Ray Dalio sounds the alarm on US debt and says he won’t invest in bonds (2 min read) Prominent investor Ray Dalio has raised concerns about the global bond market. He warns that the US will issue huge amounts of debt to cover federal deficits which could lead to selling pressure on bonds, causing their rates to rise. If rates go up, central banks face a dilemma: let them rise with potential consequences or print money to buy bonds, risking inflation. For this reason, he doesn’t prefer any bonds and believes cash might be a better short-term investment choice.
China's economy shows signs of stabilizing but property slump still threatens outlook (4 min read) China's factory output and retail sales grew at a faster pace in August, which may indicate that the recent economic support measures are starting to take effect. Industrial output increased by 4.5%, while retail sales rose by 4.6%. However, the property crisis in the country remains a significant concern, with property investment down 19.1% year-on-year in August. Most analysts still agree that more stimulus are needed to support a sustained economic recovery in China.
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Business & Stocks
TSMC tells vendors to delay chip equipment deliveries (4 min read) Taiwan's TSMC, a top contract chipmaker, has instructed its major suppliers to delay delivering high-end chipmaking equipment. This move comes amid delays at its $40 billion chip factory in Arizona, signaling concerns about customer demand and cost control. Analysts said the weak demand is likely from mobile, laptops, and automotive chips, and the strength in demand for AI chips is not strong enough to compensate.
UAW workers launch strike against all Big Three automakers (4 min read) The United Auto Workers (UAW) union has initiated simultaneous strikes at three major automakers – General Motors, Ford, and Stellantis. The walkouts will temporarily halt the production of popular vehicles at these automakers. This movement was driven by demand for a larger share of profits and job security as automakers shift to electric vehicles. While the strikes are limited for now, they could have broader implications for the industry.
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Funds & ETFs
Direxion rolls out Nvidia-focused ETFs for bulls and bears (2 min read) Direxion introduced two new leveraged ETFs linked to Nvidia's stock price. The Direxion Daily NVDA Bull 1.5x Shares ETF aims to deliver 1.5 times the daily price return of Nvidia's shares and the Direxion Daily NVDD Bear 1x Shares ETF allows bearish investors to profit when Nvidia's shares fall. While these ETFs offer the potential for significant gains, investors should be aware of the increased risk of substantial losses if the market moves unfavorably.
State Street's New Dividend ETF Seeks to Avoid 'Sector Bias' (2 min read) The SPDR Portfolio S&P Sector Neutral Dividend ETF (SPDG) is an alternative dividend strategy to counter the sector weightings that caused traditional dividend funds to underperform this year. It tracks companies in the S&P Composite 1500 that have consistently raised their dividends for at least seven years and have higher-than-average dividend yields for their sector. The goal is to provide returns similar to the overall market while avoiding sector imbalance.
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