After a stronger than expected jobs report on Friday, attention this week turns to the Federal Reserve meeting and decision, plus the CPI report Wednesday.
No matter what, this market won’t be deterred, with Nvidia leading the pack north.
The chip stock will undergo a 10-for-1 stock split taking the per share down to just over $100.
The thinking is that it will allow the small investor to participate. I don’t see it mattering as most use mutual funds or ATFs.
I see no reason for the Fed to do anything with the Fed Funds rate at this time.
I believe that we may have at best a ¼-point adjustment down late in the year after the election should it even be warranted.
I am more than satisfied to allow the small investor to place his cash in interest-bearing instruments that will pay near 5%.
Not a great yield, but it isn’t a loss and beats the current rate of inflation.
The commodities markets have been volatile along with Bitcoin that is now above $70,000. So much for naysayers like Charlie Munger.
I would rather have something a bit more tangible, but you cannot discount the rise in value.
Of course, you could say the same thing about the Magnificent 7 that have carried the various indexes and averages to record levels.
It is essential to have Google, Amazon, Netflix Microsoft and Nvidia in your portfolio.
I had a friend call and ask about buying more Nvidia after the stock split.
It will still have the same P/E, at a lower price.
Don’t discount this being a motivator for investors.
It was just a couple years ago that Apple split its stock and has climbed back to its pre-split price.
This has not been the case of late with many other stocks, but it can happen.
Just like stocks reducing their dividend during financial stress and losing stock value only to right the ship and have the stock recover lost value.
I am curious as to what AI will mean for my iPhone and my next laptop.
For many of us, it will allow the creation of documents to assist in our daily lives without having the expense of hiring a professional.
We might to get back to sending actual letters to our loved ones that are far more articulate than just a short text with acronyms.
We are fast approaching the beginning of summer and I’m not excited about the heat.
The respites with rain have been a blessing.
I will say on the economic front that I just don’t see a recession.
The Fed is widely criticized, but they really seem to be coming out on the winning side.
I am amazed at those that complain about high-interest rates because it makes it more difficult to make a profit.
It is not the Federal Reserves job to be a facilitator, but to maintain a steady and balanced economy.
People still make significant profits. Earnings are always the best and last measure of a company.
We will be going through a period where those starved for news will assuredly have to make it all up to have anything to talk about.
There will always be more than enough negative events to balance the conversation but it appears to be a be good summer for investors
