In our most recent deep dive, we delve into Vinfast, a Vietnamese EV Maker that's now worth more than Ford, GM & Volkswagen. You can watch this video and more exclusively in the StockPick app. Start watching now
📈
Markets & Economy
Fed officials see ‘upside risks’ to inflation possibly leading to more rate hikes (3 min read) The Fed minutes from the FOMC meeting last month show that officials are still concerned about rising inflation. Despite raising the key rate by another 0.25% in July, most members worry that the fight against inflation isn't over and might require further tightening. While some believe more hikes could be unnecessary, the minutes emphasized caution and the need to return inflation to the 2% target. Although recent data shows progress in controlling inflation, many Fed officials fear repeating past mistakes of acting prematurely.
Why I’m Not Worried About $1 Trillion in US Credit Card Debt (6 min read) Despite credit card debt in the US has reached $1 trillion for the first time in history, this article suggests that it may not be as big of a problem for the economy as many are anticipating. Consumer debt has been feared as dangerous in the past and yet borrowing continues to fuel economic growth historically. Although credit card debts are accumulating over time, it isn't outpacing the growth of assets or income, and that is key to why it shouldn’t be a threat to spending power. More on this breakdown is available in the article.
🏢
Business & Stocks
Coinbase wins approval to offer crypto futures trading in US (2 min read) Coinbase has gained regulatory approval to offer futures trading to US investors which is a significant achievement amid its battle with the SEC. This move allows Coinbase to tap into a sizable unexplored market, providing bitcoin and ether futures directly to retail clients, a service that was previously only reserved for institutions. While the crypto firm still faces legal challenges from the SEC, this milestone marks the platform's commitment to regulatory compliance. Following the news of this approval, shares of Coinbase jumped nearly 5%.
Nvidia's earnings will be the AI hype cycle’s biggest test (5 min read) Nvidia's second-quarter earnings report coming next Wednesday will be a big test for the AI market's growth. Nvidia's graphics processors are crucial for AI software and demand for it has been high, with even Tesla expressing interest. In the first quarter, Nvidia exceeded expectations with revenue of $11 billion, which led many investors to have high expectations for the second quarter, pushing its stock price to record highs. Success in Nvidia’s earnings next week could indicate strong AI growth and failure might shock the AI market.
📊
Funds & ETFs
Huge inflows to China ETFs prompt speculation about state buying (3 min read) Speculation is growing that China's state-affiliated institutions might be behind the surge of inflows into four ETFs that tracks the country’s broader market. In just eight trading days, these ETFs attracted $4.4 billion in inflows, bringing their total assets to over $25 billion. This speculation is fueled by China's politburo meeting last month when leaders pledged to boost the economy and expand consumption. While this is not confirmed, the increased inflows suggest a different trend from the past three years, potentially indicating involvement from the state.
Michael Burry’s New ‘Big Short’ Bet Should Inspire ETF Investors (3 min read) Prominent investor Michael Burry from the “Big Short” has made a significant bet by investing around 95% of his fund in put options on the S&P 500 and Nasdaq 100. This recent news raised concerns for some investors, prompting them to consider ways to follow or protect their portfolios. For those not familiar with using put options, ETFs can also mimic similar results. This article highlighted ETFs like the ProShares Short S&P 500 (SH) or the Direxion Daily S&P 500 Bear 1X Shares (SPDN) that investors can use to hedge or profit from market reversals.
That's it for today! You can reply to this email if you have any comments or feedback.
If you are interested in reaching an audience of investors, entrepreneurs, and financial professionals, you may want to advertise with us.
