(COMPOUND INTEREST IS THE SECRET TO GROWING LONG-TERM WEALTH)
March 4, 2024
Hello everyone,
Week ahead calendar
Monday, March 4, 2024
Switzerland Inflation Rate
Previous: 1.3%
Time: 2:30am
Tuesday, March 5, 2024
9:45 a.m. PMI Composite final (February)
9:45 a.m. S&P PMI Services final (February)
10 a.m. Durable Orders final (January)
10 a.m. Factory Orders (January)
10 a.m. ISM Services PMI (February)
Australia GDP Growth Rate
Previous: 2.1%
Time: 7:30pm
Earnings: Ross Stores, Target
Wednesday, March 6, 2024
8:15 a.m. ADP Employment Survey (February)
10 a.m. JOLTS Job Openings (January)
10 a.m. Wholesale Inventories final (January)
10 a.m. FED Beige Book
Canada Interest Rate Decision
Previous: 5.0%
Time: 9:45am
Earnings: Campbell Soup
Thursday, March 7, 2024
8:30 a.m. Continuing Jobless Claims (02/24)
8:30 a.m. Initial Claims (03/02)
8:30 a.m. Unit Labour Costs final (Q4)
8:30 a.m. Productivity SAAR final (Q4)
8:30 a.m. Trade Balance (January)
3 p.m. Consumer Credit (January)
Euro Area Interest Rate Decision
Previous: 4.5%
Time: 8:15 am
Earnings: Broadcom, Costco Wholesale, Kroger
Friday, March 8, 2024
8:30 a.m. Hourly Earnings preliminary (February)
8:30 a.m. Average Workweek preliminary (February)
8:30 a.m. Manufacturing Payrolls (February)
8:30 a.m. Private Nonfarm Payrolls (February)
8:30 a.m. Unemployment Rate (February)
Macroeconomic concerns will take center stage for investors this week. Fed Chair Jerome Powell is set to give his semiannual monetary policy update to the House of Representatives on Wednesday, and the Senate on Thursday, testimonies that will be dissected by traders for any insight into when lower rates are coming.
Rate cuts are now expected to start later in the year and Wall Street forecasts fewer of them.
U.S. debt now stands at nearly $34.4 trillion. It rises by $1 trillion about every 100 days.
Turkish annual inflation soars to 67% in February. And we think we have problems!
Next Bitcoin target: $68,550.
Albert Einstein called compound interest the eighth wonder of the world. “He who understands it, earns it. He who doesn’t, pays it.” Obviously, without it, we would all be poorer. Compound interest describes the ability to earn not only interest on the principle but also reinvested interest on the interest.
Warren Buffett believes successful investing is like rolling a little snowball down a very long hill – the longer the hill, the bigger the snowball.
Buffett advises that even with a small sum to start, one can accumulate wealth significantly throughout one’s life. For example, $10,000 with compound interest of 10% annually is worth almost $175,000 in 30 years, more than $450,000 in 40 years and $1.17 million in 50 years.
Buffett bought his first stock, Cities Service Preferred for $38 a share at the age of 11. By 16, he had amassed the equivalent of $53,000 in today’s dollars.
In 1965, Buffett took control of the troubled textile manufacturing company Berkshire Hathaway and began using it as a holding company for the many businesses and stocks he purchased over the following decades.
Today, his conglomerate owns everything from BNSF Railway (the old Burlington Northern Santa Fe) to ice cream shop chain Dairy Queen, from auto insurer Geico to 6% of Apple, boasting a total market value above $900 billion.
“The elementary mathematics of compound interest is one of the most important models there is on earth.”
REITS: I wrote recently about some REITS. For those who wanted a recap on the names I mentioned, they are listed here: Realty Income, data centers, Prologis and Equinix, senior housing facilities, Ventas and Welltower.
Cheers,
Jacquie
