Alchanati Campbell & Associates
Dear Reader
Real estate, the Koreas, Amazon, billionaires, sweating, and the 10-year Treasury Yield, The Market. Markets closed mixed. The S&P 500 up a mere .11%, Nasdaq up a mere .02%, and the Dow down a mere .05%. US GDP growth slowed to 2.3% in Q1, but above estimates of 2%. Fears of the stock market being way ahead of economic growth make headlines. The current bull market began 9 years ago on March 9, 2009 with a return of 377%. With crazy growth and returns, and record high valuations, investors have had unwavering bids for equities. US market returns have exceeded economic growth, creating a gap where companies are priced to deliver excellent results into perpetuity. Real estate booming! Home prices in 20 US cities grew at the fastest pace since mid-2014. The 20-city property values index increased 6.8% year-to-date. Real estate sales got a boost from the strong labor market and from borrowing costs still being low. At the same time, there is a shortage of available and affordable listings sending prices higher. US new-home sales increased in March to a four-month high, with single-family home sales rising 4% month-to-month. Their first date! So cute. The first summit between the two Korean nations in 11 years took place this week. Kim Jong Un, North Korea’s leader, became the first North Korean leader to cross the border into South Korea. This summit marked “a new history’ and an “era of peace” for these nations. Agreements to resolving their 68-year conflict and defusing Kim’s nuclear arsenal are in the pipeline. Good vibes and high-spirits ended the day with the South Korean won up .4% against the dollar. Amazon. Amazon released their earnings report on Thursday and more than doubled its profits. They also announced a $20 increase in their prime subscription and made a $130 million deal with the US National Football League to stream Thursday night games online. The forecast beat expectations and sent shares up 7% to a new record high, adding $12 billion to Jeff Bezos’s net worth. “I think, therefore I am”. Statistically speaking, neither the mindset of visualizing yourself as wealthy nor “just think it and it will happen” are likely to make you wealthy. This placebo effect is part of horoscopes and crystals, a list of things that have never been proven to have much value. But here is a list of what billionaires do believe in: be reality-based, work hard, focus on process, read widely, be lucky, and be humble. Sweating is now attractive. It is estimated that our ancestors, the apex predators of the planet, began consuming meat about 2 million years ago. But hominids didn’t begin using the tools of stones and sticks until 200,000 years ago. According to research, between 2.3 million and 200,000 years ago humans ran game animals to death. The ability to sweat allowed our ancestors to wear out other animals. Human sweat is arguably the most effective cooling system in the animal kingdom. 3%. The 10-year Treasury yield hit a high of 3% this week.With the treasury yields rising, finance stocks are becoming more attractive. Recommendation of the week: Spend more time understanding the world and more time traveling around and studying the non-US part of the globe. Keep Climbing, The Alchanati Campbell and Associates Team |
AuthorWHAT'S UP FRIDAY? is a weekly newsletter that will give you a summary of "What's up?" on Wall Street, in the US and around the World written by The Alchanati Campbell and Associates Team. What makes us unique is we focus on long-term knowledge; knowledge that will still be useful to you 10 years from now. Archives
July 2020
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