Black Swan Street Weekly Stock Market Summary (April. 1st - April. 5th 2024)

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Anyways, it was a crazy week. Let’s jump in:

• Dominance of Mega Caps Highest In Decades📈

• The Swan’s Selections🦢

• In Other News📰

• Next Week In The Stock Market🔮

• The Swan’s Story Of The Week🦢

Read time: 6 minutes

📈Dominance of Mega Caps Highest In Decades

The US equities market, led by ‘Magnificent Seven’, now account for more than 70% of global markets.

Full Stop. This is bad.

What's wrong?

Global stock market concentration is at the highest levels in decades increasing risk for passive investors.

After years of impressive gains, the “Magnificent 7” stocks today represent 30% of the S&P 500 Index’s market capitalization.

These stocks are:

• Microsoft (NASDAQ: MSFT)

• Apple (NASDAQ: AAPL)

• Nvidia (NASDAQ: NVDA)

• Amazon (NASDAQ: AMZN)

• Alphabet (NASDAQ: GOOGL, GOOG)

• Meta Platforms (NASDAQ: META)

• Tesla (NASDAQ: TSLA)

If these seven stocks were to revert back to their Dec 2020 valuations…

Well, the market caps would drop by about a third spiraling the S&P 500 down by 9%. 

Read further on:

1. How did this happen?

2. Technology Correlation

3. Interest Rate Sensitivity

4. What to do?

-BSS

The Swan’s Selections🦢

🥪Jersey Mike’s meet private equity: Popular sandwich chain, Jersey Mikes, is reportedly in talks for a potential sale to private equity firm ‘Blackstone’ in a deal that could be worth ~$8 billion. Jersey Mike’s Subs has more than 2,800 franchise locations, with the average location doing more than $1.3 million in annual sales.

🚗Tesla robotaxi announcement: Elon Musk has made the bold announcement that Robotaxis is coming on Aug 8th. This comes as Reuters reported that the Model 2, the sub $30k EV, is being discontinued. The bulls and bears are split; is this the right choice for Tesla?

📋Massive insurance fraud reported: Shares of the insurance giant Globe Life Inc. plummeted 53% on Thursday after a massive 36-page report was released by short-seller, Fuzzy Panda Research. This caused trading of the stock to be halted over eight times as extensive allegations of insurance fraud was found to be happening at Globe's subsidiary American Income Life.

📉Trump media shares drop below $30: DJT can’t seem to stop dropping as it lowers by more than $40 since its IPO. This free fall was excepted due to the flawed valuation of the unprofitable social media company and officially boots Trump off of Bloomberg’s Billionaire list.

💰Vietnamese property tycoon sentenced to death: Vietnamese finance executive, Truong My Lan, was found guilty of embezzling over $27 billion dollars, or roughly 3% of the Vietnamese gross domestic product.

In Other News🗞

• Tech stocks saw inflows of $18.6 billion in Q1, third largest on record - RT

• PIMCO now expects two 2024 rate cuts - RT

• Morgan Stanley boosted executives pay by 13% - RT

• Boeing awarded its outgoing CEO a 45% pay rise - FT

• Johnson & Johnson agreed to acquire medical device maker ‘Shockwave Medical’ in a $13.1 billion cash deal - YF

• Jamie Dimon compared AI to electricity and computers in annual letter - CNBC

• UK inflation fell to lowest level since September 2021 - WSJ

• Global VC funding dropped 30% in Q1 - BBG

• Google is expanding in-house chip efforts - WSJ

• Salt Lake City was the hottest job market in 2023 - YF

• Apple follows big tech rivals to expand in Miami - BBG

• KPMG fined record $25M in exam-cheating scandal - WSJ

• US budget deficit hits $1.07T in H1 2024 - BBG

• Mortgage rates rose back to ~7% - WSJ

Next Week in the Stock Market🔮

Earnings Calendar Next Week:

What the swan is watching:

Everything. We’re watching everything. Plenty of heavy-hitters are reporting earnings this upcoming week, especially in the financial services sector.

It’s going to be an action-packed week to say the least…

Economic Calendar Next Week:

The Swan’s Story Of The Week🦢

🎾Serena Williams Legendary VC Fund

From Tennis Star to VC legend, Serena Williams has found herself a second career after retiring from Tennis in September 2022. After crushing her competition at the courts, she needed something new to dominate after leaving the game that she loved.

That’s when she began diverting her attention to venture capital.

The Wrap-Up🔄

🎊🎉 That’s it for this week 🎉🎊

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