Domain Daily: Shopping and Shortfalls

The Dose

  • Shop While You Stream

  • Amazon Sounds an Alarm

  • Domain Money Advisors June Rebalance


Shop at Walmart From Your Roku

Walmart and Roku are reinventing home shopping. The two have partnered to allow Roku users to buy products featured in "shoppable" commercials.

The Point: Here's what's going to happen. Roku will begin showing advertisements that tout products sold by Walmart. Then, suppose you like what you see. In that case, you'll be able to click a button on your Roku remote and immediately make a purchase through the company's payment system. The inspiration for the partnership appears evident. Walmart is very familiar with the psychology of shopping. In line with Walmart’s understanding, the longer people think about a purchase, the less likely they will be to make it. So anything that can close the gap between seeing an ad and clicking buy will potentially be good for sales. For proof of that, just look at how 1-Click was a game-changer for Amazon's business. 

Stock Market Basics


Amazon Fears It's Running Out of Workers

In an internal memo obtained by Recode, Amazon executives warned the company could face a labor shortfall by 2024.

The Point: Success can be a curse. Amazon has grown so large that it appears to be hitting constraints that seem unimaginable. "If we continue business as usual, Amazon will deplete the available labor supply in the U.S. network by 2024," the memo said. How could this happen? Well, there are a few potential reasons. First, the U.S. labor force participation rate has steadily declined since 2000. At the turn of the millennium, 67% of Americans were employed or seeking employment. Today, that measure stands at just 63%. But Amazon shoulders some blame as well. The company's hard-driving ways mean its warehouses have trouble keeping the workers they do have. So what should we expect here? If the situation is as dire as predicted, Amazon might have to increase its wages. That cost would undoubtedly be passed on to customers. Another option that Amazon has been actively exploring is ramping up its automation efforts. Either way, expectations for future growth may be impacted.

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Domain Money June Rebalance

Finally, we’d like to highlight a note from our investment team at Domain Money Advisors, LLC* regarding the latest rebalance to our managed portfolios:

Over the course of 2022, markets have been adjusting to a new paradigm - capital was cheap and now it’s expensive, driven by the Federal Reserve’s response to elevated inflation. In response to these changing market conditions, asset prices have fallen sharply led by growth stocks and crypto.

Additionally, as crypto market conditions deteriorated this year, the Terra project failed and now Celsius, Microstrategy, Three Arrows Capital and other crypto companies are suffering from their levered exposure to the crypto asset class.  

In response to this new market environment - characterized by inflation, rising interest rates, quantitative tightening and slowing economic growth - we made a series of changes to reduce risk and better position our managed portfolios.

To learn more about the changes we’ve made to managed portfolios, please click the link below:

June Rebalance


Domain Money, Inc. is providing this news summary for informational purposes only. While Domain Money believes that the information contained herein is reliable and derived from reliable sources, it makes no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information. Domain Money expressly disclaims any liability or loss incurred by any person who acts on the information, ideas discussed. The information contained herein is not, and shall not constitute an offer to sell, a solicitation of an offer to buy or an offer to purchase any securities or cryptocurrency, nor should it be deemed to be an offer, or a solicitation of an offer, to purchase or sell any investment product or service.  Investing comes with inherent risks and you should always invest within your means and risk tolerance.  Past performance is not an indication of future returns and you should always consult a financial advisor prior to making investment decisions. Please see important disclosures at https://domainmoney.com/legal

 

*The content team responsible for the above content uses primary and secondary sources they believe to be accurate, which includes but is not limited to Bloomberg, The Wall Street Journal, Financial Times, and CNBC, among others. 

*  Domain Money Advisors, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission and an affiliate of Domain Money, has (as of this writing) the following assets mentioned in this communication as part of its managed portfolios: ROKU, AMZN