Morning Download from Invincible Money 

Personal finance + economics + markets

Good morning investors! Not much happened over the weekend except for experts sharing their opinion on the Fed chair’s speech and the possibility of another hike. The speech, however, couldn’t 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 you’re older.

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📊 Economy and News 

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.

“Persistent 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,” 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 isn’t 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.

📈 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 don’t think it is over for China unless the political situation worsens and/or the US bans Chinese stocks, which we don’t see happening anytime soon. So, consider keeping an eye on these Chinese stocks:

• Alibaba

• Trip.com

• Baidu

You might have to be patient but the potential is there.

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🔐 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.

Here’s 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.

It’s believed that those arrested are forced to hand over the project’s 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 ‘money laundering’ and ‘operating a multilevel marketing scheme’.

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.

🤐 Despite the situation, It is estimated that nearly 78 million people in the country currently own cryptocurrency.

💵 Personal Finance

Finding a job when you’re 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 they’re 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 there’s no substitute for experience. There are jobs for everyone but only if you look in the right place and make the right pitch.

Here’s what you can do to find a job when you’re 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. You’ll be competing with today’s 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 you’re struggling to find a full-time position. Similarly, online work is typically easier to find. Moreover, it’s 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 McDonald’s, 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 they’re aware of your skills, they’re highly likely to hire you if they have the right vacancy.

💰 Be a Better Investor

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