πŸ“° 30: Is FOMC Doing a Good Job?

Good morning and happy Sunday! It looks like Jerome Powell and his gang are doing an amazing job with squashing inflation. Is the FOMC doing a good job?

What’s New

  1. New market overview table image. (see below)

Quote of the week

Perhaps the largest impediment to thinking clearly about skill and luck is our innate desire to identify cause and effect.

Michael J. Mauboussin, The Success Equation

Markets

The markets had a good rip this week:

We are well into bull-market territory here, and of course the traditional value investors and market laggards are preaching “It’s a bubble! Beware!” But they’ve been preaching the same thing for decades now.

Keep in mind that a key aspect of value strategy involves investing in companies that are not well understood. Many value investors seem to rely on the traditional Internal Rate of Return (IRR) method to gauge returns, rather than considering how earnings growth can result from the long-term expansion of technology. Research and development into the unknown uncovers earnings growth in interesting ways. NVIDIA recently came into this realization with their latest spike. It’s the best example I can think of.

Economy

FOMC decided to stay. No rate cuts (yet).

I love seeing how they are not succumbing to knee-jerk responses with rates. These rates take time to affect the economy.

Sectors

I’m not surprised that tech and communication services are ripping this past week.

Company News

Intel gets 8.5 Billion dollar promise from the federal government: Biden-Harris Administration Announces Preliminary Terms with Intel to Support Investment in U.S. Semiconductor Technology Leadership and Create Tens of Thousands of Jobs | U.S. Department of Commerce

This is great news. In my opinion, America currently overly relies on Taiwan for chips.

Internet Gems

David Perell and Michael Mauboussin did a podcast about writing and researching. It’s surprisingly good. Watch it on YouTube here.

Technology

AI and robots are intermingling to make something special. Check out Figure 1 (very short video):

This is just the beginning, and a very exciting time. In a few years we’ll see vast improvements on how we interact with these robots and the roles they play.

Portfolio

Unfortunately, there is no portfolio summary this week due to Interactive Brokers website not functioning properly. I’m not sure if they are undergoing maintenance (most probable) or having an issue (least probable). This block should return to normal next week. Carry on!

Have A Good Week!

In all, it’s been an amazing week with lots of progress across the board. I’m very optimistic about the future of tech, humanity, and investing. A very special time, indeed. On top of all of this, the FOMC seems to be doing a good job with balancing inflation, unemployment, and the economy.

Note: I’m looking for special writings on the internet that never made it to print. These are usually in the form of PDFs or older blogs. If you know of any, please let me know. Thanks!

Thank you for reading.

Mike

Want more Sunday Editions? You can check them out here: Library – Sunday Editions

Disclaimer: The information provided on this website is for general informational purposes only and should not be considered investment advice. Please read our full disclaimer for more information. You can access it by clicking HERE.

Disclaimer: The information provided on this website is for general informational purposes only and should not be considered investment advice. Please read our full disclaimer for more information. You can access it by clicking HERE.

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