So the government didn't shut down (yet) — what does that mean for the stock market? (4 min read) Although the US government avoided a shutdown over the weekend, the stock market did not react much to the news. This article suggests that a possible reason is that investors are more concerned about other issues such as the Fed’s rate policy, inflation, and debt ceiling. The shutdown was also only extended and may potentially come back in December, another reason why the market was not responsive to avoiding it in the first place.
World Bank downgrades developing East Asia growth forecast, weighed by a slowing China (2 min read) The World Bank has lowered its growth projections for developing East Asia and the Pacific due to a sluggish China and global demand amid high-interest rates. It anticipates 5% growth in 2023 (down from 5.1% in April) and projects 4.5% growth in 2024 (down from 4.8%). China's 2023 growth forecast remains at 5.1%, but 2024 is revised to 4.4% due to structural issues and property sector weakness.
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Business & Stocks
Tesla misses estimates for quarterly deliveries; stock falls (2 min read) Tesla’s Q3 deliveries and productions fell short of expectations, with both lower than the previous quarter. The dip was driven by the forced curb production due to planned factory shutdowns. However, the figures are still a huge increase from last year and are on track for Tesla’s estimate for 2023. Some analysts anticipate a potential Q4 rebound as factory upgrades may lead to refreshed models.
EV maker Rivian beats quarterly delivery estimates after raising production (2 min read) Unlike Tesla, Rivian reported Q3 deliveries that surpassed estimates as it ramped up production to meet sustained vehicle demand. The company also raised its production target to 52,000 for the year due to eased supply-chain bottlenecks. However, that’s still relatively small compared to EV giants where the target is in the range of millions. The company also took a huge hit on cost over the past year, which might explain why the stock barely moved despite the win in deliveries.
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Funds & ETFs
BlackRock Follows Goldman with Launch of JEPI Copycat (2 min read) BlackRock has launched the Advantage Large Cap Income ETF (BALI), mirroring JPMorgan's successful Equity Premium Income ETF (JEPI). Both funds generate income from call options on the S&P 500, but BALI invests in US dividend-paying stocks while JEPI focuses on low-volatility stocks. JEPI has gathered nearly $30 billion since May 2020, which has prompted other firms like Goldman Sachs to also plan similar offerings.
3 ETFs To Compound Your Wealth (6 min read) This article suggests three dividend-paying ETFs for wealth compounding. The Vanguard Dividend Appreciation ETF (VIG) focuses on dividend growth stocks with a balanced sector allocation. Pacer US Cash Cows 100 ETF (COWZ) screens the Russell 1000 for companies with the highest free cash flow yield. The Schwab U.S. Dividend Equity ETF (SCHD) is a popular choice offering growth, high yield, and dividend growth, with diversification across sectors.
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Portfolios & Investing
ChatGPT Portfolio Slips Alongside Funds and ETFs In Benzinga Challenge (2 min read) Benzinga created a six-month challenge to see if ChatGPT is a better financial advisor. It started with a hypothetical $10,000 and tasked ChatGPT with the mission to outperform some of the most renowned funds and major broad indexes. Last week was the 21st week of the challenge and the ChatGPT portfolio is currently in sixth place with four other funds behind it.
Treat Alternatives Like Cuisines, Not Distinct Assets (10 min read) This article is a detailed analysis of incorporating alternative investment into portfolios. The author emphasizes understanding the unique characteristics of each alternative and combining them strategically to mitigate risks. The key is to not view them as isolated assets but as complementary components contributing to a comprehensive investment strategy and the result can lead to a well-balanced and resilient portfolio.
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