million doses per day. Wall Street analysts are seeing light at the end of the tunnel. J.P. Morgan recently reiterated their call for a value play: “We believe this move is likely to accelerate as we move into late spring and the summer amid the reopening of the economy, with the primary beneficiary being value and cyclical stocks. Importantly, we do not believe these developments are priced in, and believe the reopening and reflation trade will resume with a move that will be bigger than we saw early this year.” In the equity market, cyclical stocks have been reacting much better to earnings news than their growth counterparts. Last month Netflix, often seen as the poster child for the ‘stay at home’ growth theme, reported a challenging quarter which sent the stock tumbling 10% on the day. Last year’s pandemic-induced subscriber growth slowed faster than expected as people previously stuck at home began venturing out. On their conference call, Netflix announced their video-streaming service added 4 million more worldwide subscribers from January through March, its smallest Q1 gain in four years. By comparison, banking and financial services bellwether J.P. Morgan has outperformed the market by over 500 basis points since reporting a 49.3% upside earnings surprise on 14 April. Bank stocks benefit from both economic growth and higher interest rates which have been climbing due to the improved economic outlook. Although our base case is for a gradual reopening, there will likely be a few bumps in the road. For example, last week’s payroll report highlighted some of the challenges in getting the world back to work. For the month of April, US non-farm payrolls increased by a mere 266K, just a fraction of the consensus estimates for up to 1 million new jobs. On top of the weak headline number, revisions to earlier months lowered employment in February and March by a combined 78K more than previously reported. While more vaccinations and a broader economic opening is bringing workers back into the labour market, enhanced unemployment benefits are also discouraging some of them from returning. Furthermore, a record low drop in wages last month was driven by additional workers being added in low-paying industries. April’s jobs report, however, could fall into the ‘bad news is good news category’ by dismissing some of the recent tapering talk. Investors generally fear a reduction of central bank bond purchases or an increase in interest rates which could derail progress in both the value and cyclical spheres of the market. Going forward, investors should strive to stay well diversified. After the decade- long run-up in growth stocks led by the so- called FAANGs – an acronym for mega cap growth stocks such as Netflix and Amazon – these positions have likely become a significant portion of many portfolios. But it may not be too late for some adjustments. That said, we are continuing to see important growth themes which are likely to play out over the coming years. Expect innovative technologies applied in financial services, retail, manufacturing and healthcare to continue disrupting existing business models. Indeed, many value stocks are cheap for a reason and may become even cheaper if they are unable to adapt in a rapidly changing world. By some estimates, the pandemic has pulled forward three or more years of innovation as technology has become our fallback position. Therefore, a well-designed growth stock strategy should continue to have an important place in most accounts. Just be prepared for greater volatility in technology-heavy indices such as the NASDAQ. On the value/reopening side of the equation, investors should be aware that some of the reopening theme has been already been factored into current prices. For example, we see many restaurant, physical retail and hotel stocks currently trading at or above their pre- pandemic levels of early last year. For these stocks to work, everything must go perfectly on the reopening front and investors must assume a travel-and-mobility scenario even better than we experienced prior to COVID-19. ADVERTORIAL How to Play the Great Reopening Bryan Dooley, CFA is Head of Portfolio Management at LOM Asset Management Ltd in Bermuda. Please contact LOM at 441-292-5000 for further information. This communication is for information purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument, investment product or service. Readers should consult with their Brokers if such information and or opinions would be in their best interest when making investment decisions. LOM is licensed to conduct investment business by the Bermuda Monetary Authority. cayman compass 9 FRIDAY, 21 MAY 2021Next >