🗞️The Wrap: Drink Bake Lift

The shortages aren’t over. We look at what you’re searching for and buying up. Breaking down some of the economic alphabet soup and debuting Stocks in Socks. Long live the markets!

5 Stocks Reaching 52 Week Highs

  • Amazon (AMZN) +11.8% in the last week
  • Netflix (NFLX) +11.6%
  • Dollar General (DG) +5.2%
  • Docusign (DOCU) +8.6%
  • Walmart (WMT) +5.9%

Other Ones to Watch

    • Online pet supplies, Chewy (CHWY) +22.8% in the last week
    • Long gold, Newmont Mining (NEM) +20.3%
    • Virtual contact center company, Five9 (FIVN) +6.8%

Drink, Bake, Lift, Repeat.

While the toilet paper craze has died down, people haven’t stopped stockpiling. Research from MarketWatch is revealing some products with no cessation in demand. Here’s a few of the things they found:

Seeds
Quick, before Monsanto takes control of them all and triples the price! Walmart spokespeople are saying almost all seeds are out of stock. Lowe’s and Home Depot appear to be the obvious benefactors.

Dumbbells
Gyms are closed, although that hasn’t stopped Planet Fitness (PLNT) doubling from lows. Home gyms are getting installed in garages everywhere. While Peloton is the obvious play for some, micro-cap Nautilus which specialises in a range of equipment is up 270% from lows with big volume (NLS).

Yeast & Alcohol
My instagram stories are filled with drinking challenges and people baking bread. No surprise alcohol and yeast sales are up too. The research shows that online sales of alcohol were up 291% in mid-March compared to 2019. With Corona (STZ) forced to close their factories, it may prove to be a wise choice.

Ok, Google.

The good people at Chartr (a must follow on instagram) have been looking at what’s hot and what’s not on Google. From the piece above you may correctly guess that “wine delivery”, “how to make sourdough bread” are up, while “gym membership” is down.

What else is trending? “What is Zoom?” has seen an exponential rise in searches while our heart goes out to love birds as “outfit for date” and “bars near me” fall.

Similar data may be useful. Research out of the University of London showed that google trends data can be used to successfully beat the market with certain strategies. Even these searches themselves imply some correlation when looking at Nautilus’ performance and the sales data above.

Kia Ora

Stake is now live for our Kiwi brothers and sisters. From Auckland to the Fiordlands, there’s now a direct line to Wall Street. From latte sippers in Ponsonby to dairy farmers near Dunedin, access to the US opportunity has arrived.

To our existing members, thank you for your support and allowing us to open up access to the rest of the country. To our many new members, welcome to the Stake community.

The mission driving our NZ launch is the same as what prompted us to get Stake up and running in Australia and we’re proud that we can now bring the same opportunities to those over the pond.

To read a bit more about our journey to NZ, read this article announcing our launch.

Top 5 Gainers

  • Nautilus (NLS) +90.7% in the last week
  • Gamestop (GME) +52.9%
  • Enable Midstream Partners (ENBL) +48.3%
  • Caravana (CVNA) +37.1%
  • Biocryst Pharma (BCRX) +33.3%

Top 5 Fallers

  • Armada Hoffler (AHH) -21.5% in the last week
  • Cimpress (CMPR) -18.3%
  • Atlantic Union Bankshares (AUB) -15.5%
  • TPI Components (TPIC) -15.2%
  • Allegheny Technologies (ATI) -13.9%

Getting Easy

Economics majors and astute students of the markets, scroll on. For the rest of us normies, what does the alphabet soup of acronyms and abbreviations even mean?

Repurchase agreement (Repos): The overnight money market. Institutions give other institutions access to short-term loans in exchange for capital (treasuries). These funds are used to ensure liquidity requirements or facilitate trading activities. Institutions with cash on the balance sheet can lend as well, as loans are repaid with a small amount of interest. In September, last year the rate hit 10% and the Fed was forced to step in. Read more about all things repo and that freak event here.

Quantitative Easing: QE has evolved greatly over the last decade. What started as the buying of long-term securities to flatten the curve and give banks cash to lend out has morphed. The Fed is now buying up fallen angel debt (junk bonds from once strong companies). The liquidity injection should allow the debt issuers to pay their employees and keep the door open. In Japan, the BoJ is even stepping directly into the stock market. In fact, they are the top shareholder of Japanese stocks. A deeper insight in easy to understand terms can be found here.

Bit of a side project, Google the Fed Balance Sheet and see how it correlates to the market’s recent rally. No opinions held or implied.

Stocks in Socks | Brandon from Aussie Wealth Creation

The most anticipated debut since Zion Williamson, Stocks in Socks is here. Each week, we’re talking with experts about the markets during the Coronavirus.

First up, our very own Matt Leibowitz chatted with stock lover, Brandon from Aussie Wealth Creation, on the long and short term impacts of COVID, their inspiration for strategies and of course what socks are most comfortable during lockdown.

Watch the episode now.

Trader Teaser

What happened in the middle of the twentieth century that will not happen again for around 3999 years?

Best Buy | Gamespot +94%

One of Burry’s favourites, Gamespot has been flying. Understandable when video gaming is one of the biggest rising sectors even before the lockdown.

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