Q: What is “Capitulation” buying in the financial markets.
A: After extraordinary rallies in an investment sector or asset class, investors left behind finally begin to buy in to avoid missing out. Often, the resulting capitulation buying rally marks a peak price for the asset.
Q: What are some examples of dangerous overpricing in the equity markets for investors?
A: 1970s “Nifty Fifty”
1990s “Dot-Com”
2021 “FANGs and Cryptocurrency”
2023-24 “Magnificent 7”?
Q: What was the message for investors from Federal Reserve Chairman Jerome Powell’s interview on 60 minutes?
A: No interest rate cuts in March, for now.
Headline Round Up
*A Surprisingly Strong U.S. Economy!
*Disney Spikes on Earnings, New Mega-Sports Streaming Service.
*IRONY! The Rockefeller Family & Other Billionaire Donors Pushed for Biden Administration’s Liquified Natural Gas (LNG) Project Halt.
*The Story of America’s Most Expensive Home at $295 Million.
*New York Community Bank Flashes Warning Sign Seeking Third Party Capital for Liquidity.
*Treasury Secretary Janet Yellen Says Commercial Real Estate is a Worry.
*U.S. Commercial Real Estate Contagion is Moving to Europe.
*KKR Real Estate Finance Trust, Inc., Commercial Mortgage R.E.I.T. Plunges.
*Texas Lt. Governor, Dan Patrick, Praises CEO of BlackRock, Larry Fink, as the “King of Wall Street. Texas and BlackRock Make Up?
*Biden Administration Requiring Large Crypto Miners to Report Energy Usage. Follows Concerns That the Industry Could Pose a Threat to the Nation’s Electricity Grids!
*Venezuela Ready to Declare War on Exxon?
*Burrito Nation: Chipotle Traffic Surges 7.4% in Q4 2023.
*Tapped Out Yet? Credit Card Delinquencies Up 50% in 2023.
*Spotify Surges on Joe Rogan Deal.
*U.S. Crude Oil Ripe for a Short Squeeze?
*Super Micro Computer, Inc.’s 700% Gain on Artificial Intelligence (AI) Mania.
*U.S. Natural Gas Consumption Hits New Record in January.
Mergers and Acquisitions
*Devon Energy Corp. in Talks to Buy Enerplus Corp. Whose Shares Popped 10%.
*Weight Loss Mania: Novo Nordisk Ramping Up Wegovy Supply Purchasing Catalent for $16.5 Billion Including Debt.
Skid Row
*SNAP chat Gets it Tik-Tok Cleaned!
*Under Armour Down 80% in 8 Years?
Invesco QQQ Trust Series 1 (12/29/2023 – 02/09/2024)
– Courtesy of Bloomberg LP
Dow Jones Industrial Average Index (12/29/2023 – 02/09/2024)
– Courtesy of Bloomberg LP
Invesco QQQ Trust Series 1 (03/23/2020 – 02/09/2024)
– Courtesy of Bloomberg LP
Invesco QQQ Trust Series 1 (03/10/1999 – 12/30/2016)
– Courtesy of Bloomberg LP
Standard & Poor’s 500 Index – Quarterly Earnings Analysis by Sector (11/16/2023 – 02/15/2024)
– Courtesy of Bloomberg LP
Special Profit Report
Suck It Up Cry Baby!
*Real life client stories of retirements damaged by overspending & underworking adult children:
-
The 40 year old dependent idiot who tries to take control of the surviving wife’s retirement account.
-
The momma’s boy that squandered over 20% of his parents’ assets.
-
Techniques for protecting your investment and retirement assets from predatory adult children.
*Frugality Training: Dave Ramsey
*Require a meeting with the spendthrift/eternal entrepreneur with your financial advisor before helping your adult children.
*Just Say No!
*Be Stingy.
*Loan It, but Don’t Give It! Devise a payback plan.
*Business Venture Funding: Require a business plan that meets the standards of obtaining a similar loan from a bank or credit union.
*Only cover a small portion, in increments of progress, only if you can afford it.
*If they are living in your house, take away the video games!
