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Posted August 28, 2020

Byron King

By Byron King

Controlling the Spread

As for top-of-mind issues this election cycle, a reader writes

To get the country back on its feet, we must first get control of the coronavirus, which the federal government has failed to do.

Until we can control the spread and develop a vaccine, employment will be hit and miss, many businesses will be gone forever and families will suffer.

Our next reader wants control of a different kind of spread

Reduction in the size of government at all levels -- local, state and Federal.

Reduction in borrowing by the government, cutting its budget by 30% or so.

Shoring up Medicare and Social Security so all Americans benefit.

An end to globalism as the primary driver of politics and policies.

Freedom of choice in the terms set forth by Milton Friedman over 35-years ago in his book Free to Choose.

One fly in the ointment: Can the government shore up Medicare and Social Security while also cutting its budget? And shrinking? Those points seem to be at cross purposes.

Keep the feedback coming

Send your opinions to, TheRundownFeedback@SevenFigurePublishing.com.

Your Rundown for Friday, Aug. 28, 2020

Stock Split Tailwind

Apple and Tesla are scheduled for stock splits Monday with a 4-to-1 split and 5-to-1 split respectively.

To wit, a reader writes: Should we buy AAPL and TSLA on the split?

Doing some research, we found this analysis from Adam Vettese -- of investment firm eToro -- who says: "Tesla and Apple are already two of the best-performing companies on the US stock market and all the evidence suggests their upcoming stock splits could act as a tailwind for the value of their shares.

And what a tailwind

Mr. Vettese and eToros looked at 60 years of data surrounding 10 big-name brands and stock splits -- companies including Apple, Alphabet (Google), Microsoft, Amazon, Coca-Cola, Disney, Samsung, McDonald's, Toyota, and Intel.

Their findings? On average, megabrands that split their stocks saw their share prices surge by a third in the year after the split.

All to say, Apple's and Tesla's stock prices could surge by about 33% in the 12 months after their stock splits, says Market Insider. (emphasis ours)

We think, however, Apple is the safer investment because it has a reliable track record; in fact, Apple has split its shares four times in its history, with those shares rising by an average of 10.4% in the year following the split.

Hope that helps

Market Rundown for Friday, Aug. 28, 2020

S&P 500 futures are up 7 points to 3,490.

Oils steady at $43.11 for a barrel of West Texas crude.

Gold is surging: up $35.10 per ounce to $1,967.70.

Bitcoins in the green too, up $123.71 to $11,451.46.

Send your comments and questions to, TheRundownFeedback@SevenFigurePublishing.com.

Have a great weekend. Take care!

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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