Fed
What are the two functions of the Fed?
Stable employment and inflation
Who's plane just flipped over?
Delta
What is a synonym for operating margin?
EBIT margin
What's the difference between CORE and headline CPI?
Core excludes food and energy
What would happen to short-term treasuries if inflation comes in hot?
Rise in expectations of the Fed hiking rates
What are open market operations?
Buying and selling of bonds
What 'failing tech company' is up 30+% off news of working with TSMC and Broadcom?
Intel
Why would you value a company off sales instead of earnings or EBITDA?
They aren't profitable!
What was the tariff rate that Trump put on China?
10%
If a stock beats earnings but price falls, why?
Likely bad guidance - future expectations lower even if present is good
What's the Fed's preferred measure of inflation?
PCE (especially Core PCE)
What's happened to the Dollar recently?
Up because of tariffs
Why would you use P/E over EV/EBITDA?
Less complicated capital structure (less debt), low depreciation
What sectors does trump want to place Tariffs on?
Semis, automotives, pharma/biotech
If a stock misses earnings due to loss of market share, what should happen to its peers?
Should trade up - someone's gotta be taking the share!
What happened with inflation and treasuries this last month?
Ticked up above 3% for the first time in 7 months
What company lost the most market cap in a day in history?
NVIDIA off deepseek news
What's more expensive - equity or debt (AND why)?
Equity because the returns are uncertain so investors demand returns for the added risk
What is a retaliatory tariff?
Tariffs placed as 'revenge' after one country places on another
If the Fed wants to decrease money supply/liquidity, what OMO would they take?
Buying bonds
Who were the last three chairs of the Fed?
Jerome H. Powell (2018 - present)
Janet L. Yellen (2014 - 2018)
Ben S. Bernanke (2006 - 2014)
Where are the Russia/US negotiations happening right now?
Siberia
What does net working capital represent?
The current assets - current liabilities; what the business has to work with in short run
Why are credit spreads tightening?
Hawkish Fed and good earnings lowering high yield/IG rates
What happens to price when yields are rising?
Price is going down!