Q: Why did the recent, strong rebound in the equity markets begin with an August trading implosion?
A: Some compelling reasons for this include retail sales spiking this past July for the first time since January 2023. Additionally, the Atlanta Federal Reserve’s current GDPNow number for Q3 is 2.4%, indicating recession discussions may have been overblown. Lastly, core U.S. consumer inflation was at 2.9% in July leading to a likely Federal Reserve Interest Rate cut in September.
Q: How does the McGowanGroup factor in geopolitical risks, including war, into client portfolio allocations?
A: While no investment strategy is perfect, current investments in Energy Infrastructure provide cash flow with potential gains from spikes in Oil and Gas sectors. Furthermore, sustainable forward income from interest and dividends provides likely long-term benefits from reinvestment.
Headline Round Up
*Midas Touch! Former Chipotle CEO, Brian Niccol, Snatched Away to Revive Starbucks with $113 Million Pay Package making him one of the highest paid CEOs in the U.S.!
*Wall Street Journal: It’s Official, Dallas is “Y’all Street.” Texas’ Emerging Financial Hub Attracting Global Powerhouses.
*Diabetes Dynamo: Mars Buys Kellanova for $35.9 Billion in Cash to Unite M&M’s, Snickers, Skittles with Pop Tarts, Eggo Waffles, Pringles and Cheez-its.
*The Leveraged Bets that Came Back to Bite Investors in Early August.
*Ouch: Silicon Valley Median Home Price Tops $2 Million in Q2 This Year.
*Real Estate Commission Confusion Over New Rules?
*U.S. Battery Gold Rush: $1.4 Billion Sodium-Ion Factory Lands in North Carolina.
*Houston Texas Lands Chevron HQ from California.
*U.S. Oil Industry: Big Productivity Gains with Fewer Workers.
*$84 Billion in Taxpayer Dollars Tied Up in Stalled Green Power Projects! Financial Times reports on $228 Billion tracked by their investigative team.
*Southwest Airlines Transformation? Elliot Investment Management Launches Proxy Battle.
*Bank of America No Longer Predicting Recession Says CEO Brian Moynihan.
*Victoria’s Secret Stock Spikes as New CEO is Named! Hillary Super, Former CEO for Rihanna Brand Savage X Fenty, is Tapped to Lead Turnaround!
*Keeping Up with Jerry Jones! Dallas Cowboys First Sports Team to Pass $10 Billion Valuation This Year.
*BLING! Texas Olympians and the Most Olympians by State. Stanford University Olympians Took Home 39 Medals?
SPDR Dow Jones Industrial Average Exchange Traded Fund (ETF) Trust (12/29/2023 – 08/16/2024)
– Courtesy of Bloomberg LP
Invesco QQQ Trust Series 1 and SPDR Standard & Poor’s 500 Exchange Traded Fund (ETF) Trust (12/29/2023 – 08/16/2024)
– Courtesy of Bloomberg LP
Starbucks Corp. – Daily (08/12/2024 – 08/16/2024)
– Courtesy of Bloomberg LP
Standard & Poor’s 500 Index – Quarterly Earnings Analysis by Sector (05/16/2024 – 08/15/2024)
– Courtesy of Bloomberg LP
Profit Report
The equity market’s Armageddon head-fake of early August?
The continued evolution of McGowanGroup Wealth Management investment plans.
