Morning Download from Invincible Money
Personal finance + economics + markets
Good morning investors! Yesterday was interesting because the stock market showed signs of recovery but there’s bad news coming from some sectors.
👀 Here’s a fun fact: The world’s largest CPG brand is…Kirkland, Costco’s private label. It makes $52B a year, which is more than Nike!
Today we cover:
What with the strikes? 🪧
Buffett preparing for recession? 🛑
The cost of owning a pet 🐕
🔈 Audio version: Apple Podcasts | Spotify
📊 Economy and News
Labor unions are winning
The automobile strike is a hot topic but it's not the only industry facing challenges as writers are also on strike. More and more industries are jumping on the bandwagon.
Over 320,000 workers have participated in at least 230 strikes so far this year. That’s higher than the number (224,000 workers) recorded in 2022. (The graph above is only those over 1,000.)
Workers want higher pay and better quality of life and they're not afraid of walking out. Some strikes, such as the UPS strike a few months ago, have proven to be successful, which is motivating more workers to call for strikes.
Moreover, Americans seem to be supporting these strikes. About 71% are in favor of strikes.
Quick hits:
China’s Evergrande shares fall about 87% as trading resumes.
Russia to suffer more economic blows.
Nordstrom closes its San Francisco store after 35 years.
📈 Stocks
S&P 500 4,433.31 (0.63%)
DJIA 34,559.98 (0.62%)
NASDAQ 15,052.46 (0.74%)
VIX 15.08 (-3.83%)
* Prices as of Aug 29th, 12:20 AM UTC
Warren Buffett's preparing for a recession
After Michael Burry, Buffett is the latest name who appears to be preparing for a recession. However, this isn’t the first time that Buffett has rung such bells, he was in the news in June for sending a warning to investors.
Buffett’s Berkshire sold $8 billion worth of stocks in the previous quarter and has disposed of a net $33 billion of stocks since the beginning of the year.
Experts say this move is an indication that Buffett’s preparing for a recession.
“It's also consistent with his long track record of piling up cash in anticipation of storm clouds ahead with the capacity to pounce on bargains once the storm hits," said top economist Steve Hanke.
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🔐 Crypto
Bitcoin $25,986.80 (-0.40%)
Ethereum $1,646.19 (-0.68%)
Total market cap $1.09T (-0.25%)
* Prices as of Aug 29th, 12:20 AM UTC
What’s happening to crypto?
Not major has been happening in the world of crypto since the market went down a few days ago. However, here are some links worth checking:
Indian calls for global cryptocurrency framework at G20 Summit.
Ethereum's daily transaction fees hit an 8-month low of $2.8m.
Bitcoin falls under $26,000 as markets show signs of more declines.
Based on this, it might be a good idea to hold your cryptos and wait a little if you’re interested in buying more as the market might fall further before it goes up again.
This tweet sums up the current sentiment:
Crypto has gone from being in a bear market to properly being in "winter". Not just that the coin prices are flat or down. But like outside of maybe some hopes of a Bitcoin ETF or insider game-of-the-week, interest, enthusiasm, and buzz seem totally absent atm.
— Joe Weisenthal (@TheStalwart)
Aug 28, 2023
💵 Personal Finance
How much is your pet costing you?
Most of us treat pets as our family members. We take care of them, take them to the vet, buy toys for them, and feed them well. While this makes us happy, we often neglect the financial aspect of owning a pet.
Buying a cat or a dog may not cost much but keeping a pet can be a costly adventure.
Let’s understand the financial cost of having a pet:
Firstly, buying the pet: Based on your location, pet type, and breed, you will spend anywhere from $100 to $10,000 to buy a pet. The amount can go higher for larger or rare animals such as Arabian horses.
Hack: Save money by turning to shelters and ‘adopt’ instead of ‘buying’.
According to PetPoint, adopting a cat less than a year old costs about $82. It goes down to $52 for cats older than one year. Similarly, for dogs less than a year old, the average cost stands at $185. It goes down to $109 for older dogs.
Preparing a home for your pet: This is technically a one time expense. In some cases, you may need a big house that can cost a few thousand and in some a small cage may be enough – depending on your pet. Some pet homes, however, are costlier than others. Aquariums, for example, can cost over $1,000 as they require specific equipment.
In addition, you will need initial supplies such as a litter box ($6 to $350), bed, ($15 to $50), collar ($20 to $50), crate ($20 to $40), and bowls for water and food ($10 to $40). So, expect to spend about $350 to $1,300 on these.
Vaccination costs: Vaccination costs $65 to $200 annually for cats and $115 to $230 annually for dogs. Though not always an option, the adoption center might be willing to offer vaccinations at a discounted rate.
Neuter surgery: It can cost about $150 for cats and $35 to $500 for dogs based on a variety of factors such as the size of your pet. Again, shelters typically charge less for the job. Plus, some charities offer low-cost spay/neuter programs.
Training: You may have to spend to train your pet, especially if you have a dog or horse. It is usually. a one time cost that can be as low as $100 or as high as $1,000 per month.
Licensing: Expect to spend up to $150 per year on licensing costs for dogs and about $60 for cats, which may or may not include microchips. This, however, is not a requirement in all states.
All in all, this is the first year cost of having a pet. Get ready to shell out at least $1,000 in the first year if you wish to own a pet. This goes higher if you have expensive pets such as horses or exotic birds.
Now, let’s move to yearly costs:
Food: Expect to spend about $120 to $1,000 on food. The amount, however, may go up or down based on the size of your pet and the type and brand you purchase. Most dog owners in the US with large dogs, for example, spend $446 on food per year.
Treats and toys: We understand you’d want to spoil your pet so get ready to shell out anywhere from $20 to $100 per year on toys and treats.
Insurance: Pet insurance can help you save money but it can cost a lot – up to $360 for cats and up to $1,000 for dogs – based on your dog's overall health, age, location, and other such factors.
Medical expenses: Medical expenses include routine medical expenses, such as visits to the vet, dental care, and vaccines. Insurance may cover some of these expenses but not all. Also, it doesn't include big surgeries.
Based on this, we can say that it costs anywhere from $2,000 to $4,000 per year to own a pet. According to this report, the average lifetime cost of owning a dog stands at $28,801. It goes over $30,000 in 13 states. The amount, however, is lower in developing countries such as Turkey and Brazil.
So, what to do? It’s expensive to keep a pet but we can’t neglect the pros of having one. So, have a look at your financial situation and see if you can afford to own a pet. A lot of pets are being given up by people who can't afford to keep them. Ensure you do not end up in such a situation by creating and sticking to a pet budget.
💰 Be a Better Investor
“Lost dollars are simply harder to replace than gained dollars are to lose.”
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.