Hey all! This is the Stranger Things edition, number eleven. I’m thinking about making this newsletter more Personal Finance focused, since that’s a huge reason as to why you guys follow me and signed up for this newsletter. So if you’d like to see any Personal Finance topics covered in the coming weeks, leave me a comment!
I also want to say a HUGE thank you to everyone watching me on Tik Tok and hitting the like button on YouTube. Thank you for your incredible support!
“Don’t worry all, the Dow WILL rally and tech will recover today!” - Eleven
In the News
Los Angeles bans trick-or-treating this year due to COVID risk. Will other cities follow suit?
Senate to vote on new stimulus package by end of this week - so far, inconclusive.
Tesla suffered its worse one-day loss after not being included in the S&P500.
The fall classic Apple Event is being held next week and the iPhone 12 is rumored to be announced…
Essential Thoughts from a Non-Essential Worker
The stock market had been sliding the past few days, and a lot of you asked me “why is it falling” or “what’s going on with the market?”
A lot of the run-up in the past 6 months after the ‘corona crash’ had been due to the huge gains made in tech stocks. Just last week, news came out that:
“SoftBank bought nearly $4 billion of shares in tech giants such as Amazon.com Inc., Microsoft Corp. and Netflix Inc. this spring, plus a stake in Tesla. Not included in those disclosures is the massive options trade, which is built to pay off if the stock market rises to a certain level and then lock in gains, the people said.”
By having SoftBank buy massive volumes, most of America receiving stimulus checks, combined with nothing to do for the past few months, a lot of money was flowing into the market. As a result tech stocks were way overbought. “Many on Wall Street believe the technology weakness derived from worries that the massive tech run-up pushed valuations to unsustainable levels.”
So essentially what’s happening here is the collective thought across the majority of retail traders and investors that tech was overvalued. So selling occurs, and the market takes a hit.
WFH Station of the Week
This station is a bit “done up” in editing software, but I loved the plant + light combo.
In Case You Missed It (12:28)
6 Investing Mistakes Beginners Make! It’s a long one, but could save you $ long-term!
As always, leave a comment and I’ll be happy to get back to you.
- Humphrey
Personal finance tips and maybe a few more weekly news updates would be great! Overall I'm really enjoying this newsletter.