The S&P 500 concluded the first quarter of 2024 with an impressive gain of over 10 percent. However, while the index soared, one once-prominent player faced a steep decline.
The Boeing Company ended the quarter down more than 25 percent. Unexpectedly, this decline did not mark it as the worst-performing stock in the S&P 500; that title went to Tesla Inc., which plummeted over 29 percent.
This dip resulted in a staggering $230 billion reduction in market capitalization. Furthermore, Forbes estimates that this downturn led to a $55.1 billion drop in Tesla CEO Elon Musk’s net worth, relegating him from the title of the world’s richest person to third place, behind Bernard Arnault, a French luxury magnate, and Amazon founder Jeff Bezos.
Conversely, short sellers gained significantly, raking in $5.77 billion as Tesla’s stock price plummeted. Still, investor Brad Gerstner of Altimeter Capital is buying the dip, believing that Tesla is making “massive progress at an accelerating rate” in its self-driving technology.
Back in 2015, Musk assured shareholders that Tesla cars would achieve “full autonomy” by 2018. Could 2024 finally be the year this vision materializes? Continue reading
It is crucial to understand one fundamental truth: inflation originates from the expansion of the money supply. This excess money and credit fuels rising consumer prices, contributing to both stock and real estate bubbles.
The impact of increasing prices is extensive. Asset owners benefit as the nominal values of their holdings rise, while the relative debt burden tied to those assets decreases.
In contrast, workers, who primarily sell their labor, find themselves struggling financially. Consumer goods see price increases that far exceed wage growth. Similarly, retirees on fixed incomes face significant hardship as their monthly allowances become inadequate.
As consumer debts increase, servicing them becomes increasingly challenging. A growing portion of income is directed toward essential needs like food and housing, leaving less available for debt repayment. For some, this leads to accumulating debt month after month as they rely on additional borrowing to bridge the gap between stagnant wages and escalating costs. Continue reading
Capital undergoes a multifaceted lifecycle: it is first conceived, then produced, followed by consumption, and ultimately, it faces destruction. The specifics of this cycle are influenced by varied and continuous fluctuations over time.
One generation may accumulate wealth, while the subsequent one may deplete it. Furthermore, some generations may bear the burden of overwhelming debt, such as substantial government liabilities, which persist and hinder progress throughout their lifetimes. This scenario stifles innovation and determination.
The value of money primarily lies in what it signifies. Ideally, every dollar should reflect a dollar’s worth of created wealth. Moreover, any credit derived from that money should signify an equivalent dollar’s worth of wealth, plus the interest expected from its creation.
In a world where money is sound, budgets are balanced, and bankers back their loans, this is how wealth creation should ideally function. Nonetheless, current practices often defy expectations. Through state-sponsored policies that enable wealth destruction, value is extracted from those who generate it, ultimately leading to its demise with alarming efficiency. Continue reading
Michelle Mack believed she was living her dream. The suburban mother enjoyed a lavish lifestyle with her family in a $3 million mansion in northern San Diego County.
However, everything changed on December 6, 2023, when law enforcement raided her home, handcuffed her, and escorted her away clad in pajamas and slippers.
Mack now faces 136 felony counts, including grand theft, conspiracy, and organized retail crime. Her luxurious property, which boasts a swimming pool and a four-car garage on a sprawling 31-acre vineyard, is now on the market for $2.75 million after a $200,000 price drop.
Over the past decade, Mack orchestrated an extensive network of thieves dubbed the ‘California Girls.’ They shoplifted large quantities of cosmetics from stores nationwide. Mack then resold these products at a discount on Amazon, generating $8 million in revenue since 2012, with nearly $2 million earned in 2022 alone.
“Thou shalt not steal,” as God commanded Moses at Mount Sinai. Continue reading
