Morning Download from Invincible Money 

Personal finance + economics + markets

Good morning investors! Yesterday was a great day with investors having several reasons to rejoice. The stock market rose, cryptocurrencies continued to grow, and inflation numbers came better than expected.

Today we cover:

• The US prepares to rule the fashion world - watch out Paris!

• Get ready for a crypto rally

• All about credit card debt

• Get more … with Morning Download Pro

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📊 Economy 

Inflation flattens

The consumer price index jumped 3.2% compared to last year in July, a little below expectations and up 0.2% over last month. This indicates inflation is leveling out but still far from the Fed’s target of 2%. However, experts believe that rising oil prices will make it harder for Fed to meet its target and we could get “higher for longer” interest rates.

Shelter costs contributed greatly to inflation figures, going up 4.4% in the month of July.

📰 News

Tapestry to acquire Michael Kors

The fashion industry is ready for a major change as Coach owner Tapestry is set to acquire Michael Kors, Jimmy Choo parent Capri Holdings in a deal worth $8.5 billion.

With this deal, some of the biggest names in the business, including Coach, Versace, Kate Spade, Jimmy Choo, Michael Kors, and Stuart Weitzman, will come under a single umbrella creating an American fashion giant that could challenge big European names, like LVMH (Louis Vuitton Moet Hennessy), the french powerhouse control by the sometimes world’s richest person, Bernard Arnault.

“It does increase our access to the luxury market and the higher-end consumer segments in luxury,” said Tapestry CEO Joanne Crevoiserat.

Quick hits:

• Gas prices are increasing again.

• Consumers are finding it hard to make loan payments.

• Manhattan is now more expensive than ever.

📈 Stocks

S&P 500 4,468.83 (+0.03%)
DJIA 35,176.15 (+0.15%)
NASDAQ 13,737.99 (+0.12%)
VIX 15.85 (-0.69%)
* Prices as of Aug 11th, 8:20 PM UTC

It’s a green day

Stocks opened higher Thursday due to encouraging inflation numbers. All major indexes rose and companies like Alibaba (+4.60%) and Disney (+4.88%) showed positive growth. (Disney could use some good news after their disappointing earnings)

Earnings season is about to end and it has been largely positive so far with nearly 80% of companies meeting expectations. Stocks have been on a nice run for the last few months and the general feeling is positive.

Major Movers:

• Capri Holdings (56.27%) jumped due to a positive report.

• Dillard's, Inc. (11.10%) saw a massive increase after reporting earnings.

• Tapestry (-12.71%) fell after announcing the $8.5 billion deal.

• Krispy Kreme, Inc. (-11.15%) fell due to poor revenue.

🔐 Crypto

Bitcoin $29,428.79 (-0.00%)
Ethereum $1,849 (-0.01%)
Total market cap $1.22T (-0.2%)
* Prices as of Aug 11th, 8:20 PM UTC

Matrixport predicts another rally

The SEC is likely to approve several spot bitcoin ETFs in quick succession, according to a Matrixport report, which adds that the move may trigger a boom in the industry.

The ETF providers would spend "considerable marketing expenses to draw in retail and institutional capital," Markus Thielen, head of research, wrote.

The report quoted the Grayscale Bitcoin Trust, which had managed over $43.5 billion in assets at its peak, while earning $870 million in fees.

"A physical bitcoin ETF will likely carry a management fee of 0.7-1% which could still bring in $200m per annum for those ETF providers with marketing expenses front-loaded," the report said.

The SEC is expected to respond to a number of ETF-related filings next week, including Grayscale’s GBTC lawsuit filing.

💵 Personal Finance

Credit card debt reaches a new high, here’s how to reduce yours

About 183 million Americans have credit cards and it's not a good thing. Americans lean heavily on credit to make ends meet, which pushes them into debt.

With increasing inflation, consumers are forced to consider options such as credit cards, hence it doesn’t come as a surprise that the average consumer credit card balance has risen to $5,947, the highest in 10 years.

If you have a credit card and you find it harder to control spending or get rid of debt, then check these tips below:

• Create a debt payment strategy that works for you. Some popular options include the snowball method and the debt avalanche method.

• Consider paying more than the minimum and, if possible, automate the process. This will not only help you avoid late fees but also allow you to get rid of debt quickly.

• Consider debt consolidation, i.e.: consolidating your payments into a single account so it's easier to manage. However, be careful and try to benefit from affordable personal loans and 0% balance transfer credit cards.

• Get in touch with your creditors and work out a plan that works for you. Some creditors offer hardship programs, which offer relief in circumstances such as illness and unemployment.

• Look at available debt relief plans such as bankruptcy, debt settlement, and debt management. Though not always effective, some of these options may give you a new lease of life.

In addition, it might be a good idea to change your lifestyle and follow these tips:

• Get rid of credit cards, instead consider debit cards. Some come with exciting features, including the ability to earn money on your deposits.

• Set a budget and stick to it. You might have some difficulty in the beginning but you’ll eventually get used to it.

• Create an emergency fund and turn to it only when you need it.

We understand it can be hard to live without a credit card. If you’re struggling then check this video for some motivation:

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.