Morning Download 

Personal finance + economics + markets

Good morning, investors! The opinion on where the market will go next is mixed. Some experts are predicting a crash and some think we are on our way to new highs. Let’s see what’s going on around us and you can form your own opinion.

Fun fact: The S&P 500 has now closed up for the last 12 Mondays, the longest streak in $SPX history.

Today we cover:

• Entertainment industry back on track?

• A look at major stocks.

• How many credit cards should you have?

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📊 Economy and News 

Writers and studios reach a tentative deal

Looks like there’s good news for the entertainment industry as writers and studios are finally appearing to be on the same page.

The Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers have reached a tentative deal, which might put an end to the writers' strike.

The strike began on May 2, 2023, and has already cost the industry millions. Talks resumed last week after months of starts and stops, ultimately leading to a tentative deal.

Not over yet: A deal is being finalized; however, for now, the strike, however, is still ON.

The WGA did not disclose what provisions ultimately made it into the preliminary contract, but told union members that “this deal is exceptional — with meaningful gains and protections for writers in every sector of the membership.”

Note: some of the protections they want are that A.I. won’t take all their jobs. Seems reasonable, right?

Moreover, WGA leadership noted that the strike will continue until there’s an official agreement.

The impact: The news of a potential solution sent movie theater shares popping Monday. AMC, Cinemark, and IMAX jumped but studios such as Disney and Comcast lagged behind.

👸🏻 Disney can’t catch a break this year!

Global hits:

• Asia markets fall (without a reason).

• Spotify to use AI to replicate podcasters’ voices and translate them to other languages.

• ChatGPT can now ‘speak,’ listen and process images.

• China’s outbound travel surges ahead of ‘Golden Week’ holidays.

📈 Stocks

S&P 500 4,337.44 (0.40%)
DJIA 34,006.88 (0.13%)
NASDAQ 14,768.90 (0.46%)
VIX 16.90 (-1.74%)
* Prices as of Sep 26th, 12:20 AM UTC

Yesterday was a slow day as interest rates continued higher while stocks bounced to end their multi-day losing streak.

Let’s see what some of the biggest companies are up to:

• Amazon follows Netflix; prepares to introduce ads to Prime with the option to choose an ad-free tier for an extra $2.99 a month. The company plans to have fewer ads than traditional TV channels (which isn’t hard). This news might send the stock up today. In addition, the company is looking at investing up to $4 billion in Anthropic, a rival to ChatGPT developer OpenAI.

• Sierra Space, which is considered a direct rival to Tesla, has successfully raised about $300 million from a Japanese consortium at a $5 billion valuation. A subsidiary of private aerospace contractor Sierra Nevada Corporation, the company is focused on sending its Dream Chaser spaceplane up in the air.

• McDonald's is preparing to raise royalty fees for the first time in about three decades. The company is introducing a 1% raise, to 5% from 4%, starting in 2024. This new rate will only affect new franchises and existing partners are immune for now. This might push the stock price higher in 2024.

🍔 McDonald’s fact: It costs between $1.3M and $2.3M to buy a McDonald’s franchise, then you pay the 5% of sales, but many stores earn over $3M annually, with a 10% profit margin.

⛰️ McDonald’s owns the land under the restaurants, which is why many consider it to actually be a real estate company that happens to sell hamburgers.

🔐 Crypto

Bitcoin 26,301.90 (0.99%)
Ethereum $1,591.99 (0.01%)
Total market cap $1.05 (0.01%)
* Prices as of Sep 26th, 12:20 AM UTC

Here’s what’s happening in the crypto world:

• Coinbase makes a big move, successfully registers with Spain’s Central Bank.

• Hong Kong is investigating influencer-backed crypto platform, JPEX, after investors complained of $166 million in losses.

• Binance reopens exchange services in Belgium after being forced to halt services in June 2022.

💵 Personal Finance

How many credit cards should you have?

The average American has 4 credit cards. But is that too many? The opinion is divided.

Why it matters

It matters because credit cards impact your credit score, offer you benefits such as discounts, and can put you in debt.

Just because everyone else is having four credit cards doesn’t mean you should have four too. It might be too much (or too little) for some people.

So, how to decide?

Understand your needs and wants.

There are cases when having multiple credit cards can be beneficial. Rewards credit cards, for example, can help you cut costs if you’re using a card that rewards you for purchases you were already planning to make.

Here are some of the best rewards cards in the US (not sponsored):

• Chase Freedom Unlimited® with cashback and bonuses.

• Capital One Venture Rewards Credit Card with travel perks.

• Blue Cash Preferred® Card from American Express with special discounts for family members.

• U.S. Bank Altitude® Connect Visa Signature® Card for road trips.

All these cards come with specific perks and some are even co-branded, i.e.: designed to be used with a specific brand.

You have to decide the benefits you require. For example, if you are a frequent flyer then consider a card that gives you access to airport lounges, discounted upgrades, and airline points. Some top options include the United Club℠ Infinite Card and Chase Freedom Flex℠.

Now, someone who flies may enjoy eating as well. Since cards designed for flyers do not always come with food-related discounts, you may have to order a second card. Next, you may have to order a third card if you drive a lot and need a card that offers cashback on fuel.

So, understand your requirements and then decide how many cards you need and see if a single card can offer all that you require.

But, how many is too many?

You will never get punished for having too many cards. Your only worry should be to ensure you pay on time and don’t pay unnecessarily, i.e.: annual fees.

Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time.

You can consider living a debt free life by avoiding credit cards but that means not having access to discounts (when you can) and letting go of opportunities to improve your credit score.

Check this video for more:

💰 Be a Better Investor

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