BULL AND BEAR: Bank Deposits and Amazon

In this episode of WealthVest: The Weekly Bull & Bear Season 2 Episode 29, recorded on June 22nd, Drew and Grant discussed a $2 trillion influx in bank deposits, the best and worst performing sectors since the Covid-19 crisis, May retail sales, Empire State manufacturing, The Fed's corporate bond buying program, warning signs for the dollar, P.E. in 401ks and new issues Amazon must contend with.

One of the key takeaways in the market update was the sheer amount of growth in bank deposits. Since January, there has been a $2 trillion1 influx in cash that is suppressing already dismal bank rates. April alone saw bank deposits grow by $865 billion. Drew and Grant discuss what this might mean for future equity prices with so much capital sitting on the sidelines. Additionally, they discuss how the largest banks have overwhelming been the biggest benefactors of increased institutional and consumer saving rates.

The podcast ends with an interesting discussion on Amazon and where is stands in a covid-19 world. Sales have undoubtably been very compelling, but the firm is operating on slim margins and it faces a heavy balance sheet due to its increases in inventory and equipment. Furthermore, there are a wide variety of international competitors that Amazon will have to contend with in the future.

The episode can be listened to on the following link

The episode can be listened to HERE.

It can also be download on most applications where you might find your podcasts.

1. “U.S. Banks Are 'Swimming in Money' as Deposits Increase by $2 Trillion amid the Coronavirus.” CNBC, CNBC, 22 June 2020, www.cnbc.com/2020/06/21/banks-have-grown-by-2-trillion-in-deposits-since-coronavirus-first-hit.html.