Key Events 👉 March Non-farm Payroll (NFP) ahead of expectations +300k jobs added and unemployment rate falling. Labor market is strong, and we see Fed is comfortable remaining patient before pulling back rates. They need more confidence that inflation will ease. 2 rate cuts are now priced for 2024, down from 3 cuts. 👉 Blackstone is in talks to buyout Jersey Mike’s
Life is totally unfair. And, that’s perfectly fine. Those that accept it win. I was in Chicago this weekend. And, spent a decent amount of time walking around the city and thinking. Just looking around you see people from all-walks of life. One thing that is clear is that everyone goes about their own life. But, it was not easy
How can a company operate with an accumulated deficit? First, when does this happen? The simple answer – the company keeps losing money. Why? Probably because the company is not economically viable. Something about the business model makes it unprofitable. The lack of profitability accumulates. Specifically, on the company’s balance sheet. Under retained earnings. Retained earnings represent the accumulation of
Can the value of shareholder equity be negative? Not really. But, it depends. It depends on how we define shareholder equity. First, equity refers to residual ownership in a company. Similar to your net worth. It’s the assets net the liabilities. It’s what you own less what you owe. The value that is left over is by definition that value
Are there antitrust concerns that arise from index fund managers? There are the big three. Vanguard State Street BlackRock They are by far the largest passive investors. Look, they own almost 5-15% in every public company through the indices they provide investors. It’s simple. They create indices. These indices are passive funds, meaning that they are not actively involved in
If capitalism is great… Why does the government have a vested interest in limiting it? Specifically, when it comes to monopolistic behaviors amongst firms. What defines this behavior? Any attempt to establish or maintain monopoly power within a certain market. Monopoly power exists when a single company controls a significant portion of the market, allowing it to … (i) Set
Talk to get information. Write to clear up information. Write to live in the moment. I find it easy to live life just doing. Going through the motions. Day by day. I don’t like this. I figure you don’t either. Yet, it happens to me all the time. One thing that helped me to be more mindful of the present…
Seek rejection to reframe rejection. Do it in small ways. And, do it consistently. This is a skill that I am building. Yes. It is a skill. Though it may not sound like one. The skill is indifference. Indifference – lack of concern or interest in the opinions or judgments of others. Yesterday, I was in Chicago, and trying to
Markets Key Events U.S. equities finished down Thursday. 👉 Initial jobless claims at 221K – above consensus of 213K. Feds are looking for inflation to come down and employment to fall to cut rates by year end. Watching for nonfarm payrolls, released tomorrow. 👉 Ford to delay production of its electric SUV and pickup. 3-row SUV pushed back from 2025 to
Good advice is boring. Bad advice is entertaining. It captivates our attention. Good advice for 99% of people… Invest 20% of your income in the S&P 500. And, hold. Bad advice for 99% of people… 3 Secret Strategies to Beat the Markets. Which would you rather choose? Wow. See. The second one really is all that more interesting. Why? Simple.
