May 16, 2024 • 8 mins
Jonathan Hoenig of CapitalistPig.com takes a look at National business news including these Meme stocks and whether we should pay attention to them or not
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Episode Transcript
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(00:00):
All right, so your busy weekendthere, and boy, what a busy
(00:02):
weekend or a busy day on thestock market. Great day, as we
welcome in Jonathan hoone Capitalistpig dot comon the Legacy Retirement Group dot com phone
line. Jonathan. The S andP five hundred and the NASDAC popped up
to record highs yesterday, adding toan already strong year. Good morning,
Jonathan, Yeah, great to dowith through my good morning. And I
guess the good news was that althoughinflation is still cooking, it's easy a
(00:26):
little bit from what many economists hadexpected. And the CPI, that's the
Consumer Price Index, it came inyesterday three tenths of a percent higher from
March. That's actually lower by aboutone tens of a percent from what economists
had expected. It's still up aboutthree and a half percent year over years,
so price is still going up,but they're going up at a slightly
slower rate than prior. And theygot you right, Mike. That helped
(00:48):
push the market to a new alltime high. And what's interesting is the
New York Fed actually surveys individuals servicepeople to see what asked them where they
think inflation is going despite a lotof optimism from Washington, stimism from the
Biden administration, most people surveyed stillbelieve that inflation a year out is going
to be three point three percent.We're looking further out, four or five,
six years, people see it moderating. But for the near term,
(01:11):
most Americans are not only feeling inflation, Mike, but they're bracing for more
of it in the year ahead.Well, how long can the market sustain
this run? It's the the Sand P, the Dow, and the
NASDAC all at records a year todate. So how long can we keep
this going? Well, I look, trends tend to persist, and interestingly,
Mike, stocks tend to do welloftentimes during the periods of inflation because
(01:34):
companies have that pricing power, youknow, they can raise prices, and
so historically it's been a good wayto beat inflation. That's why we always
talk about, you know, inevery day the need for a diversified portfolio.
They need to have your assets spreadout. But the fact is a
lot of companies are doing well,perhaps, but a lot of American households
are not. Fox Business had thisfascinating article acquiring just how much prices have
(01:57):
risen in just the last couple ofyears since President's been office. You know,
we're looking at housing prices up twentypercent, energy prices up thirty percent,
insurance on your car up fifty onepercent. So you know, companies
are profitable, but many Americans arestruggling and inflation is the reason why.
And the things you just mentioned,you know, with home energy and autobills,
(02:17):
those are all necessities pretty much,and more and more people Jonathan,
are putting non necessities on credit cards. Yeah, I mean, this is
pretty staggering. They're not just puttingthem on credit cards mic maxing out their
credit cards. One in five creditcard borrowers. The New York Fed had
this stet. One in five creditcard borrowers are using at least ninety percent
(02:40):
of their available credit. That wasthe stat from New York Fed. And
those credit card balances on average areat an all time high. Also a
little bit worse some mic is thatthe delinquency rate is starting to tick up.
This is people who are behind ontheir credit cards now standard about three
point one percent. That is thehighest rate in almost fourteen years. So,
(03:00):
you know, the economy is cookingalong, but so are people's debts
or people's credit card balances, andthat's compounding at a record rate. Yeah,
nothing wrong with with putting everyday expenses, you know, dinners out and
groceries on a credit card if youpay it off every month. But if
you let that roll over and rollover, you start to max it out
you make in the minimum payments,that becomes a huge problem. Jonathan honeae
(03:22):
Capitalist Pig dot Com joining me,and I feel like it's twenty twenty one
all over again with the meme stocks. Those were back for a brief flash
this week. Yeah, and wedon't know yet, Mike, whether they're
back for a period or back andgone again. As you said, I
mean all of a sudden this week. Those so called meme stocks. These
are the very low priced speculative stocksthat got a lot of play during the
(03:46):
pandemic. You remember, back thengovernment was sending people checks in many of
them fountain ways, into shares ofcompanies like game Stock or AMC or Headphonemaker
Costs. And in fact, gameStop was up three and forty percent in
just the last ten days. Why, Mike, because of good earnings or
solid fundamentals. No, because anaccount by the name of a what is
(04:08):
it Twitter kitty something that effect aTwitter based stock promoter pumped the stock.
It's soared, but then again itwas down almost twenty nine percent just yesterday
as well. So look, Mike, we always talk about it. If
you want to make money, daytrading is not the way to do it.
