October 27, 2022

 

Hello everyone.

Well, he’s finally done it! Musk now owns Twitter and has already set about the cleansing process by firing the CEO and other top executives. Apparently, he also has the intention of cleaning up the content of Twitter. Musk has updated his Twitter description to “Chief Twit.”

Musk tells us the reason he bought Twitter is because it is “important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence.  He went on to say in his tweet that “there is currently great danger that social media will splinter into the far right-wing and far left-wing echo chambers that generate more hate and divide our society.”

Musk added that he did not buy Twitter “to make more money. I did it to try to help humanity, whom I love.”

Musk says that Twitter must be “warm and welcoming to all….”

 

In reporting season, Amazon disappoints.

Third quarter results were reported today, and they missed analysts’ estimates.   The forecast is for a disappointing fourth quarter too.  The macroeconomic headwinds - inflation, high interest rates, etc, - have resulted in a slowdown in Amazon’s core retail business as consumers returned to shopping in stores.   This does not bode well for the holiday shopping season coming up.  According to Adobe, online sales are expected to grow just 2.5%.

But Apple was solid and remains a stock to own.  Revenue rose 8% year-over-year to $90.1 billion, exceeding expectations of $88.9 billion and marking a September quarter record.  Earnings of $1.29 per share came in ahead of the consensus $1.27. 

 

Could there be a turnaround in Treasury Bonds in 2023?

Two and half centuries of market history tell us that this is a possibility.  

Bonds have been crushed this year.  2022 has been part of a two-year losing streak which hasn’t happened since 1958-59.  The bond ETF, the $24 billion iShares 20+ Year Treasury Bond (TLT) fund is down more than 34% year to date and about 38% from where it started in 2021.  By comparison, the S&P 500 is down just 18%, which is considerably better than the bond market returns.

John has stopped sending bear put spread trade alerts on the TLT.  He thinks the rich uncle has paid his dues.  Clients/subscribers have made a small fortune trading the TLT in the last couple of years just by following John’s trade alerts.

Bank of America explains that the last time Treasuries fell more than 5% and were negative the following year happened in 1861.  And interestingly, the last time government bonds posted negative returns for three straight years?  Never.

As Bank of America points out 250 years of history is something we should all heed.  Keep your eye on bonds in 2023 and wait for those trade alerts from John.

 

Nancy Pelosi’s husband assaulted

The assailant broke into their San Francisco home early Friday morning reportedly looked for the speaker – Nancy Pelosi.  Paul Pelosi was taken to hospital and is expected to make a full recovery.    Police arrested David Depape and he will be charged with attempted homicide, assault with a deadly weapon, elder abuse and burglary.

For my Australian readers, what do you miss about Australia when you go overseas for a holiday or for work?

For those readers, who are not from Australia, I ask you the same question.  What do you miss most about your own country when you travel away from home?

Have a great weekend.

Cheers,

Jacque

 

Believe you can and you’re halfway there.

Theodore Roosevelt