Edition #7
Wednesday November 16th 2022
This Week in History 📰
15th November 2001- Microsoft release its first Xbox console
18th November 1916- The Battle of the Somme finishes
19th November 1969- Pele scores his 1000th career goal
Summary 📝
Another interesting week in the market, as last week’s surprisingly low CPI inflation number suggested the work being done by the Fed is starting to pay off.
Markets rallied on the news, but geopolitical events such as missiles landing in Poland have shown us bad news and uncertainty is never far away. As always, we need to ensure our portfolios remain resilient and capable of withstanding the volatility and stresses today’s market brings.
Market Recap 📈
Post of the Week 💌
🔹 With just 4 days until the World Cup kicks off in Qatar, I’ve made the Investing equivalent, putting some of the biggest companies in the world against each other in a daily public vote, with the winner going through to the next round. 🏆
🔹 I’ll be providing a profile of the two companies for each day, and letting the Oak Investor Community decide which company has a better year ahead.
Get involved!
What’s Moving Markets?
Incoming Earnings Reports this week- provided by Earnings Whispers.
Events today- provided by Unusual Whales.
CNBC-NATO chief says Poland blast likely caused by Ukrainian missile — but not Ukraine’s fault
The military alliance’s secretary-general, Jens Stoltenberg, said the missile incident took place “as Russia launched a massive wave of rocket attacks across Ukraine.”
While the investigation was ongoing into the incident, he said, “there was no indication this was the result of a deliberate attack” and no indication it was a result of “offensive military actions against NATO.”
CNBC- Binance CEO says crypto ‘will be fine’ and announces industry recovery fund
The CEO of the largest online exchange for trading cryptocurrency, Binance, said he is establishing a recovery fund to help people in the industry, while saying the sector “will be fine.”
Changpeng Zhao said cryptocurrency had “shown extreme resilience,” suggesting he didn’t expect recent turbulence in the industry to cause long-term damage.
CNBC- UK inflation hits 41-year high of 11.1% as food and energy prices continue to soar
Economists polled by Reuters had projected an annual increase in the consumer price index of 10.7%, and October’s print marks an increase from the 40-year high of 10.1% seen in September.
“Indicative modelled consumer price inflation estimates suggest that the CPI rate would have last been higher in October 1981, where the estimate for the annual inflation rate was 11.2%,” the ONS said.
Chart of the Day 📈
I spoke last week about the dullness dividend, and the chart we see here from Animal Spirits shows us just how the best investments can be the most boring, with a massive 65% loss so far in 2022 compared to a 5% drop with the more resilient Dow Jones.
This might not be too much of a surprise, but let’s bring in the concept of the Ulcer index, which brings in the level of stress experienced during both bull and bear markets, and builds in the time taken to recover large drawdowns. (Source- Ulcer Index
My point here is essentially that there is always a sweet spot for investing. If you are young and want to take risks, then go for it, but you won’t necessarily see a link between the risk taken and the rewards.
Instead, finding great companies at good prices is always going to be easier for your stress levels, and for your portfolio performance
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Disclosure
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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.