🛩 Boeing in trouble

Together with TiiCKER

Good morning investors! There’s chatter about Boeing and the changing situation in the Middle East.

Fun Fact: BlackRock’s coming Bitcoin ETF will trade under the ticker $IBIT.

Today we cover:

• Medicines to get cheaper in the US?

• Boeing under investigation.

• Understanding dollar cost averaging.

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📊 Economy and News 

Get ready for cheaper medicines thanks to Canada

Florida has won the first FDA approval to import cheaper drugs from Canada. This could make medicines affordable for Americans but US pharma companies are not happy with the move.

The industry has strongly opposed such efforts and is expected to legally challenge the latest importation plans. On the other hand, Canadian officials have expressed concerns that this program could result in a shortage in their country.

We’re not currently sure of the kind of impact such importation programs would have on individual consumers or companies operating in the US.

Global hits:

• China to sanction 5 US manufacturers over arms sales to Taiwan.

• EV maker VinFast names founder as CEO, replaces CFO.

• Tesla recalls 1.6 million cars in China to reduce risk of collisions.

Reminder: Here’s how to claim your slice of a $100 million Verizon settlement.

📈 Stocks

S&P 500 4,697.24 (+0.18%)
DJIA 37,466.11 (+0.069%)
NASDAQ 16,305.98 (+0.15%)
BRENT CRUDE 78.76 (+1.55%)
* Prices as of Jan 7th, 12:20 AM UTC

Time to get off this Boeing flight?

Today will be a major day for Boeing after the weekend controversy that forced more than 140 flights, about 14% of Alaska’s schedule, to be canceled on Saturday.

Why? The Federal Aviation Administration on Saturday ordered airlines to ground more than 170 Boeing 737 Max 9 aircraft for inspections after the Alaska Airlines incident. There were no serious injuries or casualties.

What happened? Alaska Airlines Flight 1282 made an emergency landing after a panel on the side of the plane blew off midflight.

Images and videos of Alaska Airlines Flight 1282 showed a gaping hole on the side of the plane and passengers using oxygen masks before the plane returned to Portland shortly after taking off for Ontario, California, on Friday afternoon.

Who’s affected? The FAA’s emergency airworthiness directive will affect about 171 planes worldwide. The rule applies to US airlines and carriers operating in US territory.

Such events are rare; however, this isn’t the first time that the FAA has spoken against the Boeing 737 Max. It is yet to clear two models of the Max, the smallest and largest version. The liner has been in the news since two fatal crashes in 2019 and might again cause damage to the manufacturer.

The Boeing 737 Max 9 is a larger version of Boeing’s best-selling jetliner, the 737 Max 8. Originally banned after the 2019 crashes, the plane was approved in late 2020 after software and training updates.

What next? An investigation is now underway. Airlines, including United Airlines, known for being the largest operator of planes in the U.S., had prepared to ground dozens of its Boeing 737 Max 9 aircraft for inspections. Moreover, Boeing is offering full support to the inspecting team.

United has 79 Boeing 737 Max 9 aircraft in its fleet but just over 30 of them have already “received the necessary inspection that is required by the FAA,” according to the airline.

The process will continue for a few days with each plane taking four and eight hours.

Shall I worry? If you’re a Boeing investor then brace for impact because this news could send the stock crashing with some analysts predicting a 10-15% crash. We expect this to be a multiple day event.

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🔐 Crypto

Bitcoin $44,014 (+0.05%)
Ethereum $2,235 (-0.28%)
Total market cap $1.66T (-0.01%)
* Prices as of Jan 7th, 12:20 AM UTC

A look at crypto

Here’s what you need to know about the industry:

• Bitcoin ETF approval would be a ‘historic mistake,’ says Better Markets CEO.

• Final Bitcoin ETF application filings get posted by major U.S. exchanges.

• SEC moves closer to spot Bitcoin ETF approval with 19b-4 amendment filings.

• SEC filing against Coinbase could impact the SEC v Ripple case.

Also, don’t forget to check this article for some great insights at the potential impact of Bitcoin ETF approval.

💵 Personal Finance

What is dollar cost averaging?

Dollar cost averaging can be defined as a technique used to ”manage price risk when buying assets such as stocks, ETFs, and mutual funds.”

It involves buying over time at regular intervals, thus decreasing "the risk of paying too much before market prices drop." In other words, instead of purchasing a high number of shares or any other assets at a single price point, you buy in smaller amounts at regular intervals.

How does it work?

An interesting thing about prices is that they don’t always move in one direction. They move in both directions and as an investor, when following the dollar cost averaging technique, your aim should be to buy without looking at the prices.

You decide how much you want to spend on an asset then you purchase it in intervals to bring your average cost down.

Here’s an example:

You can use this technique in a variety of situations, including retirement planning and 401(k) plans.

A 401(k) plan, for example, gives employees the power to determine how much they wish to contribute and to what. Then, investments can be made automatically every pay period. Based on the changing market, a specific number of securities get added to the employee’s retirement accounts.

What are its benefits?

Here are some of the main benefits of this investment technique:

• Helps bring the average cost down.

• Encourages regular investments, which helps build wealth.

• It helps ensure that you are ready whenever the time is right.

• It takes emotions out of the deal and reduces the risk of emotional buying.

• With automation, you do not have to worry about ‘buying’.

So, is it worth it? Check this video for more:

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.