As the stock rout deepens, what is the best investing strategy to take for the rest of the summer? · Press the buy button (load up on the way down) · ...
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| | Outlook As the stock rout deepens, what is the best investing strategy to take for the rest of the summer?
· Press the buy button (load up on the way down) · Ride things out (don't succumb to panic selling) · Sell, sell, sell (convert to cash when you can) · Diversify elsewhere (safe havens, other sectors, etc.) Take the survey here and don't forget to share your thoughts in the WSB comments section. | | Top News  Getty Images Thought last week was bad? Think again. There's some serious carnage out there, and the fallout is quickly spreading across the globe. Investors can really use some soothing words from central bankers right now, especially from a Fed that's being seen as falling behind the curve (remember how things went for markets in 2022?). A disappointing jobs report on Friday indicated that Powell and Co. should have likely cut rates at their July gathering last week, and sentiment has quickly shifted from a soft to a hard landing- or even an emergency landing.
Flashing red: Monday's bloodbath started in Japan, where the Nikkei 225 Index plunged 13.2% for its worst session since the 2011 Fukushima nuclear meltdown. Adding to the concerns were the BOJ's steps toward policy normalization, and it has translated into Japan's world-beating rally this year entering a bear market. Circuit breakers were also activated for South Korea's Kospi after the index rapidly dropped 8%, while Australia's ASX 200 slid nearly 4% for its worst session since June 2022.
Major market indices also tumbled in Europe, and over in the U.S., traders are also set to open the week by pressing the panic button. S&P 500 (SP500) futures are off by more than 3% at the time of writing, while contracts linked to the Nasdaq 100 (NDX) are down by a whopping 5%. The index already fell into correction territory last week following an overheated AI rally, and headline-making news from Warren Buffett (see below) has not helped the situation for tech stocks. Safe havens like gold and bitcoin are also failing to catch a bid as the sell-everything mentality takes hold and no one appears willing to catch a falling knife just yet.
That's not all. Rising geopolitical tensions aren't making the investing landscape any better, with President Biden meeting with his national security team in the situation room ahead of an anticipated Iranian attack against Israel. It could also include a coordinated front with Hezbollah in Lebanon and/or the Houthis in Yemen, in a serious escalation that could begin as early as Monday. Fears of a regional conflict have prompted the U.S. to deploy additional military might in the Middle East, including a carrier strike group, as well as a new squadron of fighter aircraft.
SA commentary: With the next Fed gathering over six weeks away, a recent call from Investing Group Leader David Lerner may not be looking all that contrarian. "Cutting rates in August is less disruptive and adds to the Fed's credibility," he explained, saying that an inter-meeting reduction of 25 basis points would counteract faltering employment and can prevent an immediate 50 bps cut or even 75. "This will of course roil stocks, which the Fed officially doesn't care about (but really does)." Take the WSB survey.
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Past performance is no guarantee of future results. Any content and tools on the platform are offered for information purposes only. Seeking Alpha does not take account of your objectives or financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. | | Financials Warren Buffett's Berkshire Hathaway ( BRK.A, BRK.B) has slashed its gigantic stake in Apple ( AAPL) by nearly half, sending the iPhone maker's shares plunging over 7% in premarket trading. The latest move translates into the investment firm dumping 55.8% of its AAPL holdings in 2024, leaving it with a stake worth $84.2B at the end of June. At Berkshire's annual meeting in May, the Oracle of Omaha still expressed confidence that Apple would most likely remain the company's largest stake at the end of the year. To note, Buffett has also been trimming his stake in Bank of America ( BAC) in recent weeks. ( 538 comments) | | M&A Mars, whose candy brands include M&M's and Snickers, is reportedly in advanced discussions to acquire Kellanova ( K), which makes snacks such as Cheez-It, Pop-Tarts and Pringles. Assuming a typical M&A premium, Kellanova - which has a market cap of about $22B - may be valued at around $30B. Kellanova was spun off of Kellogg last year, in a deal that gave it popular snacks and frozen breakfast foods such as MorningStar Farms and Eggo, as well as an international cereal division. The company reported Q2 earnings on Thursday that topped estimates and sent its shares up 7%. ( 11 comments) | | Energy Chevron ( CVX) shares just turned negative for the year after the company posted Q2 adjusted earnings that missed expectations, which was largely blamed on weaker refining margins and refinery maintenance. But generating the most buzz was Chevron's decision to move its headquarters to Houston from California, where it has been located for more than 140 years. "This isn't a move about politics," said CEO Mike Wirth. "We believe California has a number of policies that raise costs, that hurt consumers, that discourage investment... It's a move about what's good for our company to compete and perform." ( 291 comments) | | Today's Markets In Asia, Japan -12.4%. Hong Kong -1.5%. China -1.5%. India -2.7%.
In Europe, at midday, London -2.5%. Paris -2.2%. Frankfurt -2.6%.
Futures at 7:00, Dow -1.9%. S&P -2.8%. Nasdaq -4.3%. Crude -1.6% to $72.37. Gold -1% to $2,444.70. Bitcoin -15.3% to $51,461.
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