#26 Daily Financial News Round Up - Nov 26,2021
What news caught my attention?
Innovation does not come from big public companies, nor does it come from the government. The accepted belief is that innovation comes from universities and Silicon Valley. Is this belief accurate? Without government help, innovation is hard to gain momentum. Electric vehicles fall in that category. Tesla benefited early on in the form of a $465 million loan from the Energy Department. Ford got a $5.9 billion loan to retool and upgrade several factories to build EVs. Consumers get a $7500 tax credit when they purchase electric vehicles. Without government subsidies, it is hard for a change/push to stick.
Stock prices and oil prices dropped dramatically due to concerns about the coronavirus omicron variant.
Investors’ early pandemic playbook was to buy stocks of Zoom and Peloton while selling shares of travel. Omicron variant concerns pushed investors to go back to this trading strategy.
My Takeaways:
Government subsidies play a crucial role in ensuring a lasting change in the business world.
Investors stick to tried and tested strategy of investing in trendy stocks (Zoom, Peloton) while dumping travel stocks.