And just as bad as these memestocks shoot up, they yesterday reverse
(04:30):
course just as quickly. So theseare speculative toys, not legitimate ways to
make money in my opinion, nodoubt, Jonathan. But some people do
make money on this. I meanthey did. If you were timing this
properly, and whoever this guy is, and you got in early and then
watched it and watched it and gotout at the right time, you were
able to make money. It's nota sound financial strategy, but there is
(04:51):
a way to make money in daytrading. Well. Look, the shorter
the time horizon, the more difficultit is to make money. And I
tell you, Mike, you're goingto wait for Roaring Kitty to tell you
when to get in. You're goingto have to wait for Roaring Kitty to
tell you when to get out aswell. So you know, if this
is the type of investing you're doing. Make sure. All I can say
is it's a very small part ofyour overall portfolio. Jonathan's the fun money.
(05:13):
That's it. Jonathan Jone capitalistpig dotcom. If you have a moment
today give them all Capitalist pig dotcom. It's a great site, it's
a great guest. We love talkingto him every Thursday at this time.
And Jonathan, this headline, thepandemic has changed when Americans expect to retire,
do you tell yeah, I meanthey're retiring early. And we heard
a lot about that during the pandemic. Mike, that's so called great resignation.
(05:35):
Beyance even wrote a song about it. And in the FED surveys this
as well, they call it theConsumer Survey of Expectations Labor Market Survey.
This is what the FED asks people, basically says, do you plan on
working beyond the age of sixty two? Well, only forty five percent of
respondence now say that they plan onworking beyond the age of sixty two.
(05:59):
That's ten points lower than it wassix years prior to the pandemic. So
twenty twelve you had fifty five percentof Americans saying that they were going to
work past sixty two. Now postpandemic, only forty five percent of Americans
say they're going to work past theage sixty two. And you know,
might consider Americans work now, youknow, or live now to be close
to eighty years old on average.That's a long time to be retired.
(06:21):
Even more reason why you're gonna haveto save and invest for the future.
Yeah, I'm gonna say, Ihope those people are saving their money,
especially when you heard the news latelast week about the go broke date for
Social Security and medicare being twenty thirtyfive. Indeed, and you know,
Mike, we think of just thecost of housing and medical services in just
the last few weeks. When you'replanning for retirement, you have to loup
(06:43):
look long term, and that's whyyou have to invest long term as well.
So, Jonathan, a story wekind of mentioned earlier earlier this morning.
If you're an NFL fan and youwant to watch NFL on Christmas Day,
I hope you have a Netflix subscription. Yeah, this is a pretty
big development, you know. Imean Netflix had said that they were not
going to invest in in live sportscontent, but Bloomberg announced it yesterday.
(07:03):
Netflix as you mentioned Mike has wonthe string rights to air two NFL games
on Christmas Day. Pretty dramatic changein just the media landscape. They're basically
going to be doing one holiday game. It's going to be a three season
deal. It's going to be areason, as you said, more and
more viewers have to get Netflix.But you know, Mike, the streaming
(07:24):
services must differentiate themselves. Be.One of the stories we've been covering for
recent weeks is people started to cutthose streaming services. So if you're an
NFL fan you like watching the gameon Christmas Day, this is one reason
you're probably not going to want tokill Netflix. Maybe, you know,
kill Hulu or Disney Plus first,but Netflix adding the broadcast of NFL games
on Christmas Day to their lineup inthe in the weeks to come. Yeah,
(07:46):
they've been dabbling in live sports here, and they've got the Mike Tyson
Jake Paul fight in July too onNetflix. So it's interesting to want to
follow that story and some changes comingto Uber Jonathan. They've got Uber caregiver.
What is this? Yeah, andthis is innovation. You know,
one thing about all these big techcompanies is as much as we oftentime to
land try to land bas them,I mean, in order to survive and
(08:07):
thrive, they have to innovate.I mean Netflix is doing that, they
don't send out the DVDs anymore,and Uber is doing it as well.
I mean, they're basically trying toup their products. They're launching two new
services. One, as you said, is called Uber Caregiver. It's basically
that a way that a caregiver canadd a loved one, like an elderly
family member, directly to their profiles. So a caregiver can then book a
(08:31):
ride, for example, for someof that they care for. They can
order medical supplies or groceries through theapp, so basically trying to enhance the
Uber app. They're also introducing anew ride share service that will help ferry
people to sports games and concerts.And you know, even Uber has a
competition, the micro Lift is prettymuch hot on their heels, so they're
(08:52):
having to innovate. That's what allcompanies have to do to stay on top.
