Breakaway - Investing & Finance
Breakaway from the haters and mainstream thought. Learn about Investing, Finance and the Economy in a plain english and entertaining way. Understand the business environment and make money investing. Uncertainty in the markets driven by crisis, anarchy, politics and craziness is simply opportunity. Facts and truth here.
Breakaway - Investing & Finance
Mkts, Layoffs, Inflation, Fed, NFLX, TSLA
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Markets
Down 24% YtD.
Layoffs and Freezes and Downgrades and Upgrades
- Lyft has frozen hiring.
- Meta froze hiring.
- Docusign cutting 9% of workforce.
Apple downgrade: The iPhone maker dropped 4.9% after Bank of America cut its rating to neutral from buy, warning of weaker consumer demand for its popular devices. The selloff erased roughly $120 billion from Apple’s market capitalization.
Nike down 10%. Inventory up 44% QoQ.
Netflix
- Last week.
- Two this week. $283.
Netflix up 35% in quarter from $175 to $240.
- Advertising $’s. $65/1000 views.
- Advertisers may allocate from Meta to Netflix.
Federal Reserve
The Fed led by Jerome Powell raised the Fed Funds rate 75 bps to 3.0 - 3.25%. Expectation is now 4.0 - 4.5% by year end. Powell is determined to sink the economy to drive inflation to 2%. Why 2 and not 3%. We have a strong economy, strong underlying demand, low unemployment and the Fed is determined to destroy that.
CathieDWood (@Cathie Wood) Tweeted: The Fed is basing monetary policy decisions on lagging indicators: employment and core inflation. Leading inflation indicators like gold and copper are flagging the risk of deflation
Commodities
Commodities are down.
- Lumber: $410 down from $1300 in February 2022.
- Copper at $334 from high of $494 in March.
- Iron Ore $150 to $109.
- Oil? Not so much
Housing
Housing: 30 year mortgage rate is up from 3% to 7%. Result: $23k increase in down payment (assuming 20% down) and 100% increase in monthly payment (from $1,345 to $2,694).
Tesla
Tesla Recall. NHTSA FUD. Tesla is recalling more than a million cars because of defects in their automatic windows that could injure passengers, the nation's auto safety regulator said.
FSD Beta. Rolling out to all owners with driving score >80.
Tesla AI Day.
- Note, this event is meant for recruiting AI & robotics engineers, so will be highly technical
- As well as advanced chip & supercomputer engineers for next-gen training & inference
What are Jim and Mary thinking?
Quote: Children are happy because:
- They’re not self conscious.
- They lack a sense of time pressure
- They’ve no goals.