HIS ANNUAL LETTER TO
SHAREHOLDERS.
OUR EXPERTS SAY IT MAY NOT BE
BUFFETT DOING THOSE TRADES.
WE BEGIN WITH THREE THINGS
INVESTORS OUGHT TO BE THINKING
ABOUT.
MARKETS ENDED THE WEEK MIXED ON
A RATE HIKE FEARS AND RISING
BOND YIELDS.
INVESTORS FEAR RATES COULD GO
HIGHER AND STAY THERE LONGER.
FORD AND HASLETT HIT SOME BUMPS
IN THE ROAD BUT THE INDUSTRY IS
STILL MOVING FORWARD AND WE’VE
BEEN HEARING ABOUT A HARD
LANDING AT A SOFT LANDING BUT
ARE WE HEADING FOR NO LANDING.
ON "BARRON’S ROUNDTABLE," BEN
LEVISOHN, KRISTIN HEALTH TERM
AND JACK HOUGH.
GOOD NEWS IS BAD NEWS FOR
STOCKS, NICE ECONOMIC NUMBERS
COMING UP BUT THE STOCK MARKET
NOT SO HAPPY.
JACK HOUGH: THE STOCK MARKET IS
REALIZING THEY ARE WRONG ABOUT
THE FED.
AND INVESTORS, WE HAD TWO HAVE
THIS WEEK, THE STOCK MARKET
RALLY, A STRONG CPI NUMBER, BY
THE END OF THE WEEK THEY GAVE BACK MOST OF THE GAINS BECAUSE
BACK MOST OF THE GAINS BECAUSE
WE GOT A STRONG PPI WHICH HAS
MORE IMPACT ON CORPORATE
EARNINGS AND A LOT OF FED
GOVERNORS SAYING 50 BASIS POINT
RATE HIKES, THE MARKET STARTED
TO REFLECT THAT IN PLACES LIKE
THE FED FUNDS FUTURE PROJECT.
JACK OTTER: THE BOND MARKET
SEEMS TO HAVE SNIFFED THIS OUT,
BONDS HAVE GOTTEN HIT HARD, IS
THIS WHO INVESTORS THINK ARE
THE SMARTER ONES THAN THE STOCK
JOCKS PREDICTING THIS WAS GOING
TO HAPPEN?
>> THEY WERE AWARE THIS WAS
STARTING TO HAPPEN.
THEY DROPPED 2.3% IN FEBRUARY.
THAT IS ANTICIPATION OF WHAT IS
GOING ON NOW, THAT THERE IS NO
RISK THAN THERE WAS BEFORE.
THAN THE 2-YEAR, ONLY 0.1
PERCENTAGE POINT AWAY FROM THE
HIGH OF THE CYCLE SO WE ARE
STARTING TO SEE, WE HAVE TO
TAKE THE FED MORE SERIOUSLY.
>> WE ALWAYS SAY YOU SHOULDN’T
LOOK AT ONE OR 2 DATA POINTS.
THAT’S MORE TRUE THAN EVER IN
RECENT YEARS.
THIS WEEK YOU HAVE MORE DATA
POINTS COMING OUT.
WHAT ARE YOU LOOKING AT?
>> A COUPLE THINGS.
EARNINGS RETAILERS, THE PAST
WEEK WE HAD RETAIL SALES
NUMBERS COME OUT AND NOW
RETAILERS LIKE WALMART AND HOME
DEPOT AND COMPANIES LIKE THAT.
AND A PCE READING, THE FED’S
FAVORITE INFLATION METRIC AND
WE SEE HOW MUCH INFLATION IS
SLOWING.
IS IT SLOWING ENOUGH TO KEEP
INFLATION GOING THROUGH THE
YEAR?
JACK OTTER: THE ROAD TO AN
ELECTRIC VEHICLE FUTURE TURNED
BUMPY THIS PAST WEEK.
KRISTIN:IT IS BUMPY ESPECIALLY
FORD WHO HAS TO PAUSE
PRODUCTION OF THEIR F 150
ELECTRIC TRUCK.
THIS IS BECAUSE THEY HAD
BATTERY PROBLEMS, FIRE IN ONE
OF THE BATTERIES WHICH IS NOT
GREAT NEWS.
THIS IS A COMPANY THAT LOST
$2 BILLION LAST YEAR SO THEY
CAN’T AFFORD THESE ISSUES.
