Weekend Wall Street #53 - Powell's Five Problems (9/18-9/22)
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Happy Sunday everyone and welcome back to Weekend Wall Street. The market basically died last week, down a good 3%, scaring investors but also setting up some amazing setups for us this week!
Let’s take a look at what this week has in store!
This weekend I read about the upcoming “five point threat” to the US economy. Let’s dive a little bit deeper into this and what it can mean for the markets.
Powell mentioned a few things, and called them “uncertain” in his speech last week, and there’s nothing the market hates more than uncertainty. He mentioned a strike, a government shutdown, resumption of student loan payments, higher long term rates, and the oil price shock.
The auto group shock has already been hitting supply in the industry, although the UAW president did mention Ford has been making progress.
The possibility of a government shut down is barely a week away and if they do shut down, expect a slowdown of these reports in October.
Student loan payments resume in October with the median payment being $25K! This can hit consumer spending hard in my opinion, making stocks like Starbucks a short.