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Good Morning!

It’s a “big” week, with the return of meme stocks, and critical inflation data set to shake market.

Grab your Japanese Iced Pour over and let's get into it! ☕️👇️

Markets

📈 S&P 500 rally not expected to accelerate from current levels

🇨🇳 China vows to take ‘all necessary actions’ in response to Biden’s tariffs

💻️ Billionaire Bill Gates Has 67% of His $42 Billion Portfolio in These 3 Stocks

🔍️ Google rolls out AI Overviews in US with more countries coming soon

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MARKETS

Meme Mania is Back

Meme Stocks are Back with a Vengeance

Love them or hate them, meme stocks are back. The social media-fueled frenzy that once rocked Wall Street is back, and this time, it's even wilder. The American video game retailer GameStop is once again at the center of it all, with its shares skyrocketing 340% over the last few days.

This surge comes after a series of posts on X from an account linked to Keith Gill, aka "Roaring Kitty," the driving force behind the 2021 meme stock phenomenon.

Roaring Kitty Strikes Again

Keith Gill, the man behind the "Roaring Kitty" persona, is once again stirring the pot. Gill recently shared a clip from "Braveheart" on the X platform, with "GameStop" flashing on the screen as Mel Gibson screams "freedom." This marked his first mention of the company after a three-year hiatus and ignited a rally reminiscent of the 2021 retail trading frenzy.

• Gill's Influence: His single post set off a massive rally

• Robinhood's Activity: CEO Vlad Tenev reported $5 billion in equities trading volume on Tuesday, one of the highest in the past year

• Quick Reversals: These stocks tend to drop back down as quickly as they rise.

AMC Makes a Strategic Move

AMC is no stranger to the meme stock roller coaster. The movie theater chain saw its stock price surge more than 300% over two days, hitting a nine-month high of $11.88 before plunging 40% to close at $6.85. The company's market cap is a modest $2 billion, making its stock extremely volatile.

AMC capitalized on the surge by finalizing the sale of 72.5 million shares, raising $250 million.

ECONOMY

Investors await US inflation Data

Investors are holding their breath as they await crucial consumer price data set to be released on Wednesday. This data will test the optimism that has recently driven equity markets higher, with the S&P 500 nearing record levels. The hope is that the Federal Reserve can achieve a "soft landing," cooling inflation without severely impacting economic growth.

Key Factors to Watch:

The upcoming consumer price index (CPI) release is the main event for investors this week. This data will heavily influence the Federal Reserve's policy decisions in the near term.

• Month-over-Month Increase: April’s CPI is expected to rise by 0.4%.

• Year-over-Year Increase: Anticipated to be 3.4%, indicating a slowing trend in inflation.

• Core CPI: Excluding food and energy, expected to rise 3.6% year-over-year, the smallest increase in over three years.

A stronger-than-expected inflation reading could spell trouble for the markets. It might force the Federal Reserve to consider additional rate hikes, dampening the optimism that has buoyed equities.

Possible Scenarios:

• Higher Inflation: Could lead to more rate hikes, reducing investor confidence and causing market volatility.

• Expected or Lower Inflation: May bolster hopes for a soft landing, supporting further gains in stocks and bonds.

• Investor Adjustments: Market participants have already scaled back their expectations for rate cuts, now pricing in 43 basis points of easing this year, down from 150 basis points anticipated at the start of 2024.

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📈 TradingView - Software we use to chart stocks.
🔐 Trezor - Our favorite hardware wallet to keep our Crypto secure.
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Translating Wall Street Jargon

A recent blog post from Ben Carlson who writes A Wealth Of Common Sense broke down various Wall Street Jargon. Here are some that we found funny.

• I’m cautiously optimistic.

  Translation: I have no idea what’s going to happen.

• We’re a boutique investment firm.

  Translation: We’re small and don’t manage very much money but we’d like to be bigger. Please give us money.

• This is a bubble. 

  Translation: I’m not invested in that asset that went up a lot.

• It’s a Ponzi scheme.

  Translation: I disagree with that thing but don’t actually know what a Ponzi scheme really is.

• We’re waiting for the dust to settle.

  Translation: We get fearful when others are fearful.

Check out the full blog post for more!

Your thoughts

Last Editions Results

What age do you plan to retire?

🟩🟩🟩🟩🟩🟩 Before 60
🟨🟨⬜️⬜️⬜️⬜️ 60-64
🟨🟨🟨🟨⬜️⬜️ 64-70
⬜️⬜️⬜️⬜️⬜️⬜️ 70-74
🟨⬜️⬜️⬜️⬜️⬜️ 75+

P.C - Pondering even moving to another country to make money last long enough to reach 65 when medicare becomes an option

B.S - I could retire now at 54. I plan to keep busy as long as I am healthy. I saw both sets of grandparents retire early. Their mental and physical states went down quickly. The owner I work for is about 75 and there working every day. My goal is to do something I like and do it long into "retirement"

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