Point Well Taken

On the prevalence of long-term auto loans, a reader says…

“My last truck was a brand new 2012 Chevy Silverado; I financed it for 6 years. As I was making payments for those 72 months, I made up my mind that I would never buy another vehicle that I couldn’t afford to pay off in 4 years.

“If I can’t handle those payments, I will have to step down in price. Either a lower-priced model or go to used instead of brand new.”

And this on EV tax credits, social engineering and a government official…

“If EPA Chief Andrew Wheeler was still favoring his former employer, the coal industry, he would be making a case in favor of EV tax credits in order to drive up electricity usage and coal consumption. The fact that he is expressing the opposite view is very much to his credit.

“While it is fair to criticize lobbying in general as an exercise in social engineering, this should not impugn in any way the motives or statement of Wheeler regarding the inappropriateness of EV tax credits.”

Well, we wouldn’t go that far… but point well taken. More of your opinions tomorrow.

Your Rundown for Thursday, November 7, 2019:

Stock Facelift (Beyond Skin-Deep)

You might be familiar with grocery chain Kroger (NYSE: KR) — especially if you call the Midwest home.

This week, we learn Kroger’s getting a facelift with some new branding and the catchphrase: “Fresh for Everyone.” (Don’t worry, the recognizable letter K remains intact.)

The company also released its financials Tuesday with earnings beats all around. “We have regained our sales momentum,” said CEO Rodney McMullen… and with that shares bounded up 7%.

“Even though some things have not gone according to plan,” McMullen said, “we have made a series of smart financial and strategic moves….

“That sets Kroger up for a stronger future.”

Just how strong? The company projects shareholder returns of 7.5% to 11% in 2020 and 8% to 11% beyond. Plus, KR stock comes with a decent dividend.

The takeaway: When the bull market comes to its inevitable end — and it will eventually — investors will flock to defensive stocks, especially consumer staples. We say be there first.

Market Rundown for Thurs. Nov. 7, 2019

S&P 500 futures are up 16 points to 3,093.

Oil’s added $1.06 to its price of $57.41 for a barrel of WTI.

Gold’s price is down $5.80 per ounce to $1,487.30.

Bitcoin’s down 1% to $9,257.80.

Have a great day. We’ll talk tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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