TOKYO — Japan’s benchmark Nikkei Stock Average dropped to a one-month low on Monday morning after indications that the U.S. Federal Reserve could move away from ultra-easy monetary policies sooner than expected.
The Nikkei index at one point fell over 1,000 points, or 3.5%, to reach its lowest level since May 20. The benchmark declined below the 28,000 mark with shares in 97% of the index’s 225 companies trading lower. The broader Topix index was down over 2% while the startup-heavy Mothers market fell 1.6%.
Tokyo’s fall tracks a retreat by Wall Street’s main indexes last week, with the Dow Jones Industrial Average declining over 500 points, or 1.6%, on Friday.
The sell-off in stocks accelerated after remarks from St. Louis Federal Reserve President James Bullard on Friday that an initial rate increase could happen in late 2022 as inflation risks rise.
Forecasts from the Federal Open Market Committee earlier last week suggested that its first post-pandemic interest rate hike could come in 2023.
Investors have reacted strongly to the possibility of rate rises sooner than has been expected. In March, the Fed had signaled there would be no rate hike until at least 2024…. CLICK for complete article
I’ve taken a lot of small losses this year, trying to fade what I thought was irrational bullish enthusiasm – so it felt good to cash in some winning tickets this week. I’ll tell you more about that in the Short Term Trading section below, but first:
Did we just have a classic Soros Inflection Point? Did the markets over-react?
The consensus view was that the Fed meeting would be a non-event. But since that meeting, the US Dollar has had its best week since March of last year, gold is down $100, the long bond had ripped higher, the yield curve has flattened with a vengeance, and the Dow has tumbled to a 3-month low. Not exactly a non-event.
Buying stocks has never been easier – with fear of inflation, high valuations, central banks printing money, meme stock distortion, and a fear-of-missing-out – buying the right stocks has never been more difficult.
But it does not have to be that way – KeyStone’s Summer School for Your Portfolio Live Webinar can put you on a winning path. For over two decades KeyStone has been researching over 10,000 stocks annually to help Canadian investors build simple 15-25 stock portfolios. Portfolios designed to enrich you, not your advisor, and centered around profitable businesses including two of the best-performing stocks in Canada over the past decade. Boyd (BYD:TSX) up over 10,000% and XPEL Inc. (XPEL:NASDAQ) up over 5,300% in just 4 years. Game-changing recommendations for client portfolios.
Feel like you are missing out? Let us show you how to start with our simple and time-tested strategy – no gimmicks, no games, solid stocks you will get nowhere else. Including advice on what types of stocks you should avoid.
Whether you are just beginning your investing journey and want to know where to start or need a sober second opinion class is in session. In this Live Webinar, KeyStone’s Head Dividend Growth Stock Analyst Aaron Dunn & Founder Ryan Irvine will cover:
1. Inflation 101 – Investing in an Inflationary Environment.
2. Growth versus Value Stocks – the 2021 Reversal.
3. New Age Investment Themes 101
* Tech – AI and Digitalization Stocks.
* Renewables and Cleantech.
* Cryptocurrency and Blockchain.
* Healthcare Trends.
4. Old School Investment Themes 101
* Commodities and Cyclicals.
* Are Gold Stocks right for your portfolio?
* Staple and Essential Businesses.
5. Portfolio Tune-Up 101
* Building a new portfolio from the bottom up.
* Reviewing and repairing your existing portfolio.
* Portfolio maintenance.
PLUS a DIY Starter Portfolio: full details & analysis on 5-7 great stocks you can buy today. Their crisis investing portfolio from KeyStone’s April 2020 DIY Webinar has already gained 100.7%. Do not miss out on these unique, profitable growth and dividend growth stocks. There are two types of tickets:
1) Early Bird Tickets @ $29.95. Includes KeyStone’s 2021 Canadian Cannabis Report – 3 Profitable US Cannabis Operators ($599 value).
2) VIP Tickets @ $79.95. Includes KeyStone’s 2021 Canadian Cannabis Report – 3 Profitable US Cannabis Operators ($599 value), 2021 On-Demand Webinar: Simple Advice to Position your Portfolio for the Next Decade ($79 value), and KeyStone’s 2021 U.S. Growth Stock Report – analyzing 3,500 U.S. NASDAQ listed nano, micro, small, and mid-cap stocks to uncover 2-3 profitable buy recommendations. ($599 value).
CLICK HERE for Ticket Info
Times & Dates:
1. June 29th @ 7:00 pm Pacific.
2. July 6th @ 4:00 pm Pacific.
FYI – KeyStone’s Spring 2021 event sold out!
Cristiano Ronaldo’s gesture for people to drink water instead of Coke at a Euro 2020 press conference may have cost the soda company $4 billion in market value.
Coca-Cola shares dropped from $56.17 to $55.22 after Ronaldo moved two Coke bottles out of view and picked up a bottle of water before Portugal’s match against Hungary on Monday.
Market value for the company dropped from $242 billion to $238 billion – a $4 billion plunge.
“Agua!” the soccer superstar exclaimed. Agua means water in Portuguese.
Coca-Cola is one of the sponsors for the UEFA EURO 2020 tournament and a statement from the company reviewed by the Guardian said, “everyone is entitled to their drink preferences.”
A Euro 2020 spokesperson reportedly said, “Players are offered water, alongside Coca-Cola and Coca-Cola Zero Sugar, on arrival at our press conference.”
- Paul Tudor Jones said he would “go all in on the inflation trades” if the Federal Reserve is nonchalant this week regarding rising consumer prices.
- “I’d probably buy commodities, buy crypto, buy gold,” the billionaire hedge fund manager said.
- “If they course correct,” he continued, “then you’re going to get a taper tantrum.”
- The Fed’s two-day policy meeting is scheduled to conclude Wednesday.
Billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday he’s paying close attention to this week’s Federal Reserve policy meeting in light of recent economic data showing higher consumer prices.
“If they treat these numbers — which were material events, they were very material — if they treat them with nonchalance, I think it’s just a green light to bet heavily on every inflation trade,” Jones said on “Squawk Box.”
“If they say, ‘We’re on path, things are good,’ then I would just go all in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold,” added Jones, who called the stock market crash in 1987 and is founder and chief investment officer of Tudor Investment.
- Banking app Dave announced Monday that the company will make its market debut through a SPAC merger with VPC Impact Acquisition Holdings III.
- The company has attracted institutional investors including Tiger Global who now value the fintech start-up at $4 billion, more than triple its last reported private valuation.
- It plans to list on the New York Stock Exchange under ticker symbol DAVE.
Banking app Dave announced Monday that the company will make its market debut through a SPAC merger with VPC Impact Acquisition Holdings III.
The agreement values Dave at $4 billion and is expected to close in the second half of this year. Upon completion of the deal, it intends to list on the New York Stock Exchange under ticker symbol DAVE.
The company, ranked No. 26 on last year’s CNBC Disruptor 50 list, was most recently valued at $1 billion in August 2019, according to PitchBook data.
Victory Park Capital, a global investment firm headquartered in Chicago, has a long track record of debt and equity financing transactions in fintech, and has been a longstanding investor in Dave, most recently providing a $100 million credit facility to the company in January 2021. VPCC completed its initial public offering in March 2021.
Dave — shorthand for the hero in the David vs. Goliath tale — is designed to eliminate many of the features customers can’t stand about legacy banks. The company started with overdraft fees. For a $1-per-month membership fee, users can access checking accounts with no fees and up to $100 in overdraft protection without fees or interest. Members who sign up for direct deposit also get automated budgeting and the ability to build up their credit scores through the reporting of rent and utility payments to credit bureaus.