46 min
Good Good Is Bigger Than LIV Golf, Canadian Trade Relations and Where The Market Is Headed In Q1 Reformed Millennials - Learn Earn and Invest
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- Business
Listen in podcast app and follow below for the podcast topic arc.
* Good Good tournament with Grass Clippings
* Market update
* Canada betting too much on USA trade
* American exports
* Recommendations and Links
Listen on Apple, Spotify, or Google Podcasts.
Market Update📈📉
Welcome back.
Last Wednesday the Dow, S&P500 and Nasdaq100 all closed at new all-time highs.
But the number of stocks on the NYSE that actually made new highs was a fraction of what it was last week…
Breadth is weak.
The indexes make new highs. The headlines focus only on that.
But then the actual new highs list is non-existent.
A sell off is beginning, we’re just not seeing it at the index level yet.
But, things can change at the drop of a hat.
The number of S&P 500 stocks above their 200 and 50dma is decreasing while the index is making new highs. This is how indexes topped in the past. The trouble is that timing a top is a lot tougher than capturing a bottom.
A bearish divergence can continue a lot longer than most expect and can resolve in two ways:
* We can see an expansion of the rally as more stocks participate. This happened last year in May and June.
* Or we can see a correction and most stocks pull back.
From where we stand, both scenarios are equally plausible right now.
More stocks joining the rally mean more and better opportunities in faster-moving stocks. A correction means lower prices in the strongest companies – so many investors are dreaming about buying pullbacks in the strongest semiconductor and software stocks. Any dips will offer better risk-to-reward opportunities.
As legendary investor, Peter Lynch said: “Far more money has been lost while preparing for a correction than during the corrections themselves”.
Twitter links from the pod:
* Trevor Tombe on Canadian resource investment
* Trevor Tombe on Canada betting too much on USA trade
* Chris Arnade talks about American exports
* Adam Sandler and Brad Pitt
Podcast & YouTube Recommendations🎙
* BG2 podcast with Aaron Levie:
* Using the Apple Vision Pro:
Best Links of The Week🔮
* Todays luxuries are tomorrows commodities - “We're entering a world in which consumers will experience abundance in creativity and productivity, in their relationships and social experiences, and in personal growth across dimensions like education, wellness, and financial health. This will manifest in a new generation of AI-native consumer products and companies that grow faster and engage users more deeply than ever before”. Source: Gamma
* Federal Reserve Chair Jerome Powell said the central bank has shifted its focus toward deciding when to begin cutting interest rates, but that solid economic growth means officials didn’t have to rush that decision. Given recent economic strength, “we feel like we can approach the question of when to begin to reduce interest rates carefully,” Powell said during a rare television interview to be broadcast on CBS on Sunday night. Powell, speaking on “60 Minutes,” said officials were trying to balance the risks of leaving rates too high for too long, which could cause an economic slowdown, and of cutting rates too soon and allowing inflation to settle above the Fed’s 2% goal." Source: WSJ
* "Danish drugmaker Novo Nordisk has been “surprised” by the readiness of European consumers to pay for weight-loss drugs from their own pockets, as the region’s largest company invests in new supply to meet runaway demand. The company’s weight-loss drug Wegovy and diabetes treatment Ozempic powered it to record sales in 2023 and a current market capitalisation of $508bn." Source: FT
* "Hawaiian Airlines is rolling out complimentary Wi-Fi via SpaceX’s Starlink on board commercial flights this week... the first major U.S. airline to offer the satellite-based service. “SpaceX has really cracked the code – literally, in terms of the technology – to be able to deliver a wide bandwidth of very high quality connectivity t
Listen in podcast app and follow below for the podcast topic arc.
* Good Good tournament with Grass Clippings
* Market update
* Canada betting too much on USA trade
* American exports
* Recommendations and Links
Listen on Apple, Spotify, or Google Podcasts.
Market Update📈📉
Welcome back.
Last Wednesday the Dow, S&P500 and Nasdaq100 all closed at new all-time highs.
But the number of stocks on the NYSE that actually made new highs was a fraction of what it was last week…
Breadth is weak.
The indexes make new highs. The headlines focus only on that.
But then the actual new highs list is non-existent.
A sell off is beginning, we’re just not seeing it at the index level yet.
But, things can change at the drop of a hat.
The number of S&P 500 stocks above their 200 and 50dma is decreasing while the index is making new highs. This is how indexes topped in the past. The trouble is that timing a top is a lot tougher than capturing a bottom.
A bearish divergence can continue a lot longer than most expect and can resolve in two ways:
* We can see an expansion of the rally as more stocks participate. This happened last year in May and June.
* Or we can see a correction and most stocks pull back.
From where we stand, both scenarios are equally plausible right now.
More stocks joining the rally mean more and better opportunities in faster-moving stocks. A correction means lower prices in the strongest companies – so many investors are dreaming about buying pullbacks in the strongest semiconductor and software stocks. Any dips will offer better risk-to-reward opportunities.
As legendary investor, Peter Lynch said: “Far more money has been lost while preparing for a correction than during the corrections themselves”.
Twitter links from the pod:
* Trevor Tombe on Canadian resource investment
* Trevor Tombe on Canada betting too much on USA trade
* Chris Arnade talks about American exports
* Adam Sandler and Brad Pitt
Podcast & YouTube Recommendations🎙
* BG2 podcast with Aaron Levie:
* Using the Apple Vision Pro:
Best Links of The Week🔮
* Todays luxuries are tomorrows commodities - “We're entering a world in which consumers will experience abundance in creativity and productivity, in their relationships and social experiences, and in personal growth across dimensions like education, wellness, and financial health. This will manifest in a new generation of AI-native consumer products and companies that grow faster and engage users more deeply than ever before”. Source: Gamma
* Federal Reserve Chair Jerome Powell said the central bank has shifted its focus toward deciding when to begin cutting interest rates, but that solid economic growth means officials didn’t have to rush that decision. Given recent economic strength, “we feel like we can approach the question of when to begin to reduce interest rates carefully,” Powell said during a rare television interview to be broadcast on CBS on Sunday night. Powell, speaking on “60 Minutes,” said officials were trying to balance the risks of leaving rates too high for too long, which could cause an economic slowdown, and of cutting rates too soon and allowing inflation to settle above the Fed’s 2% goal." Source: WSJ
* "Danish drugmaker Novo Nordisk has been “surprised” by the readiness of European consumers to pay for weight-loss drugs from their own pockets, as the region’s largest company invests in new supply to meet runaway demand. The company’s weight-loss drug Wegovy and diabetes treatment Ozempic powered it to record sales in 2023 and a current market capitalisation of $508bn." Source: FT
* "Hawaiian Airlines is rolling out complimentary Wi-Fi via SpaceX’s Starlink on board commercial flights this week... the first major U.S. airline to offer the satellite-based service. “SpaceX has really cracked the code – literally, in terms of the technology – to be able to deliver a wide bandwidth of very high quality connectivity t
46 min
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