Market Commentary / Investing News

October, the Month of Market Crashes

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Deal Night Toronto was a huge success!

Thank you to all who attended our first-ever Deal Night Toronto at the beautiful Black Pearl nightclub.

It was incredible meeting over 200 of Toronto’s most savvy investors and learning from four of North America’s most exciting growth companies.

The drinks were flowing and networks were growing all night long.

For those curious about the companies who presented, click the links below to learn more.

💎 Infinity Stone Ventures

⛽️ Prospera Energy

🔋 EverGen Infrastructure 

💰 Caary Capital

Stay tuned for future Deal Night events coming to a city near you!

A Quick Market Recap

Wall Street Bros celebrating their portfolios in 2022 like…

Well, well, well, what do we have here?

Another week in the red.

As the 2022 horror story continues, this October is feeling extra spooky with the markets plummeting below their earlier 52-week lows.

But instead of ghouls and goblins, people are trembling at the thought of crashes and recessions.

This may be the scariest Halloweens of them all…

Here is how major indexes performed this week:

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Top News

Apple Inc. Exec is canceled over vulgar TikTok video

Apple’s ($AAPL) stock isn’t the only thing getting dropped this year as a company executive, Tony Blevins, is relieved of his duties after a viral video of him surfaced on TikTok.

In a quick video interview with luxury car TikToker Daniel Mac, Blevins said:

😬 “I race cars, play golf and fondle big-breasted women. But I take weekends and major holidays off;” the comment appears to be a misguided joke off the 1981 movie “Arthur”.

💥 The TikTok video has since gone viral with over 43.8 million views and 6.3 million likes.

🧳 Blevins spent over 22 years striking deals with suppliers and partners as the Company’s VP of procurement and was considered a key component of Apple’s success; his net worth is estimated to be $4 million as of 2022.

🍎 Apple’s ($APPL) stock is down 22.17% YTD, trading at a market cap of $2.22 trillion and a P/E of 22.84.

Micron Technology partners up with Japan to boost domestic chip manufacturing

The race for international chip dominance ramps up again as Japan is the next country to increase domestic semiconductor production.

Following a major chip shortage due to the effects of the pandemic and global supply chain constraints, countries around the world are looking to manufacture from home to bolster their intellectual independence.

💸 Japan will give Micron Technology a subsidy of up to 46.5 billion yen ($320 million), so it can make advanced memory chips at its Hiroshima plant.

🤝 The announcement follows a visit by US Vice President Kamala Harris, in the latest example of increasing cooperation between Japan and the US amid increasing tensions and a technological rivalry with China.

📈 Micron’s executive vice president of global operations, Manish Bhatia, said this about the announcement, “Micron appreciates the support of the Japanese government, and is proud to be a global partner in Japan’s effort to expand semiconductor production and advance innovation.”

👾 The Company will build its new 1-Beta dynamic random access memory (DRAM) at the Hiroshima plant; this comes after Micron said it plans to cut overall investment plans by 30% amidst a drop in PC and smartphone demand.

💻 The company is down 46.22% YTD, trading at a P/E of 6.46, and a market cap of $55.27 billion.

Tesla bolsters its boardroom with the addition of Airbnb Exec

Tesla ($TSLA) is boosting its boardroom with the addition of Airbnb ($ABNB) co-founder, designer, and billionaire Joe Gebbia.

The move comes after the departure of Oracle chair and CTO Larry Ellison which was announced in June and finalized by shareholders in August.

📡 Tesla added Ellison and former Walgreens Boots Alliance exec Kathleen Wilson-Thompson to the board in December 2018 to comply with the terms of a settlement agreement with the SEC; Elon Musk & Tesla were charged with civil security fraud after Musk tweeted he was taking Tesla private for $420 per share.

🏠 Gebbia left his operating position at Airbnb in July but remains as a board member there and also chairs the nonprofit.

🤑 Tesla noted in a company blog post and filings with the SEC that Gebbia “waived entitlement to cash compensation” and waived “equity compensation until July 2023,” when the board decides how to compensate each member moving forward.

🧠 Tesla’s other non-executive board members include Robyn Denholm; Ira Ehrenpreis, founder of DBL Partners; Hiro Mizuno, a former Japanese pension fund exec; media entrepreneur James Murdoch; and Kimbal Musk, Elon’s brother.

🚗 Tesla ($TSLA) is down 24.70% YTD, trading at a P/E of 96.81, and a market cap of $831.15 billion.


Three of the largest stock market crashes in history happened in October

Things are scary in the markets right now and with central banks planning to raise rates well into 2023, the future is looking bleak.

And if history tells us anything, it may not repeat itself but it often does rhyme.

Here are a few of October’s most memorable crashes:

😭 The Bank Panic of 1907: Largely due to a lack of credit and threats of legislative action against trusts, heavy panic selling in the stock exchange led to multiple bank runs across the nation.

🏚 The Crash of 1929 (October 24, 1929): The Great Depression needs no introduction, but due to heavily levered markets and inflated asset prices, the market corrected with a rush of selling at a scale never seen before.

📉 Black Monday (October 19, 1987): An unexpected stock market crash, the collapse was largely caused by automatic stop-loss orders which ignited financial contagion and a domino effect throughout Wall Street.

👁‍🗨 Bonus Fact: The October Effect is a psychological phenomenon in the financial markets that causes some traders to blame October for stock market declines; in actuality, September is the worst performing month in history.

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