Brrr... - Trade Stocks

Brrr…

By Fri, Jan 24, 2020

Hey Scoopers,

Thursday’s stock market wasn’t that different from Wednesday’s market. The chill market gave us a chance to take a look at the global debt, and its magnitude gave us chills … brrr — more on that in the “Overall Market” section.

Beyond the overall market, it seems that the streaming war is over for one company, at least for now. And, sadly, the coronavirus has reached the stock market — more on that in the “What’s Up?” and “What’s Down?” sections.

Oh, and by the way, can you guess which mobile app made the most money in 2019? Just guess, before scrolling down. It’s a lot more fun in this way — more on that in the “Water Cooler” section.

But first, here is a recap of what happened in the market:Market Recap

  • U.S. markets: For one more day, while stock market indices didn’t agree on the direction, all three barely moved either.
  • Cryptocurrency: Bitcoin’s price is finally down to lower than $8,500 per coin. It looks like there was no fundamental news to explain why except that traders were doing their tradings.

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A chilling look at the magnitude of global debt.

JTNDaW1nJTIwc3JjJTNEJTIyaHR0cCUzQSUyRiUyRnRyYWRlc3RvY2tzLmNvbSUyRndwLWNvbnRlbnQlMkZ1cGxvYWRzJTJGMjAyMCUyRjAxJTJGdGhlb2ZmaWNlLTEuZ2lmJTIyJTNFThere wasn’t much movement in the stock market for one more day. Therefore, we had a chance to check in with the Institute of International Finance (IIF) and its coverage of the global debt.

Of course, the interest rates are record low, globally. Consequently, everyone around the world is in no rush to reduce its debt level or stop borrowing more. That’s understandable, and no surprises.

What’s very chilling to us is the relative size of debt vs. the global economic output. According to IIF, the global debt surpassed total output by 322%, and there is no sign of slowing down in global borrowings. Also, $8 trillion of global debt is due this year that countries and enterprises are trying to roll over. The magnitude of debt is going to only go up.

What’s even more worrisome, is that eventual fact that debtors have to start paying back the debt, at some point. And, if the money they borrow now is not invested in growth, and only used to buy back shares or invest in non-economically or -socially positive projects, where the money is going to come from.

Did you feel that? We’ve got chills running down our spines … brrrr

The streaming war doom is over.

So, what happened?

Shares of Netflix (Ticker: NFLX) were up more than 7% on Thursday. It seems that the streaming war was over-blown out of proportion. Could it be? We are being sarcastic, of course. As always, business wars are over-exaggerated.

In its latest quarterly earnings report, Netflix continued to grow internationally and maybe even more importantly, it showed that the growth opportunity is still abundant thanks to the non-stop decline in traditional TV.

So, who here sold its Netflix shares last year? Reply and tell us why? And, what did you learn from this experience?JTNDc2NyaXB0JTIwc3JjJTNEJTIyaHR0cHMlM0ElMkYlMkZ3aWRnZXQuc3RvY2tjYXJkLmlvJTJGanMlMkZzYy13aWRnZXQuanMlMjIlMjB0eXBlJTNEJTIydGV4dCUyRmphdmFzY3JpcHQlMjIlM0UlM0MlMkZzY3JpcHQlM0UlM0NkaXYlMjBjbGFzcyUzRCUyMnNjLXdpZGdldC1jb250YWluZXIlMjBzY19sYXJnZSUyMiUyMGRhdGEtdGlja2VyJTNEJTIyTkZMWCUyMiUyMGRhdGEtdG9rZW4lM0QlMjJUTmNwcks3TjcxWGltUGpDSnFickQyNVhnV3YyJTIyJTNFJTNDJTJGZGl2JTNFJTBB

The coronavirus has reached the stock market.

So, what happened?

Shares of Yum China (Ticker: YUMC) were down more than 4% on Thursday. The company is the Chinese body of Yum! Brands that were recently spun off as a stand-alone company and has been quite a success. With the growing middle class in China, brands such as KFC (6,300 units) and Pizza Hut (2,300) have been growing and Yum China’s investors were rewarded so far. However, one thing restaurant stocks hate more than short-sellers is viruses. And, that’s exactly what caused the company’s stock price to fall on Thursday. Investors are worried about coronavirus impacting restaurant visits and traffic, and the fear of slow traffic has officially forced the stock price to enter a rather fair share price range. The impact of coronavirus won’t be permanent, just like how the stock price decline won’t be sustained.

If it were us, we would have added this to our watchlist. Just saying … Do your own research… this is not advice.JTNDc2NyaXB0JTIwc3JjJTNEJTIyaHR0cHMlM0ElMkYlMkZ3aWRnZXQuc3RvY2tjYXJkLmlvJTJGanMlMkZzYy13aWRnZXQuanMlMjIlMjB0eXBlJTNEJTIydGV4dCUyRmphdmFzY3JpcHQlMjIlM0UlM0MlMkZzY3JpcHQlM0UlM0NkaXYlMjBjbGFzcyUzRCUyMnNjLXdpZGdldC1jb250YWluZXIlMjBzY19sYXJnZSUyMiUyMGRhdGEtdGlja2VyJTNEJTIyWVVNQyUyMiUyMGRhdGEtdG9rZW4lM0QlMjJUTmNwcks3TjcxWGltUGpDSnFickQyNVhnV3YyJTIyJTNFJTNDJTJGZGl2JTNFJTBB

Guess which mobile app made the most money in 2019?

JTNDaW1nJTIwc3JjJTNEJTIyaHR0cCUzQSUyRiUyRnRyYWRlc3RvY2tzLmNvbSUyRndwLWNvbnRlbnQlMkZ1cGxvYWRzJTJGMjAyMCUyRjAxJTJGWW91VHViZS5naWYlMjIlM0U=So what happened?

Here were the editorial team’s guesses:

  • YouTube Premium 
  • ClassPass (The app you buy access to different gyms)
  • Candy Crush video game 
  • Other games, you name it …

And, were any of us correct? The answer is NO.

The top money-making mobile app of 2019 was Tinder … Yeh, Tinder …

With that enlightening fact of the day, we bid you goodbye, for today.

Disclosure: Authors of this Scoop own shares of Netflix (Ticker: NFLX).

About the Author

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