Morning Download

Personal finance + economics + markets

Good morning investors! August closed on a decent note and now all eyes are on September. Let’s have a look at yesterday’s happenings:

• The US economy is suffering 🇺🇸 

• Why Shopify is up 🏬 

• Cost of raising children II 🧒 

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PRO: This Sunday’s Pro edition will be covering the importance of diversification and we’ll get into specific asset classes and investments you may want to buy.

📊 Economy and News 

The US economy didn’t grow as expected

The US economy grew more slowly in the second quarter than previously estimated, according to revised figures.

The economy expanded at a 2.1% annual pace from April through June, showing resilience. However, this is lower than the previously reported figure of 2.4%.

Growth last quarter was driven by a variety of factors, including increased consumer spending and business investment. Furthermore, the report highlighted how inflation is cooling down and what the Fed is doing to keep the economy afloat.

Bringing it down from 3% to 2% will be tough, especially considering Core Inflation (excluding food and energy) is at 4.1%.

Quick hits:

• China blames the US for the drop in trade.

• UBS shares jump to 2008 highs after impressive earnings.

• Tesla in trouble over plans to build Elon Musk’s glass house?

📈 Stocks

S&P 500 4,507.66 (-0.16%)
DJIA 34,721.99 (-0.48%)
NASDAQ 15,501.07 (0.25%)
VIX 13.57 (-2.23%)
* Prices as of Aug 1st, 12:20 AM UTC

Shopify strikes a ‘Buy with Prime’ deal with Amazon

Shopify had a great day yesterday after the company announced a ‘Buy with Prime’ deal with Amazon. This will allow Shopify to integrate Amazon's Buy with Prime service into its ecosystem.

The news sent Shopify soaring over 11% during normal trading hours. The stock closed at $66.49, reaching its 52-week high of $71.35.

This change will allow merchants to directly tap into Amazon's Prime loyalty program and speedy delivery. This comes as a major change as Shopify had earlier urged merchants to avoid ‘Buy with Prime,’ citing security risks.

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🔐 Crypto

Bitcoin $26,022.10 (-4.71%)
Ethereum $1,648.21 (-3.36%)
Total market cap $1.05T (-3.14%)
* Prices as of Aug 1st, 12:20 AM UTC

Bitcoin holdings on crypto exchanges fall to its lowest since January 2018

The number of BTC held in wallets tied to crypto exchanges is down to 2 million BTC, according to a report published by CryptoQuant.

The coins are said to be worth $54.5 billion, based on the current values, after a decline of 4% in the amount of BTC tied to crypto exchanges.

This reflects a growing market sophistication, however, most experts believe that it isn’t a sign of concern (yet). The decline is linked to both positive and negative developments, including the popularity of services like crypto custodian Copper's ClearLoop, which gives users the power to trade without having to move funds to centralized exchanges. However, there is also a lack of trust in crypto exchanges due to the fall of big names such as FTX.

"After the 2022 price declines, investors are taking a buy-and-hold investment approach," said Markus Thielen, head of research and strategy at Matrixport.

💵 Personal Finance

Continuing yesterday’s newsletter, let’s have a look at a few more things that impact the cost of raising a child.

Healthcare

Healthcare includes insurance premiums, drugs, and more. Most families spend about $600 per year on health care. However, the amount can increase drastically if you do not have insurance or if your child requires expensive treatment.

Tip: Get insurance to save money.

Miscellaneous Expenses

In addition to the expenses discussed above, you will spend heavily on the following:

• Clothing: You will have to spend on diapers, t-shirts, and more. Most families spend about $500 per month on garments. Again, the amount can increase dramatically if you buy branded clothes.

• Entertainment: This includes movies, theme park visits, and more. A great way to save money is to find places that offer discounts to children or are free to visit. Parents in the US spend about $1,300 on entertainment for children.

• Travel: It’s believed that transportation costs — gas, car payments, insurance, airline fares, and public transportation — typically peak when children are between the ages of 15 and 17. The average family in the US spends $747 per month on transportation.

In addition, may be spending money on necessities and luxuries such as football lessons, haircuts, toothbrushes, and more. These items add up to about $300 per month.

So, should you have kids? How many?

This is a personal decision and we cannot answer it for you. Plus, when you look at the chubby cheek of a baby, money doesn’t seem to matter that much.

One has to look not just at the financial side but also the emotional side of having a baby.

Parenting is a big responsibility. You will not only need more money but time as well. However, since this is a personal finance letter, we’re mainly going to look at it from the perspective of money.

The truth is that having kids can prove to be financially beneficial. Based on your location, you might enjoy certain perks such as discounted prices, access to more government programs, and affordable interest rates.

We’ll talk about this in the next newsletter, plus how to save money for your kids, so stay subscribed and enjoy this video covering the cost of raising children in the US:

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