Skip to main
Spider 🕷
@UnderCoverHedgefund

Spider Tribune (Weekend Edition) 08/22/2021

Tapering Explained, Fed Meeting, Earnings, & Data Coming Out

It looks like we might be starting another bumpy week on Monday! Besides earnings coming out for many companies through out the week we'll be starting off with existing home sales data being released Monday, Tuesday will have new home data coming out, Wednesday is Durable goods, Thursday kicks off the symposium for the Federal Reserve that goes into Saturday. Here's the schedule so you know when and what it's happening along with what earnings are due for the day.

Monday

10 a.m. Existing home sales

Earnings

$PANW , $MSG

Tuesday

10 a.m. New home sales

Earnings

$URBN $BBY, $BMO $INTU $JWN $MDT $AAP $TOL

Wednesday

8:30 a.m. Durable goods

Earnings

$ULTA $CRM $RY $SNOW $BOX $ADSK $EXPR $DKS $SCVL $NTAP $SPLK $PSTG

Thursday

8:30 a.m. Jobless claims & 2nd Quarter GDP

Earnings

$HPQ $DELL $GPS $ANF $DG $HAIN  $PTON $WDAY $VMW $OLLI $MRVL $TD $SAFM

Friday

8:30 a.m. Personal income and spending & Advanced good Trades

10 a.m. Consumer spending & inflation index

Earnings

$BIG

Tapering rumor causing trouble,but what does it mean?

Tired of people saying the federal reserve is thinking about tapering or better yet, repeating what they read and for some strange reason not explaining what it could possibly mean in their posts? Makes me wonder why that is, anywho lets break it down but first you need to understand QUANTITATIVE EASING and what it means here.

The Federal Reserve & Quantitative Easing(QE)

The Federal Reserve is our nations central bank, which is in charge of note issuing = printing and issuing currency notes (money) as well as regulating the country's currency. Even simpler, it makes sure it mantains people confidence in the nations currency and that its supply is adjusted to the current demand of the economy plus many many other things.

QE means that the Federal Reserve to buy a predetermined amount of government bonds each month in order to help the economy's liquidity until the goals for maximum employment and price stability has been met.

Because these bonds are being bought interest rates go down because more banks have more cash in their accounts, which they can hold, lend out to consumers or companies, or use to buy other assets, as well as be able to loan more money and make more loans for people to borrow. The more loans a bank can do then less interest there is, but the less loans a bank can do the more the interest goes up. The way of looking at INTEREST is basically how much it cost to borrow money, so a low interest would mean its cheap to borrow money and makes more people willing to borrow money. The more people willing to borrow money and use it to invest in the stock market, hire more employees and spend more of it the more it helps stimulate the economy.

Tapering

Now that you have the information to understand what QE is, i can now explain TAPERING. The best way of looking at it is tapering is the first step to completely stopping QE, so now that our economy is getting better than it was beginning of COVID with more people working and the rate of recovery is a bit faster than predicted its necessary to begin the process of stopping QE because as it is inflation is happening and continuing to stimulate an economy after it's started to get normal with "easy money" it can lead to out-of-control inflation, the stock market prices being driven up and an overheated economy which is a cycle of inflation going up so wages go up whch then in turn makes inflation go up and then wages go up and so on. Anyways what TAPERING here means that say for example the predeetermined amount of bonds the Federal Reserve was buyng a month each month is $120 billion once the tapering begins it'll start slowly buying less and less like $100 billion a month then $80 billion so on until it reaches whatever amount they are trying to reach. In theory this is what it means but in reality it hasnt really been done succesfully completely because of taper tantrum, which i'll cover in another "Spider Tribune". QE makes interest rates go down so by that logic tapering will make interest rates climb but not necessarily in a rapid manner.

What Does the Week Hold?

How the market goes will depend on how each day goes, Monday-Wednesday will probably be straight forward so if the data that comes out is good news then we'll most likely be seeing green, if the data that comes out is bad news then the markt will be red but our main concern should be Thursday and Friday.

In my opinion it's not the data that comes out will affect us but what is said at the symposium. Let me specify, if the federal reserve comes out saying that the tapering will begin very soon and a bit faster than what was first led to believe than we will have a very rocky market Thursday & Friday. People will start panic selling. At this point if the entire week comes out with positive news, it will still get easily over shadowed by tapering fears.

