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Elon Musk Sees Las Vegas Tunnel Opening in 2020

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Entrepreneur Elon Musk said he believes the Las Vegas tunneling system his Boring Company is creating under the city’s convention center could be done by next year, possibly months ahead of schedule.

Musk, the founder of Tesla and SpaceX, made the prediction on Twitter. The $48.7 million project will transport visitors to and from the massive Las Vegas Convention Center along three spots to the Las Vegas Strip, turning a 15-minute walk into a one-minute trip.

“Boring Co is completing its first commercial tunnel in Vegas, going from Convention Center to Strip, then will work on other projects,” Musk said on Twitter. When asked when it would be completed, he tweeted, “Hopefully fully operational in 2020.”

An earlier announcement had the convention center tunnel being completed by January 2021.

Steve Hill, president of the chief executive of the Las Vegas Convention and Visitors Authority, said this weekend that The Boring Company’s two-mile tunnel under the convention center is scratching the surface of a possible tunnel system that could span the entire Las Vegas Strip from Fremont Street to McCarren International Airport.

“We do think that over time, this just doesn’t have to be just a convention center or just a [Las Vegas[ Strip type of transportation system,” Hill said. “This can be a system that everybody in the valley can take advantage of.”

A map on The Boring Company’s websites shows a future tunnel system that would have stops at virtually every major Las Vegas casino and hotel on the Las Vegas Strip, taking visitors from the airport through the city.

“We also see it as a real opportunity to solve some of the congestion problems in Las Vegas going forward,” Hill said. “So it is helpful to start at the convention center, make sure that it works, work the kinks out and then look at the opportunity of moving into the city.”

Musk said his tunnel projects won’t replace other forms of transportation.

“These would be road tunnels for zero emissions vehicles only – no toxic fumes is the key,” Musk tweeted. Really, just an underground road, but limited to EVs (from all auto companies). This is not in place of other solutions, eg light rail, but supplemental to them.

Last December, Musk unveiled an “entirely new system of transport” with a demonstration of a 1.14-mile test tunnel intended to ease Los Angeles traffic.

Copyright 2019 United Press International, Inc. (UPI). Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI’s prior written consent.

Economy

The Next Generation of Sin Stocks to Ride Out a Bear Market

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The Next Generation of Sin Stocks to Ride Out a Bear Market

While the recent stock market rally has technically pushed the Dow Jones Industrial Average out of a bear market, many investors aren’t convinced it will last.

They expect that once the euphoria surrounding the $2 trillion stimulus plan wears off, the market will resume its slide downward as the economic impact of the coronavirus takes hold in the next few quarters.

Sin stocks, so named because they are things that we should go without but can’t seem to part ways with, are historically a great investment during downturns.

The added stress and uncertainty means an uptick in business for the companies producing these sinful indulgences.

Things like alcohol, cigarettes, weapons and gambling all fall under the umbrella of sin stocks, so companies like Altria (NYSE:MO), Diageo (NYSE:DEO), Sturm Ruger (NYSE:RGR) and MGM Resorts (NYSE:MGM) are all widely considered to be sin stocks.

And while they can make great investments during times of uncertainty, there’s a new breed of sin stocks that could generate even larger returns over the coming months as Americans turn to their (new) favorite vices.

Here’s a short list of “next gen” sin stocks that we expect to do very well.

Marijuana stocks

While this is by no means a “new” vice, it is only in the last few years that it’s been possible to directly invest in companies that produce and sell marijuana. That wasn’t possible during the 2008 financial crisis, so it will be interesting to see how the major players do during their first economic downturn.

Just like smoking, we expect demand to hold up very well, if not increase, during times of turmoil.

Consider the larger companies like Canopy Growth (NYSE:CGC), GW Pharmaceuticals (Nasdaq:GWPH) and Cronos Group (Nasdaq:CRON).

Video Games

Being a “gamer” is a lifestyle now, with livestreaming on YouTube and Twitch and professional Esports leagues formed around the most popular titles like Call of Duty and Overwatch.

Video games are big money now, and the larger production studios will continue to generate massive revenues as the culture grows in the years ahead.

Look at the big studios with strong franchises like Activision Blizzard (Nasdaq:ATVI) which has the Call of Duty and Overwatch franchises and Electronic Arts (Nasdaq:EA) which has the Madden, Battlefield and FIFA franchises.

Social Media Platforms

If you have a child or grandchild under the age of 30, you are probably very aware of the effort it takes to get their attention away from their phones and all the social media apps or platforms that they are using.

Tik-Tok, Twitter, Facebook, and Instagram are all designed to keep users engaged and spending as much time as possible on their platforms. The publicly traded ones are Twitter (NYSE:TWTR) and Facebook, which also owns Instagram (Nasdaq:FB)

While there are no guarantees when it comes to investing, as the coronavirus causes more people to spend time at home, they’ll be spending more time using the products and services of these next generation sin stocks, and that should translate to more revenues and higher profits for the companies.

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Economy

Dow and S&P Post First Back-to-Back Gains Since February

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Dow and S&P Post First Back-to-Back Gains Since February

While it may be a small victory, the Dow Jones Industrial Average and the S&P 500 managed to post their first back-to-back positive days since February.

The Dow closed 2.39% higher, gaining 495 points to close at 21,200. The S&P was up 1.15%, closing 28 points higher at 2,475.

