Hello, I just want you to know that I appreciate your support for the Newsletter and the channel. This week has been fun reading the comments on all the earnings videos.
We saw FAANG earnings come in (except NVDA). Netflix tanked, Tesla, Amazon and Google broke through fairly significant price levels.
Here’s something I want you to think about. Inflation is the highest it’s been in decades. Most investors under the age of 40 have no idea what this means for stocks.
It’s really quite simple:
Inflation (CPI) Levels Q1:
January: 7.5%
February: 7.9%
March: 8.5%
Q1 Average CPI = 7.9%
That means if your salary went up 7.9% year over year - you can afford the same amount of goods year over year. Basically inflation canceled out your 7.9% wage increase.
The same thing applies to corporate revenue.
FAANG Revenue Growth Q1:
Facebook: 6.6%
Apple: 8.6%
Amazon: 7.3%
Netflix: 9.9%
Google: 23%
Microsoft: 18.5%
Tesla: 65%
So when the press release and CNBC host says Amazon had 7.3% year over year revenue growth …. it was actually -0.6% factoring in inflation.
Cathie Wood’s ARK Innovation Fund ARKK sold 10,000+ shares of Tesla and bought Teladoc Health. This is even less funny when you realize she actually charges a management fee for this type of stuff.
I actually bought some stocks this week.
Microsoft MSFT - Bought 4/26 @ $270.36
Tesla TSLA
- Bought 4/26 @ $923.27 & 893.93
- Bought 4/28 @ $847.71SOLD FB 4/28 @ $200.47
I traded NFLX unsuccessfully & lost about $40
I bought small amounts of gold & silver.
Facebook’s quarter was a disaster, I’ll talk about it more on the Friday FAANG Show. I still have about 10% cash in my IRA - which is really high for me.
In cased you missed it:
Earnings Videos I posted This Week:
GDP turned negative in Q1. That means we have a high probability of the FED raising interest rates into a recession. But can it be GOOD for markets???
Maybe.
Think about it. IF we slip into a recession by Q3/Q4 it should slow down inflation, slow down interest rate hikes … and keep rates at levels that are still historically low.
I’ll do a video this weekend describing how this could play out.
Have a great weekend!! Thanks for all your support & kind words.
Colin
As always, I hugely appreciate what you do, Colin. I watch and read everything you put out. Please know I'm not trying to sound contentious here - you've referred to Google as "good medal winning" stock, repeatedly. Is there something we missed going into these most recent earnings? Do you still feel that way about Google? Why didn't we see this coming?
Hi, I recently found your channel and I absolutely love your content, have learned so much in the past few weeks since the earnings season has started. Any chance you can make a video on the Realty Income earnings this week? I saw you had one from 3 earning seasons ago and it would be nice to see an update.