Moody’s: Government shutdown could hurt America’s top credit rating (2 min read)

Moody's warns that a government shutdown in the US, which could happen if Congress fails to pass a federal spending bill by October 1, may result in a cut in the country's credit rating. The shutdown would underscore the weakness of US institutional and governance strength relative to other AAA-rated countries. Moody's is currently the only major credit rating agency that still assigns the US an outstanding AAA rating.

Jamie Dimon urges clients to batten down the hatches and prepare for rates to hit 7% (3 min read)

Jamie Dimon, the CEO of JPMorgan, has expressed concerns about the potential stress facing the US economy despite the recent pause in the Fed’s rate hikes. He highlighted the uncertain macroeconomic backdrop and deepening government deficit, and warned rates might need to rise more than anticipated. While he hopes for a soft landing, he also believes rates could hit 7% in the worst-case scenario and many businesses and investors may be unprepared for it.

Amazon faces landmark monopoly lawsuit by FTC (4 min read)

The US Federal Trade Commission (FTC), joined by 17 state attorneys general, has filed an antitrust lawsuit against Amazon. It argues that Amazon is a monopolist that’s forcing sellers to use its warehouses and delivery services, inflating costs for consumers and sellers. The lawsuit could potentially lead to structural relief, meaning Amazon might have to sell off assets to restore fair competition. The move also marks another significant step in the FTC’s antitrust battle against big tech firms.

Target closes 9 stores in response to retail theft (4 min read)

Target is closing nine stores in areas heavily affected by theft and organized retail crime, an issue that has impacted many retailers’ business performance. Target recently reported that inventory shrinkage, primarily due to theft, will reduce profits by $500 million this year. The company had already implemented various security measures to limit losses, but it still remains a great challenge and ultimately led to the store closures.

Roundhill Launches Liquified Natural Gas ETF (2 min read)

The Roundhill Alerian LNG ETF (LNGG) is the first ETF to focus on liquefied natural gas (LNG). LNG is viewed as a more environmentally friendly energy source, emitting fewer greenhouse gases compared to coal and oil. It has gained prominence due to Europe's increased imports as it shifts away from heavy reliance on Russian gas following the Ukraine invasion. LNGG aims to track firms involved in LNG liquefaction, transportation, and conversion.

Currency ETFs Rise as Dollar Hits 10-Month High (2 min read)

The Dollar has reached a ten-month high, driven by expectations of the Fed keeping rates higher. ETFs that track the dollar like Invesco’s UUP and WisdomTree’s USDU have seen gains this year, up 6.7% and 5.7% respectively. Future trends will highly depend on economic conditions. Anything that weakens the higher-for-longer narrative could squash the dollar’s rally, but if stocks start sinking again, it could spark more aggressive flows into the dollar.

How Individual Retirement Accounts Changed the Stock Market Forever (4 min read)

Over time, various factors influence financial markets' performance. An often overlooked factor is barriers to entry. Historically, investing was harder, primarily reserved for the wealthy. However, the ease of investing has increased since the 1970s with the emergence of retirement accounts, funds, and low-cost brokerages, leading to a rising allocation to stocks among households. This means context is required when comparing the stock market now and then.

3 Mistakes High Net Worth Clients Make When Investing (4 min read)

This article highlights some of the common mistakes of high-net-worth investors and what the everyday investor can learn from. Wealth investors are often self-reliant, fail to diversify properly, and focus too much on collecting rather than investing. Sometimes these mistakes apply to everyday investors as well so it’s important to know when you need help with investments, avoid concentration on the same asset, and manage overspending on collections.

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.

Thanks,
Thomas

No longer want to receive these emails? Click here to unsubscribe.