The Capitalist Investor - Episode 175

Microsoft, Google, Facebook, and Amazon are all reporting earnings. Microsoft has reported good earnings and its cloud services are still in demand. Amazon is yet to report, but they offer cloud services and other products. Google is doing a $70 billion stock buyback. Most of these companies are beating earnings because they lowered the bar.

First Republic Bank, which is near collapse, and offering a package to some of the bigger banks to either bail them out or let them fail. They also discuss defensive stocks, such as Campbell’s, Procter Gamble, Coca-Cola, and Pepsi, which are all doing well but have had year-over-year increases in their products. They conclude that while the banks seem to have done well, the outcome of First Republic Bank is still uncertain.

The guys are discussing the current market climate and how it has been affected by inflation, shrinking packages, and tech prices. Speaker 2 expresses their disbelief in the official inflation numbers and brings up the concept of shrinkflation to describe what is happening. They then discuss the risk and potential for a burst tech bubble, and how managing risk tolerances and using vehicles with downside protection can balance out the portfolio. The FAANG stocks make up a large portion of the market cap but should not make up the same portion of a portfolio in order to avoid the tremendous losses that would occur if the tech bubble burst.

 

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Keep Listening to The Capitalist Investor:
Episode 1:
Capitalism vs Socialism
Episode 3:
Impact of a Bernie Sanders Presidency
Episode 4:
Coronavirus, Pandemics, and Your Money
Episode 2:
Is the Stock Market Overvalued?
Episode 5:
What We Consider A Smart Investment Strategy, Ep #5
Episode 6:
Why Investing In IPOs Is Not A Good Idea, Ep #6
Episode 7:
How a Joe Biden Presidency Will Impact Your Portfolio, Ep #7
Episode 11:
The Student Loan Problem: Is Capitalism to Blame? Ep #11