Weekly Market Rollup Oct Week #1 2021
Squid Game Lesson, How Eating Beef will cause whether uncertainties, US debt ceiling, Inflation cause eggs to rocket 🚀, The New TECH World Order, Squid Game stock up 100%, why American retire early.
Good day investors.
This week started with people posting memes or “green & red” on Facebook & Instagram.
I want to share Two money lessons from watching the famous Netflix short series “Squid Game”?
The rich rule over the poor, and the borrow are slaves to the lender. -Proverbs 22:7. People who participate in the game are buried with high debt, and they can’t stop playing the game even if it involves death.
Money does not buy happiness. The main character won the brutal game, came out with prize money of 45.6 billion won devastated. The huge amount of money does not make him happier because he has lost everyone close to him, including his mother, who died alone in the house. He remains to live.
Another reason why money can’t buy happiness is that the game brought pleasure to the ultra-rich to bet on human life. Player 001 Oh Il Nam is actually the mastermind behind the game. When watching the game could no longer give him satisfaction, he decided to play the game himself to experience the thrill of life & death.
Life is a series of choices made. The choices we make today will affect our future experiences.
Before we go on, let’s do this → if you like what you see so far, you can subscribe to this FREE weekly newsletter.
1: The Green Future
What Do Coal And Beef Had In Common?
Answer: It is bad for the environment. Steak, the American favorite food, has contributed more greenhouse gas (GHG) than any other livestock. Forgoing steaks may be one of the most efficient ways to reduce your carbon footprint.
Beef total carbon emission is higher than the total of Japan plus world Air travel.
Beef is very carbon-intensive because cattle emit methane and need a large area created via deforestation.
To me, one effective solution humankind can take to reduces meat intake. I personally “reset” my weekly meal from 100% meat base to 30%. This I consume meat 2 out of 7 days in a week.
_______
The World will face 7 times more extreme weather in the future.
The unpredictable weather has become common now. China vicious flood forced 1 million to relocate. Russia reported the largest fires in its history. Heatwaves killed almost 700 people in Canada & 600 in America & how about Texas experience unprecedented snow! Record high temperature is seen from Spain to Siberia.
New research published in Science says that children born in 2020 will face a two- to seven-times increase in extreme climate-related events compared to those born in 1960.
Extreme climate events sure as wildfires, crop failures, droughts, river floods, heatwaves, and tropical cyclones will be common in uncommon places in the future. -If swift action is taken, some of the damage can be limited.
2: China The Asia Dragon:
China Crypto rules
China announced all crypto-related transactions would be considered illegal.
Three reasons why the Chinese going hard on crypto:
They aim to unleash their own cryptocurrency- the digital yuen. 81 nations are exploring digital currencies, and China is one of them. The digital Yuen will be rolled out next year during the winter Olympics in Beijing. The US
They want to stop crypto mining due to its energy-intensive nature.
They want to be able to monitor currency transactions and give a boost to their homegrown digital currencies.
3: Freakonomics
US Government Shutdown Part 2?
If the chart below represents the rise of GDP Growth Rate, then this will be something that we can be proud of. However, that is not the case. The debt ceiling rise is shown below, and it poses a serious threat to millions of Americans.
Every year, the government will come out with budgets that include government spending on infrastructure, social security & salary for federal government workers. Then, the government will tax the people to pay for all that spending.
But for years, the US government has been spending more than it gets from taxes and other revenue - this increased federal deficits.
This is where the debt ceiling comes in. The debt ceiling is the cap on the amount of money the congress set up for the treasuries to borrow to pay US debts.
The US treasuries will go into default if they cannot borrow money. As a result of, stock market crash, Social Security and Medicaid will be jeopardized. In addition, soldiers and pensioners could go unpaid.
Another long-term consequence of defaulting US treasuries is the devaluation of the US dollar as the world reserved currency. When the world no longer trusts US treasuries as risk-free, this will trigger an “economic catastrophe,” a word coin by Janet Yellen recently when she addressed the debt ceiling issue.
Side notes: The Debt ceiling has been rised 78 times Since 1960.
49 times under Republican presidents.
29 times under Democrat presidents.
During the Trump administration, the ceiling has been raised 3 times.
_______
Inflation is real part 2.
This is the effect when a sudden release of money supply in the market. For example, when people hold extra cash (given by the government + the inability to spend during pandemic lockdown), increasing demand for goods & services, yet supplies are limited (nonproduction during lockdown).
_______
Germany's energy price skyrocketed to the highest level In 10 years. We might see another commodity will follow, though, in this inflationary market.
4: Market @ A Glance:
Dow Jones & Nasdaq
Fearing the government shutdown was just one factor for panic investors getting out of the market on Tuesday. However, we saw a strong rebound in the technology sector on Friday.
Natural Gas
Natural gas prices remain volatile—$ UNG ETF touching $21, making an all-time high but closing at $19 on Friday.
Brent Crude Oil
The price of Brent crude crept up to $80 a barrel for the first time in three years.
5: Wheels on Fire
Ford Motor announced an $11.4 billion joint venture with South Korean partner SK Innovation to build two electric vehicle production campuses in Kentucky and Tennessee. one factory will produce batteries for Evs, another plan to make its f-series electric pickup truck.
Analysis:
Weekly always in long (blue dot) but a bad follow-through bar rejecting previous high.
6: Tech Crunch:
The New World Order of These 5 major deflationary forces brewing- It’s a good one.
We are in a period today like we’ve never been before. The last time we had this kind of historical, technological advancement was when we discovered the telephone, electricity, and automobile during the same period.
7: Opinion:
Top Korean drama on Netflix ‘Squid Game’ Sparks Korean Media Stock Surge.
The Korean drama version of “Hunger Game” became the first Korean drama to claim the No. 1 spot in the U.S.
_______
A World of Inequality
________
Why are Americans retiring earlier?
When the pandemic hit 2020, 49.9% of Americans chose to retire before 62. The reason for that is the booming stock market. In less than Both DJIA & Nasdaq up 80.31% & 120% respectively. → refer above “a world of inequality.”
So Americans that are less affected financially receive money from the government bet it on the stock market during the lockdown because that is the most reasonable place to fight against the devaluation of fiat money.
Other reasons for falling life expectancy, which decreased by 1.9 years between 2018 and 2020 and the fear of dying from covid 19—may have caused some Americans to retire early.
That’s all for this week. Until next time. 😎