The Death of Deutsche Bank

The big news coming out of the weekend is Deutsche Bank’s completely unsurprising implosion.

The maligned German bank is overhauling its flailing operations once again, this time slashing 18,000 jobs and abandoning its trading business. It will spend 7.4 billion euros over the next three years to get the job done.

“Today we have announced the most fundamental transformation of Deutsche Bank in decades,” CEO Christian Sewing declared, via Barron’s. “We are tackling what is necessary to unleash our true potential: our business model, costs, capital and the management team. We are building on our strengths. This is a restart for Deutsche Bank — for the long-term benefit of our clients, employees, investors and society.”

So Deutsche the investment bank is officially dead. Frankly, I’m shocked it took this long for the Deutsche brass to give up considering the bank has been “pummeled by scandals, investigations and massive fines stemming from the financial crisis and other issues,” CNBC notes.

DB’s chart has also telegraphed its demise. It has gone nowhere but down over the past decade. The stock peaked near $120 in 2007 just before cashing during the financial crisis. Shares have never recovered, hitting fresh lows near $6 this year.

DB

Whether Deutsche’s newest restructuring will save the bank is anyone’s guess.

Next up: The tiny house movement is getting out of hand.

Tiny homes mounted on trailers are one of the more ridiculous trends that have emerged following the bursting of the real estate bubble more than a decade ago.

But if you’re not ready to commit to 150 square feet of living space, perhaps you’d like to try out the minimalist lifestyle by purchasing a backyard igloo from Amazon.com (NASDAQ:AMZN).

Consumers are going wild for a $1,200 garden igloo that’s perfect for relaxing in your yard or using as a greenhouse, MarketWatch declares. Judging by this picture I swiped from Amazon, there’s no better way to celebrate the arrival of summer than your very own biodome:

igloo

Unfortunately, I don’t think scheduling a backyard happy hour in a plastic bubble is a great idea here in muggy Maryland. I’d probably succumb to heat stroke before my guests arrived.

If igloos aren’t your thing, you can also take the plunge with a genuine tiny house kit from Amazon. You can purchase a small wooden cabin kit for about $5,000 — shipping included! Of course, you’re going to need some serious skills to set the thing up. That $5K buys a wooden box. You’ll need to figure out how to add the kitchen, appliances, toilets, and any other creature comforts you desire…

Finally, the market’s flashing a few fresh breakouts to kick off the new trading week.

You might remember how Roku Inc. (NASDAQ:ROKU) shares jumped nearly 30% back in May following the what one analyst called a “flawless quarter”.

ROKU trounced analyst expectations, revealing that it became the top-selling smart-TV operating system in the U.S. for the first time ever. The brand even stole the No.1 spot from Samsung, cornering a third of the smart TV market.

With new streaming services seemingly multiplying overnight, Roku isn’t worried about how customers are going to use their products, The Wall Street Journal reported following the impressive earnings beat. The company announced that it will discontinue plug-in hardware and fully pivot to good ol’ fashioned ad revenue in addition to smart-TV operating systems.

Frankly, the amount of hate ROKU stock has received from investors since its IPO has always amused me. Speculators have loved to talk trash and short this stock since day one. But as I noted following its May earnings report, this stock could very well continue its winning streak over the next several quarters as services like Apple TV + and Disney Plus pop up on Roku platforms.

Plus, it’s hard to argue with this chart:

ROKU

Last week’s picture-perfect bounce off its rising 50-day moving average could set up the next leg of the ROKU rally…

Sincerely,

Greg Guenthner

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Greg Guenthner

Greg Guenthner, CMT, is the editor of Opening Bell Fortunes and Seven Figure Signals. He has been with Agora Financial/Seven Figure Publishing since 2005. In 2019, the average position in Greg’s Sunrise Fortunes portfolio outperformed the S&P 500 by 1.65x.

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