What To Expect in the Stock Market This Week (August 23-27)
... Delta variant becoming more common than lost bags by the airline
Before we get into anything, Man United did the most Man United thing.
DISAPPOINT ME! What is this nonsense?
How we gonna tie against SOUTHAMPTON?! We destroyed this same team 9-0 last year. Why did I start believing again?! I put my hopes so high and once again they showed why I gotta set expectations low for this team. Watching the game was painful, it was like they forgot how to play. Bad passes all over the FIELD. Giving the ball away on defense regularly. Really Southampton should have won, they had so many great chances luckily for Unite Southampton SUCKS. But that is my point, Man U should have dominated this game. But alas, we find ways to play down to opponents.
Next up, Wolves. And if we play like trash again, we are so gonna lose!
The Stock Market did NOT hit another all time high last week. But it definitely tried to
What is in FOCUS for me?
The focus for me this week is the ever growing number of Covid-19 Delta cases. Key Stat, ICU Bed are running out faster than toilet paper after everyone eats Taco Bell. Like seriously what is in that meat?
I went for my physical last Friday (My Doctor was very impressed with ya boi, I mean what can I say I AM A FINE BOY!!") and he told me to be very careful and I was like yeah cause of the Delta and he was like YES. He was like please take it seriously that things are a lot worse than people realize. He said with the lack of regular coverage like earlier in the pandemic people do not really realize how bad this thing is.
So like my doctor said to me and now I am saying to you, PLEASE BE CAREFUL!
The other reason we care about the rise in cases is the way it will affect the economic recovery we have been seeing in the economy. Bank of America reported a reduction in charge off rates for people’s credit and debit cards in the week ending August 14. According to Bank of America’s head of US economics (what a title) Michelle Meyer
A main reason behind the moderation over the last several weeks has been due to a pullback in spending on leisure services, which we define as travel (airlines + lodging), entertainment and restaurants/bars
A.K.A People going out less and staying in more. However, this is literally a tiny sample size. We will have to wait for the August Consumer Spending report to see how exactly things have changed and we get that on September 16. However we will get some insights on Friday, when the Personal Spending numbers for July are released. This will give us more color as to how inflation has affected our spending because remember Consumer Sentiment dropped 13% heading into August.
But the Delta is also going to affect the decisions that the Federal Reserve makes moving forward. Last week we talked about Tapering by the Fed (I made a TikTok about it)
However the deciding element in any moves they make will be how the Delta variant continues to spread or not spread. WE will be hearing from Papa Powell and all his Pals during the Jackson Hole symposium. Learn more about it here cause I am not about to explain what it is. Mainly cause I barely understand it.
Many companies are deciding to call it a quits on trying to get back to the office this year including Apple, Lyft, DoorDash, Amazon, Charles Schwab, and Uber amongst some name
Colleges are trying to coerce students to take the vaccine by holding WiFi hostage. This is actually not a bad idea except for the fact that most people have unlimited data sooooooooo.
Regardless, until we get this Delta variant under control everything else in the economy continues to take a back seat.
As for the Stock Market
None of the companies reporting earnings interest me in the slightest. So my care level is literally ZERO. I cannot even come up with some kind of narrative to make myself care about the earnings this week. If you are invested in a company that is reporting earnings this week, please reach out to me and tell me why I should care about that company. Except for Salesforce and Snowflake and Dollar Tree. Wait a minute, I think my care level is peaked.
NOPE, it is NOT. I tried though.
Anyway have a wonderful week and if you enjoy this newsletter. SHARE IT with one person you hate; one person you love; and one person you have no real strong feelings about.
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Remember GENEROSITY > greed
God bless Each and Everyone of y’all
✌🏾
-Kelechi