Superbowl Sunday & The Flat-Lined Market
Read Time: 6 minutes
GM Friends & Investors,
To celebrate the weekend, here’s a little-known fact about the SuperBowl:
The first Super Bowl was actually called the "AFL-NFL World Championship Game." It wasn’t till later that the Owner of the Kansas City Chiefs, Lamar Hunt, coined “The Super Bowl” inspired by a toy called “Super Ball.”
Not to mention the NFL racks in around $500-$600 Million every Super Bowl Sunday in revenue.
Highlights:
🍔Fast Food is still the King
🐦Twitter is Lagging Behind
📉The Great Recession 2.0?
S&P 500
The Battle Continues
Recent Consumer Price Index reports have suggested that inflation is slowing. However, Christopher Waller, a Federal Reserve Governor, warned that the fight is not over and could eventually cause rates to be higher than the markets have anticipated.
The markets, in response, were a mixed bag. The energy sector saw a jolt while the rest of the market either flatlined or went lower.
Why? Jobs. January's job figures revealed that the job market is still robust, which could drive consumer spending and maintain inflation. The Fed wishes to slow the job market.
Economy
Fast Food is on the Rise
Grab your order, and don't forget the change!
With inflation putting pressure on consumers, fast food chains have stepped up. McDonald's and Yum Brands (Taco Bell, KFC, and Pizza Hut) reported an increase in demand in their latest earnings report. The takeaway: customers are looking for ways to save money.
Value Menus: Value menus, promotions, and discounts have lured people to fast food. Even Applebee's and Red Lobster have felt the trend, cutting back on advertising and offering more discounts to attract customers.
Historically, the fast food industry tends to fare better than the rest of the food industry during economic downturns.
Still Uneasy?
Cheer up. Things may be looking up!
Even though signs indicate inflation slowing down, small business owners remain pessimistic about the economy. Fed Chair Jerome Powell said disinflation has begun, but the SurveyMonkey and CNBC survey found that small business owners have yet to see a rise in optimism so far this year.
48% of small business owners surveyed described the economy as "poor"”
"Small business owners are still telling us that inflation is a worry, hiring is difficult, and the economy as a whole is unsteady." - The senior manager of research at Momentive.
Around the World
Nigerian Chaos
Here's the deal:
The Nigerian government is switching to a new currency, the Naira, which has caused many issues for the citizens.
Since the end of January, long lines of people have desperately tried to exchange their old banknotes. Initially, the deadline was set for January 31st, but it was later pushed back to February 11th. However, citizens can still not get enough of the new money to cover their daily needs.
Uproar: The shortage of funds has been a massive source of distress and disruption for millions of Nigerians who cannot access cash from ATMs.
EU Frustration with Twitter
The European Union is dissatisfied with Twitter's efforts.
Twitter was supposed to provide a report on how they would address false information on their platform in accordance with the new EU regulations. Twitter and other social media platforms agreed to abide by the new rules.
“I am disappointed to see that Twitter's report lags behind others and I expect a more serious commitment to their obligations stemming from the Code,” said the EU’s Vice President for Values and Transparency.
Crypto
Cryptic Messages
The crypto industry is facing uncertain times due to the job losses that have been occurring since the bear market last year.
In November of 2022, a record high of 3000 people were let go from their positions in the crypto market.
This trend has continued into 2023, with job cuts in the thousands.
The following companies have had significant job losses since the start of the new year:
Crypto.com: 2,500
Coinbase: 2,250
Kraken: 1,250
Luno: 500
Blockchain.com: 400
Gemini: 200
(Figures are approximated from company statements)
Therefore, workers in the crypto industry are more scared than ever about the future of their jobs.
It is a frightening time for many, with job security looking increasingly uncertain.
Real Estate
The Majority Weighs In
Real estate professionals, economists, and investors have debated if the U.S. housing market is going to crash. Last week, the majority reached a consensus: Experts agree that prices could decline, but the decline will not be as drastic as the one during the Great Recession.
Why not? One distinction between the present and the past is that homeowners' personal balance sheets are much stronger than when the Great Recession happened, experts note.
"Large sums of home equity will keep many debtors from being in the same situation as during the Great Recession," the chief economist from CoreLogic commented.
Thank you for reading! I’ll see you next Saturday!
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