Morning Download from Invincible Money
Personal finance + economics + markets
Good morning investors! We’ve passed 12,000 daily readers from around the world. I appreciate each one of you!
Today we cover:
Europe’s slow recovery
Corporate earnings season starts with Tesla and Netflix
BlackRock CEO say the most bullish thing for crypto
What’s a financial statement - Part 3
📊 Economy
European recovery slow
Eurozone inflation rate
Europeans are facing a new economic reality, one they haven't experienced in decades. They are becoming poorer. (WSJ)
Why? Inflation is still high, while the COVID-19 pandemic has also contributed to the economic stagnation.
Inflation is still high at 5.5% in June across the Eurozone, but coming down.
The population is aging and the recovery from the government response to the pandemic has been slow.
The war in Ukraine has further exacerbated the problem by disrupting supply chains and causing energy prices to rise.
What? As a result, Europeans are seeing their incomes shrink and their purchasing power decline. This is having a negative impact on their standard of living and is making it difficult for some to make ends meet, especially lower-income households.
Real wages in the eurozone fell by 2.8%, which is the largest drop since the pandemic.
How’s wage growth in your country?
Check the real wage growth for your country here.
Click on image if it’s tough to read.
📈 Stocks
S&P 500 4,565.72 (+0.24)
DJIA 35,061.21 (+0.31)
NASDAQ 14,358.02 (+0.03%)
VIX 13.76 (+3.46%)
Corporate earnings season starts
The DOW closed up over 100 points to make 8 days in a row in positive territory. That’s the first time it’s happened since 2019.
Large banks continued to do well as U.S. Bancorp rose 6.5%, although the bank everyone loves to hate, Goldman Sachs, reported a profit of $3.08 EPS (vs. $3.18 expected) and missed revenue estimates reporting $10.9 billon (vs. $10.84 billion expected).
Tesla hits record revenue
🚙 Tesla [TSLA -0.71%] posted record revenue for Q2! Revenue from the automotive division was up 46% YOY (Year over year), but profits were down 9.6% due to their recent price cuts.
EPS (Earnings per share) was $0.91 (vs. $0.82 expected)
Revenue was $24.92 billion (vs. $24.47 billion expected)
The company announced it spent $943 million in R&D in the first quarter alone and said it started production on its Dojo “training computers.” These super computers will be used to improve the brains in both the cars and the Tesla bots ( in development).
Related: [WATCH] Elon says Tesla to be worth 2X Apple and read a recent newsletter, Is Tesla really an A.I. company?
🍿 Netflix [NFLX +0.59%] reported an 8% increase in subscriptions for Q2 and an increase in revenue, partly due to cracking down on password sharing.
EPS was $3.29 (vs. $2.86 expected)
Revenue was $8.20 billion (vs. $8.30 expected), up 3% over last year.
Netflix expects to continue to add subscribers at the same rate in Q3 and expects Q4 revenue to “accelerate more substantially” thanks to the password sharing restrictions and the addition of an add-supported plan for users.
📚 A million dollar Banksy got investors 32% returns
Sponsored
Mm-hmm, sure. So, what’s the catch?
We know it may sound too good to be true. But it’s not only possible, it’s happening—and thousands of investors are smiling all the way to the bank, thanks to the fine-art investing platform Masterworks.
These results aren’t cherry-picking. This is the whole bushel. Masterworks has built a track record of 8 exits, the last 3 realizing 10.4%, 35%, and 13.9% net returns even while financial markets plummeted.*
But art? Really? Okay, skeptics, here are the numbers. Contemporary art prices:
Outpaced the S&P 500 by 131% over the last 26 years
Have the lowest correlation to equities of any asset class
Remained stable through the dot-com bubble and ’08 crisis
Got your attention yet? Offerings can sell out in just minutes but Morning Download readers can skip the waitlist with this exclusive link.
🔐 Crypto
Bitcoin $29,890.76 (0.4%)
Ethereum $1,889.62 (-0.4%)
Total market cap $1.25 (+0.6%)
* Prices as of July 19th, 10:39 PM UTC
CEO of BlackRock bullish crypto
Larry Fink said on CNBC that crypto “is an international asset that has a differentiating value…that is going to transcend any one currency in currency valuation.”
Who? BlackRock is the largest asset manager in the world with $9 Trillion AUM (assets under management).
This short clip is definitely worth watching:
is this the single most bullish crypto video of all time?
— #Mike Dudas (#@mdudas)
2:58 PM • Jul 14, 2023
💵 Personal Finance
What’s a financial statement?
Let’s dig deeper into the 3 parts of a financial statement and why they’re important.
The balance sheet: The balance sheet is a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time. Assets are what a company owns, liabilities are what a company owes, and shareholders' equity is the difference between assets and liabilities. The balance sheet must always balance, meaning that the total assets must equal the total liabilities plus shareholders' equity.
The income statement: The income statement shows a company's revenues, expenses, and profits over a period of time. Revenues are the money that a company brings in from its sales, expenses are the costs that a company incurs in order to generate revenue, and profits are the money that a company has left over after it has paid its expenses.
The statement of cash flows: The statement of cash flows shows how a company's cash flows have changed over a period of time. Cash flows can be divided into three categories: operating cash flows, investing cash flows, and financing cash flows. Operating cash flows are the cash flows that a company generates from its day-to-day operations. Investing cash flows are the cash flows that a company generates from buying or selling assets. Financing cash flows are the cash flows that a company generates from borrowing money or repaying debt.
💰 Be a Better Investor
"Financial statements are the most important documents a company produces. They are the basis for all other financial decisions."
Was this issue...
👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.
*Masterworks Disclosure: “Net Return" refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the date the sale is consummated. IRR may not be indicative of Masterworks paintings not yet sold and past performance is not indicative of future results. See important Regulation A disclosures at masterworks.com/cd.