The Tunji Letter, Edition #51
Not Perfectly Timing the Market Is Okay || U.S. PC Shipments Soar || Weekly Jobless Claims at a New Pandemic-Era Low
Welcome to the Tunji Letter, Edition #51.
// Quote of the Week
“Sometimes buying early on the way down looks like being wrong, but it isn’t.” — Seth Klarman
As a long-term investor, it is okay if you do not perfectly time the purchase of a stock on a downward trend in the short term. What matters most is that you bought low, and whenever you decide to sell 5, 10, 15, etc., years from now, its price will be much higher.
I use two technical indicators as buying levels: the 80-day exponential moving average (EMA) and the 200-day EMA. If a stock that is already in my portfolio falls below its 80-day EMA, I will buy more shares. I will also do the same if it falls below its 200-day EMA. If a stock that I have not invested in yet satisfies my investment thesis and falls below its 200-day EMA, I will heavily consider purchasing shares to add it to my portfolio.
// U.S. PC Shipments Soar
According to a recent report by Canalys, U.S. PC shipments were up 73% over the same period last year. A total of 34.2 million units were sold. HP surpassed Apple to lead the list, with 7.2 million units sold with annual growth up 122.6%. Apple had 6.7 million units sold with annual growth up 35.7%. 3rd, 4th, and 5th on the list were Dell, Lenovo, and Samsung, with units sold of 4.8 million, 4.7 million, and 3.4 million with annual growth of 29.2%, 92.8%, and 116.4%.
The major growth in U.S. PC shipments helps to showcase the increased need for newer PCs in households due to the shift to work and school from home. Now that things are starting to normalize, with most schools likely going back to 100% in-person learning in the Fall and many corporations adopting a hybrid work model, will this growth continue? We will have to wait and see. I think it will continue to grow, but not more than 73%, as PCs tend to have a lifespan of five to eight years.
// Weekly Jobless Claims at a New Pandemic-Era Low
This past Thursday, the Department of Labor released its weekly report on new jobless claims, which showcased initial jobless claims for the week ending on June 5th was 376,000 vs. an expectation of 370,000 and an unrevised 385,000 last week. The continuing claims for the week ending on May 22nd were 3.499 million vs. 3.665 million expected and a revised 3.757 million last week. The latest report was the fewest new unemployment claims since March 2020. The initial jobless claims filing is down for a sixth straight week. More people are returning to work, and economic activity is picking up. The pandemic is not fully over, but things are getting better and not getting worse so far regarding the labor market. Will jobless claims continue to decrease? We will have to wait and see, but I believe it will if unemployment benefits are potentially cut.
// Latest Articles
Check out my latest articles:
· 3 Cashback Credit Cards to Consider for Summer 2021
· Why Apple Is a Strong Long Term Hold
· A Website That Further Simplifies Long Term Investing
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Thank you for reading!
Tunji
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