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. 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.com
