Despite the Fed's insistence on maintaining favorable monetary policies until 2023, the markets finished the day in the red.
The stock market indices finished in the red today amidst new estimates from the Fed.
The Federal Open Market Committee (FOMC) released its public statement today. Despite the positive economic outlook, theFed's officials decided to keep interest rates low until 2023 to make sure the impact on economic recovery is long-lasting and not transitory.
On the other hand, the FOMC’s Summary of Economic Projections still shows continued worrying signs of inflation. Officials use the core personal consumption expenditure to measure inflation, and so far, the inflation is at 3.0%, up by 0.8% from its March forecast. The Fed's headline inflation expectation is 3.4%, with long-term target inflation at 2%. The Fed believes the higher prices are temporary and not systematic.
Put the positive and negative news together and the final result was a decline in all three indices.
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Folks, one of my goals from investing in the stock market is to pay for things I want to do in life. Of course, retirement is a classic investment goal. But what about paying for the next iPhone you'd like to buy. Our partner Joseph Hogue has the same idea. In his latest video, he talks about three dividend-paying stocks that you could invest in and use the dividends to pay for your next iPhone in September. Watch the video and let me know if you like the idea of paying for things you need with your stock picks and dividends.
Arrival (ARVL) could be the new meme stock you may want to consider.
Redditors on WallStreetBets continue to hunt for short-squeeze-able stocks, and today I noticed a new one on Stock Card’s winners and losers page. Arrival (ARVL) is looking like the new meme stock.
Arrival is an electric van and bus maker. It started five years ago in England but has come to public attention in 2021. The company is currently building micro-factories to allow for quicker production. It’ll need a faster production capacity because it struck a deal with UPS for a whopping 10,000 vans. The ride-sharing company Uber has also recruited the English start-up to provide it with a custom electric vehicle to supplement its fleets and drivers.
While it may still need to streamline and scale its operations, the company has built a trustworthy brand across the EV sector, resulting in more new contracts. Until then, the capital accrued through these massive partnerships bodes well for this company over the coming year and beyond. As a result, this may be a meme stock worth your attention, despite its sizeable short interest.
While we are on the subject of meme stock, recently, I created a short squeeze list that includes several companies with high short interest and bearish sentiment that may be your starting point for finding future meme stocks.
Chinese online education platforms are facing existential challenges from the regulators.
In China, President Xi Jinping plans to curb private tutoring after comments last week about putting more responsibility on the public education system. Sources told Reuters that "the industry should be preparing for the worst,” as officials plan to begin trial phases of the new regulations. This may include banning tutoring over the weekend, heavily limiting advertisement and other actions to bring children’s education back into the school building.
Naturally, this has caused mass sell-offs across the industry. With the future of after-school and online tutoring uncertain, stocks listed on American exchanges like TAL Education Group (TAL) and New Oriental Education & Technology Group (EDU) have fallen 16.92% and 11%, respectively. However, I don't believe these drops are buy-the-dip opportunities. Thus, I would expect the value of Chinese private education stocks to experience significant volatility as government officials run their trials of the new legislation.
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