Morning Download from Invincible MoneyĀ
Personal finance + economics + markets
Good morning investors! Not much happened over the weekend except for experts sharing their opinion on the Fed chairās speech and the possibility of another hike. The speech, however, couldnāt hinder the market.
Today we cover:
Will the falling Chinese economy impact the global market?
A look at Chinese stocks.
How to find work when youāre older.
š Audio version: Apple Podcasts | SpotifyĀ
šĀ Economy and NewsĀ
Can the falling Chinese economy impact the global economy?
The Chinese economy is shrinking and the unemployment rate is on the rise in the country. The count is in a state of deflation, i.e.: grappling with falling prices. And many now worry that this might spill to other countries, including the US.
āPersistent deflation in China would likely spill over to developed markets, as a weaker yuan and an elevated inventory-to-sales ratios lower the cost of Chinese goods abroad,ā said Pimco economists.
However, not everyone shares the same opinion.
Nobel economist Paul Krugman believes that America's exposure to the crisis in China is "small".
But, what about other countries? The situation in China will definitely impact its neighboring countries. Moreover, the country isnāt on good terms with the US and some European nations, which might cause supply chain issues and result in inflation and other such problems in other countries.
Quick hits:
UAW workers vote to authorize automobile strikes.
Klaviyo and Instacart are ready to go public during a lackluster IPO market.
All about the Fed Chair's speech.
šĀ Stocks
S&P 500 4,405.71 (0.67%)
DJIA 34,346.90 (0.73%)
NASDAQ 14,941.83 (0.85%)
VIX 15.68 (-8.84%)
* Prices as of Aug 28th, 12:20 AM UTC
Chinese markets continue to underperform
Chinese stocks have been down for over two years now. Some of the biggest names, such as Alibaba and Baidu, have been struggling and the Chinese stocks are now underperforming US stocks by the most since 2001.
Some even argue that the country's on the brink of a credit event due to sudden changes, including interest rate cuts and Evergrande filing bankruptcy.
Moreover, China's HY real estate index is down about 82% in just 2 years. The real estate industry is suffering and has recorded a fall of 8.5% in investment since the beginning of the year.
So, the question is: Is it time to stop investing in Chinese stocks?
The long-term case for China is still very much intact. Some expect the country to be the biggest contributor to the global GDP this year.
Our take: We donāt think it is over for China unless the political situation worsens and/or the US bans Chinese stocks, which we donāt see happening anytime soon. So, consider keeping an eye on these Chinese stocks:
Alibaba
Baidu
You might have to be patient but the potential is there.
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šĀ Crypto
Bitcoin $26,051.90 (0.16%)
Ethereum $1,648.84 (0.13%)
Total market cap $1.05T (0.14%)
* Prices as of Aug 28th, 12:20 AM UTC
China's crypto crackdown is getting intense
China still doesn't like crypto. According to the local press, blockchain projects in the country have literal bounties on their heads.
Hereās how it works: Tracking firms keep an eye on undercover crypto projects in the country and tip off the police. If the raid results in a forfeiture or arrests, the firm wins millions.
Itās believed that those arrested are forced to hand over the projectās private keys and access to servers. Next, third-party payment processors are asked to exchange coins for the Chinese yuan.
Those arrested end up facing legal charges and cases such as āmoney launderingā and āoperating a multilevel marketing schemeā.
It's believed that these coins are then sent to the government, which is said to hold about $6 billion worth of digital coins, including Bitcoin and Ether.
š¤ Despite the situation, It is estimated that nearly 78 million people in the country currently own cryptocurrency.
šµĀ Personal Finance
Finding a job when youāre older
People are now working into their 60s and the average retirement age in most countries is on the rise; however, some find it difficult to get a job when theyāre older.
Why is this happening?
There are three main reasons why people are working more:
Retirement savings have taken a big hit.
Inflation has caused people to worry.
People want to have a social life and contribute to society as much as they can.
So, what can you do?
Companies want new blood but thereās no substitute for experience. There are jobs for everyone but only if you look in the right place and make the right pitch.
Hereās what you can do to find a job when youāre older:
Continue to gain skills
Invest in continuous education by getting enrolled in online courses, learning the latest skills, and improving what you bring to the table. Youāll be competing with todayās generation so you have to be good.
Some official programs such as the Senior Community Service Employment Program (SCSEP) can be great to look at. The SCSEP helps older adults get training skills and job placement to re-enter the workforce. Furthermore, there are several other institutes specifically offering training and skill upgrades to seniors.
Look for a part-time or online job
It might be a good idea to look for part-time jobs if youāre struggling to find a full-time position. Similarly, online work is typically easier to find. Moreover, itās also more flexible and often easier for older people. You will, however, have to understand the latest technology to be able to work from home.
Get in touch with companies that hire older workers
Some companies have publicly pledged to level the playing field for older workers and are open to hiring seniors. These include names like McDonaldās, Humana, Microsoft, and Marriott International. These organizations are a part of the AARP Employer Pledge program and do not discriminate based on age.
A look at this job board can help you find such companies. Furthermore, look at organizations certified by The Age-Friendly Institute. These are known for being great for people above 50.
Use your connections
Networking can be a great way to find a job. Join support groups for seniors and stay in touch with your old employers and ask if they have a suitable opportunity. Since theyāre aware of your skills, theyāre highly likely to hire you if they have the right vacancy.
š° Be a Better Investor
"Hard work beats talent when talent doesnāt work hard."
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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.