My Plan

Just like a few weeks ago i predicted red for one of the weeks and started selling as much as i could as soon as i broke even/hit a gain. It wasnt out of panic though, i saw an oppurtunity so i stock piled as much buying power as i could to make sure i was ready for the red days to buy many things on sale. It ended up working out pretty well for me. It's not advice im giving and telling people to do the same but i think i rather get ready and sell at break even and not make money than risk holding and lose a lot of money.

#my1stinvestment #newandreadytogetstarted #newatthisgame #newb #firstinvestment #learningasigo #idontknowwhatimdoing #beginner #beginnerinfo #beginnerinvestor #spidersmethod #spidertribune #undercoverhedgefund #thingsthatmakeyouthink#explain #currentnews


Don't forget to follow me to read all my newest posts when they go up!

Subscribe to my channel

Sign up for Spidey Cents Text Alerts!

Get your entire portfolio built from the ground up or have it analyzed!

Follow me on Twitter!

Follow me on IG

Add me on Facebook!

0
0
Own your future.
Build your portfolio.

All of your investing.
All in one place.

Invest in stocks, treasuries, ETFs, crypto, and alternative assets on Public. Transfer your account to Public and get up to $10,000.
Sign Up
Products
Contact Us
Check the background of this firm on FINRA’s BrokerCheck.

© Copyright 2023 Public Holdings, Inc. All Rights Reserved.

Market data powered by Xignite.

All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Product offerings and availability vary based on jurisdiction.

Stocks and ETFs.
Brokerage services for US-listed, registered securities are offered to self-directed customers by Open to the Public Investing, Inc. (“Open to the Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Open to Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered. Securities products offered by Open to the Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.

Alternative Assets.
Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933 (as amended) (“Regulation A”). This content is not investment advice. These investments are speculative, involve substantial risks (including illiquidity and loss of principal), and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in an Open to the Public Investing brokerage account and are self-custodied by the purchaser. The issuers of these securities may be an affiliate of Public, and Public (or an affiliate) may earn fees when you purchase or sell Alternative Assets. For more information on risks and conflicts of interest, see these disclosures. An affiliate of Public may be “testing the waters” and considering making an offering of securities under Tier 2 of Regulation A. No money or other consideration is being solicited and, if sent in response, will not be accepted. No offer to buy securities can be accepted, and no part of the purchase price can be received, until an offering statement filed with the SEC has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification by the SEC or as stated in the offering materials relating to an investment opportunity, as applicable. An indication of interest to purchase securities involves no obligation or commitment of any kind.

Crypto.
Cryptocurrency execution and custody services are provided by Bakkt Crypto Solutions LLC (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto Solutions LLC and Public Platform LLC. Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please ensure that you fully understand the risks involved before trading: Bakkt Crypto Disclosures.

Treasuries.
U.S. Treasuries (“T-Bill“) investing services on the Public Platform are offered by Jiko Securities, Inc. (“JSI”), a registered broker-dealer and member of FINRA & SIPC. See JSI’s FINRA BrokerCheck and Form CRS for further information. When you enable T-Bill investing on the Public platform, you open a separate brokerage account with JSI (the “Treasury Account“).

JSI uses funds from your Treasury Account to purchase T-bills in increments of $100 “par value” (the T-bill’s value at maturity). T-bills are purchased at a discount to the par value and the T-bill’s yield represents the difference in price between the “par value” and the “discount price.” Aggregate funds in your Treasury Account in excess of the T-bill purchases will remain in your Treasury Account as cash. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. T-bills are subject to price change and availability - yield is subject to change. Past performance is not indicative of future performance. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. See Jiko U.S. Treasuries Risk Disclosures for further details.

Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

Banking services and bank accounts are offered by Jiko Bank, a division of Mid-Central National Bank, Member FDIC.

JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (“Public”) or any of its subsidiaries. None of these entities provide legal, tax, or accounting advice. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Commission-free trading of stocks and ETFs refers to $0 commissions for Open to the Public Investing self-directed individual cash brokerage accounts that trade the U.S.-listed, registered securities electronically during the Regular Trading Hours. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Open to the Public Investing’s Fee Schedule to learn more.

Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.