👀 Another week of earnings

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Good Morning!Earnings season is in full swing and we have another exciting week ahead as a further 94 big companies are ready to share their earnings. Meanwhile, the European Union has enforced its ban on Russian diesel imports and other refined petroleum products.

It's not just Europe making headlines, as some big international players have been affected by the recent Adani Enterprises saga, with Vanguard & Blackrock both having exposure. And in a new survey, 64% of Americans now report living paycheck to paycheck.

Fintech is changing, keep up (sponsored)The fintech industry is valued at around $180 billion as of 2022. It’s also the one suffering the biggest layoffs and shifts with the economy. There are massive changes happening in the space and Alex Johnson, a former credit expert, covers it all in his weekly newsletter, Fintech Takes. Subscribe for free.

Markets

What’s Up With Corporate Earnings And Jobs? (5 minute read)Last week was a wild ride on Wall St with mixed earnings reports. The S&P 500 still went up by 1.6% thanks to some encouraging words from Fed Chair Powell. However, a blowout jobs report on Friday took some wind out of the market's sails. So far, 70% of companies beat earnings expectations, which is slightly below the 10-year average. This week will be another busy one, with a further 94 big companies reporting their numbers.

Europe bans Russian diesel imports and other refined oil products (2 minute read)The European Union's ban on Russian diesel imports and other refined petroleum products came into effect yesterday, targeting Putin's war machine where it hurts. The G7 (US, Canada, France, Germany, Italy, Japan, UK) has also agreed to a $100/barrel price cap on Russian diesel sales to non-Western countries, enforced by Western shippers and insurers. This follows a previous $60/barrel price cap on Russian crude oil shipments.

Some of Wall Street’s biggest names are exposed to the Adani Enterprises plunge (3 minute read)Adani Enterprises' shares took a big hit after a critical report by US short-seller Hindenburg Research accused the company of financial wrongdoing. Despite denying the allegations, Adani saw a loss of over $30 billion, causing the company's market cap to drop 60%. This sell-off also caused the total loss for Adani Group to exceed $110 billion by the end of the week. Some big international players also have exposure.

Investing

The Psychology of Market Tops & Market Bottoms (3 minute read)Facebook, once a loser stock in 2022, is now a darling in 2023. It's up 55% this year, with a 20% jump in one day after earnings. Distinguishing a dead cat bounce from true value can be tricky in the stock market. The old saying goes: a stock down 90% was once down 80% and then cut in half. Big moves from tops or bottoms always look obvious with the benefit of hindsight.

Cathie Wood Says ARKK Is 'the New Nasdaq' (2 minute read)Cathie Wood, CEO of ARK Investment Management, is feeling confident about her flagship fund and wants everyone to know. In a recent interview, she claimed that her fund gives better exposure to long-term innovation than most popular growth stock benchmarks and boldly stated, "We are the new Nasdaq." Wood is known for making bold predictions, including her forecast for Bitcoin to hit $1 million per coin. While her fund has seen strong returns this year, up 42% vs Nasdaq's 20%, its long-term performance has been a mixed bag with a 72% decline from its peak and a five-year gain of only 12% compared to the tech benchmark's 89%.

Michael Burry Stock Portfolio: 10 Stocks He Sold (9 minute read)Michael Burry, famous from "The Big Short", is making waves on Wall St again by warning of a market crash. Despite only managing a small portfolio of $41 million, investors are paying attention to what he has to say. He sold off all his holdings in top companies like Alphabet and Booking Holdings in Q2 2022 to protect his fund from a slowing economy. Burry is saying the market looks like 2007 and teasing on Twitter that his followers don't know how many short bets he's made on the impending collapse.

Money

Nearly two-thirds of Americans are living paycheck to paycheck (2 minute read)A new survey shows that a larger portion of Americans are now living paycheck to paycheck, with 64% reporting so. The number is 9.3 million more than the previous year and even includes those making over $100,000 per year. However, 80% of surveyed consumers expect their finances to improve in the coming year, with those making more than $100,000 per year being the most optimistic.

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