savings, budget, investment-2789112.jpg

Today in the Market (8/25/2022)

Good Evening. As international central bankers gathered for the highly anticipated Jackson Hole economic symposium of the U.S. Federal Reserve, stocks surged significantly on Thursday.

The Nasdaq Composite rose 1.67%, while the S&P 500 gained 1.41% after ending a three-day losing skid in the previous session, while 0.98% was added to the Dow Jones.

CAN PELOTON WORK OUT THESE BAD EARNINGS?

Peloton Interactive (PTON) reported an operating loss of $1.2 billion in its fiscal fourth quarter as revenue came in below Wall Street expectations.

  • Revenue: $678.7 million vs. $685.9 million expected

  • Earnings Per Share: ($2.27) vs. ($0.83) expected

CEO Barry McCarthy wrote in a letter to shareholders that the loss “reflects the substantial progress we made this last quarter re-architecting the business to reduce the current and future inventory overhang, converting fixed to variable costs, and addressing numerous supply chain issues.”

Going forward…. Due to “broader macroeconomic concerns” and the “speed and volume of changes”, the firm will modify how it reports operating metrics and forward guidance in its 2023 fiscal year.

For at least the remainder of the upcoming fiscal year, Peloton will limit its official revenue, gross margin, adjusted EBITDA, and net subscriber addition expectations to the current quarter. The manufacturer of workout equipment will also stop releasing quarterly engagement numbers, but it will keep releasing subscriber turnover data.

STUDENT DEBT

savings, budget, investment-2789112.jpg

President Biden declared yesterday that the federal government would forgive up to $20,000 in student loan debt for recipients of Pell Grants and up to $10,000 in student loan debt for borrowers earning less than $125,000 annually. Additionally, Biden extended the debt repayment ban until the end of 2022. The freeze will be extended for the eighth (and, according to Biden, final) time since it was first introduced in March 2020.

According to the NYT, 45 million Americans must pay back $1.6 trillion in student loans, which is a larger sum than any other consumer debt except mortgages. One of Biden’s campaign promises was to ease some of that burden, but in order to follow through on it, he had to consider many opposing viewpoints.

  • Progressive Democrats and civil rights organizations pushed for a debt cancellation of at least $50,000 on one side. According to NAACP President Derrick Johnson, “$10,000 alone is insufficient, to say the least—it won’t address the gravity of the problem.”
  • Centrist Democrats and Republicans cautioned that eliminating debt is not the best use of public funds and could spark inflation. Former Democratic Treasury Secretary Larry Summers tweeted, “Every dollar spent on student loan relief is a dollar that could have gone to support those who don’t get the opportunity to go to college.”

By implementing the income ceiling, according to Biden, the people who would need it the most will receive the benefit. According to his administration, households earning $75k or less would be affected by 90% of the forgiveness.

Looking forward… Expect some legal challenges to Biden’s plan to wipe off student loan debt. So don’t expect your balance to disappear overnight.

Scroll to Top

Where Are You On Your Investment Journey?

Rise

Run

Relax

All investors are unique.  The above characteristics are examples, but may not reflect your particular investor demographics or situation.  An advisor with Edgar Investment Management, LLC will assist you with finding the best type of account for you. 

Investment advisory services are offered through Edgar Investment Management, LLC, an investment advisor registered with the State of Texas. Edgar Investment Management, LLC only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure document.

The content found on this website is developed from sources we believe provide accurate information and is for educational purposes only. The information on this website is not intended as tax or legal advice. Everyone’s tax and legal situation is different, so please consult trusted and knowledgeable legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided on this website are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Material and information found on this website is not intended as an offer or solicitation for the sale or purchase of any specific security, mutual fund, ETF, bond, or investment strategy.  

Investing is risky!  No guarantee as to performance of any investment is implied by this website.  Make sure you have evaluated your options and spoken with trained professionals before you implement any investment strategy.  Past performance is not indicative of future results.  

Please be advised that Edgar Investment Management, LLC is a financial advisory firm specializing in investment management and financial planning services. We do not offer or provide any CPA-related services, including tax preparation, tax planning, or other accounting services. If you require assistance with tax-related matters, we recommend consulting a qualified CPA or tax professional who can provide specialized advice tailored to your individual needs.

Edgar Investment Management, LLC is not a Public Accounting firm.

 

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.

  • About You

    Tell us a little about yourself. Don't be shy. Let's be friends.
  • How Can We Reach You?

    We would love to chat with you. How can we get in touch with you?
  • What's on your mind?

How much do you want to invest?