My Investing Muse (23Dec24)
Layoffs & Closure news
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BREAKING: Party City is closing all of its stores, and corporate employees were told today is their last day of employment - X user Unusual Whale
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Aerospace company Boeing has announced another round of layoffs, this one impacting 396 workers in Washington state. - NWPB
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Google has once again reduced its workforce, targeting 10% of its management roles, including directors and vice presidents. CEO Sundar Pichai announced the changes during an all-hands meeting. - DNAIndia
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Thyssenkrupp faces massive job cuts and plant closures amid international competition and possible management lapses. - DW News
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The Mersen Manufacturing plant said it is set to furlough 80% of its workers in Columbia. The furloughs were announced just weeks before the Christmas holiday and 25% of its workforce was permanently laid off as of Dec. 15. - KSNBlocal4
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Germany Officially in Recession, Bundesbank Slashes Growth Forecasts Germany’s economy has entered a recession, with GDP expected to shrink by 0.2% in 2024, according to the Bundesbank’s latest report. Growth for 2025 has also been downgraded to a marginal 0.2%, significantly lower than the 1.1% forecasted in June. The downturn is exacerbated by structural challenges, including struggles in the industrial sector, and potential US tariffs under Donald Trump’s trade policies. Bundesbank President Joachim Nagel warned of prolonged economic weakness, affecting both industry and the labor market. Risks remain high, with forecasts suggesting that US trade conflicts could further stagnate or shrink the economy in 2025. Inflation is projected to stay elevated at 2.4% in 2025, though it is expected to return to 2% in subsequent years due to tighter monetary policy and easing labor costs. Source of image: Bloomberg, based on Bundesbank
The Case of Argentina
Source https://www.aljazeera.com/news/longform/2024/12/7/a-year-into-javier-mileis-presidency-argentinas-poverty-hits-a-new-high
Argentina has exited recession but there is more poverty. How can we reconcile the above? Inequality in income distribution?
An opportunity for America Energy
https://x.com/B2RKN/status/1868492014398091745
This is a great opportunity for energy investment. You need to power your progress. Do not let infrastructure let you dow
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In 2025-28, we project ~57 gigawatts (GW) of US data center power demand, and we quantify available power capacity to serve this demand as: near-term grid access of ~12-15 GW, plus ~6 GW of data centers under construction, resulting in a ~36 GW shortfall of US power access for data centers in 2025-28 " (Morgan Stanley) - from X user ZeroHedge
My final thoughts
When there is much news surrounding a business, I prefer to monitor it. Some news leads to overvaluation and some to undervaluation. The market can swing in extremes. The long-term value proposition helps to put things in perspective.
The market can remain irrational longer than we can be solvent.
There is a mixture of euphoria and concerns over the market. Some hedging can help manage the situation. Let us do our review for 2024 and start planning for 2025.
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