Welcome to The Market Moment! | Episode 203

Hey there, Market Moment community! Welcome back to another episode. Joining you this week are Matt, Lee, and John. They have some intriguing topics lined up for you: the impact of inflation on America's spending habits, the role of bankruptcy as a shield, and the concept of "spaving". 

Consumer ETFs Showing the Real Inflation Picture

We're kicking things off with a look at how some ETFs are revealing the true impact of inflation on consumer behavior. The Consumer Discretionary Select Sector SPDR ETF, featuring big names like General Motors, Chipotle, and Deckers, has seen a downturn this year. In contrast, the Consumer Staples Select Sector SPDR ETF, with holdings like Procter & Gamble, Costco, and Walmart, is up more than 8%.

Walmart, the nation's largest retailer, reports that it's attracting more upper-income shoppers, those earning above $100,000. CFO John David Rainey noted that these customers are spending more on essential items and less on discretionary products. Meanwhile, luxury brands like Burberry are facing significant losses, with annual profits down 34% and same-store sales dropping by 1%.

Spaving

Have you heard of "spaving"—spending more to save? This old concept, now rebranded, is prevalent in grocery stores, retailers, and even online gambling. Financial expert Bryan Kuderna explains that spaving encourages consumers to buy more than necessary to feel like they're getting a deal. Common tactics include "buy one get one free" offers, in-store cash for future purchases, freebies, and store credit cards. The key takeaway: avoid buying under pressure to steer clear of these marketing traps.

Is Bankruptcy a Shield?

We explore whether corporate defendants can use federal bankruptcy to shield themselves from legal trouble. The Supreme Court is set to consider this issue, particularly in the case involving Purdue Pharma and the Sackler family. The question at hand is whether the Sacklers can use bankruptcy to protect their personal fortunes from opioid-related liabilities. Justices are debating whether bankruptcy laws were intended to prevent personal injury victims from suing third parties not directly involved in bankruptcy proceedings.

Comment Time!

This week's comment comes from our YouTube channel, where Eli discussed whether young people can buy houses. @camleborgne6121 shared his experience, saying, "I welded in New England. Everybody I knew that was my age (23) + maybe 5 years was renting. I don't know a single person from back home that owns a home. Just recently moved to South Carolina, I'm still a welder and every co-worker I've met so far that's my age or a few years older, owns a home. Was a pretty big wake-up call for me."

We'd love to hear your thoughts! Leave us a comment, and if you're an audio-only listener, submit your questions and comments to [email protected]

Thanks for joining us this week. And if you want to see our lovely faces or watch our other videos, check out The Market Moment YouTube channel.

See you next Tuesday for the latest market headlines!

In this week's episode of The Market Moment, hosts Matt, Lee, and Eli delve into the latest market trends and thought-provoking discussions. Kicking off the episode, they explore the resurgence of meme stocks, with GameStop (GME) soaring by an impressive 110%. The recent online activity of "Roaring Kitty," previously known as Keith Gill, has sparked renewed interest in meme stocks, prompting questions about their sustainability and impact on market volatility.

Next, the hosts tackle a viral TedX talk by Scott Galloway titled "How the US is Destroying Young People’s Futures." With nearly 4 million views and over 18,000 comments, Galloway's presentation has ignited a widespread conversation about generational wealth disparities and the challenges faced by today's youth. From income inequalities to housing affordability and the influence of social media on mental health, Galloway paints a stark picture of the realities confronting young Americans.

Finally, the hosts engage with insightful comments from their Instagram community regarding last week's discussion on the minimum wage. From questioning the role of minimum wage jobs to debating the implications of wage increases, the comments highlight diverse perspectives on this contentious issue.

Listeners are encouraged to join the conversation and share their thoughts on these pressing topics. You can email your thoughts or questions at  [email protected]

Don't miss out on this episode's deep dive into market trends and societal issues. Subscribe to Market Moment and join the discussion every Tuesday!

Link to the referenced video:    • How the US Is Destroying Young People...  

Mach-1 Financial Group, LLC (“Mach-1”) is an SEC Registered Investment Adviser located in Rogers, AR. Mach-1 may only transact business in those states in which it maintains a notice filing, or qualifies for an exemption or exclusion from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Third party ratings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. For full disclosures please see https://mach-1financial.com/disclosures/

Welcome to our latest podcast episode! In today's discussion, John and Lee delve into the market's trending headlines: stocks, Robinhood and the SEC, and fast food's outrageous price increases.

