Good Morning & Happy Friday! Futures are down this morning after AAPL and AMZN posted disappointing earnings results. AMZN blamed consumers for going back to brick and mortar stores and higher costs. APPL blamed supply constraints primarily chip shortages that affected their business. It is a reoccuring theme that will continue to play out. One has to believe that all this will produce slower growth ahead regardless of demand. The question is when will the market begin to price all of this in? On top of this, the Fed has a lot of pressure to begin tapering and that will reduce liquidity in the market. It is not a very bullish scenerio for a market that prices in stock prices six to eight months out. Labor shortages will continue, which means higher labor costs. Meanwhile, the stock market still continues to take out all time highs. Can you see the disconnect? Please let me know what I’m missing.
Talk soon,
Al Losada
Founder | SimpleOptionStrategies.com
You can also check out my YouTube Channel at SOS YouTube.
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