🇨🇳 Chinese Bull Market?

Good Morning!

This morning, oil prices soared thanks to China's border reopening and its resulting demand for fuel, despite the looming threat of a global recession. Meanwhile, Goldman Sachs is apparently getting ready to say goodbye to some of its employees.

We'll also be taking a look at how hard work beats finding the perfect investment and delving into the lessons we can learn from Japan's economic crash.

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Markets

Oil nudges higher after China opens borders, lifts fuel demand outlook (2 minute read)Oil prices increased on Monday as the reopening of borders in China, which led to an increase in fuel demand, helped offset concerns of global recession. Brent crude futures rose 0.7% to $79.10 a barrel, while U.S. West Texas Intermediate crude was up 0.6% at $74.23 a barrel. Despite the recent rise, crude oil futures had their biggest weekly losses in a month last week due to fears of recession. However, China's reopening may provide some short-term relief from the decline

Goldman Sachs to start cutting thousands of jobs midweek (4 minute read)Goldman Sachs is reportedly planning to start cutting thousands of jobs this week as it prepares for a difficult economic environment in the coming year. It is expected that around 3,000 jobs will be cut, though the final number has not yet been determined. The job cuts are expected to affect most major divisions of the bank, with a focus on the investment banking division. These layoffs come as institutional banks have experienced a slowdown in corporate dealmaking due to volatile global financial markets.

China Stock Traders Bet Consumption Will Supercharge 2023 Rally (3 minute read)Chinese stocks have been performing well in the first week of 2023, and investors are anticipating further gains with consumer-related stocks expected to lead the charge. Many money managers have been caught off guard by the rapid decrease in infections in certain cities, leading to bets that pent-up demand will help revive growth and corporate profits. "Consumption is expected to drive the recovery from Covid-19, aided by price increases as suppressed demand returns and confidence and employment improve.

Tesla’s Demand Troubles Spell a Terrible Start to the Year (3 minute read)Tesla's shares had a rough start to the new year as concerns about declining demand for its electric cars resurfaced, briefly causing its market value to drop below that of Facebook's parent company, Meta Platforms, for the first time in over a year. These concerns were exacerbated by weaker-than-expected deliveries in Q4 and additional price cuts on Tesla vehicles in China. Some are worried that this may lead to further selloffs.

Investing

It’s Time to Work (5 minute read)Now that the challenging investment year of 2022 is behind us, we can turn our attention to the future and how to recover financially. Unfortunately, for many people, this means wasting countless hours trying to find the perfect investments to maximize returns. However, the reality is that these efforts are often in vain. Most people don't get rich through their investment decisions, they get rich through their income and work. Even those who do become wealthy through their investments typically had to work to earn the money they invested in the first place.

Losing All Your Money Investing On Margin Is Not The Worst Thing (8 minute read)What happened to your friend who bought Tesla stock on margin,” a reader asked. When compared to what he was earning as an educator, his position was a huge red flag. I learned my lesson during the 1999 – 2001 dotcom bubble collapse while working at Goldman Sachs. Fortunes are easily made and lost. What I realize from writing this post is that losing all your money may not be the worst thing when buying stocks on margin

Japan's Bubble-Burst: The Party That Wasn't Supposed to End (15 minute read)Japan was on the verge of surpassing the United States as the world's largest economy, basking in the glow of seemingly endless prosperity...Then, the party suddenly stopped… An important lesson for future recessions is that there is often a gap between the decline in the economy and the realization of a recession. Just because real estate and stocks are not doing well does not mean that companies will instantly fail. Even if they can't borrow money from big banks, they may still be able to secure capital from investors and less risk-averse banks.

Money

14 Financial New Year’s Resolutions for a Better 2023 (15 minute read)Your job may not allow you to work from home, but if you make it your job to improve your personal finances, there’s quite a bit of work you can do right from the comfort of your lounge chair or home office. Choosing at least one of the following 14 ideas below will go a long way toward putting you in a better financial position by this time next year.

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