All right, so your busy weekendthere, and boy, what a busy
(00:02):
weekend or a busy day on thestock market. Great day, as we
welcome in Jonathan hoone Capitalistpig dot comon the Legacy Retirement Group dot com phone
line. Jonathan. The S andP five hundred and the NASDAC popped up
to record highs yesterday, adding toan already strong year. Good morning,
Jonathan, Yeah, great to dowith through my good morning. And I
guess the good news was that althoughinflation is still cooking, it's easy a
(00:26):
little bit from what many economists hadexpected. And the CPI, that's the
Consumer Price Index, it came inyesterday three tenths of a percent higher from
March. That's actually lower by aboutone tens of a percent from what economists
had expected. It's still up aboutthree and a half percent year over years,
so price is still going up,but they're going up at a slightly
slower rate than prior. And theygot you right, Mike. That helped
(00:48):
push the market to a new alltime high. And what's interesting is the
New York Fed actually surveys individuals servicepeople to see what asked them where they
think inflation is going despite a lotof optimism from Washington, stimism from the
Biden administration, most people surveyed stillbelieve that inflation a year out is going
to be three point three percent.We're looking further out, four or five,
six years, people see it moderating. But for the near term,
(01:11):
most Americans are not only feeling inflation, Mike, but they're bracing for more
of it in the year ahead.Well, how long can the market sustain
this run? It's the the Sand P, the Dow, and the
NASDAC all at records a year todate. So how long can we keep
this going? Well, I look, trends tend to persist, and interestingly,
Mike, stocks tend to do welloftentimes during the periods of inflation because
(01:34):
companies have that pricing power, youknow, they can raise prices, and
so historically it's been a good wayto beat inflation. That's why we always
talk about, you know, inevery day the need for a diversified portfolio.
They need to have your assets spreadout. But the fact is a
lot of companies are doing well,perhaps, but a lot of American households
are not. Fox Business had thisfascinating article acquiring just how much prices have
(01:57):
risen in just the last couple ofyears since President's been office. You know,
we're looking at housing prices up twentypercent, energy prices up thirty percent,
insurance on your car up fifty onepercent. So you know, companies
are profitable, but many Americans arestruggling and inflation is the reason why.
And the things you just mentioned,you know, with home energy and autobills,
(02:17):
those are all necessities pretty much,and more and more people Jonathan,
are putting non necessities on credit cards. Yeah, I mean, this is
pretty staggering. They're not just puttingthem on credit cards mic maxing out their
credit cards. One in five creditcard borrowers. The New York Fed had
this stet. One in five creditcard borrowers are using at least ninety percent
(02:40):
of their available credit. That wasthe stat from New York Fed. And
those credit card balances on average areat an all time high. Also a
little bit worse some mic is thatthe delinquency rate is starting to tick up.
This is people who are behind ontheir credit cards now standard about three
point one percent. That is thehighest rate in almost fourteen years. So,
(03:00):
you know, the economy is cookingalong, but so are people's debts
or people's credit card balances, andthat's compounding at a record rate. Yeah,
nothing wrong with with putting everyday expenses, you know, dinners out and
groceries on a credit card if youpay it off every month. But if
you let that roll over and rollover, you start to max it out
you make in the minimum payments,that becomes a huge problem. Jonathan honeae
(03:22):
Capitalist Pig dot Com joining me,and I feel like it's twenty twenty one
all over again with the meme stocks. Those were back for a brief flash
this week. Yeah, and wedon't know yet, Mike, whether they're
back for a period or back andgone again. As you said, I
mean all of a sudden this week. Those so called meme stocks. These
are the very low priced speculative stocksthat got a lot of play during the
(03:46):
pandemic. You remember, back thengovernment was sending people checks in many of
them fountain ways, into shares ofcompanies like game Stock or AMC or Headphonemaker
Costs. And in fact, gameStop was up three and forty percent in
just the last ten days. Why, Mike, because of good earnings or
solid fundamentals. No, because anaccount by the name of a what is
(04:08):
it Twitter kitty something that effect aTwitter based stock promoter pumped the stock.
It's soared, but then again itwas down almost twenty nine percent just yesterday
as well. So look, Mike, we always talk about it. If
you want to make money, daytrading is not the way to do it.