First, they analyze the recent surge in stocks fueled by hopes of a Federal Reserve rate cut. With the S&P 500 and Nasdaq Composite making notable gains, we explore the market dynamics driving investor sentiment, including projections of multiple rate cuts by year-end.

Additionally, they spotlight corporate updates from Disney and Apple, shedding light on their performance amid market fluctuations. John and Lee examine Robinhood's potential encounter with SEC enforcement actions over its crypto operations. Delving into the regulatory challenges facing the trading firm, we reflect on the implications for both Robinhood and the broader landscape of accessible investment platforms. They also weigh the benefits and risks associated with democratized investing avenues.

Finally, they look at the evolving landscape of fast-food pricing. Exploring the significant price hikes in limited-service meals compared to inflation rates, they dissect the underlying factors driving this trend, from minimum wage increases to shifting consumer behaviors. Fast-food isn't exactly cheap anymore and it may drive people away from the drive-thru.

Thank you for joining us on this exploration of today's financial headlines! Remember you can submit comments and questions via email here [email protected]  

Or you can comment on our YouTube videos and you might as well hit the subscribe button while you're there! 

Mach-1 Financial Group, LLC (“Mach-1”) is an SEC Registered Investment Adviser located in Rogers, AR. Mach-1 may only transact business in those states in which it maintains a notice filing, or qualifies for an exemption or exclusion from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Third party ratings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. For full disclosures please see https://mach-1financial.com/disclosures/

Welcome to the Market Moment! This week, Matt, Lee, and Eli are looking at Tesla's recent stock rise, the growing stagnation concerns for the economy, and the guys give tax advice as Trump's deductions may go away after 2025.

Tesla's stock experienced a significant boost following CEO Elon Musk's visit to China, surging over 16% as the company achieved a milestone in rolling out its advanced driver-assistance technology in the country. This surge was fueled by the removal of restrictions on Tesla's cars by local Chinese authorities, indicating progress in meeting the country's data security requirements. With expectations rising for the availability of Tesla's Full Self-Driving software in China, the world's largest market for electric vehicles, a reported deal with Baidu further enhances prospects by providing access to mapping and navigation technology.

Wall Street is increasingly apprehensive about a potential return to 1970s-style stagflation in the U.S. economy, fueled by stubbornly high inflation and signs of economic cooling. This sentiment follows a report indicating slower-than-expected growth and accelerating core inflation, reminiscent of the economic challenges faced in past decades. Stagflation fears had previously peaked in 2022, prompting the Federal Reserve to hike interest rates, though these concerns subsided as inflation pressures eased without significantly impacting economic growth. However, rising interest rates are now contributing to increased borrowing costs, impacting various sectors from mortgages to credit cards.

Matt, Lee, and Eli also dive into tax preparation strategies, including considerations such as tax brackets, deductions, and the option to roll over IRAs into Roths. As tax season approaches, understanding these aspects of tax planning becomes crucial for individuals and businesses alike. By providing insights into these topics, the podcast aims to equip listeners with the knowledge needed to navigate the complexities of tax obligations and optimize financial strategies for the future.

You can join the Market Moment community on YouTube by subscribing, click here!

And if you'd like to send us a question or comment (to avoid a dad joke next week) send them here: [email protected] 

Mach-1 Financial Group, LLC (“Mach-1”) is an SEC Registered Investment Adviser located in Rogers, AR. Mach-1 may only transact business in those states in which it maintains a notice filing, or qualifies for an exemption or exclusion from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Third party ratings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. For full disclosures please see https://mach-1financial.com/disclosures/

Welcome to the Market Moment! This week, Matt, John, and Lee discuss that six of the "Magnificent 7" (Alphabet, Meta, Microsoft, Amazon, Nvidia, Tesla) have gone down in the stock market. Jonathan Golub from UBS downgraded six of these, signaling a loss in momentum following their biggest market cap drop. This shift reflects concerns about where earnings are growing most, which could cause short-term disruption. Despite this, Golub remains positive about the broader market's trajectory, foreseeing continued growth supported by strong fundamentals and a robust economy.

Tesla in particular has been struggling, which spawns a conversation about EVs.

Next, the conversation turns to bipartisan worries in Washington about cheap Chinese goods. Both Biden and Trump advocate for tariffs on Chinese imports, though with different approaches. Despite declining steel imports from China, concerns persist about the impact of these goods on the US economy. Trump's proposal for significant tariffs could affect future trade and may have implications for inflation and global economics.

Lastly, they cover recent bankruptcy filings by companies like Express and Red Lobster. These companies seek Chapter 11 protection to address financial pressures. Express hopes to facilitate an acquisition, while Red Lobster aims to renegotiate leases and tackle rising costs. Chapter 11 allows these companies to restructure debts while continuing operations, offering a chance for financial recovery. Lee, Matt, and John predict that due to high interest rates, we'll be seeing more businesses in bankruptcy.

This week we responded to a comment about countries buying gold. Comment below to give us something to talk about at the end of next week's episode and you can send comments or questions to [email protected]

And remember to subscribe to The Market Moment to join the community and check out our other videos! 

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Mach-1 Financial Group, LLC (“Mach-1”) is an SEC Registered Investment Adviser located in Rogers, AR. Mach-1 may only transact business in those states in which it maintains a notice filing, or qualifies for an exemption or exclusion from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Third party ratings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. For full disclosures please see https://mach-1financial.com/disclosures/

In this episode, Matt, Lee, and Eli delve into three pivotal market topics shaping headlines. First, the episode explores the surge in oil prices following concerns over potential retaliatory actions by Iran against Israel, driving Brent crude to $92.18 a barrel.

Secondly, it analyzes the upbeat March retail sales figures, which surpassed Wall Street estimates, highlighting a resilient consumer spending trend despite earlier fluctuations.

Lastly, the episode delves into the remarkable rise in gold prices, spurring discussions as some sell the precious metal for immediate financial needs, raising questions about its traditional safe-haven status amidst geopolitical tensions and economic uncertainties. Tune in for expert insights into these dynamic market movements.

Email us your comments and questions! We love responding to them on the podcast. [email protected] 

Check out our YouTube channel to watch Data Brief, the video version of the podcast, and more coming soon! Click here. 

Mach-1 Financial Group, LLC (“Mach-1”) is an SEC Registered Investment Adviser located in Rogers, AR. Mach-1 may only transact business in those states in which it maintains a notice filing, or qualifies for an exemption or exclusion from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Third party ratings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. For full disclosures please see https://mach-1financial.com/disclosures/

This week, John and Eli delve into crucial topics shaping the economic landscape. First, they dissect Jamie Dimon's recent shareholder letter, where the JPMorgan Chase CEO expresses concerns about potential risks to the US economy, including inflation, government spending, and geopolitical tensions. Dimon's insights not only highlight the challenges ahead but also offer reflections on the transformative potential of artificial intelligence, hinting at a future with shorter workweeks and significant societal shifts.

It does present us with a question though - Should we be worried? Or how worried should we be? And how will that impact our actions now as investors?

This week's headlines were also flooded with information about inflation rising which may be connected to the increase of small businesses in the US. John and Eli explore findings from a Federal Reserve Bank of New York survey indicating Americans' anticipation of prolonged inflation and its impact on job security. The surge in small businesses started as side hustles and the increasing enrollment in vocational community colleges reflect a cultural shift away from traditional academic paths, emphasizing the evolving economic landscape and changing perceptions of career trajectories.

Eli and John also pose this question to YOU! You can either answer in comment section on our YouTube video or you can email us at [email protected] 

And you should join the online Market Moment community by subscribing to our channel! Click here! 

Which generation do you think was better off after graduating high school and/or college? Boomers, Gen X, Millenials, Gen Z? Let us know your thoughts and we'll react in the next episode.

Mach-1 Financial Group, LLC (“Mach-1”) is an SEC Registered Investment Adviser located in Rogers, AR. Mach-1 may only transact business in those states in which it maintains a notice filing, or qualifies for an exemption or exclusion from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Third party ratings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. For full disclosures please see https://mach-1financial.com/disclosures/

This week we are honored to have Stephania Aliaga join the Market Moment. Stephanie is a Global Market Strategist on the J.P. Morgan Asset Management Market Insights Team based out of New York. Stephanie helps formulate and communicate economic views, deliver timely commentary and maintain forecasting models for weekly submissions to Bloomberg and the Wall Street Journal. She is also responsible for publications such as the Guide to the Markets, On the Minds of Investors blog, and serves on the committee that produces the Long-Term Capital Market Assumptions underpinning J.P. Morgan’s strategic asset allocation process. In her research, Stephanie has homed in on issues related to the US economy and artificial intelligence.  