IT IS GOOD NEWS IF YOU ARE
FORD’S COMPETITOR, THEY ARE
HEAD TO HEAD IN THE ELECTRIC
TRUCKMAKER INDUSTRY AND THEIR
STOCK WENT UP 8% WHEN THE NEWS
CAME UP SO GOOD IF YOU’RE UP
AND GOOD IF YOU ARE DOWN.
>> PRETTY GOOD TRUCKS.
ONE OF THE HOT EVMAKERS, TESLA,
A ROUGH WEEK FOR ELON MUSK.
>> DOES LATTER RECALL, 360,000
CARS.
IT WAS RELATED TO THEIR SELF
DRIVING, SO THE SELF DRIVING
HAS BEEN A PROBLEM THROUGHOUT.
THEY WERE FINDING THESE CARS
WERE DOING THINGS LIKE NOT
NAVIGATING AN INTERSECTION VERY
WELL, HAD TO SHIFT SPEEDS SO
TESLA IS SAYING THIS IS NO BIG DEAL, WE WILL PUSH AN UPDATE TO
DEAL, WE WILL PUSH AN UPDATE TO
THESE CARS AND FIX IT BUT
SAFETY ISSUES AROUND THIS
TECHNOLOGY RAISES MORE
QUESTIONS.
>> BUT GOOD NEWS FOR TESLA ON
TRUCKER FRONT.
>> TESLA ANNOUNCED THEY MADE AN
AGREEMENT WITH THE BIDEN
ADMINISTRATION TO OPEN THEIR
CHARGING NETWORK, THEY HAVE A
BIG RELIABLE NETWORK SO THIS
MOVES THE FUTURE OF EVs FORWARD
IN THE US.
THIS IS MORE REVENUE, OTHER
CARS USING THEIR CHARGING
STATIONS ALTHOUGH ONE THING FOR
THEM IS THIS HAS BEEN SOMETHING
TESLA OWNERS ARE EXCITED THAT
THEY HAVE THIS NETWORK TO PAY
THE PREMIUM FOR THE CARS TO USE IT AND NOW THEY HAVE TO SHARE
IT AND NOW THEY HAVE TO SHARE
IT.
JACK OTTER: OPTIMIST SET A
SMART LANDING BUT THEN THERE’S
A HARD LANDING AND OPTIMISTS
SAY NO LANDING.
JACK HOUGH: I HAVE STARTED
WEARING AVIATOR GLASSES.
UBS SAYS A SOFT LANDING FOR THE
US ECONOMY VERY MUCH ON THE
TABLE, BUT WE COULD HAVE A HARD
LANDING RECESSION INDUCED BY
TWO OR MORE ADDITIONAL FED RATE
HIKES.
A NO LANDING SCENARIO IS WHERE
INFLATION REMAINS HOT AND
STOCKS ARE VULNERABLE.
WELLS FARGO SEES MARKET
TURBULENCE, NORTHERN TRUST,
DON’T NOW ANYONE PLAYS THESE
THINGS, NORTHERN TRUST,
EVALUATION HEAD WIND AND
INFLATIONARY AND DEFLATIONARY
CROSSCURRENTS.
I HAVE A WINDSHIELD WHEN I DO
THIS MUCH, YOU GOT TO BE
CAREFUL.
I WANT TO BREAK IT DOWN FOR YOU
IN SIMPLE AERONAUTICAL TERMS,
SOME PARTS OF THE ECONOMY ARE
COOLING DOWN BUT -- IS THIS
UPSIDE DOWN?
NOT SERVICES, RATE HIKES ARE
TAKING A TOLL BUT 95% OF US
MORTGAGES HAVE FIXED INTEREST
RATES.
A LOT OF US CUSTOMERS ARE OKAY
RIGHT NOW.
BASICALLY YOU HAVE TO KEEP YOUR
FLAPS DOWN AND TRADE TABLES
THAT.
BE OF A RECOMMENDS FOUR ETFs
FOR PROPER DIVERSIFICATION.
INVESCO S&P, EQUAL WEIGHT,
VANGUARD SMALL-CAP VALUE AND
THE COW DIVIDEND, CALLSIGN ON
THE LAST ONE, GROVER, CUCKOO IN
FAKE PILOT LANGUAGE.
>> IS THAT A CHINESE SPY PLANE?