Premarket: Apple is green

apple premarket green 6-16From Business Insider’s “Global markets fly as Trump’s $1 trillion infrastructure plan puts a ‘rocket under stocks’ — and the Fed launches $250 billion of fresh stimulus” posted early Tuesday:

Global stocks jumped on Tuesday after the US Federal Reserve declared fresh economic stimulus measures and on reports that the Trump administration may be working on a $1 trillion infrastructure proposal fund to boost the US economy.

Trump’s proposal aims to set aside funds for infrastructure such as roads and bridges, but part of the funding would also be directed towards 5G wireless infrastructure and rural broadband, according to Bloomberg.

As markets were just beginning to weigh the prospect of another prolonged sell-off amid fears of a second coronavirus wave, talk of a $1 trillion infrastructure plan has “put a rocket under stocks again,” Russ Mould, investment director at AJ Bell, said.

The central bank said on Monday it would begin buying a “broad and diversified portfolio” of individual corporate bonds of up to $250 billion to support liquidity and credit for large employers.

My take: A trillion here, a trillion there…

6 Comments

  1. Bart Yee said:
    Futures looking very strong as news of additional stimulus spreads and is digested. I still worry about the huge deficit that is added onto our children and grandchildren but there is no way this admin or other governments are going to be seen as soft on supporting their economies – so stimulus it will be country be country (at least those that can do it) worldwide.

    Now is the time to be sure your own portfolio as well as those of your kids/grandkids, relatives and friends is properly positioned and funded to ride the waves of future returns, and hold steady in the inevitable dips of volatility. And of course AAPL should be a core of not major holding. Plenty of other tech and defensives to choose from too but AAPL remains a stalwart. Otherwise, an index which contains at least 4-6% AAPL.

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    June 16, 2020
  2. Jerry Doyle said:
    One cannot and should not fight the Fed, US Treasury and a bipartisan Congressional stimulus plan. It’s foolish to do so.

    The proposed $1,000,000,000 infrastructure stimulus plan is the right path to pursue for that effort will jump-start the economy.

    Our nation needs improvements in its roads, bridges and rail system. We need upgraded electrical grids, water mains and drainage improvements. The roll-out and build of 5G, especially into rural areas will go far to keep America competitive in technology, commerce, education and communications.

    Apple will benefit from this infrastructure package as will all American and foreign companies doing business in the country. Most important, will be the “trickle down” economic impact to the Mom & Pops on Main Street in small towns of America.

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    June 16, 2020
    • Bart Yee said:
      Grady, I agree. This administration has had ample time, money allocated, and projects approved to get a lot of this jump started back in 2017. Here we are 3 years later and what have we seen completed? Where has been the oversight to show where and how that money has been spent? And most importantly, to whom did the money get awarded to when contracts were let, either at the federal or state levels?

      IMO, considering the reduction of independent Or congressional oversight, or perhaps a willingness to be blind when it suits and sighted when the lobbyist money comes in, I have major concerns that another stimulus will just be so much pork barrel and crony laden gifts, Er, spending, to those predisposed to being administration supporters.

      How about we direct 1/4 of the money to minority owned businesses or contractors to help rebuild infrastructure?

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      June 16, 2020
  3. Bart Yee said:
    As for 5G in rural areas, IMO it just won’t happen, period. All varieties of 5G are range limited and the lowest frequency 5G have less range than 4G and LTE now. From what I have heard, many rural customers are still waiting for consistent 3G and 4G service in their areas. If they are lacking that in terms of towers, antennas, and most importantly, competition, no amount of government spending is going to motivate telecoms into supplying current or upgraded coverage to sparsely populated customers (who may not have or regularly buy smartphones).

    There will continue to be 3G and 4G wireless coverage along major and some minor travel routes as there is today and that might extend to a half mile to the sides or at best line of sight distances. But 5G deployment in those areas would require not only upgrading current towers/antennas but putting up new structures to cover the range gaps. Remember, the government isn’t paying for 5G deployment, telecoms are and expect to be paid back in fees and service charges from its users. I personally wouldn’t trust telecoms to take and use infrastructure money wisely either.

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    June 16, 2020

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