top of page

(Half) The results are In...

Well folks, half the election results are in, and it seems like more gridlock is in our future as the Democrats have retained control of the Senate while the House is overwhelmingly poised for a GOP win - follow the final tally as it’s reported here. Further to the political sphere, Donald J. Trump is set to make a big announcement today and many sources believe that it will be a bid to run for the 2024 Presidency - early polling results even have him in the lead over the incumbent Joe Biden. Volatility is spiking after yesterday’s risk-off session and we have just the report to help guide you through these choppy waters, so read on for your daily dose of market inspiration with this 152nd Coachman’s Report!


Markets in Review

The S&P 500 is currently trading at a P/E ratio of 20.58, still far off its historical mean and the lows reached during the bear market following the ‘08 financial crisis around a 14 P/E. In order to support any real growth in asset values, outside of price inflation, there must be material growth in earnings and since the beginning of this Q3 reporting period, they’ve only flatlined. For the S&P, like any other equity, to break out of this wide sideways channel, which is topped by its 200-day MA, earnings must grow and we see that driven by a reduction in costs above all else through this recession; it is likely, that in any bull case this is marked by an environment where interest rates are no longer rising where firms have adjusted to the higher cost of capital landscape and other inputs, such as oil remain at manageable price levels.


Short: Ginkgo Bioworks Holdings, Inc. (DNA-NYSE) | Timeline: 2 days

Ginkgo Bioworks Holdings, Inc. (DNA), which develops platforms for cell programming to enable the biological production of products, reported very underwhelming earnings yesterday after the market closed. The company missed earnings expectations by 15.49%, with EBITDA coming in at $(70) million - a 389% decrease from last year. (Full Story) Referring to the chart, DNA hasn’t had a great year so far, dropping from highs of $8.50 in January. That said, as the last quarter has gone by, a descending triangle has formed - and with negative news on top of an extremely overbought Stochastic RSI, traders should expect the stock to oscillate downward in another attempt at breaking below support.


Zooming out...

Is Ontario’s Win a Beacon of Hope For the World? Ontario, Canada’s largest province, has recently released their 2022 results, alongside 2023 projections, and frankly speaking, the province's surprising fiscal strength seems to conflict with most headlines today. Due to higher-than-expected tax revenue, the government's deficit predictions have been cut immensely to $12.9B CAD from $19.9B CAD in April. Although costs have remained relatively flat up until this point, recent events threaten that stability. One of these events is the CUPE teachers union strike, as in response to inflation they’re seeking salary increases. Deserved or not, this will still eat a hole into the province's coffers no matter what % raise they receive. So, that brings us to the all-important questions: is Ontario an anomaly? Or simply a preview of what other North American cities will be reporting in the coming months? Only time will tell. Bali Breakdown Pt.1 The beautiful nation of Bali has been swarmed by cameras, jets, and security forces as the G20 starts up. So far, Biden and Xi shook hands, while agreeing that as the two largest economies they should mutually pursue climate policy goals. Interestingly, Biden promised that a new Cold War with China will not occur, while also stating he believes that the Chinese will not try to take Taiwan by force. In other news, there were conflicting reports of Russian Foreign Minister Sergei Lavrov being airlifted to a hospital during the early days of the conference. Indonesian authorities confirmed the reports while Russian media firmly denied the allegations. This occurred at the same time that reports of Russian and American talks in Turkey made headlines. Although parallel to the conference, reports indicate that these dialogues are meant to restart nuclear weapon facility inspections under the updated Strategic Arms Reduction Treaty.


Making headlines...

Bitcoin Miner Expects ‘Many More’ Bankruptcies After FTX Collapse

  • Crypto mining firms listed in Toronto expect more turmoil and a lingering crisis of confidence in digital assets after the collapse of Sam Bankman-Fried’s FTX. (Full Story)

Buffett Takes $5 Billion Stake in TSMC, Sparking Surge in Shares

  • Warren Buffett’s Berkshire Hathaway Inc. took a stake of about $5 billion in Taiwan Semiconductor Manufacturing Co., a sign the legendary investor thinks the world’s leading chipmaker has bottomed out after a selloff of more than $250 billion. Shares surged. (Full Story)

Brookfield to Invest Up to $700 Million in US Recycling Business

  • Brookfield Asset Management Inc. is making a foray into the recycling business, creating a new firm with an investment of as much as $700 million through its sustainability fund. (Full Story)

Environment minister says emissions cap on oil and gas expected by end of 2023

  • A cap on greenhouse gas emissions from Canada's oil and gas sector will be ready by the end of next year, Environment Minister Steven Guilbeault said Monday. (Full Story)

Humanity Hits the Eight Billion Mark

  • A baby born somewhere on Tuesday will be the world's eighth billionth person, according to a projection by the United Nations. (Full Story)


Chart of the Day: Silver Poised for a Breakout?


“One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors”

- Plato


The Coachman's Report - Terms and Conditions

bottom of page