My latest “Quickie” (12 mins) is now available for viewing on my YouTube Channel.
In it, I discuss Cantaloupe (CTLP) earnings and why I believe the shares are a bargain at these levels. You can see my model here.
But first, I discuss where the wealth of America resides and the impact that has on how the Fed can control inflation.
Specifically, here’s the breakdown:
Residential Real Estate — $50 trillion
Bonds, Cash, CDs, and Bank Deposits — $60 trillion
Stocks — $50 trillion
So they’re all equally big contributors to U.S. wealth. However, stocks are easily the most volatile. That’s the key, because moving stock prices (up or down) is the easiest way to change the wealth of Americans (and therefore their feelings about spending, since people spend more when they feel rich and less when they feel poor).
Keep in mind, a lot of the money that the Fed lends to banks ends up in stocks, directly or indirectly. This is primarily due to institutions, but also trickles down to retail investors.
For example, if the bank gives me a larger mortgage, I can keep more money in the stock market. Margin and collateral loans allow me to buy even more stocks. But if the Fed pulls back lending to banks, banks have to pull back lending to people… which means people don’t have as much $$$ to put into stocks… which decreases demand and increases supply, causing stocks to fall (thus, accomplishing the goal of slowing down an overheated economy and/or the rate of inflation).
4 thoughts on “Market & CTLP Update”
I haven’t watched this yet but I’m willing to say that short videos will increase your viewership dramatically. Keep me up – I’m curious if you see more activity. I’ll be watching this weekend.
Anything on TPCS?
Mobile: 917.604.2599 Sent from my iPhone
Thanks for the feedback. As always, the last update on TPCS is the last update 😉
So you consider this a long hold 3+ years?
I don’t look at it that way. I buy at a good price and sell at a good price… doesn’t matter if it takes three days or three years, so stay tuned for notifications of any changes.
That being said, I see CTLP’s BUSINESS as an established entity that will do well for years to come… but if the STOCK gets to an expensive level, I will won’t want to own it anymore.
It’s the difference between a great business and a great stock. I want to own stock in great businesses when they are at great prices.
Hope that helps. Cheers.