Q: Why did the Dow Jones Index drop 1600 points, approximately 4%, from its all-time peak during April?
A: Hot sticky Inflation! The Consumer Price Index (CPI) inflation report for February and March was .4% each month which would annualize near 5%. The likely delay in interest rate cuts resulted in selling of long U.S. Treasury bonds and stocks. Interest rate cut probabilities now in September.
Q: Interesting quote of the week?
A: Matthew McConaughey: “My star meter has been higher; my star meter has been lower. I’ve won Oscars. I’ve been arrested playing the bongos naked.” Mr. McConaughey’s net worth is recently estimated at $170 million.
Headline Round Up
*Legendary Investor Bill Gross: “I love MLP (Master Limited Partnership) pipelines . . .Better than AI (Artificial Intelligence).” for Income. Which ones?
*What Investment Play Did Bill Gross Make in Trump Media? Options of course!
*Fiscal Wage Push Inflation: New Job Gains in March Were in Healthcare, Government & Construction!
*Atlanta Federal Reserve’s Real GDPNow at 2.4% Economic Growth for Q1 2024.
*$100 Per Barrell Oil Prediction on Iran Attacking Israel?
*Jamie Dimon Warns of Potential Interest Rate Spike in the Years Ahead Due to Deficit Spending & Geopolitical Stressors?
*Texas Based Dell Technology, Inc. Gaining Steam. Up 217% in the past year.
*Nvidia Drops Over 10% from All-Time Highs This Week While Google Expands In-House Axion Chip Making Endeavors.
*Meatpacking Industry Investing in Automating Notoriously Difficult Jobs? Robots Slicing Barbecue Ribs?
*Samsung Awarded $6.6 Billion Microchip Subsidy for Taylor, Texas Expansion.
*Wells Fargo Securities, LLC Raises S&P 500 Index Target to 5,535 from 4,625. Total increase in target up 20% since Q4 2023, Why?
*Blackstone’s Bullish $10 Billion Deal for an Apartment Landlord. REIT’s spike?
*Boeing’s Top Executives Took Personal Trips Worth $500,000 on Company’s Private Jets?
*Citigroup Index Shows Short Term Profit Projections are Rising!
*The Podcast Host That Manages $1.6 Trillion and Has Famous Business Leader Guests and Listeners: “In Good Company” helmed by Nicolai Tangen, CEO of Norges Bank Investment Management.
*Pipeline Capacity Shortage: Natural Gas Spot Prices Fall to Negative Price in Permian Waha Hub.
*Enterprise Products Partners Issued License for New Sea Port Oil Terminal (SPOT). Final investment decision will determine estimate on construction timing.
*Ivy League Tuition for 2025 Tops $90,000 Per Year? $360,000 target for 529 accounts?
Dow Jones Industrial Average Index (12/29/2023 – 04/12/2024)
– Courtesy of Bloomberg LP
U.S. Consumer Price Index – Urban Consumers Month over Month, Seasonally Adjusted (01/31/2000 – 03/31/2024)
– Courtesy of Bloomberg LP
Energy Select Sector SPDR Fund, Invesco QQQ Trust Series 1 & SPDR Standard & Poor’s 500 Exchange Traded Fund Trust (12/29/2023 – 04/12/2024)
– Courtesy of Bloomberg LP
Standard & Poor’s 500 Index – Quarterly Earnings Analysis by Sector (02/16/2024 – 05/15/2024)
– Courtesy of Bloomberg LP
Profit Report
The New Dividend Units Model Portfolio by McGowanGroup Wealth Management (MGWM)!
