Smart Investing with Brent & Chase Wilsey
Business:Investing
Energy Prices
Energy prices continue to climb as regular gas prices at a national level hit a record $4.523/gallon and diesel prices hit $5.573/gallon. Last month gas prices were at $4.08/gallon and diesel prices were at $5.028/gallon. If we look at last year, gas prices were at $3.045/gallon and diesel prices were at $3.171/gallon. For us lucky CA residents, prices for regular gasoline have topped a record average of over $6/gallon.
Energy Market
You have seen a lot of rhetoric about price gouging from energy companies as the reason for higher gas prices. But realistically, the answer is much simpler and can be understood by supply and demand. To begin oil and gasoline/diesel are different. Oil is used to refine products such as gasoline and diesel and is an input cost. There is a correlation between the two, but oil does not fully account for changes in gas/diesel prices.
Retail Sales
Retail sales had a very similar report to last month as the growth was strong, but much of the growth can be attributed to inflation and price increases. The headline number shows April retail sales climbed 0.9% compared to March and were up 8.2% compared to April 2021.
Options Trading
Are the small investors getting smarter or did they get burnt so bad by options trading that they’re now backing away? The most recent data shows at the end of March, small investors made up 26% of total option activity. This was a decline from last year when it hit 30%. The good news for investors is with less option activity this could reduce the volatility in the market. That does not mean it will not continue adjusting downward, but it should mean the swings should not be as brutal if many small investors do not hold options and begin panic selling.
Apple
One of the famous investors from the Big Short, Michael Burry, has now turned his attention to Apple and is betting the stock will decline. Burry is utilizing bearish puts to hopefully profit from a decline in Apple's stock. Even with the recent pullback, Apple still trades at over 20x 2023 expected EPS of $6.54. For a company that is now looking at sales and EPS growth in the single digits I would not say this company is a value play. While we do not short or place bets against stocks, I would not be a buyer of Apple at these levels.
Harrison Johnson, CFP®: Estate Planning and Beneficiaries, New information from the IRS, Individual Retirement Account (IRA), Making sure your beneficiary is set up properly.
Other Companies Discussed:
Ready Capital Corp (RC)
Occidental Petroleum Corporation (OXY)
Global X MLP & Energy Infrastructure ETF (MLPX)
Camping World Holdings Inc (CWH)
April 27, 2024 | GDP, Personal Consumption Expenditures (PCE), S&P 500, Technology & S&P 500, Nasdaq and Do you Hold too Much Cash?
April 20, 2024 | Retail Sales, Value Companies, Home Owners Insurance and Pensions & Social Security
April 13, 2024 | March CPI, March PPI, Investing High & Lows, Semiconductor Industry and Reinvesting Dividends
April 6, 2024 | March Jobs Market, JOLTs, Stock Market, Office Rents,
March 30, 2024 | EV Sales, History of Hype Investing, PCE, Roth IRA 5-Year Rules
March 23, 2024 | Apple Lawsuits, Retirement Assets, Investing and Mortgage Points & Lender Credits
March 16, 2024 | CPI, PPI, 401k, Bitcoin Peaking Point and Tax Brackets vs Your Tax Rate
March 9, 2024 | Labor Market, JOLTs Report, China, Personal Consumption Expenditures and Social Security Changes Coming?
March 2, 2024 | 401k Loans, Hype Investing, US Farmland and is Long-Term Care Insurance Worth it
February 24, 2024 | Commercial Real Estate, Should You Buy Nvidia Now, Chinese Car Makers and Investment Return of Annuities
February 17, 2024 | AI Outlook, Investing in Technology, CPI, PPI and Health Insurance Before Medicare
February 10, 2024 | CPI, China Owning U.S. Debt, Growth Companies and Understanding your Tax Phases
February 3, 2024 | Employment Situation, Job Openings, Investment Grade Debt, Liquid Cash and Tax Filing Review
January 27, 2024 | GDP Report, PCE, Interest Rates, Federal Reserve Balance Sheets and Rule Changes for Inherited IRAs
January 20, 2024 | Banks & the Economy, Office Space, Consumer Spending and Taxes when Selling a Home
January 13, 2024 | Inflation Numbers, PPI, REITs, Bitcoin ETF and Social Security Spousal Benefits
January 6, 2024 | Jobs Report, JOLTs, Dividends & Buybacks, Federal Debt and Structuring Income for 2024
December 29, 2023 | Santa Claus Rally, Cryptocurrencies, Banks and the Magnificent Seven
December 16, 2023 | CPI, Government Debt, Apple, Accident Repair, Season of Giving
December 9, 2023 | Employment, JOLTs Report, Drug Companies, Magnificent Seven and Reviewing Income
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