A GOAT, i STAN

Hi there,

I trust you’re doing great!

Before we even begin!!! Who watched, arguably, the best World Cup Final Ever?!

My My My!!!

Messi is going to have the dettiest December ever!!

Who’s with him?
…because a GOAT

But firstttt, where are my manners?

Happy Holiday folks!
Have you set up your Christmas trees or you’re still procrastinating like me? . I’d gist you guys about that later, but let’s talk stocks.

Grab your bowl of popcorn! It’s gonna get bouncy.

TWITTER < TESLA

Musk is going broke? and investors are panicking

With all the drama we know about Elon, it’s hard to conceive that such a smart man will ‘rob peter to pay paul’ – or at least, so to say.

Owner of Tesla, Space X, now Twitter, this man most certainly knows how to stay in the news!
Pre-Twitter, his businesses were doing great and getting a lot of share demands. In fact, during the pandemic, we all know that Tesla’s stocks went through the roof, literally. Hot off the shelves, like hot buns (Can someone tell I’m craving sweet buns?) …But let’s not get distracted Musk got ‘distracted’ [with Twitter] and all hell broke loose when he bought Twitter.

We know that Musk initially sold some of his Tesla shares to finance the Twitter deal. Even more recently, Musk sold another $3.6bn in Tesla stocks (22 million shares) on Wednesday which means he’s taken ~$40bn off the table this year. This decision did affect Telsa so much that its Market Cap drastically dropped from $1.2 trillion to ~$500 billion.

Whew!

Or did he?

Musk also took bank loans worth billions just to finance Twitter. Investors believe buying Twitter was a bad decision financially and you won’t blame them, because see where it landed Musk.

Stay tuned though, this might not be the end of the story.

RATES & THE STREET

So the Fed rates might not go down as it keeps increasing like the rising of the sun. The Fed rate right now is the highest it has been in a whole 15 years. That’s mind blowing— and sad but what could we do? The Federal Reserve raised the rates, again, by 0.5% on Wednesday.

Movie gif. Max the dog from Secret Life of Pets stands at attention with one front paw off the floor, his ears perked up, and an alert expression before sighing, dropping his paw and shoulders and looking at the floor. Text,

Remember that the goal of increasing the Fed rates is to cool down inflation. In other words, if goods were too expensive, less people would buy them, and retailers would then be forced to lower their prices in order to keep customers.

This means that the interest on the loan rate would increase causing people to spend less.

People who borrow short-term would pay way more in interest. Credit cards have also gone up to 19%, compared to 16.3% at the beginning of 2022. These rates might keep increasing in 2023 and potentially, 2024.

“What did I just read, Tomi?”