- The Stock Investor's Edge
- Posts
- Weekly Wrap-Up - September 21st, 2024
Weekly Wrap-Up - September 21st, 2024
Fed Cuts rates by 50 basis points
Mark Roussin
September 21, 2024
Good morning investors!
If this is your first time reading, welcome to The Investor’s Edge — a thriving community of nearly 20,000 subscribers striving to be better investors with an edge in the market.
Every weekend we publish “The Weekly Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!
This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.
Grab your coffee and let’s dive in.
Market Talk
A BIG decision is now behind us with the Federal Reserve cutting rates in an aggressive manner, but cutting 50 basis points. We were looking for 25 basis points, but this Fed was aggressive in raising rates and apparently they are moving quick out of the gate as well. The reason for the 50 basis point cut could be due to the fact that they will skip next meeting in order to shy away from an political interference, and we expect another cut at the end of the year.
The Investor’s Edge Discord is growing!
If you are only reading the newsletter, you are only getting a fraction of the benefits of being an Edge subscriber.
Our Discord server is tailor-made for investors like you who want to dive deeper into stocks, share insights, and engage directly with us.
Here’s what you’re missing in the Discord:
🗨️ Chat rooms: Investors discussed the the huge moves from mega cap tech. Members also dove into the number of jobs reports and shared their views on the overall economy.
📊 Earnings / Economic reports: No more waiting for our newsletters to hit your inboxes - see earnings results and economic data as they are released. And more importantly, get our reactions and insights immediately.
🚨 Trade Alerts: Chris and Mark shared several trades, including additions to the portfolio and trades that set up their portfolios for the week.
Join us on Discord and let's level up our investing game together. The future of trading awaits—and you're invited to be a part of it! 🌟
3 Stories Moving the Market
These are some of the biggest stories from the week that had an influence on market action.
The Federal Reserve Begins Cutting Interest Rates
This week the Federal Reserve cut interest rates by 50 basis points, beginning their easing cycle on an aggressive manner. This was a bit surprising to some considering some of the sticky inflation data we have received of late.
In the past, after the first rate cuts, the S&P 500 has actually performed quite well as long as the economy sticks together.
The sectors that benefit from lower rates include: REITs, Utilities, and Small Caps to name a few. I have been adding to my small cap position over the past few months.
👉 EDGE TAKEAWAY: Now that the Fed has cut interest rates, we will be looking…upgrade to Edge+ to read the Full Edge Takeaway.
Constellation Energy to restart Three Mile Island nuclear plant
Constellation Energy is a stock I covered in my “Top Stocks to Buy in September” video and the company had an amazing week increasing over 30%. News broke Friday that the company was restarting one of their nuclear power plants and the stock jumped more than 20% on the news.
The reason for the restarting of the power plant was because they entered into a deal with Microsoft will purchase electricity from the plant in a 20-year agreement to match the energy its data centers consume with carbon-free power. Constellation described the agreement with Microsoft as the largest power purchase agreement that the nuclear plant operator has ever signed.
Bitcoin increase more than 5% on the week
MicroStrategy raised more than $1 billion to purchase more Bitcoin which helped the leading cryptocurrency increase on the week by more than 5%. MicroStrategy is a software maker, but most of its business is connected to Bitcoin. MicroStrategy held about 252,220 Bitcoin as of Sept. 19, the company said in a SEC filing.
On the year, Bitcoin has increased more than 40% and MicroStrategy’s leader, Michael Saylor is one of the biggest Bitcoin Bulls on the market. Shares of MSTR are up more than 120% on the year alone.
Economic News
As we like to say, price is what you pay value is what you get. Trust us when we say you’re not getting this much value for the price anywhere else on the Internet. Join the Edge+ club today!
Still not sure if the IE+ club is for you? We are now offering a FREE 7 day trial to see how much value we truly provide. Don't just take our word for it — come see for yourself why this opportunity is too good to miss! 👇
IE+ Posts of the Week
We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.
Edge Report
Mondays are for the more serious investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. Here is the latest Edge Report:
Portfolio Update
Here is a look at our latest Portfolio update:
The Week Ahead
The week ahead is all about follow through. There is not much in terms of earnings reports or economic reports, but their is a number of days where Fed officials will be speaking, which could move the markets.
Stocks fell to end the week, but any pullbacks we see as a buying opportunity for a number of specific stocks, so ensure your watchlist is up to date.
Earnings Reports
Earnings season has officially slowed down with many of the big names having already reported their latest earnings reports. Here is the list of names we will be covering next week:
Monday 9/23: --
Tuesday 9/24: AutoZone
Wednesday 9/25: Micron
Thursday 9/26: Costco
Friday 9/27: --
Here is the full calendar of scheduled earnings releases:
Economic Reports
Next week we will get an update on retail sales, and housing, but much of the focus will be centered squarely on the Fed decision mid-week.
Monday 9/23: --
Tuesday 9/24: S&P Case Shiller home price index, Consumer Confidence
Wednesday 9/25: New Home Sales
Thursday 9/26: Initial Jobless Claims, Durable Goods, Pending Home Sales
Friday 9/27: Personal Income, Personal Spending, PCE, Core PCE
Want more? Check out our other resources
If you haven’t done so, check out the social media pages of our collaborators and give them a follow:
Mark (Dividend Seeker)
Chris (CMG Venture)
Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!
Until next time investors!
Mark & Chris
The Investor’s Edge
Disclosure
This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.
Reply