Week of Apr 21 2017 Weekly Recap & The Week Ahead
“A long-term-oriented value investor is a batter in a game where no balls or strikes are called, allowing dozens, even hundreds, of pitches to go by, including many at which other batters would swing. Value investors are students of the game; they learn from every pitch, those at which they swing and those they let pass by. They are not influenced by the way others are performing; they are motivated only by their own results. They have infinite patience and are willing to wait until they are thrown a pitch they can handle – an undervalued investment opportunity. “ — Warren Buffett
1. UK PM’s Theresa May Calls Snap Election — Theresa May has called a snap general election in the U.K., with the vote to be held on June 8. With a 19 point lead in polls over her nearest rivals, it seems to be an opportunity for her Conservative party to gain a sizeable majority as Brexit negotiations get underway.
2. Trump Pushes ‘Buy American, Hire American’ — President Trump was in Kenosha, Wisconsin to sign an order dubbed “Buy American, Hire American” at the headquarters of the Snap-on (NYSE:SNA) tool company. It will direct federal agencies to recommend changes in the H-1B visa program and examine their purchasing systems to more effectively favor buying American goods.
3. Baidu to “Open Source” Self-Driving Technology — Baidu hopes to get autonomous vehicle companies to share a common platform, Baidu (NASDAQ:BIDU) will share its self-driving technology, while partnering in the sourcing of components and hardware. The project, named Apollo after the lunar landing program, will launch for the restricted environment in July before gradually introducing capabilities on city roads by 2020.
4. Hearing Scheduled on April 26 for Dodd-Frank Overhaul — representative Jeb Hensarling has unveiled a GOP-crafted plan to replace Dodd-Frank and will hold a hearing to discuss the updated version of the Financial CHOICE Act on April 26. The 600-page bill is targeting a “pro-growth, pro-consumer” alternative that would end “too-big-to-fail” bailouts, bring significant reforms to the CFPB, and provide some regulatory relief for certain financial institutions.
5. U.S. Soda Sales Drop Again — with consumers choosing healthier options and a slew of sugar taxes, U.S. soda and energy drink sales decreased about 1.2% in 2016, falling for the 12th year in a row, according to trade publication Beverage Digest. However, total sales dollars increased 2% to $80.6B as soft drink makers pushed smaller packs at higher prices per ounce, while lowering emphasis on large discounts packs. Companies effected are: KO, PEP, DPS, MNST, FIZZ.
6. AAII Bullish Market Sentiment Declined Again — according to the weekly AAII survey, bullish sentiment declined to 25.71% from 28.97%. That’s the lowest weekly print since the election and a record 120th straight week of sub-50% readings. Looking at the chart below, bullish sentiment has clearly broken its string of higher highs that had been in place since mid-2016.
Also, bearish sentiment has seen a small uptick, rising from 37.38% up to 38.70%.
The week ahead — Economic data from Econoday.com:
