The Fed has raised interest rates to the highest in 22 years to control inflation and the question now is how long it’ll remain high given the
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2023-08-22 | Sign Up | View Online | Advertise
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Market Snapshot 📷
S&P 500 4,399.77 +0.69%
Nasdaq 13,497.59 +1.56%
Dow 34,463.69 -0.11%
10-Year 4.342% +0.091%
Oil 80.92 -0.41%
Gold 1,923.70 +0.38%

*All data as of the previous day’s market close.

Markets & Economy
The next phase of the Fed’s historic inflation fight is waiting for rate cuts (2 min read)

The Fed has raised interest rates to the highest in 22 years to control inflation and the question now is how long it’ll remain high given the uncertainty around inflation’s trajectory. Many expect rate cuts early next year, but the Fed also recently suggested the potential for more rate hikes in the near term. And for this reason, Fed Chairman Jerome Powell’s speech this Friday will be the main focus of the week as the market looks for more guidance. While Fed rate cuts are still on the table, they won’t likely return to ultra-low rates seen before the pandemic any time soon.
Why China is grappling with falling prices – and being compared to Japan (7 min read)

One of the biggest recent economic stories is the deflation in China, where the country’s consumer prices fell 0.3% in July. This deflation is a huge contrast with the rise in living costs around the globe and if this continues, it will lead to less spending, production cuts, layoffs, and lower salaries in China. As China grapples with this, the post-pandemic economic recovery is getting less likely. This led many to compare China with Japan’s fall as the second-largest economy in the 1990s, as both faced asset bubbles, deflation, and structural issues.
Business & Stocks
3 reasons why Goldman Sachs believes the stock market still has room to run (2 min read)

Although US stocks had pulled back for consecutive days last week, Goldman Sachs is still bullish on the market due to decreasing recession odds. The bank predicts the S&P 500 will reach 4,700 by year-end, which is an 8% increase from current levels. Some of the reasons that led Goldman to remain optimistic include the potential increase in buyback activity, retail trading, and equity demand from funds. Overall, Goldman believes the recent equity weakness will be short-lived and likely to head higher in the coming weeks.
Nvidia leaps as HSBC boosts price targets before the hotly anticipated Q2 earnings (3 min read)

Nvidia's shares surged after HSBC analysts raised their price targets ahead of the company's highly anticipated Q2 earnings on Wednesday. Nvidia's current stock price is about $451 and HSBC set a $780 target, citing robust demand for AI chips. Ironically, HSBC was the only bank earlier this year that was bearish on Nvidia and gave it a sell rating. Most investors are expecting Nvidia to have a strong Q2 due to the surging AI demand, similar to the previous quarter. This high expectation for Nvidia has sent their stock rising over 200% this year.
Funds & ETFs
ETFs that focus on the sectors Warren Buffett binges on (3 min read)

Warren Buffett's Berkshire Hathaway recently revealed its latest portfolio holdings which consist of 48 companies in total. The top holdings make up about 79% of the overall portfolio and can be broken down into four major sectors - information technology, financials, energy, and consumer staples. This article highlights a few ETFs for each of those sectors that also have a heavy focus on the same top holdings as Berkshire’s portfolio that investors can use to mimic Buffett’s investing approach.
Actively Managed ETFs: What Investors Need to Know (6 min read)

Active ETFs have been surging in recent years, taking market share from active mutual funds. Unlike passive ETFs which track indexes, active ETFs aim to outperform benchmarks with its proprietary methodology. Although it offers the potential for higher returns like all active strategies, they also come with higher costs and risks. The largest active ETF in the US right now is the JPMorgan Equity Premium Income ETF (JEPI) with $29.06 billion in assets. This article provides a detailed guide on active ETFs and the current top 10 by asset size.
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