BREAKING NEWS
The government can actually do something for the benefit of the constituents. They finally passed the $1.2 Trillion Infrastructure Bill that has been in the works since Biden got elected. This thing has been through more changes than Kanye’s Donda album. So what does it actually include on the final version?
$110 Billion for Boomer infrastructure aka Roads and Bridges
$111.5 Billion for New Age Infrastructure
$65 Billion for Broadband (Internet stuff)
$39 Billion Modernize Transit (still not exactly sure what this is but okay)
$7.5 Billion for Electric Vehicles and EV charging (This is way too tiny in my opinion if we really wanna be Carbon Neutral by 2050)
$66 Billion for Rail
$55 Billion for Water Infrastructure
$68 Billion towards Climate Stuff
$21 Billion for Environment Remediation
$47 Billion for Climate Resiliency (seems low cause last I hear climate change getting worse but okay)
Now back to the actual newsletter
RECAP
The Stock Market continues to bless us with amazing returns. Even with Papa Powell and the Fed announcing tapering last week. The Markets did not care AT ALL. All major indexes (indices?) hit All-Time Highs last week. Special shout-out to the S&P 500 which hit its 62nd All-Time High this year. It is the 3rd most in history, just needs 12 more to break the record set in 1995.
The Returns:
New Week New Possibilities
This week is gonna be all about economic indicators and economic data. So expect a lot of scary end of world type headlines hitting your timelines. We will get inflation data from the Labor Department. In September, CPI was 5.4% year over year which is the highest we have seen in a long time because we have been in a deflationary environment for the last 10 years or so. Currently, there are a few factors putting pressure on inflation. We have talked about the supply chain pressures due to the pandemic and our desire for more stuff.
The other part of the pressure on Inflation is due to the labor market. This week we also get the Job Openings and Labor Turnover Survey aka JOLTS on Friday. Last month revealed people were saying “Take This Job and Shove It” as we had a historic quits rate of 2.9%. Plus the initial number of jobs added in September was unbelievably abysmal coming in at 194,000 jobs but has since been revised up by 118,000 jobs. However, the jobs report for October was very positive coming in at 531,000 jobs.
Also, unemployment dropped from 4.8% to 4.6%. However; not all that shines is gold. The labor participation rate, which is the number of people who can work are actively looking for work, continues to remain stubbornly low as people, which is why the unemployment rate is dropping.
But the most exciting number at least for me is the Consumer Sentiment Index because I am more of a feels person than a logical person. I want to know if the holiday season is making people feel better about the economy or if the weather is winning out.
Stocks To Watch
Generally, it will be a pretty tame week for Earnings. We have mostly meme stocks like AMC or hype stocks like Palantir reporting. None of these companies are interesting to me but people love talking about them all the time.
However, there are two companies that I find interesting to watch this week outside of the companies that I am invested in (which you can see all my investment on my Youtube channel):
Disney will be in focus to see how their subscriber growth for Disney+ is going.
After smashing records by reaching 100 million subscribers in record time. They are beginning to run into the same wall that Netflix ran into as far as subscriber growth is concerned.
Analysts are forecasting for Disney+ to bring in 11 million subscribers, I highly doubt they will.
Because much like Netflix struggling in the second quarter due to no new blockbuster content, Disney did not have much of any new content in the third quarter.
With all the news on Facebook becoming Meta and focusing on being a Metaverse Company. One of the OG metaverse companies will be reporting earnings this week, Roblox.
I like the idea of what Roblox aims to do with but it is still miles away from fulfilling it.
Plus I do not want Facebook to be the ruler of the Metaverse but they seem to be ahead of the entire field as far as making it a reality.
Yup Man U still SUCKS
But at least I still have Real Madrid
They keep making me so happy.
So I will start talking about them more.
Who am I lying to? I won’t!
Just like most people fear losing money more than making money by investing (Loss Aversion). I enjoy talking about the pain and suffering of being a Man U fan than about the victories that Real Madrid has in La Liga. The Premiership is just so much more interesting and dramatic.
Thank you for reading
I hope you all have A WONDERFUL week. I will see you back here on Wednesday for another post. In the meantime, Go subscribe to Rambling Mind Podcast for mid-week stock market updates. You can also catch me on TikTok, Instagram, and YouTube every day.
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Remember GENEROSITY > greed
God bless Each and Everyone of y’all
✌🏾
-Kelechi