SK Hynix, Intel shares rise on report of U.S. memory chip production plans
Market scorecard
US markets started the week with some positive returns. The S&P 500 achieved a new record high, led by the consumer discretionary sector. Market participants are preparing for a big week characterised by earnings reports from major technology companies, a Federal Reserve meeting, and jobs data. Almost half of the S&P 500 companies will have reported by the end of Friday.
In company news, SoFi Technologies (NASDAQ:SOFI) soared 20% after the investment company reported better-than-anticipated results. Elsewhere, iRobot (NASDAQ:IRBT), the company that makes AI-powered household cleaning robots, tanked 8.8% after Amazon (NASDAQ:AMZN) terminated the deal to buy them because regulators blocked the deal.
At the end of the day, the JSE All-share closed down 0.95%, the S&P 500 rose 0.76% and the Nasdaq was 1.12% higher.
One thing, from Paul
Quite a few Vestact clients are older people. In fact, one of our best customers turns 96 this year. That's a good age!
I like young people because they are fresh-faced and optimistic. They are not so interested in politics (a good thing), or discussing health problems (they don't have any).
Old people are fun to talk to because they have lots of experience and interesting perspectives to share. I don't approve of ageism. On that topic, Emanuel Derman, a South African who lives in New York and used to be at Columbia University and Goldman Sachs had this to say:
"Ageism is a mystery and paradox of self-delusion. How can one make disparaging remarks about old people without the consciousness that, if you live long enough, you too will be old, suffer the thousand natural shocks the flesh is heir to, will bear the whips and scorns of time? How can you ridicule what you are pretty certainly going to become?"
Byron's beats
We deal with a lot of different clients and personalities in this business. It gives us a good idea of which mindsets are best suited for long-term equity investing. It is quite easy to pick up when someone is looking to get rich quickly from the stock market. They are often obsessed with the latest market trends and get caught up in trying to time entries and exits.
Ironically, these types of "investors" normally lose money, even if they get a lucky start. We have seen it time and time again. Once you realise that the market is not a get-rich-quick scheme but rather a build your wealth gradually mindset, then you are on the right track.
Of course we want to grow your money as quickly as possible, but in life there are no short cuts, especially in a field as competitive as making money.
Michael's musings
I remember writing a Musing, I think around 2019, talking about how golf was a dying sport. Sales of equipment were down, and golf courses were struggling to keep their doors open as memberships dwindled.
It looks like things have changed, thanks to Covid. Not only has the slide in player numbers stopped, but the trend has also been reversed. A mixture of social distancing, mixed with remote work and more flexible working hours, has resulted in a resurgence of golf. For example, I know Country Club Johannesburg (CCJ) has seen a jump in membership numbers, and currently has a 7 month waiting list to join.
This article highlights that many of the new players are women - Golf's growing appeal. I just counted, within a 10km radius of our Rosebank office, there are 11 golf clubs - that is excluding the 2 courses at Royal Joburg, CCJ and Randpark. Seeing the number of interested players grow is great for the sport and all the industries linked to the game.
Bright's banter
Ford (NYSE:F) has announced a reduction in the production of its all-electric F-150 Lightning due to lower-than-expected customer demand.
Approximately 66% of the workers at the factory producing these electric vehicles will be redeployed to facilities that manufacture combustion engines.
This move comes as the automotive industry grapples with the pace of electric vehicle (EV) adoption and adjusts production plans accordingly.
Signing off
Asian markets are down this morning. Benchmarks plunged in India, Hong Kong, mainland China, and South Korea while they gained in Japan. The Chinese developers' index is down about 4% as the Evergrande Group liquidation order spooked the property market.
US equity futures are in the green pre-market. It is a busy evening for company earnings, with Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOGL), Stryker (NYSE:SYK) and Starbucks (NASDAQ:SBUX) reporting.
The Rand is around R18.80 to the Dollar. Expect some currency volatility after the Fed's meeting concludes tomorrow.
Have a good day, Januworry is nearly over.
