In this week’s Closing Bull news, panic hits the market over the Omicron variant, Apple made a secret agreement with China, President Biden is committed to reaching net-zero emission by the year 2050, Consumer inflation report shows prices are still jumping up, and an interesting fact for the week.
Let’s get into the news.
Key News This Week:
Update on the system
With a dedication to Mike Steel
Panic in the market over Omicron variant
Apple’s secret agreement with China
President Biden committed to reaching net-zero emissions by 2050
Consumer inflation report shows prices still jumping
Interesting fact of the week
Read the Transcript
Welcome to my financial markets’ re-cap for the week.
Before we get to the news, a quick update on the system. We are still long in the market as we are expecting a new all-time high, possibly even next week.
If the market has at least one more leg up from the Omicron bottom, then that all-time high will be like a magnet to the price. And with Santa season being typically bullish, we see more upside coming. Let’s hope I am right.
On a personal note, you may notice that I am in a black tie today as I was at the funeral of a friend of mine that passed away this past weekend. Mike was a member of Comhlatech and was also a long-time member of howdoItradestocks.com, our pre-Comhla name. So, Mike has followed and supported me for over 10 years and was one of the nicest people you could ever meet, a true gentleman.
The fact is, it’s not easy sharing what I do, there are good times and not-so-good times, and it can be quite stressful at times, even when you are winning. One of the endearing qualities of Mike was that he was always so grateful for the work that I do, and always let me know with a comment here or there or an email of encouragement, that’s just how he showed up in the world, and it’s people like him that make me want to get better and help more people.
Anne Marie and I, and everyone at the Comhla family, pass on our sincere condolences to Mike’s family in this difficult time.
Mike was an avid fan of the Closing Bull and so this one is dedicated to him. Mike, here’s what happened in the news this week.
Last week was a few panic stations in the financial markets. It seemed that no one wanted to be long over the weekend due to the possible risk of the new variant being much worse than anything before.
Thankfully, although not fully confirmed yet, the early reports are that this is not as bad as the variants that have come before, and therefore the market has calmed and is heading higher yet again.
In fact, investors bought $6.7B worth of stocks during last week’s Omicron dip — the highest weekly amount in four years, incredible.
It was reported this week that JPMorgan Chase believes the world will achieve population immunity with the help of new therapeutics, expected to be broadly available next year.
Bill Gates also believes the critical phase of the pandemic will end in ’22.
Let’s hope they are both right, and we all get back to normal.
News from Apple this week. It seems that Apple, known for its secrecy, signed an estimated $275B deal with Chinese officials in 2016.
The reported five-year agreement included Apple’s promise to invest in Chinese companies, supply deals, infrastructure, and worker training.
The supposed goal was to establish strong ties with China to protect and grow Apple’s business in the key market, where nearly all its products are assembled.
Apple recently became the largest smartphone brand in China, which now makes up 19% of Apple’s total sales — up from 15% a year ago. Smart business from Apple, succeeding where few North American companies have.
In eco-news, President Biden committed the US gov’t to reach net-zero emissions by 2050, and directed federal agencies to buy only zero-emission vehicles by 2035.
But the big news today was from the Labor Department. Its consumer inflation report showed that prices are still jumping.
It was reported that inflation is at 6.8% year over year, the fastest increase since the early 1980s.
While virtually every economist expects inflation to stay high for the foreseeable future, some on Wall Street had worried before Friday’s data release that inflation could have leaped as high as 7% or more in November. Therefore, it seems to be cheered as a good report and sent stocks higher today.
Some economists believe that inflation could peak around March or April in 2022.
Here’s an interesting fact:
The top 0.01% richest individuals— now hold 11% of the world’s wealth, that’s right, just over 500,000 people out of the 8 Billion on the planet own a giant slice of all the money in the world. To be in the top 0.01% you need to be worth approximately $20 million and I am not one of them…hopefully one day!
That’s it from me, it’s the weekend, time to down tools, have a great weekend, thanks for watching and bye for now.