And just as bad as these memestocks shoot up, they yesterday reverse
(04:30):
course just as quickly. So theseare speculative toys, not legitimate ways to
make money in my opinion, nodoubt, Jonathan. But some people do
make money on this. I meanthey did. If you were timing this
properly, and whoever this guy is, and you got in early and then
watched it and watched it and gotout at the right time, you were
able to make money. It's nota sound financial strategy, but there is
(04:51):
a way to make money in daytrading. Well. Look, the shorter
the time horizon, the more difficultit is to make money. And I
tell you, Mike, you're goingto wait for Roaring Kitty to tell you
when to get in. You're goingto have to wait for Roaring Kitty to
tell you when to get out aswell. So you know, if this
is the type of investing you're doing. Make sure. All I can say
is it's a very small part ofyour overall portfolio. Jonathan's the fun money.
(05:13):
That's it. Jonathan Jone capitalistpig dotcom. If you have a moment
today give them all Capitalist pig dotcom. It's a great site, it's
a great guest. We love talkingto him every Thursday at this time.
And Jonathan, this headline, thepandemic has changed when Americans expect to retire,
do you tell yeah, I meanthey're retiring early. And we heard
a lot about that during the pandemic. Mike, that's so called great resignation.
(05:35):
Beyance even wrote a song about it. And in the FED surveys this
as well, they call it theConsumer Survey of Expectations Labor Market Survey.
This is what the FED asks people, basically says, do you plan on
working beyond the age of sixty two? Well, only forty five percent of
respondence now say that they plan onworking beyond the age of sixty two.
(05:59):
That's ten points lower than it wassix years prior to the pandemic. So
twenty twelve you had fifty five percentof Americans saying that they were going to
work past sixty two. Now postpandemic, only forty five percent of Americans
say they're going to work past theage sixty two. And you know,
might consider Americans work now, youknow, or live now to be close
to eighty years old on average.That's a long time to be retired.
(06:21):
Even more reason why you're gonna haveto save and invest for the future.
Yeah, I'm gonna say, Ihope those people are saving their money,
especially when you heard the news latelast week about the go broke date for
Social Security and medicare being twenty thirtyfive. Indeed, and you know,
Mike, we think of just thecost of housing and medical services in just
the last few weeks. When you'replanning for retirement, you have to loup
(06:43):
look long term, and that's whyyou have to invest long term as well.
So, Jonathan, a story wekind of mentioned earlier earlier this morning.
If you're an NFL fan and youwant to watch NFL on Christmas Day,
I hope you have a Netflix subscription. Yeah, this is a pretty
big development, you know. Imean Netflix had said that they were not
going to invest in in live sportscontent, but Bloomberg announced it yesterday.
(07:03):
Netflix as you mentioned Mike has wonthe string rights to air two NFL games
on Christmas Day. Pretty dramatic changein just the media landscape. They're basically
going to be doing one holiday game. It's going to be a three season
deal. It's going to be areason, as you said, more and
more viewers have to get Netflix.But you know, Mike, the streaming
(07:24):
services must differentiate themselves. Be.One of the stories we've been covering for
recent weeks is people started to cutthose streaming services. So if you're an
NFL fan you like watching the gameon Christmas Day, this is one reason
you're probably not going to want tokill Netflix. Maybe, you know,
kill Hulu or Disney Plus first,but Netflix adding the broadcast of NFL games
on Christmas Day to their lineup inthe in the weeks to come. Yeah,
(07:46):
they've been dabbling in live sports here, and they've got the Mike Tyson
Jake Paul fight in July too onNetflix. So it's interesting to want to
follow that story and some changes comingto Uber Jonathan. They've got Uber caregiver.
What is this? Yeah, andthis is innovation. You know,
one thing about all these big techcompanies is as much as we oftentime to
land try to land bas them,I mean, in order to survive and
(08:07):
thrive, they have to innovate.I mean Netflix is doing that, they
don't send out the DVDs anymore,and Uber is doing it as well.
I mean, they're basically trying toup their products. They're launching two new
services. One, as you said, is called Uber Caregiver. It's basically
that a way that a caregiver canadd a loved one, like an elderly
family member, directly to their profiles. So a caregiver can then book a
(08:31):
ride, for example, for someof that they care for. They can
order medical supplies or groceries through theapp, so basically trying to enhance the
Uber app. They're also introducing anew ride share service that will help ferry
people to sports games and concerts.And you know, even Uber has a
competition, the micro Lift is prettymuch hot on their heels, so they're
(08:52):
having to innovate. That's what allcompanies have to do to stay on top.
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