General Body Meeting 3/19: Stimulus, America Reopening, Tech Correction, and Learning Resources

Alex Hunter ‘24 and Mikias Stewart ’23 updated the club on this week’s market activity. They started things off by looking at the Fed and interest rates. The 10-year Treasury Bonds reached 1.6% last week, returning to their pre-covid levels. However, the FED has stated that they are happy with current rates.

The House passed a $1.9 Trillion Covid-19 relief Bill, with qualifying applicants receiving $1,400. Alex and Mikias believe that this bill will have mixed effects on the economy as fears of hyperinflation continue to grow. However, the bill will provide immediate economic stimulus that is vital to the recovering U.S. economy.

Much of the U.S. has begun the reopening process as states have decreased lockdown restrictions.  With many colleges going on Spring Break, the U.S. experienced its highest Air-travel since March of 2020 (1.3 million last Friday).  Hotel occupancy also reached a 20-week high.  Many of these new highs are a result of American’s “Pent-up Demand”. 46% of Americans reported that they are willing to travel, and many companies have increased the number of vacation days.

The high-flying tech stocks that drove the market higher throughout the pandemic have experienced a recent correction. The NASDAQ is down 10% from its highs and some of the biggest losers include Nvidia (NVDA) – 24% and Apple (AAPL) – 12%.  A part of this correction is due to the reopening of the economy and rollout of the COVID vaccine. In the post-pandemic world, these big tech companies will be less emphasized.  Losses are also tied to fears of inflation and rising bond yields.

Financials Analyst Brett Berger ’22 provided the club with an update on our financial holdings.  When we talk about financial holdings, what exactly does this mean?  Banks, Real Estate, Insurance, Investments, Loans, mortgages, debt.  Our Portfolio consists of JP Morgan Chase (JPM), Goldman Sachs (GS), Vanguard Small-Cap Value Index Fund (VBR), Manulife Financial (MFC), Citizens Financial Group (CFG), Barclays (BCS), and Bank of New York Mellon (BNK).  Brett also analyzed the recent news that the Fed has decided to end the Covid-19 capital break that it gave the big banks. The Fed thinks market stability balanced with banks capital is now sufficient to end this help. 

Finally, Co-President Alec Cwienkala ’21 and Vice President Connor Thatcher ’21 announced some new opportunities for club members. Wall Street prep is offering students the Ultimate Investment Banking Interview Guide and Training the Street will be offering their Finance Immersion Workshop.

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