This time is different

Do we really have a "good chance" of soft landing?

Author

Atreya Sinha
February 10, 2023

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Dow Jones(-0.15%) S&P 500(-1.13%)  Nasdaq(-2.40%)

Last week saw a huge rally and a drop, propelled by the Federal Reserve's plans to loosen regulations and the outstanding jobs report. The US economy added a whopping 517,000 jobs in January, far exceeding expectations. This robust labor market will help to buffer the economy in the face of other areas of slowing growth.

Investment is most successful when it is most businesslike. - Ben Graham

The Dow, NASDAQ, S&P 500, VIX, Russell 2000, and the Treasury yield curve all saw significant changes last week. West Texas Intermediate (WTI) crude oil prices also rose.

  • China’s biggest chipmaker SMIC posts record 2022 revenue but warns of a tough year ahead

  • Lyft shares tank 30% after company issues weak guidance

  • PepsiCo earnings beat expectations as price hikes boost snack and beverage sales

  • Disney beats expectations as streaming subscriber losses aren’t as bad as feared

  • Affirm cuts 19% of workforce; shares tank on earnings miss

  • Uber beats estimates and the stock is up

👀 - popping

💫 Position of the Week - Pioneer Natural Resources (PXD)

This week we add some Energy stocks to our portfolio. Pioneer Natural Resources and PDC Energy. Taking it one stock at a time, we would like to shine some light on Pioneer Natural Resources.

Prospects for buying Pioneer Natural Resources Co(PXD), an oil and gas exploration and production company, are very attractive. PXD has a strong financial position, with strong cash flows, low debt levels, and a solid balance sheet. It also has a strong production base, with production growth projected to be 2-3% in the next decade. Additionally, PXD has a large and well-positioned acreage portfolio, with acreage located in some of the most prolific US shale plays.

PXD is well-positioned to benefit from the growing demand for US-produced oil and gas, and with its high-quality assets, strong financials, and potential for growth, it could be an excellent addition to any portfolio. Investors should consider PXD's current price, its competitive advantages, and potential risks before making the decision to buy.

Finally, PXD has a low-cost structure with low break-even rates. This makes it an attractive investment for those looking for potential upside potential.

Be sure to stay informed on what's going on in the market and use caution before investing. Thanks for tuning in and we'll see you next week!