Weekly Highlights

Weekly Highlights 27 Oct: US Government overspend! No surprise!

#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.

https://www.reuters.com/article/us-usa-economy-budget/u-s-governments-annual-budget-deficit-largest-since-2012-idUSKBN1X426T

 

#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.

https://www.cnbc.com/2019/10/24/tesla-investor-says-stock-surge-is-just-the-beginning-of-a-rebound-to-4000.html

https://seekingalpha.com/news/3465547-morgan-stanley-cuts-bear-case-tesla-10

 

#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.

https://www.etf.com/sections/daily-etf-watch/ai-powered-momentum-etf-debuts

 

#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.

https://www.cnbc.com/2019/10/16/robert-shiller-says-economic-stories-like-fears-of-a-recession-can-go-viral-and-be-self-fulfilling.html

 

Have a good week ahead.

Recent articles:

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s