My Investing Muse (24 Mar 2025)
Layoffs & Closure news
Financial distress in the trucking and logistics sector over the last three years has forced thousands of shipping companies to cease operations in the Great Freight Recession. About 88,000 trucking companies and 8,000 freight brokerage firms went out of business in 2023, data from Freight Caviar revealed. The trucking sector reported a net loss of about 10,000 carriers in the first half of 2024. - The Street
Home-grown electronics firm Creative Technology has retrenched about 40 staff, or 14 per cent of its workforce, as the tech layoff wave continues its rampage, The Straits Times has learnt. - Straits Times
Volkswagen's Audi to cut 7,500 jobs in administration, development by 2029 - Reuters
Amazon is set to cut around 14,000 managerial positions by early 2025, aiming to save between $2.1 billion and $3.6 billion annually. This reduction marks a 13% drop in Amazon’s global management workforce, shrinking the number of managers from 105,770 to 91,936. - TechStartups
Recession concerns grow as tariffs cut, government layoffs, funding cuts and immigration restrictions add to the burden of the economy. - Economic Times
When On the Border filed for Chapter 11 bankruptcy on March 5, the company immediately closed nearly 80 locations. That's almost two-thirds of its stores, according to the Chapter 11 filing in U.S. Bankruptcy Court for the Northern District of Georgia. - The Street
The above are some of the layoff and closure news. Let us monitor this as this can lead to market-wide concerns.
Is Southeast Asia under financial duress?
Here are some news that hit the headlines in Southeast Asia.
INDONESIA BOURSE HALTS STOCKS TRADING AS JCI INDEX FALLS 6% - Investing.com
Fears of a slowing economy and uncertainty over President Prabowo Subianto’s recent policies rattled investors, sparking a market sell-off that triggered a trading halt on Tuesday (Mar 18) as the benchmark index plunged. - Business Times SG
The Thai stock gauge has tumbled more than 16 per cent in 2025, making Thailand the world’s worst performer among 92 indexes tracked by Bloomberg. Over the past 12 months, foreigners pulled out US$4.2 billion, the most across Southeast Asia. - Straits Times
Mass layoffs have affected more than 60,000 workers across 50 companies in Indonesia between January and February 2025, according to the Labour Party and the Indonesian Workers’ Confederation (KSPI). - The Star (MY)
Are investors exiting US stocks?
Here are some news about investors rotating out of the US market.
Fund Managers just rotated OUT OF U.S. Stocks at the fastest pace in history - BarChart
Hedge funds are selling US equities at the fastest rate in MONTHS: US stocks have been sold by institutional investors for the 4th consecutive week and in 9 out of the last 10. Index and ETF products accounted for 45% of overall selling. X user Global Markets Investor
Foreigners are DUMPING US equities at nearly a RECORD pace: US stock funds saw over $5 BILLION in net outflows last week from overseas investors, the third-largest withdrawal in HISTORY. This was only below the 2020 CRASH and the March 2023 Banking Crisis. Notably, foreigners held a MASSIVE $16 trillion of US stocks as of Q4 2024. In other words, there's more selling to come over time if uncertainty persists. This is MASSIVE. X user Global Markets Investor
While there are various reasons to sell, I treat these as cautionary in this market.
My final thoughts
It is time to consider our available options, including reviewing our expenditures, income, and savings. Let us spend within our means, invest with what we can afford to lose, and avoid leverage. I would review my holdings and cut some losses with businesses losing their competitive advantages. I would also consider some hedging and adding some defensive positions.
Let us do our due diligence before we take up any positions. Let us have a successful week ahead.
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