Valuation compression and retaining talent... Silver Banana goes to... [Roofstock One. ]( Market Snapshot Happy Friday, Apes. Futures pointed towards another brutal day yesterday, with markets down more than 1% before the opening bell. When the dust settled, the Dow shed 0.75%, the Nasdaq was down 0.26%, and the S&P lost 0.58%. WTI Crude is back above 111 bucks, and the 10-yr yield closed lower at 2.851%. After a rough week, hopefully, we can stop the bleeding on this weekâs last trading day. For todayâs BBT, I will mail a sweet WSO t-shirt to the first respondent with the correct answer. Letâs get into it. Banana Bits - After share prices have tumbled, Tesla whale calls for [rapid buybacks]()
- Looking at the numbers, Wall Street sentiment is in a position of [extreme fear]()
- So, here we go again? More cases, [more variants](), more reopening trade?
- Finally, a way to invest in [residential real estate]() with increased liquidity and active management of your passive investment
- After months of political strife, finally [Adam Silver]( is speeding to the rescue #FreeBrittney Banana Brain Teaser The answer to yesterdayâs Brain Teaser was "the right passage, as a tiger would be dead after not eating for months." For todayâs BBT, we will mail a sweet WSO t-shirt to the first respondent with the correct answer. Letâs give this one a try: A cowboy rides into town on Thursday, he stays for 72 hours, and he rides out of town on Thursday. How is this possible? Shoot us your guesses at [vyomesh@wallstreetoasis.com](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) with the subject line "Banana Brain Teaser" or simply [click here to reply!](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) Macro Monkey Says Know Your Worth â Regardless of whatever business youâre in, every problem is a people problem. If youâre in high tech or high finance, only the right people can solve the right problems with the right methods or ideas. Lately, finding the âright peopleâ has been tough for employers. Keeping them has also been a challenge. Rumor has it that Microsoft just doubled their budget for salaries to do just that. This comes on the heels of an Amazon base pay max jump from 180k to 350k. These massive hikes say something about the value of talent. They also say something about how challenging it is to retain great people and to spin up new employees, particularly knowledge workers. While the federal minimum wage has stagnated for a better part of this century at $7.25, total comp for engineers, technologists, analytics professionals, data scientists, and even some IT people has outpaced the comp in Finance. Remember this the next time youâre trying to convince yourself that 80 hours with a 75-minute commute from New Jersey is worth it. Raise the Roof(stock) [image](~Link-44547488~) With Roofstock One, accredited investors can add the single-family rental (SFR) asset class to their portfolios without extensive capital or operational management. Institutional investorsâsuch as banks, pension funds, and hedge fundsâpoured $6B into the SFR sector during the 1st quarter of 2021 alone. The sector remains uniquely positioned to benefit from structural and cyclical forces and fill a significant needs gap for affordable access to suburban housing markets, especially for younger families. Invest with a few clicksâwithout buying full properties. Check out Roofstock One (of-a-kind) investing now! [Invest now]() What's Ripe Synopsys ($SNPS) â Shares of the design and automation company ripped 10.25% yesterday. Synopsys is only down about 16% for the year, which isnât half bad, all things considered. Their earnings call was yesterday, and the data looked good. Wall Street liked how they beat sales estimates and pumped up those revenues. They did not put out rookie numbers, and the stock climbed higher. Live Nation Entertainment ($LYV) â Live Nationâs stock had a nice day yesterday, enjoying a nice little 5.98% pop. The summer concert season is here, and itâs likely that Live Nation will be a strong reopening play moving forward. Analysts generally like Live Nation, and it is generally seen as a BUY by the Street. What's Rotten Under Armour ($UA) â Hereâs another interesting one: UAâs CEO is stepping down, and the Street doesnât like it. Their current (previous?) CEO was supposed to right the ship but unfortunately came in a little, er, limp. Unlike Tom Brady, heâs decided to hang it up. $UA fell 15.76% on the news yesterday. Is it time to buy our bro-ga pants on sale? Ross Stores ($ROST) â Continuing the trend of retailers getting their a$$es kicked, $ROST is down over 25% pre-market today. Clearly, Ross is having a tough time with freight and labor costs compared to TJX. Rossâs earnings werenât fabulous, and just like Joey Bâs administration, theyâre blaming Putin for inflationary pressures and uncertainty in the marketplace. Thought Banana Valuation Compression â If youâre like me, your portfolio has been feeling the squeeze lately. Lots of volatility can be great; lots of volatility during a downward trending market can eat your f*cking lunch. There has been a massive drawback in equities valuations this year. Absolutely massive and sort of in biblical proportions for some of our favorite names. Tech is now trading at the same levels as Consumer Staples. Read that again. Your favorite names like $FB, $MSFT, $TSLA, $AAPL, etc. have absolutely tumbled. Thinking about this critically, it would appear that there isnât much farther to go. But if youâre trying to predict a bottom, where do you reach out your hand to try and catch a falling knife? And who is to say that valuations havenât adjusted too far to the downside and that fair value is slightly higher than these levels? Iâd argue that some valuation compression is good; this is a generational buying opportunity. Gen Z, congrats â this might be your chance to get in on stonks. I canât say the same for housing. Buying near all-time highs isnât really fun. Massive moves are okay for those looking to access the market. Letâs just hope the rest of us arenât underwater in the meantime. Wise Investor Says âA lot of people with high IQs are terrible investors because theyâve got terrible temperaments. You need to keep raw, irrational emotion under control.â â Charlie Munger Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? Sign up for the WSO Daily Peel [here](. [ADVERTISE](=) // [WSO ALPHA]() // [COURSES](=) // [LEGAL](=) Don't want The Daily Peel? [Unsubscribe here](. Click to [Unsubscribe]( from ALL WSO content IB Oasis Corp. 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