Stephanie, Matt and Lee delve into the global market outlook for the remainder of 2024, particularly focusing on equity and fixed income markets after record highs in the first quarter. We analyze the shifting role of artificial intelligence (AI), once dominant in 2023, and explore its current status and potential future impact on markets, drawing parallels with the tech bubble of the 90s and assessing its longevity.  

Additionally, they discuss the implications of AI on the average person and whether big names today may fade away within the next decade. Amidst concerns of a looming recession that dominated 2023, they question whether we've truly moved past this economic uncertainty or if it's just the calm before the storm.  

Furthermore, they speculate future rate cuts and examine the insights of its CEO, Jaime Dimon, whose remarks carry significant weight in market analysis, particularly in light of his past predictions about the stock market bottom in 2020 and recent cautionary statements regarding the outlook of the US economy, hinting at potential pitfalls that warrant our attention. 

We love your comments and questions! Feel free to send them to [email protected] or by commenting on our YouTube version of the podcast. Thanks for listening! 

Welcome to this week's episode of Market Moment! Here are this week's top headlines:

Historic Shift in Japan: Explore Japan's economic journey from its 1980s boom to its recent monetary decision, including the long-awaited interest rate hike by the Bank of Japan. We analyze its impact on global investing and ponder Japan's potential for a comeback.

Boeing's Leadership Transition: Witness Boeing's response to the 737 Max crisis as CEO Dave Calhoun steps down amidst a major management overhaul. We discuss the implications for the company's brand trust and its future trajectory.

Eli references the price of airline stocks over the past five years. Here's a supplemental resource if interested: https://finance.yahoo.com/sectors/industrials/airlines/?.tsrc=fin-srch 

Housing Hope: Amid concerns in the housing market, we uncover a glimmer of hope as developers pivot towards affordability. Discover the latest trends in new home sales, interest rates, and housing supply, and ponder what this means for prospective homebuyers.

Join us as we navigate through these critical market headlines and engage with insightful viewer comments on inflation's impact on consumer behavior.

You can email your questions and comments to [email protected] 

Mach-1 Financial Group, LLC (“Mach-1”) is an SEC Registered Investment Adviser located in Rogers, AR. Mach-1 may only transact business in those states in which it maintains a notice filing, or qualifies for an exemption or exclusion from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Third party ratings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. For full disclosures please see https://mach-1financial.com/disclosures/

Founder of Mach 1 Financial, David Lee, joins Matt and Lee for this week's episode! David discusses the correlation between demographics and market performance, highlighting how consumer behavior is influenced by age and economic factors such as birth rates. He notes the significance of the baby boomer generation's impact on economic activity in the 90s. This is a big part of why Mach 1 Financial supports five local NWA charities to shape the next generation because we know how much it impacts our economy; and, it's also the right thing to do!

Additionally, Matt, David, and Lee explore the disparity between investment expectations and reality, emphasizing the importance of maintaining a healthy investing mindset.

You can buy David's book "Mission Focused, Purpose Driven" on Amazon! https://www.amazon.com/Mission-Focused-Purpose-Driven-Fulfillment/dp/B0CFD69288

Referenced: "The Psychology of Money" by Morgan Housel.

The Five Charities Mach 1 Supports:

Loving Choices https://lovingchoices.org/

The C.A.L.L. https://thecallinarkansas.org/nwa

Northwest Arkansas Children's Shelter https://nwacs.org/

Children & Family Advocacy Center (CFAC) https://cfacbentonco.com/

Fellowship of Christian Athletes https://www.fca.org/

Sources:

https://www.businessinsider.com/economy-us-birth-rate-declining-population-immigration-china-elon-musk-2024-2

https://www.businessinsider.com/elon-musk-pandemic-baby-bust-birth-rate-harmful-civilization-demographics-2021-12

https://www.cnn.com/2021/05/05/health/pandemic-births/index.html

https://www.imf.org/en/Publications/fandd/issues/Series/Analytical-Series/new-economics-of-fertility-doepke-hannusch-kindermann-tertilt#:~:text=It%20suggests%20that%20as%20parents,across%20countries%20and%20over%20time

You can send us a comment or question at [email protected] 

Mach-1 Financial Group, LLC (“Mach-1”) is an SEC Registered Investment Adviser located in Rogers, AR. Mach-1 may only transact business in those states in which it maintains a notice filing, or qualifies for an exemption or exclusion from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Third party ratings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. For full disclosures please see https://mach-1financial.com/disclosures/