October 1, 2022 Global Economy, Costco, Market, Income Increase, Luxury Homes, Apple, Oil, Electric Vehicles, & September

<p>Global Economy </p> <p>The global economy is dropping dramatically, but the US is the bright spot. I always tell people we do not depend on the world to buy our products we buy products from the world. Some bright news that might help you hold on during these difficult times is according to the Wall Street Journal, some US manufacturers are bringing production from overseas back to the US and are boosting investment. It should also be noted that contracting US business activity was better in September than in August. The US composite purchasing managers index, which includes both manufacturing and the service sector, climbed to 49.3 in September, a nice improvement from the August showing of 44.6. We are not out of the woods yet but do not sell your quality equities that are well priced and have a good business. And don’t forget to look down the road a year or two and not a week or two!</p> <p>Costco </p> <p>I love going to Costco as do many other people. You get some great deals in the warehouse but one deal that is lacking is the stock price. The stock is down roughly 20% from the $600 high but with the price/earnings ratio still over 37 that is no deal. They do have a great business model and there is a potential membership price hike perhaps next year. Even with that, 48% of Costco members in a recent survey say they’re willing to pay more for their memberships. Costco depends on increasing volume as the profit margin always hovers around 3.6%. If volume falls off the stock price could tumble as well.</p> <p>Market</p> <p>Trying to time the market has always proven to be a dangerous game as it is heavily reliant upon one's emotions. In the long term you have a better chance of winning the lottery. Many people don't realize how quickly stock prices can move and by the time stocks have risen they are left asking the question of whether they should get back in or will they fall again. Looking back over the last 40 years the best 10 days (out of more than 10,000) accounted for almost two-thirds of the stock ma