Monday, August 21st 2023
Hi Oak Investors,
Welcome to another recap on the week’s action and events!
At Oak Investing, I look to provide value for all levels of investor, whether it’s pulling together the week’s best articles, insights and breaking news, or clarifying new concepts for beginners.
I hope you enjoy this week’s recap, please get in touch if there’s anything more you’d like to see in The Acorn. If you like what you see, please like, subscribe and share to keep growing the Oak Investor community! 🌳
Thanks,
Gordon
Summary 📝
Last week was an ugly one, as bad news from the Chinese property sector, large sales in Bitcoin holdings, and fear of further interest rate hikes led markets down.
The S&P 500 fell 2%, NASDAQ fell 2.3%, and the Dow Jones Industrial Average dropped 2.2%.
As you’d expect, the Volatility Index climbed substantially, with a lot of surprises coming in from Chinese data, cryptocurrency, the bond market, and plenty more.
For the first time in months, the Fear and Greed index fell back towards Fear, slightly within the neutral range at 45/100. With August being a seasonally poor month for the market, I like the idea of putting some cash to work here.
There may be some more bumps in the road, but we’re looking to catch the majority of the market growth, rather than trying to time the market exactly.
As always, keep to your strategy, don’t let the noise change your plan, and learn as much as you can!
This Week in History 📰
Provided by The History Place
August 21, 1959 - President Dwight D. Eisenhower signed a proclamation admitting Hawaii to the Union as the 50th state.
August 24, 79 A.D. - Vesuvius, an active volcano in southern Italy, erupted and destroyed the cities of Pompeii, Stabiae and Herculaneum.
August 26, 1883 - One of the most catastrophic volcanic eruptions in recorded history occurred on the Indonesian island of Krakatoa. Explosions were heard 2,000 miles away.
Major Events This Week 🔬
Economic Events (EST)
Provided by Unusual Whales
Tuesday
10:00 am Existing home sales
Wednesday
9:45 am S&P flash U.S. services PMI
9:45 am S&P flash U.S. manufacturing PMI
10:00 am New home sales
Thursday
10:00 am Fed officials interviews from Jackson Hole summit
8:30 am Initial jobless claims
8:30 am Durable-goods orders
8:30 am Durable-goods minus transportation
Friday
10:00 am UMich consumer sentiment, final
10:05 am Powell gives opening speech at Jackson Hole summit
Incoming Earnings Reports
Provided by Earnings Whispers
Notable Upcoming Earnings
Provided by Unusual Whales
Notable Upcoming Earnings
Monday
NNDM (premarket) Implied Move: +/- 7.12% Sector: Technology
ZM (afterhours) Implied Move: +/- 8.84% Sector: Communication Services
Tuesday
M (premarket) Implied Move: +/- 10.01% Sector: Consumer Cyclical
BIDU (premarket) Implied Move: +/- 5.65% Sector: Communication Services
LOW (premarket) Implied Move: +/- 3.58% Sector: Consumer Cyclical
DKS (premarket) Implied Move: +/- 5.86% Sector: Consumer Cyclical
Wednesday
PTON (premarket) Implied Move: +/- 17.34% Sector: Consumer Cyclical
ADI (premarket) Implied Move: +/- 4.06% Sector: Technology
KSS (premarket) Implied Move: +/- 10.47% Sector: Consumer Cyclical
NVDA (afterhours) Implied Move: +/- 9.56% Sector: Technology
SNOW (afterhours) Implied Move: +/- 9.41% Sector: Technology
ADSK (afterhours) Implied Move: +/- 5.60% Sector: Technology
Thursday
DLTR (premarket) Implied Move: +/- 6.46% Sector: Consumer Defensive
TD (premarket) Implied Move: +/- 3.95% Sector: Financial Services
AFRM (afterhours) Implied Move: +/- 13.28% Sector: Technology
GPS (afterhours) Implied Move: +/- 10.05% Sector: Consumer Cyclical
JWN (afterhours) Implied Move: +/- 10.34% Sector: Consumer Cyclical
ULTA (afterhours) Implied Move: +/- 5.66% Sector: Consumer Cyclical
WDAY (afterhours) Implied Move: +/- 5.83% Sector: Technology
Post of the Week 💌
What is survivorship bias? 🤔👇
________________
✅ Psychology is half the battle when it comes to the market. Our approach to success and failure influences how well our investments do over the long term. 📈
✅ Survivorship bias is a huge factor for new investors entering the market. We’re flooded by influencers selling courses and discords claiming to know all the secrets to making millions in days. 🤯
✅ But even if they do, let’s not forget the 99% of people who don’t make these more risky strategies work! Don’t fall into the trap of believing all social media coverage of the market is leaving your slow and steady strategy behind. 📈
Trust your plan, buy quality assets at great prices, and stick with it! 🥳🏆
What’s Moving Markets? 🏃♂️
Three stories I’m watching carefully this week. Provided by CNBC
China’s central bank trims 1-year rate, but unexpectedly leaves 5-year rate unchanged
China’s one-year loan prime rate — the peg for most household and corporate loans in China — was cut by 10 basis points from 3.55% to 3.45%, just shy of the 15 basis points that a majority of economists expected in a Reuters poll.
China left its five-year loan prime rate — the peg for most mortgages — unchanged at 4.2%, while economists expected a 15 basis point cut.
Southern California prepares for more floods as Tropical Storm Hilary soaks from coast to desert
China’s financial regulators urge support for resolving local debt risks
China’s financial regulators held a meeting Friday that called for coordinating support to resolve local debt risks, according to an official readout Sunday.
The meeting also reflected a gathering of a new set of financial policymakers in China’s overhaul of its regulatory system this year.
Local governments’ weak financial situation has prevented the central government from supporting the economy with fiscal policy, Rhodium Group analysts have pointed out.
Chart of the Week 📈
Provided by Chart of the Day
Many consumers may have pinched pennies — but shoppers are still racking up some big bills.
Americans’ credit card balances topped $1 trillion for the first time ever, according to data released by the New York Federal Reserve. And high debt could get people into trouble, if they can’t afford to pay down their balances and rack up interest charges each month – the average interest rate for U.S. credit cards has spiked to nearly 21%, according to the Federal Reserve Board.
But one economist says there’s no need to panic. Americans have bigger bills because inflation has driven up prices, but many people also make more money than they used to. As inflation cools, the growth of average hourly earnings has begun to outpace the rise in the consumer price index.
Investor’s Toolkit ⚒️
Unusual Whales- Options Flow and Analysis 🛠
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SimplyWallSt- Stock Analysis 🛠
5% Discount with code OAK
Want to Work with Me? 📈
If you’d like to take your investing to the next level, there are 4 ways I can help:
Pick up a copy of The Investor’s Blueprint, and learn at your own pace 📚
Book a free discovery call with me, and discuss how you can take a step closer to financial freedom 🏆
Check out my regular articles on Motley Fool UK 📚
Follow me on social media, for daily financial education and market insights. 👏
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Thanks for reading, have a great day!
Gordon
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.