📈 Dow Jones Takes a Dive, Europe Survives

Together With

Good Morning!

This week, Wall Street is giving us all whiplash with the Dow Jones taking a 400 point hit. On the other side of the pond, the pan-European Stoxx 600 managed to eke out a 0.3% gain. Meanwhile, in Davos, the elite are discussing their worries about the global economy, high inflation and poor growth, but don't worry, you can see what the elites are investing in our free guide - What The Elites Are Investing In.

In other not-so-great news, Goldman Sachs reported its worst earnings miss in a decade and Microsoft is also looking to reduce its staff by about 5%.

Live healthy with Noom (Sponsor)Hot take: losing weight is less about dieting and more about psychology. That's why so many trust Noom Weight to help them get healthy and reach their weight loss goals. Learn the skills you need to achieve lasting results with help from Noom.

Markets

Dow falls sharply as Wall Street's big banks report profit drops (3 minute read)Wall Street had a turbulent start to the week, with the Dow Jones Industrial Average taking a hit by 400 points – even Goldman Sachs chipped in with their biggest earnings miss of the decade. Meanwhile, the S&P 500 ended down 0.2% and the Nasdaq Composite crept up a mere 0.1%. According to FactSet Research data, this quarter's earnings would be the first year-over-year decline for the S&P 500 since 2020.

European markets close higher as economic concerns dominate Davos (5 minute read)Despite a muted start to trading on Tuesday, the pan-European Stoxx 600 was able to eke out a 0.3% gain, with mining stocks leading the way with a 1% increase. This marks the fifth consecutive session of gains for the index, which is up more than 6% year-to-date. Worries over global economic direction, high inflation and poor growth have taken center stage at this week's World Economic Forum in Davos.

Investing

Warren Buffett Is Raking in $4.84 Billion in Dividend Income From These 6 Stocks (10 minute read)During his nearly six decades as the CEO of Berkshire Hathaway, Warren Buffett has achieved tremendous success in outperforming the benchmark S&P 500. His strategy of buying and holding dividend-paying stocks may be his biggest tailwind, with around four dozen such securities held by his company that generate substantial annual income, including Chevron, BoA and Occidental Petroleum - all generating over $900m each.

Goldman Sachs posts its worst earnings miss in a decade as revenue falls while expenses rise (4 minute read)Goldman Sachs reported its worst earnings miss in a decade on Tuesday. Quarterly profit plummeted 66% to $1.33 billion, or $3.32 per share – over 39% below analyst projections. Share prices of the New York headquartered firm fell over 6% in early trading, hinting at further cost-cutting and layoffs ahead. Operating expenses totaled $8.09 billion due to increased compensation and transaction-based fees, which is $800 million more than what analysts had predicted for that quarter.

Microsoft to cut thousands of jobs across divisions (2 minute read)Microsoft Corp is reportedly planning a workforce reduction of thousands of roles, including within the Human Resources and Engineering divisions. This follows similar retrenchment decisions from tech giants such as Amazon.com Inc and Meta Platforms Inc, amid an uncertain economic climate. Sky News has reported that Microsoft aims to reduce its staff by approximately 5%, equating to around 11,000 jobs.

Money

The One Ingredient Necessary For Achieving Financial Independence (10 minute read)The Financial Samurai attributes the driving force behind his journey to Financial Independence and Retiring Early (FIRE) to fear - specifically, the fear of failure. He believes that the greater one's fear of something negative occurring, the more motivated they are to take action to prevent it from happening. He provides examples to illustrate this point and invites readers to share their own examples in the comments section.

🐥

Best of Twitter

🧠

Wisdom Of The Week

Thanks for reading, if you enjoyed, tell your friends!

P.S: If you're interested in crypto and web3 - check out our new newsletter, The Crypto Journal!