The Dow was helped by a massive 24% rally in Boeing shares and a 9.2% gain for Nike stock.

The Nasdaq slid 0.5% yesterday as the tech-heavy index saw Facebook, Amazon, Apple, Netflix and Alphabet all close in negative territory.

Stock gave back part of their gains right before the market closed when Presidential hopeful Bernie Sanders said he was ready to “put a hold” on the $2 trillion stimulus bill currently working its way through the Senate.

Sanders is looking for tighter restrictions on companies receiving aid from a taxpayer pool of $500 billion.

While the market has used the likely passage of the stimulus bill as a catalyst for the massive rally over the last two days, at least one investor says the stimulus is reassuring Wall Street, not Main Street.

“What the fiscal and monetary stimulus has done is to allow the market to recover,” said Justin Hoogendoorn, head of fixed income strategy at Piper Jaffray in Chicago. “It’s not because the main street community is coming back. It’s the institutional crowd being able to say, ‘the world isn’t falling apart’.”

Others are worried that the euphoria over the stimulus bill is driving the market higher in the same way it originally drove the market down.

Adam Crisafulli, founder of Vital Knowledge, said in a note:

“The stimulus measures will continue acting as equity tailwinds as they seep into corners of the credit market presently locked.”

But he added that the market “is clearly moving much faster than underlying fundamentals and just as sharp declines on prior sessions exaggerated economic conditions, the rebounds will too.”

On Wednesday, former Federal Reserve Chairman Ben Bernanke said that he expects the U.S. economy will have a quick rebound after a “very sharp” recession.

“If there’s not too much damage done to the workforce, to the businesses during the shutdown period, however long that may be, then we could see a fairly quick rebound,” Bernanke said while appearing on CNBC’s Squawk Box.

He added “This is a very different animal from the Great Depression” which he said “came from human problems, monetary and financial shocks. This has some of the same feel, some of the feel of panic, some of the feel of volatility that you’re talking about. It’s much closer to a major snowstorm or a natural disaster than a classic 1930′s-style depression.”

In order for the markets to avoid a “snowstorm” turning into a recession, Peter Oppenheimer, chief global equity strategist at Goldman Sachs, said there are four “components” needed for stabilization:

″(i) A sign that the policy intervention is sufficient to prevent severe second- and third-round economic shocks; (ii) A sign that the infection rate is reaching a peak; (iii) A sign that the economic downturn may be slowing; and (iv) Cheap valuations,” Oppenheimer wrote in a note to clients. “In reality, we believe it will be a combination of these, and in some cases there are already signs these are in place.”

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Business

Stocks Soar During Historic Day For The Dow

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Stocks Soar During Historic Day For The Dow

Stocks soared yesterday on news that the $2 trillion stimulus bill was “on the five yard line” and close to be finalized by both the Democrats and Republicans.

The stimulus package will provide relief for companies that have been caught up in the economic fallout from the coronavirus outbreak.

Delays in the bill’s passage were due to the Democrat’s concerns that the bill favored Wall Street over Main Street.

House Speaker Nancy Pelosi appeared on CNBC and told Jim Cramer that there is “real optimism” of a stimulus deal being reached. “We think the bill has moved sufficiently to the side of workers,” she said.

After news broke of the deal nearing completion, stocks went on to stage a historic rally that lifted all three major indexes.

The Dow Jones Industrial Average climbed 11.37%,  or 2,112 points, for its biggest one-day percentage gain since 1933 and its largest point gain ever. The S&P 500 rallied 9.38% for its best day since October 2008 and the Nasdaq climbed 8.12%.

With the stimulus bill close to passing and the markets staging a historic rally, some were willing to look ahead and predict the end of the bear market.

Michael Novogratz, CEO of Galaxy Digital, was on CNBC’s Squawk Box and said “From a market perspective… it feels like we’re coming to the end of it,” and said he started buying again on Monday.

Far more investors, however, view yesterday’s rally as nothing more than a one-day rebound.

“This was a one-day bull market,” CNBC’s Jim Cramer said on “Closing Bell” on Tuesday. “You had stocks that moved so much they basically moved as if the second half of the year is going to be good. I struggle to find out why the second half of the year should be good …I hate this kind of rally. This was a machine driven rally, just like the sell-offs … I want to wait to see.”

Nikolaos Panigirtzoglou, a managing director at JPMorgan, said the rally could be partly due to short sellers covering their positions to grab profits. He said there could be “considerable short covering from here,” which would temporarily lift equity prices.

Others believe it may be nothing more than a simple bounce due to so many stocks being oversold.

Sam Stovall, chief investment officer at CFRA Research said “Even in bear markets, you can end up being oversold, and I think that this market was stretched like a rubber band that, at least in the near term, was ready to snap back.” 

That “snap back” rally is adding to the market volatility. Last week, the index climbed to 82.69, beating the highest reading during the 2008 financial crisis. The volatility index (VIX) did drop yesterday 1.2%, to 60.85. 

What remains to be seen is if the rally can last for more than a single day, and if buyers will continue showing up before the coronavirus is contained. Many believe that the rally is nothing more than optimism surrounding the stimulus plan, and that a lasting rebound in the markets won’t happen until there’s clear evidence that the coronavirus has slowed.

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