Edition #8
Monday November 21st, 2022
Quiz Question of the Week
Answer at the bottom
(Data from World Economic Forum)
This Week in History 📰
22nd November 1995- Toy Story is released in cinemas
24th November 1859- Origin of Species published by Charles Darwin
27th November 1095- Pope Urban II Launches First Crusade
Major Events This Week 🔬
S&P U.S. manufacturing/services PMI on Wednesday at 9.45am EST
FOMC minutes on Wednesday at 2pm EST
Thanksgiving Holiday on Thursday- US Market Closed
Summary 📝
Last we saw a further drop in the S&P 500, down 0.69% overall, solidifying the fact that no bounce in the market has led to a consistent and clear turnaround in the direction of the market.
But then again, why would it?
We still have the geopolitical tension, inflation is still high, and investors are still scared. But with Black Friday closing in, we have a good opportunity to get a feel for how the consumers are feeling. Will spending reflect the caution we see in the market, or will the fear around a recession not be on the minds of post-Thanksgiving shoppers?
With the dollar index falling at an incredible rate, investors will be wondering if this will continue, or if a bounce in the dollar will lead to further declines in the equity market.
I have been trying to focus less on the day to day, and more asking myself; will an investment made today be worth more in 5-10 years? If you can sit through the stress, and feel you’ve made the right call, then putting your money to work in uncertainty has long been a winning strategy in bear markets.
As always, buy quality companies at good prices, and have a plan.
Market Recap 📈
Post of the Week 💌
❗️Investing in YOU 👇👇
✅ Investing has been a topic I’ve taken a lot out of, in addition to the obvious financial benefits. It develops skills, networks, creativity, curiosity and a whole host of other factors. 🥳
✅ Outside of the markets, I’d encourage you to do the same. Really try to seize all the opportunities you can to develop yourself as a person. 📈
✅ It can be overwhelming hearing all the success stories and self-help on social media, but if you can make just one change today to invest in yourself, whether it’s signing up for a class in something, or exploring a new creative project, then you definitely won’t regret it. 💪
Investing World Cup- Week 1 Update
The World Cup in Qatar is underway, and the Oak Investor Coaching equivalent is also drawing crowds from all over the world, as some of the biggest companies go head-to-head to take the crown.
Get involved by voting every day for your favourite!
What’s Moving Markets?
CNBC-Collapsed crypto exchange FTX owes top 50 creditors over $3 billion, new filing says
A list of FTX’s top 50 unsecured creditors shows the largest lender of the bunch is owed more than $226 million.
In total, the unsecured claims amount to $3.1 billion.
FTX filed for Chapter 11 bankruptcy protection earlier this month.
CNBC- China reports first Covid deaths since May lockdown in Shanghai
Three people died over the weekend after contracting Covid, the first deaths from the virus that China has recorded since May.
All three individuals, ages 87 to 91, had pre-existing health conditions and lived in Beijing, according to state media.
For Sunday alone, mainland China reported more than 26,000 Covid infections, with and without symptoms.
Incoming Earnings Reports this week- provided by Earnings Whispers.
Events today- provided by Unusual Whales.
Analyst Upgrades and Downgrades- provided by MarketWatch
Highest Short Interest Companies- provided by MarketWatch
Chart of the Day 📈
We use the term “on a knife’s edge" all the time when making investing decisions, but there are two clear directions the market can take in the next few months, and for the first time in a long time, we almost understand the reasons.
We either see a bounce off the October lows, and a return to the good times, where the recession has been priced in, and money will start to flow back into the market, as spooked investors put their cash to work.
Or…
We haven’t seen the worst yet, and reduced buying power in consumers and investors means we have another foot to drop on the earnings front, where companies feel pressure from reduced spending, and the savings or stimulus from the pandemic starts to run out. This could easily lead to further major drawdowns for companies with high valuations, and continued uncertainty when added to the inflation issues and geopolitics we already know about.
The chart above from Worth Charting really demonstrates that, and shows us that no direction is clear from the market just yet. If you’re putting your money to work, all you can do is to ensure you’re buying quality companies at a price you’re happy with, and if we see further dips, to be sure to use it as an opportunity to further build a position.
No strategy is without risk, but nothing was ever gained without a strategy, so be sure to take chances in the right way when you can, and let your money work over the long term.
Investor’s Toolkit ⚒️
Unusual Whales- Options Flow and Analysis
5% off with code OAK2022
5% Discount with code OAK
5% discount with my signup link
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Disclosure
✅
This newsletter provides general information only. Before making any financial or investment decisions, please consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.
Quiz Question of the Week- Answer
Retail investors accounted for 52% of global assets under management in 2021, which is expected to grow to over 61% by 2030.