Ryan Cohen Exits Entire Bed Bath & Beyond Stake, Drives 27% Drop
Shares of Bed Bath & Beyond dropped 20% on Thursday and further dropped another 27% in the after market when SEC confirmed Ryan Cohen’s RC Ventures had sold its entire position of the company. The company’s fundamentals had always been a concern but when RC Ventures revived a 9.8% stake and proposed a sale of the company in March, it became a favorite among retail traders, surging the stock price. Most analysts changed the stock rating from hold to sell and none recommended a buy.
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A soft landing of the economy is increasingly likely as inflation is set to be cut in half later this year, JPMorgans says
Recent data shows that US inflation has improved from June in not only energy, but also in other areas such as appeal, education, and transportation services. JPMorgans believes that rates will be cut in half by year end based on the strong job report alongside the weaker than expected July CPI report. If inflation continues to cool down at this rate, it is very likely that the Feds will slow down the rate increase. With inflation reaching a peak, rate increase slowing down, and a strong underlying job market, the stock market can see the continue upside into later this year.
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Home sales fell nearly 6% in July as housing market slides into a recession
Existing home sales is nearly 6% lower in July than it was in June. Compared to the same month last year, it dropped about 20%. The figure is based on closings so it’s very likely contracts were signed in May or June when affordability was getting tough with rising mortgage rates and inflation. Home prices are still high but continue to increase at a slower pace because demands are falling off due to weaker affordability.
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Inflation Reduction Act Is “Icing on the Cake” for Clean Energy ETFs
Clean energy stocks had been rebounding since May and the recent Inflation Reduction Act drove the growth even further. The bill included figures and number allocation that would benefit Solar and Wind, which also brought a positive impact to renewable energy as a whole. Between May 12 to August 17, Invesco Solar ET (TAN) and Invesco Wilderhill Clean Energy ETF (PBW) increased 50.4% and 39.4% respectively, erasing any previous losses this year.
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How This Fidelity Fund Outperforms In A Weak Market
Fidelity Equity Dividend Income Fund (FEQTX) is one of the minority U.S stock funds that has outperformed the market this year. The fund was down 3.65% for the year while the S&P 500 was down 17.03%. The manager explained that gains from dividends are key to the fund staying on top during a weak and volatile market. However, since this is an equity income focused fund, it can potentially lag the S&P 500 in a growth market.
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Worried you’re mismanaging your money? Give yourself a financial checkup in 7 simple steps
Try these 7 steps to keep yourself financially on track. 1) Find your personal inflation rate - figure out how inflation and rising rates impact your budget and adjust spending accordingly. 2) Avoid “lifestyle creep” - don’t let your lifestyle expenses like dine-out or travel increase at a faster pace than your income. 3) Use only one credit card - easier to organize and keep track. 4) Set limits and alerts on cards - help you stay on budget. 5) Have a mix of stocks, bonds, and cash - make sure your investments keep up with inflation while maintaining an adequate emergency fund in cash. 6) Check out online investment tools - educate on what’s available. 7) Work with a financial advisor - find a professional to build a strategy reaching your long term goal.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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