The best June ever

By Hoda Mehr Mon, Jul 1, 2019

What you need to know?

If you’ve missed any of our daily scoops last week, here are the highlights:

• Investors are worried about the future of the company as the company’s Chief Design Officer, Jony Ivy leaves Apple. Read more here.
• The trade negotiations between the U.S. and China are chugging along and Treasury Secretary, Steven Mnuchin, thinks we are 90% done. Read more here.
• Maybe an interest rate cut is not in the books, even in the next monthly Fed’s meeting. Read more here.
• Alphabet, Google’s parent company, aspires to dominate the world of real-estate with its new bet on the future of smart cities in Toronto. Read more here.
• Last but not least, all but one bank passed the Federal Reserve’s annual capital stress test. Read more here.

And, the stock market wrapped up June with a historical stellar performance. The Dow marked its best June in 81 years, and the S&P 500 Index celebrated its own best June performance in 64 years.

What does it mean for investors?

Despite the widespread plea for monetary policy interventions, the economy is doing well. It has been quite a few years that the experts are predicting a market crash, but the crash is yet to happen. With all historical definitions, we should have had a downturn by now, but it hasn’t happened yet. As a wise man once said:

“Markets can remain irrational longer than you can remain solvent.”

Don’t ever sit out of the market just because others are predicting a crash, and likewise, don’t ever jump in with two legs, just because the market has been chugging along.

• U.S. markets: All three major indices closed Friday higher than where they started. Scroll down to the Overall Market section to read more about what happened. 
• Bitcoin: Amidst typical cryptocurrency price fluctuations, Coinbase.com released its findings of the American’s cryptocurrency awareness. Looks like more people are becoming aware of Bitcoin and more estates are officially looking into some legal framework for acceptance of the currency. The findings might have helped the coin’s upward price trend to more than $12,000 on Friday.

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We are in new waters now. 

What will happen next week?

Come Monday, we are officially swimming in new waters. It’s now the longest ever market recovery in the history of the U.S. Congratulations, we made history, right?

Well, maybe not. Do you know what’s happening this weekend? G20 Summit. Saturday afternoon, the leaders of the U.S. and China are meeting to discuss the fate of trade negotiations, and they have the power in their hands to shatter our dream of making a historical market recovery record glory. Would they?

Our prediction:

It’s the prediction of the Daily Scoop’s editorial team that both leaders would want to bring back the good news to their respective countries, but neither is looking for a big splash. Therefore, the market will just open and inches forward fueled by slightly good news. It’s a game of moving along by inches. No cliff-jump, neither a take-off

What was your prediction for the direction of the stock market this week?

Oh, before we wrap up this section, this was just a Friday afternoon prediction with a glass of wine in our hands. This is not investment advice. We felt the need to say that. We don’t believe in predictions. No crystal ball here.

3D printing is making a comeback. 

A few years ago at the annual Consumer Electronics Show in Vegas, 3D printing was all the buzz. Fast forward to a few years later and almost none of the world domination 3D printing plans panned out the way investors had hoped. But on Friday, shares of 3D printing company Stratasys Ltd (Ticker: SSYS) were up more than 14% for no apparent reason. 

The best guess we have is that 3D printing is making a comeback, or an institutional fund has poured money into the company, we just don’t have the news yet.

We were just celebrating. 

On Thursday, Rite Aid (Ticker: RAD) had a great day and the company’s shares jumped up after a little bit of boost because of its store pick-up partnership with Amazon. On Friday, the stock lost more than 6% of its value. It looks like investors have no hope for Rite Aid, they were just celebrating Amazon’s partnership for a day.

Don’t ever invest in a company just because of positive news, if the underlying company doesn’t have the strength required to pull it through.

Secondhand clothing is the new hot thing. 

So, what happened? 

Shares of a new hot IPO is up almost 50% after its public debut on Thursday. This new IPO is not a tech company. It just sells secondhand items. The RealReal (Ticker: REAL) is a marketplace for secondhand luxury items and has a staff of 100 that verify the authenticity of the items.

If you are GenX or Baby Boomer rolling your eyes over the sustainability of this company, just remember Millennials and GenZ consumers are all about protecting the environment; since they still have a lot of years left to live on this earth, and they also love to dress up. Combine those things together and you’ll know why the IPO of a marketplace for secondhand luxury items is performing better than the likes of Uber.

About the Author

The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card