The Threecap
Three things to recap this past week.
1. Happy Holidays!
After record online Black Friday sales, markets have continued their ascent to new highs as we move into what should be an unusual holiday season amidst a global pandemic. On Friday, the Dow Jones closed above 30,000, a new milestone for the index. Overall, the Dow finished up 1.03%, the S&P 500 finished up 1.67%, while the NASDAQ finished up 2.12%.
Investors continue to monitor both the COVID-19 situation, which may provide a headwind for markets as states such as California announce new lockdowns. Markets also await news on when vaccines will be available - U.S. airlines have already begun preparing for distribution.
2. COVID-19 Update
Global COVID-19 cases have surpassed 65 million and are now on track for 70 million. The world’s population is around 7.8 billion; soon, one percent of the entire global population (78 million people) will have been infected with the virus.
The United States, India, and Brazil continue to lead in total cases, with the U.S. surpassing 14 million. Europe has also been hit quite hard, with France, the U.K., Italy, and Spain sitting at over 1.5 million cases. For now, the world waits patiently for vaccine approvals as well as distribution, which should begin in the next few weeks.
3. Tech M&A is Here to Stay
Salesforce recently announced that it will be acquiring messaging platform Slack for $27.7 billion. The Salesforce-Slack deal comes amidst a slew of acquisitions by other major technology companies flush with cash: Nvidia-Arm, AMD-Xilinx, Marvell-Inphi.
The attractiveness of companies positioned to flourish during and after COVID-19 has risen greatly in the past few months, given the critical role that technology has played throughout stay-at-home orders, with millions working remotely. Tech giants seeking to position themselves for a post-pandemic world have become the big spenders in 2020.
Featured Articles
Introduction to Blockchain and Cryptocurrencies
With 2018’s sudden spike in the value of Bitcoin, many investors and entrepreneurs saw their profits go through the roof. Masses of average people hurried to follow this trend, in hopes of themselves hitting the jackpot. However, this process created a large misconception about Bitcoin to the general public. Many considered Bitcoin to be a stock, and some even viewed it as a simple “money-making tool”. However, Bitcoin, which first debuted in 2009, is the forefront example of a cryptocurrency. In this article, writers Yash Deshmukh & Anish Anburaja go over cryptocurrency and a foundational component of crypto: blockchain.
The 401(K): How To Save For Retirement
The 401(k) retirement account is one of the most popular ways to save for retirement. Because living off Social Security just isn’t a reality for everyone, it is crucial to be able to maximize the benefits from your retirement accounts. In this article, StreetFins writers, Gordon Tam & Albert Lam, go through the types of 401(k)s, benefits, limitations, and strategies.
Recent Podcast
In this episode, Alex Patel and Rohan Gupta talk to Sarah Bloom Raskin, the former Deputy Secretary of The US Treasury, about the US Treasury and its role in finance and the economy. We delve into topics like the history and departments of the Treasury, the role of US Treasuries domestically and internationally, how the Treasury manages the economy, and much more!
Check out the episode to learn about the US Treasury in a simplified way!
Team Member Showcase
Ryan Hsu
StreetFins Writer
Senior in High School
Daily Routine: You can usually find me researching investments, reading, and playing baseball.
Why you joined StreetFins: I joined StreetFins two years ago because I resonated with their message to promote financial literacy. Since my father grew up in foster care, I wanted to help other disadvantaged youths equip themselves with the tools necessary to succeed in life. I haven't looked back since, and I plan on continuing to educate others about financial literacy and responsibility.
Finance Tip
“The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.” —T.T. Munger.