UPDATE -> Bitcoin $BTC price dumped 9% in 1 hour on the basis of a report by Matrixport predicting an SEC rejection of ALL Bitcoin ETF applications
Their justification? Politics. - 5 voting commissioners are Democrats. - Democrats don't like 'crypto'. - Applicants haven't satisfied the SEC's requirements. - There is not political justification to approve a Bitcoin ETF. Eric Balchunas continues to give a +90% chance of approval due to a number of factors, especially the SEC's significant change in behaviour by way of engaging with applicants and providing them with guidance on updating their applications. Source. Bitcoin Archive
Yesterday Apple $AAPL suffers largest drop since September 6
Source: Barchart
Investing in stocks is one of the best options available to protect your wealth against money debasement
Over time, the purchasing power of the dollar declines, while the stock market increases. That means you need more dollars to buy the same things. If you want to protect your purchasing power, invest in stocks for the long run. Source: Charlie Bilello thru Peter Mallouk
Zombie firms as a % of Russell 3000 is now back to Dot Com bubble levels
Source: Game of Trades
Nike sinks 10% after it slashes sales outlook, unveils $2 billion in cost cuts
Nike on Thursday unveiled plans to cut costs by about $2 billion over the next three years as it lowered its sales outlook. Nike now expects full-year reported revenue to grow approximately 1%, compared to a prior outlook of up mid-single digits. In the current quarter, which includes the second half of the holiday shopping season, Nike expects reported revenue to be slightly negative as it laps tough prior year comparisons, and sales to be up low single digits in the fourth quarter. Below details by App Economy Insigths: $NKE Nike Q2 FY24 (ending Nov. 2023). • Revenue +1% Y/Y to $13.4B ($40M miss). • EPS $1.03 ($0.18 beat). • Inventory -14% Y/Y to $8.0B. • Direct sales +6% Y/Y to $5.7B. • New restructuring to cost ~$0.4B. • FY24 revised revenue outlook +1% Y/Y. Source: App Economy Insigths, CNBC
The longer you own an actively managed mutual fund, the more likely you are to underperform the market, especially on a risk-adjusted basis
Source: Peter Mallouk
The Dow plunged by 470 points yesterday amid what seems to be a massive sell-program
Indeed, starting around 1430ET yesterday, the biggest sell-program since July smashed Wall Street. For context, this size of selling pressure is unusual... Source: Bloomberg, www.zerohedge.com
The gap between the Magnificent 7 and the S&P 493 (remaining 493 companies) is now 63%
This year, the Magnificent7 is up a massive 75% while the remaining 493 companies are up just 12%. Combined, the S&P 500 is up ~25%, more than doubling the S&P 493's total return. In other words, the Magnificent 7 is up 3 TIMES as much as the S&P 500 and ~6 TIMES as much as the S&P 493. Just 7 weeks ago, the S&P 493 was DOWN 2% this year. Source: The Kobeissi Letter
