As of the writing of this newsletter, your boi is still on his vacation vibe. I am visiting my sister in the Concrete Jungle of New York City. In light of that, there will be no Wednesday Money Mentality newsletter.
I guess the holiday weekend was exactly what the Stock Market needed. Stocks went on a tear last week. Even comments from Jerome Powell on rates going higher were not enough to stop the market from posting its first week of gains in almost a month.
MARKET RESULTS:
Tale of the Tape
Economy
EU in CRISIS
Things are looking HELLA bad for Europe. Russia finally did what we all expected them to do. Over the labor day weekend, while we were all grilling and partying on this side of the Atlantic. Russia announced it would not be turning back on Natural gas flows to Europe through the Nord Stream pipeline after saying it was performing needed maintenance. Russia claims that the sanctions from the EU have made it hard for it to conduct needed repairs so it has to shut down the pipeline.
Following that announcement, the EURO fell to a 20 year low against the dollar, meaning things are getting even more expensive in the UK and the EU. We are complaining about inflation here in the states, it ain't nothing compared to what Europe is about to face in the coming months. With much of Europe depending on Russia for their energy needs, it's going to be a painful winter as they try to ration other sources so people can heat their homes.
To help, the US began sending LNG (Liquified Natural Gas) to the EU using tankers. This will not make up the entire difference that is needed but will provide some level of support.
But the EU are not the only ones facing an energy crisis. With global temperatures continuing to rise, the US is beginning to see the consequences of Climate Change right within its own borders. California just experienced it worst heat wave in recorded history. Energy officials can do nothing other than cross their fingers hoping the grid will hold up and we won’t have another 2020 situation on our hands with blackouts.
And things are going to get worse not better from here because our infrastructure in the US and in the EU was not built for these extreme conditions. Per a report from Princeton, the U.S needs to spend at least $2.5 trillion to upgrade the Transmission grid. Expect these situations to become the norm as Climate Change continues to flex its muscles.
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On Wednesday, Apple had its annual iPhone announcement event. Once again Apple showed us why they are the most valuable company in the world (yes, I am choosing to ignore Saudi Aramco). They announced 3 update-ish to their product line-up:
iPhone
The “new” iPhone 14 is literally the iPhone 13. There are literally no changes between the 13 and 14
The new iPhone 14 Pro has a new chip and design with something called "Dynamic Island" that I have to say is really COOL.
The iPhone
1314 and iPhone 14 Pro come with a new emergency messaging system that uses Satellites, which is dope.Oh and no more sim cards. Apple announced all new iPhones will only come with eSims at least here in the US and expand to other countries in the coming years. Basically, another way for Apple to lock you into the High Walled Garden
AirPods
Nothing new just an update to ensure you will pay $250 for a new pair
My bad they added a lanyard hook to the case
Also a new H2 chip that will help you find your AirPods a little easier
Apple Watch
This was the big and exciting announcement of the event
Apple revealed the Apple Watch Ultra. It is targeted at those who do extreme sports like scuba diving, climbing mount Everest, running triathlons, etc
It will cost $800 and if you have to ask if you need this, you already know the answer is NO
But we already know most people who will buy it will only use it to count their 1500 daily steps from their car to their desk back to their car back home.
Apple also re-released the Apple Watch SE which is the budget-friendly version
The best update to the Apple Watches is the ability to help ladies track their ovulation cycle. Now, this I am very much a fan of.
My Reaction:
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Stats of the Week
Amount needed for a down payment for a new mortgage loan that banks are offering to help individuals buy homes
Bank of America, JP Morgan Chase, and TD Bank are a few of the banks that are offering this new type of loan
Although it is being called a "zero down mortgage", a down payment is still needed.
The banks will either offer a credit that will cover the cost of the down payment
Or in the case of the Bank of America, they will outright pay up to $15,000 of the down payment
This is designed to help first-time home buyers in disadvantaged communities, primarily in historically Black and Hispanic neighborhoods
Think neighborhoods that were redlined but now are going through gentrification
California passed a bill to increase fast-food wages to a minimum of $22
The minimum wage in California is $15 state-wide.
I am not exactly sure why fast food is being targetted by the bill (it might be something to do with how hard it is for fast food businesses to unionize because of the high turnover)
I am not sure I like the idea of the state being this heavy-handed with one specific industry.
The fast food industry is not necessarily designed for people to have longevity in positions
What exactly is the goal of putting this in place?
I'm usually all pro-worker but this seems out of wack
Chevy showed off the all-new 2024 All-Electric Chevy Equinox which will retail for $30,000. Something Elon claimed the Model 3 would do
Model 3 starting price is $40,390
More manufacturers continue to enter the EV space and I am here for it. This will drive costs down and give customers options
I expect the market share of Tesla to continue to dwindle even though they had first movers advantage and their cars are cool
However; Tesla, much like Apple, has incredible brand power so it might not even matter that others are entering the space
Jeep also unveiled 3 new All-Electric SUVs including: Jeep Recon (Basically a Wrangler), Wagoneer S (large-sized SUV), and the Avenger (small SUV)
Looking Ahead
This week we are back to the GRIND! Tuesday is the Super Bowl of the markets. We get consumer inflation numbers for the month of August. It is expected to be 8.7% which is higher than July’s 8.5% but lower than 9.1% in June. Although energy prices (mainly gas) have fallen sharply, the costs of everything else have remained higher.
On Friday, we get Consumer Sentiment Index which as you know is my favorite economic indicator. This will give us insight into how consumers are feeling about the economy especially now that gas prices are down more than 20%. According to Axios, economic expectations are beginning to return to acceptable levels.
Sports I Care About Update
Man U started off their Europa League campaign the exact same way they started the Premier League season. Sucking BALLS!!
Thank you for Rocking With ME
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Remember GENEROSITY > greed
God bless Each and Everyone of y’all
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Extras
$440 Million
Pay UP Juul, the e-cig company, settled with 34 states to pay almost $440 million due to its marketing tactics focused on getting teens to start smoking
They used fancy flavor packs like bubblegum, and watermelon, to get kids to begin vaping. Undoing decades of progress that had been made to get teens to stop smoking
Juul still has 9 other lawsuits that it has to settle so more money will be paid out
Personally, I hate companies like these so I hope they have to pay even more and get destroyed
No More Free Covid Treatment
After two years of being able to get anything you need that is connected to Covid for free, the government is handing things back to the private sector. Meaning everyone will have to pay for: vaccines, tests, and treatments (pills, hospital visits, etc).
Is this good or bad? Neither, at some point things were going to return to normal. Exhibit A of this per Emily Peck of Axios, Some companies are rolling back mandates for employee COVID vaccination — but few are making official public statements about it