Gary Gordon Blog
Last week’s consumer news. What it means for your investment assets.
What do you remember about last week’s news? Certainly you remember Roseanne and Samantha. Possibly you recall the beginning of the NBA Finals. Then there’s the economy nerds like me who hit the trifecta last week:
- Wednesday May 30, the Q1 GDP report.
- Thursday May 31, the April personal spending and income data.
- Friday June 1, the May jobs report.
Yes, Roseanne and Samantha were a lot more entertaining, but the nerd trifecta was more important for your investment portfolio.In this post I use the trifecta data to get insights into two crucial investment return drivers – inflation and consumer spending.
A Short and a Long Stock Idea. Or, This Schizo Stock Market.
Amazon is an amazing company in many ways, but one of the most striking is its business model. Amazon has been a retailer for 24 years. It is no longer a teenager. But it acts like a teenager, focusing constantly on growth rather than maturing into a near-term profit maximizer. I call it the “Amazon Syndrome”. But what if a company doesn’t have Amazon Syndrome? What if it focuses on making money? This schizophrenic market treats it very differently. In this piece I am going to talk my own book and suggest an Amazon Syndrome short – Wayfair (symbol W) – and a discarded profit-making long – MGIC (symbol MTG).
My Advice – Steer Clear of “Alternative” Investments. Rather, Overweight What They Are Buying – Stocks.
The Federal Deficit: A Boost to Stocks Now, A Big Risk to Stocks Down the Road.
The federal government deficit got a nice boost from two recent Congressional actions, as you all know. First, Congress passed a package of tax cuts focused on businesses that could add up to $1.5 trillion to federal deficits over the next ten years. Then it passed a budget bill that adds about $150 billion a year in military and social spending. That’s about $300 billion a year added to the federal deficit. Remember the Tea Party? Me neither.
The end of an era. A new one to begin. And a parting gift (hopefully).
But all is not lost. I have received funding from a coalition of Kurdish, Catalonian and Scottish separatists. I have established residency on the Isle of Man, and access to underground servers in Manchuria. As the Lord is my witness I shall arise, phoenix-like, with another blog. In about two months. Stand by, and weather the next two months as best you can.