In a notable economic recovery, the US economy added a significant 227,000 jobs in November, rebounding from a slowdown in October, according to the latest report from the Labor Department. This positive news, however, comes alongside a slight increase in the unemployment rate, which rose from 4.1% in October to a still manageable 4.2%. Additionally, hourly wages experienced a healthy rise of 0.4% from October to November and an impressive 4% increase compared to the same month last year. These figures are slightly above what economic forecasters had anticipated. Despite these promising indicators, ZipRecruiter chief economist Julia Pollak remarked that this report does not provide much evidence of a strong rebound in the labor market.
Is the Current Stock Market Bubble Set to Burst? Expert Opinions Suggest a Mixed Outlook [WSJ]
Current stock market valuations are at historically high levels across various metrics, leading many analysts to predict low long-term returns. This raises concerns regarding the sustainability of these elevated prices and contributes to dire predictions for the next decade. However, historical data indicates that there is no direct correlation between extremely high valuations, such as those observed today, and short-term returns. As we’ve seen in the past, expensive stocks can continue to climb even further, defying expectations and providing opportunities for investors willing to navigate this volatile landscape.
GameStop Stock Price Soars Following Mysterious Post from ‘Roaring Kitty’ [N.Y. Post]
In a surprising turn of events, shares of GameStop surged dramatically after a cryptic social media post from Keith Gill, also known as ‘Roaring Kitty.’ The post featured an image reminiscent of a Time magazine cover from 2006, showcasing a computer screen and generated considerable buzz on social media platform X. Following Gill’s intriguing update, GameStop’s stock price skyrocketed, reaching a peak of $30.87. This surge was not isolated, as other popular meme stocks also saw increases, with shares of Unity Software closing up by 5% and the cinema chain AMC rising by 6%, indicating a renewed interest in these speculative stocks among retail investors.
Trump Appoints Kelly Loeffler to Head Small Business Administration [CNN]
In a notable political move, former President Trump has selected Kelly Loeffler to lead the Small Business Administration. There were multiple discussions between Loeffler and the transition team regarding potential roles, including that of Agriculture Secretary. During her brief tenure in Congress, Loeffler was recognized as one of the wealthiest lawmakers, which may influence her approach to small business policies. Her husband, Jeffrey Sprecher, is the CEO of the Intercontinental Exchange, the parent company of the New York Stock Exchange, potentially providing her with unique insights into the intersection of business and regulatory environments.
Hedge Fund ExodusPoint Implements Bonus Clawback Policy for Departing Employees [Bloomberg]
In a significant policy shift, hedge fund ExodusPoint has announced that employees who choose to leave the firm will be required to repay up to 40% of their bonuses for the year 2024 if they resign before the end of next year. This new initiative is aimed at retaining talent and ensuring stability within the organization during uncertain economic times. By enforcing such measures, the hedge fund seeks to encourage employees to remain committed to their roles, especially in a competitive job market where financial incentives play a crucial role in employee retention.
Launch of New ‘Anti-Woke’ ETF with Starbucks as Initial Target [FT]
A new actively managed exchange-traded fund (ETF) is set to launch early next year, aiming to exclude companies within the S&P 500 that prioritize Diversity, Equity, and Inclusion (DEI) in their hiring practices. This fund, introduced by Azoria Partners, has chosen Starbucks as its first target, highlighting its focus on companies perceived to embrace progressive social policies. The unveiling of this fund took place at Trump’s Mar-a-Lago resort in Florida, indicating a strategic approach to capture the attention of investors who seek alternatives to traditional investment strategies that align with their personal values.
