Weekend Wall Street #42 - Debt Default, Hedge Fund Filings, and More
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Happy Sunday everyone and welcome back to Weekend Wall Street. The market is still choppy and, even much inflation data and economic metrics, we have no breakout in the main indexes.
Before we start, my penny stock short squeeze idea which I sent out last week (read below) had massive gains.
The penny stock idea was JAGX 0.00%↑ which had a huge squeeze from 55 cents all the way to $1.30!
Very few to none of the Substack’s were able to find this alpha before we did. Cobrats to those who played 🥂:
Now, on to what’s coming up for us.
This week, the main headline on Wall Streets continues to be the fear that the US may default on its debt. We currently have a $31.4 trillion ceiling that is set to run out by June 11 if the ceiling is not lifted. Janet Yellen, the US Treasury secretary stated that, ”[m]illions of Americans could lose their jobs, household incomes would be reduced. American businesses would see credit markets deteriorate, and millions of American families that receive government payments would likely be left without the resources that they were promised”.
This would be economic disaster. The inability of the government to pay out its bills would hurt the confidence investors have in the government. In 2011, the S&P downgraded the government from AAA to AA+ when it got close to defaulting. Zillow details housing costs soaring by 22% in this case, CNN stating stocks can lose 1/3 of their value, and everyone from social security beneficiaries to the military would be impact.