The Threecap
Three things to recap this past week.
Stocks Firing On All Cylinders
U.S. equities have continued to rise amidst talk of a $1.8 trillion stimulus package endorsed by President Trump. However, opposing takes from both Democrats and Senate Republicans threaten to derail the package. The S&P 500 closed at $3,477.13, approaching its all-time high at $3,588.11. The Dow Jones and NASDAQ closed at $28,586.90 and $11,579.94 respectively, also approaching new records.
After a poor September for stocks, a historical precedent, investors will likely be looking toward developments in the upcoming November election as they decide how they want to play the market. Expect volatility to pick up in the near future, as both political and pandemic uncertainty increase.
Flu… and COVID-19 Season
As flu season approaches, health officials continue to worry about worsening COVID-19 outbreaks. Many fear that the flu has the potential to amplify the effects of COVID-19. The number of reported new cases has continued to increase, to as high as 360,000 each day. The United States remains the leader in total cases at over 7.7 million, with India and Brazil close behind.
Spain’s government recently declared a state of emergency in Madrid, amidst a second wave of COVID-19 cases. Europe was especially hit by the virus in earlier stages, and there are fears that government mismanagement of the crisis will leave the continent struggling once again.
Big Tech Once Again in the Spotlight
A report on U.S. tech giants from the House of Representatives this past week has once again put the likes of Facebook, Google, Apple, and Amazon into the spotlight. Legislators have been urging new laws to break up what are said to be monopolies with increasing market shares in increasingly uncompetitive markets.
The COVID-19 pandemic has created an especially interesting twist in antitrust discussions - while most companies struggled, tech companies continued to thrive, propelling the sector to unseen heights. Now, with cash piles larger than many Fortune 500 companies, tech giants have the ability to continue to make acquisitions and expand into more lines of business. It remains to be seen if U.S. officials will choose to regulate such companies.
Recent Articles
COVID-19 And The Stimulus Checks
COVID-19 has placed a serious financial burden on the population on top of the many infections and deaths it has caused. From shutting down our borders to foreigners to suspending all major sporting events and leagues, America’s isolation from others has lead to a significant financial impact. The flow of goods and services has significantly decreased thus causing a lower need for workers. With unemployment levels rising, the government has had to bail out millions of people and businesses. As we are now in October of 2020, millions of people have feened off of hefty unemployment checks and other assistance and a new situation is constantly developing in an unprecedented era.
The Issue With Surveillance Capitalism
Most people seem to believe that companies like Facebook and Google sell your data, but in reality, it’s a little more complicated than that. These companies actually function differently from traditional companies that sell consumers things, and it all relies on an entirely different economic system: Surveillance Capitalism. Harvard Business School Professor Shoshana Zuboff coined the term in her book The Age of Surveillance Capitalism. In this article, Surya Venugopal explains how big tech makes its money without charging users for its products, and expose the underlying issues of this lucrative system.
Recent Podcast
In this episode, Rohan Gupta and Rajan Vazirani talk to Anthony Scaramucci, Founder of Skybridge Capital, about hedge funds. They delve into topics like the history of the hedge fund industry, hedge fund basics, hedge fund careers, coming back from failure, and much more!
Team Member Showcase
Evan Thomas
Senior Writer
Freshman in Computer Science at UC Berkeley
Daily Routine: Eat, invest, sleep, repeat.
Why you joined StreetFins: I figured one of the best tools new investors could have is a basic stock recommendation series to get them started.
Finance Tip
"Invest in yourself. Your career is the engine of your wealth." - Paul Clitheroe