Episode 02: V Shape
I am back to recap this week on the markets and it’s been a busy one. Again these are my own opinions and it's not meant to drive your investment decisions.
Today we closed slightly up coming off a week of ups and downs. Monday market was down on expected negative earnings although the tech sector lead on Nasdaq all week being positive while the S&P and Dow saw some hard hits sectors, especially in retail, hospitality and energy.
Today the slight market rally is due to a few things:
- Gilead seeing positive early results on testing for the virus.
- Boeing is going to start manufacturing again on Monday.
-The government guidance on reopening.
This slight rally needs to be tempered to the reality of today.
- Over 22 million in unemployment.
- Retail sales posted the most significant losses ever setting a new record in biggest fall registered of -9%.
- PPP the small business loan program reaching the limits and having congress go back to approve more funding.
- China GDP is down and despite reopening their unemployment it is still holding at all time high of - 6%.
- Finally Goldman downgrades Apple because of the delays on 5G and lower sales.
FUNDING was very busy.
Onfido SF based company raised $100 million led by TPG. They are testing currently in a European government immunity passports tied to your identity using facial recognition.
The Invests this week continued to be heavy on data analytics, cloud based tech, identity in addition and biotech.
The big news came as Airbnb secured over $1 billion in debt funding one week after announcing $1 billion from lead SilverLake. This is massive given they were due to go public this year and now have secured funding to get them through this time.
-Robinhood raised $250 million online brokerage
-Stripe Raised $600 million digital payments in San Francisco
-Verzion buys BlueJeans a video conferencing platform for $500 million to compete obviously with Zoom.
To recap it’s been an up and down market and some have been looking for a V shape recovery meaning the market is going to spike up but as of right now I see it more like a L. The markets just chugging along slightly up and down on gains until we see significant progress. Also the L is consistent with Laura and I have to say I am usually right. JK!
Alright friends, thanks for listening next week we will bring in a special guest to start sharing their perspective on the current environment.
Have a great weekend from the recap on Pandocap!