by Alan Knuckman
Millennials , gas prices and what tech wreck?!
Millennials net worth has doubled since pandemic …So why so much concern about today’s economic health?
Alan says those kids have done pretty, pretty well. Turns out that 70% of all Americans went up 20% last year and 40 percent in the last three years. Their greatest asset is really appreciated in inflation. As has everyone in the last few years and this housing price boom, and that is what is contributing in the net worth double. Phil points out no doubt that a strong housing market is good, but we are seeing signs that it is topping. Millennials are not like us old guys. They have been looking at the investment side in the market at a younger age.
2) GAS DOWN UP
Gasoline is down 60 days in a row and natural gas up 50% in weeks … What is a better buy?
Phil says it depends on your tolerance for risk, natural gas has the biggest one month up move in the history of the futures contract. The biggest move and the highest price since 2008. If NG shipping reopens, natural gas has a very good shot to go back to an all-time high. Maybe get above $10, maybe 15. so that will leaved gasoline prices in the dust if that happens. Alan agrees with everything Phil has said. We have been doing a show for decades and we have talked about there was too much natural gas, so guess what, fundamentals change over time. Prices were above 14 in 2005 and 2008, so a lot of upside. But also crude oil which gasoline we drive with is derived from and stabilize between 98 and 100 right now. So I don’t see a whole lot more downside. I am still bullish on the energy sector.
3) Earnings Growth
Microsoft and Google both made $16 billion in pure profit for the quarter how can there be a Tech wreck?
Alan states these companies are making huge, huge, huge profits. It’s not like they are losing money, so I don’t understand the angst and concern. I don’t think that tech is over if we can take out those highest from June and all of the stock index, back above the S&P 4200 we can take out the high then we can get a serious bounce and a lot of upside reversals in stocks.