The Capitalist Investor - Episode 133 Inflation is hitting all over the globe right now, but American’s will really feel it where it hurts the most: on the Fourth of July. Cookouts, fireworks, and the typical Independence Day festivities will all cost a little bit more this year. So, what does being an educated consumer look like? Is now the right time to start buying into speculative stocks? Would a giant flying sky hotel be a mistake, or a marvel? In Episode #133 of “The Capitalist Investor,” Derek, Luke, and Tony shed some light on a few recent flares that popped up in the news this week.Outline of this Episode:[2:45] Cathie Wood’s flagship fund [8:55] Microsoft missed out, Zoom won[11:50] The hotel in the sky [17:15] Inflation cookouts on Independence Day Investors are buying into Wood’s ARK fund — but be weary of speculative stocksSince mid-June, Cathie Wood’s flagship fund has taken in over $600 million despite facing one of the worst pitfalls, currently being down 50 percent year-to-date. So why are people buying in? Is it possible people think this is a buying opportunity? This is when being an educated consumer matters the most. If you look at Wood’s top three holdings: Shopify, Zoom, and Tesla, they are all extremely speculative and expensive. A lot of people are grasping onto a mentality that when stocks like these are down 70 to 90 percent, it’s a buy –– a value play. But our advice is to be cautious; these stocks are still unprofitable as they spend billions of dollars every year in losses trying to rapidly grow. Three years ago, we lived in a different environment where an influx of money was being pumped into the economy –– there was so much liquidity out there. That was the type of condition where you want to buy speculative growth names. And if you’re stuck thinking we’re in that same environment now, then you could run into some trouble because the economy is just not operating like that right now. What we saw back a few years ago with all those hyper-growth companies is more than likely gone now and won’t return for quite some time. The sky-high prices for this year’s Fourth of July Around this time last year, the Biden administration was bragging about the average price for the typical Independence Day cookout. But something tells us they will probably remain quiet this year. Axios recently reported that the cost of this year’s cookout has gone up about 17 percent from last year. Burgers, chicken breasts, pork chops, beans –– whatever you have on the grill got more expensive. To feed a group of just ten people this holiday, it will cost roughly $69.68 meanwhile just last year it was about ten dollars cheaper. Despite the inflation rate resting just over 8 percent, all the necessities like food and fuel have been getting more out of reach. A flying nuclear-powered cruise ship sounds great in theory…It seems that modern-day engineers have taken a page out of the Avengers and sci-fi handbooks. A sensational video has been circulating lately of a mock-up gigantic airplane called the “Sky Cruise.” With over ten turbo engines, a double decker base, balconies, AI pilot systems, and a nuclear reactor, this theoretical hotel in the sky is impossible to ignore. Nuclear energy would power the ship’s electric engines so it could basically stay up in the air for years without ever landing on the ground. If this dream ever fosters into a safe reality – it would be a marvel to witness. But truthfully, it seems a bit fantastical and far too risky. Ideas like these, though, keep the world entertaining and always dreaming. Would you ever take a trip on a cruise above the clouds? Connect With Mark TepperTwitter: @MarkTepperSWPFollow Mark on LinkedInSend Mark a message hereThe SWP Connect YouTube ChannelConnect with Derek GabrielsenTwitter: @DerekGabrielsenFollow Derek on LinkedInSend Derek a message hereCheck out Derek’s YouTube channel!Connect With Luke LloydTwitter: @LloydBoyLukeFollow Luke on LinkedInSend Luke a message hereThe SWP Connect YouTube ChannelConnect with Tony ZabiegalaTwitter: @TonyZabiegalaFollow Tony on LinkedInSend Tony a message hereThe SWP Connect YouTube channel!Send your questions and comments to us at info@SWPConnect.comSubscribe to The Capitalist Investor
