#1 The US government overspend once again!
To be honest, not really a big surprise.
When you have a President that is hell-bent on making sure that the economy is on the upward trajectory to ensure that he gets re-elected, no expenses are spared I guess.
Despite having a wider tax base and an economy that has an unemployment rate at a near 50-year low, US budget deficit stands at $984 billion, about 4.6% of its GDP.
#2 TESLA announced profitability for the first time in 3 quarters
Earlier this year, a couple of prominent analysts came out to condemn Tesla. Some were even proclaiming that Tesla could potentially fell to $10 a share (cough cough Morgan Stanley).
As of 25 Oct 2019, Tesla’s stock price closed at $328.13. I guess this is a tight slap to the bear narratives.
This is the very reason why retail investors are better off investing in plain-vanilla index funds rather than taking advice from the schmucks on Wall Street.
#3 AI-Powered ETF debut!
In short, the ETF makes use of AI techniques to evaluate ETFs for its bull and bear fund allocation.
It charges 95bps. Rich, I should say for an active ETF, but does it produce alpha? Hard to tell.
#4 Recession: Are we feeding into our own fear?
Sometimes, we think far so much for our good.
Moral of the story? Stay focus on long-term investing and tune out the noise.
Have a good week ahead.
Categories: Weekly Highlights