👩🏻💻 Biden’s China Tariffs, Apple AI, GME, Stock Picks & Investing News 📣
In under 5 minutes, let us introduce you to the investing opportunities found in the latest market headlines. Grow your portfolio with knowledge.
Market Summary
Positive momentum in equities.
Balanced market sentiment in bonds.
Gold and oil prices are relatively flat.
Bitcoin steady.
Investing Unlocks: How to Capitalize on the Hot Topics From The Last 7 Days
We analyze recent trends and opportunities, offering strategic insights that help you manage risks and identify growth opportunities for your portfolio.
Biden’s China Tariffs
President Joe Biden is set to quadruple tariffs on Chinese electric vehicles and increase levies on other key industries in a move to protect American workers. The total tariff on Chinese EVs will rise from 27.5% to 102.5%, while tariffs in other targeted sectors will double or triple. The decision comes after two years of review and is aimed at cracking down on China.
Why investors should care: It could potentially lead to changes in the competitive EV landscape, which China has come to dominate.
It may affect companies in the battery materials supply chain, prompting them to diversify their supply chains.
China is likely to respond with its own set of tariffs or restrictions on American goods.
Apple AI
Apple Inc. AAPL 0.00%↑ is nearing an agreement with OpenAI to integrate the startup's technology into the iPhone. This move is part of Apple's broader initiative to incorporate artificial intelligence features into its devices, as reported by sources familiar with the situation.
Why investors should care: Incorporating advanced AI features into the iPhone could significantly enhance its appeal, keeping Apple at the forefront of smartphone innovation. This could improve its competitive edge in the tech market.
GME Frenzy
GME 0.00%↑ GameStop shares surged by more than 99% following a new online post from "Roaring Kitty," also known as Keith Gill, who had been silent for three years. His return rekindled the meme stock frenzy he initiated in 2021, which famously propelled GameStop's stock value and disrupted hedge fund Melvin Capital.
Why investors should care: Episodes like these can cause significant market volatility. Plus, high-profile trading anomalies often lead to regulatory scrutiny, which can result in changes to trading rules and practices. It can be an exciting and entertaining episode to watch, and some traders use the opportunity to capitalize on short-term gains from volatility.
Investing Strategy Hunt
Legendary investor Jim Simons's death last week has sparked interest in quantitative investing strategies that leverage complex mathematical models and algorithms. These strategies are not straightforward for the average retail investor, but Simons’ success may inspire a new wave of investors to attempt something simpler.
Value investing, popularized by Warren Buffett, is a more accessible strategy for beginners to try. Value investing focuses on identifying undervalued companies with strong fundamentals—this approach is much easier to grasp and implement for beginners.
Stocks appearing on our Value Investing screener this week are mainly found in the Energy and Finance sectors.
💎 Value Stock Pick 💎
NOV Inc (NYSE: NOV) NOV 0.00%↑
P/E Ratio: 7.6
PEG Ratio: 0.8
Dividend: 1.06%
Growth investing is another popular strategy. Peter Lynch is famous for his "invest in what you know" philosophy and for promoting the idea of looking for growth companies with a low price-to-earnings-growth (PEG) ratio.
🚀 Growth Stock Picks 🚀
Delta Air Lines, Inc. (NYSE: DAL) DAL -0.25%↓
ROE: 45.1%
Mean Sales Growth Rolling 12 Months: 7.6%
PEG: 0.8
MGM Resorts International (NYSE: MGM) MGM 0.00%↑
ROE: 23.4%
Mean Sales Growth Rolling 12 Months: 11.3%
PEG: 1.0
Known as the "Queen of Dividends," Geraldine Weiss was a trailblazer in dividend investing. She co-founded the newsletter Investment Quality Trends in 1966, which focused on blue-chip stocks with strong dividend yields. Her strategy revolved around buying stocks that had dividends yielding in the top ranges historically for that stock, thereby indicating they were undervalued.
🏦 Dividend Stock Picks 🏦
Citigroup Inc. (NYSE: C) C 0.00%↑
Dividend Yield: 3.3%
Dividend Payout Ratio: 51.4%
Coca-Cola Company (NYSE: KO) KO 0.00%↑
Dividend Yield: 3.1%
Dividend Payout Ratio: 74.5%
Top Reads
👥 Recent trends show young people are being driven off of the public internet and into more private spaces. Is there hope for the return of a more physically connected society? The death (again) of the internet as we know it.
🔬 Legendary quant Jim Simons died, aged 86. Over the years his foundation’s philanthropic work has led to breakthroughs in our understanding of autism, the origins of the universe, cellular biology and computational science. Jim Simons’ legacy.
📺 Shari Redstone, chair of Paramount PARA 0.00%↑, is entangled in complex merger discussions. Byron Allen's initial $30 billion bid faltered over financial doubts. David Ellison of Skydance offered $2 billion for Redstone’s stake, which is above market value, but faced feasibility issues. Apollo and Sony's informal $26 billion proposal, which could lead to breaking up the company, confronts regulatory scrutiny over potential foreign ownership. Nobody knows what Paramount chair Shari Redstone wants to do with hard-to-sell conglomerate.