🕵️🔦 Explain Yourself, Visa
Hello Hump Days Readers!
Another week has gone by and we’re almost to Labor Day weekend! CXO Advisory Group analyzed the historical behavior of the benchmark S&P 500 index during the three trading days before and the three trading days after the Labor Day holiday — based on daily closing prices from 1950 to 2016 (67 years).
In general terms, they found the average daily return for all trading days in that period was a gain of 0.03%. They also found that there’s a tendency for the market to show strength on the Friday before Labor Day, but there were no abnormal returns for the other trading days.
On a more personal front, I have been trying to increase the quality of the YouTube videos I put out - and increasing entertainment value while still being educational. This week’s video took me a long time to put together, so make sure to watch it, press the LIKE button (cause it helps!) and let me know what you think - there are also some video notes at the bottom of this newsletter.
Last week I had asked for some topics to be covered and got many responses, so I will try to get back to all of you ASAP. Admittedly it gets harder and harder to stay in touch on a 1:1 level after a certain point of viewership, but I am doing my best to get back to everyone still.
Thanks for sticking around with me, and we have some even more exciting videos planned in the future!
Have a great week.
Humphrey
In the Markets
Upcoming Earnings
Slow earnings week this week aside from Zoom which is reporting after market close on Tuesday 8/31.
Weekly News Roundup
Bombing Near Kabul Airport Leaves U.S. Service Members & Afghan Civilians Among Casualties (CNBC)
The Pentagon confirmed that 13 U.S. Service Members were killed and 18 were wounded following the suicide bombing that happened near Hamid Karzai International Airport. ISIS-K claimed responsibility for the attack.
HY: So far I haven’t noticed a big drop in the markets due to the events ongoing in Afghanistan, typically in the face of global turmoil they are more overreactive. We may see some volatility coming in the next week.
Visa Buys NFT of Digital Avatar (CryptoPunk) for $150,000 (BBG)
In a show of support for the very new space of NFTs in the realm of cryptocurrency and blockchain technology, Visa dished out $150,000 for a digital avatar.
HY: This one came at a surprise to me. Not sure why VISA wanted an NFT other than showing to the world that they believe in blockchain and the use case for NFTs. From a CNBC article: “To help our clients and partners participate, we need a firsthand understanding of the infrastructure requirements for a global brand to purchase, store, and leverage an NFT.”" It’s possible they just want positive PR - still doesn’t make a bunch of sense to me but $150k probably doesn’t hurt their bottom line that much at the end of year.
Delta Air Lines Raising Health Insurance Premiums for Unvaccinated Employees (CNBC)
Starting Nov. 1, unvaccinated employees will face $200 surcharges on their monthly health insurance and from Sept. 12, unvaccinated employees will have to take a Covid test every week. This comes as more and more corporations push employees towards vaccination.
HY: Companies are allowed to do this in the US. Hopefully this + FDA approval will drive more vaccinations to go up.
In Case You Missed It
Should you rent or buy a home? I sit down with two realtor friends of mine and talk about the factors that go into that decision. Some early comments have noted that this video may be leaning toward buying since realtors are naturally into home ownership. There are a lot of hidden costs to home ownership as well, and the math presented could have been more thorough. In the future I may invite someone on the channel who is pro-renting, and talk about their situation as an example. For now - this video still provides great information on what you should be thinking about when buying vs renting. The key is that you need to do the math yourself in your specific area.