Canada's economy unexpectedly shrank by 0.2% at an annualized rate in Q2, raising concerns of a possible recession. This slowdown
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2023-09-05 | Sign Up | View Online | Advertise
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Market Snapshot 📷
S&P 500 4,515.77 +0.18%
Nasdaq 14,031.81 -0.02%
Dow 34,837.71 +0.33%
10-Year 4.181% +0.09%
Oil 85.86 +2.67%
Gold 1,966.90 +0.05%

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

Markets & Economy
Canada's economy unexpectedly shrinks in Q2 ahead of rate decision (2 min read)

Canada's economy unexpectedly shrank by 0.2% at an annualized rate in Q2, raising concerns of a possible recession. This slowdown was well below the Bank of Canada's and analysts' expectations. The high interest-rate environment has led to many factors contributing to the slowdown, including a decline in housing investment, reduced inventory accumulation, slower exports, and household spending. The weak economic data is likely to keep the Bank of Canada from raising interest rates, with many predicting the end of the policy tightening.
US jobs data raises hope of Goldilocks scenario as economy cools (3 min read)

The US labor market showed signs of cooling in August, prompting optimism that the Fed is achieving a soft economic landing. The unemployment rate continued to inch higher to 3.8% from the lows while job growth was slowing, with wage increases returning to pre-Covid levels, suggesting an ease of inflation pressures. Many believe that the current scenario is pretty close to a Goldilocks economy where inflation is under control without a recession. Although markets reacted positively to the news, some experts urged caution in interpreting a single month’s data.
China takes aim at real estate crisis with new measures to boost economy (4 min read)

China has unveiled a series of stimulus measures aimed at reviving its property market crisis and boosting confidence in the economy. The country announced reductions in minimum down payments for mortgages, slashing them to 20% for first-time buyers and 30% for second-time buyers nationwide. In addition, interest rates on new and existing mortgages are also lowered. This along with China’s other stimulus efforts in recent weeks has led to a slight rebound in the overall market and a reverse in foreign investor outflows.
Business & Stocks
Tesla Refreshes Model 3 and Slashes Prices of Top-End Cars (3 min read)

Tesla has given it's Model 3 a facelift, improving its looks and range while lowering prices on premium models in an effort to boost sales. The Model 3 now boasts a sleeker front end and an extended range of 377 miles. Additionally, Tesla slashed prices for the Model S and Model X  further in the US and China, making the base Model X eligible for a federal tax credit. The price of its self-driving system was also lowered for the first time. These moves mainly target to compete with domestic rivals like BYD, Nio, and Xpeng in China's competitive EV market.
Why VinFast Auto Stock Crashed Last Week -- and Could Keep Falling (2 min read)

The stock of a Vietnamese EV company, VinFast, has experienced extreme volatility since going public two weeks ago. After initially soaring by more than 250%, the stock has since swung wildly, losing over half its value in a week. This surge wasn't based on the company's business prospects as it sold only 24,000 cars globally. The frenzy was driven by a limited number of publicly available shares, with the founder controlling 99%. Warren Buffett's advice to avoid irrational trading applies here; investors should be cautious about this volatile stock.
Funds & ETFs
Ramaswamy’s Strive Launches ‘FAANG’ ETF, With Gold, Fuel Focus (2 min read)

Strive Asset Management, founded by presidential candidate Vivek Ramaswamy, launched the Strive FAANG 2.0 ETF (FTWO), which focuses on themes like deglobalization, inflation, and geopolitical tension. This ETF is not about the tech giants but instead invests in fuel, aerospace, agriculture, nuclear, and gold industries, expecting them to thrive over the next two decades. Strive believes that factors like reduced international trade, 4% average annual inflation, and increased global tensions will drive these sectors.
Time for 60/40 Portfolio? ETFs in Focus (4 min read)

Crafting a balanced portfolio often involves the 60/40 strategy, allocating 60% to equities and 40% to bonds. While the classic strategy faced its worst returns in 2022, some experts suggest returning to it due to the current market conditions. Categories for a balanced 60/40 portfolio include Dividend (20%), Value (15%), International Markets (10%), Tech (10%), Defensive (5%), Shorter Term Bonds (20%), Cash-Equivalents (10%), and High-Yield Bond (10%). This article recommends specific ETFs within each category for a well-rounded portfolio.
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