Morning Market Download from Invincible Money

Personal finance + economics + markets

Staying on top of the markets, economics and the global issues that affect your money takes a lot of time and effort. We distill it down to a quick 5 minute read to help you make better money decisions.

EconomyThe market is starting to take the possibility that the U.S. may default on its debt seriously. The U.S. has never defaulted and if the Biden Admin and Republicans can't come to an agreement by June, then things could get weird as we'll be in unknown territory.

“There is this view in D.C. that the market isn’t freaking out enough, and that may be true to an extent,” said Alec Phillips, chief political economist at Goldman Sachs. “But I’ve been dealing almost exclusively with this issue the last few weeks, and there is actually more concern now than even in 2011,” when Standard & Poor’s downgraded U.S. debt during a similar standoff. “It’s just that nobody knows when it’s going to happen or what to do about it.” (Politico)

Lots of talk about the end of the U.S. dollar. I even did a video on it that got 3,000+ views.The BRIC countries are putting together their own agreements to trade in a currency other than the dollar, as are Russia, China and others. However, the dollar is still king.How did the U.S. dollar get its reserve currency status in the first place? Watch the video.(Hint: WWII and Oil)

NewsCuring disease may be the next boom as engineers leave Silicon Valley for biotech startups using AI to find medical breakthroughs.

Credit Suisse revealed yesterday they had $69B in outflows during the bank crisis before UBS took them over. Over 6 months they lost over $225B in customer deposits as customers left.

StocksSubway (sandwiches) posted its 9th consecutive quarter of positive sales growth. Last quarter sales were up 12.1% thanks to a store revamp campaign. The company is in second round talks with 10 firms to get acquired.

LVMH becomes the first European company to surpass $500B in market cap as sales of luxury goods have remained strong. The current richest person in the world owns LVMH. Also, last week LVMH was stormed by Parisian protesters unhappy with Macron raising the retirement age from 62 to 64.

CryptoTracking crypto transactions is big business. Chainalysis has held most of the market for years and not other firms like Cake Wallet are getting into the space. Reminder that, despite what you hear in the news, transactions on most blockchains are recorded forever and are not private. They are transparent and visible.

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What is Dollar Cost Averaging and why should you use it?

Dollar cost averaging (DCA) is an investment strategy that involves investing a fixed amount of money at regular intervals, regardless of the current price of the investment. The idea is to buy more shares when the price is low and fewer shares when the price is high, averaging out the overall cost of the investment over time.

For example, let's say you want to invest $1,000 in a stock. With dollar cost averaging, you might choose to invest $100 each month for ten months instead of investing the entire $1,000 at once. This way, if the stock's price fluctuates, you'll buy more shares when the price is low and fewer when the price is high. Over time, this approach can help smooth out market volatility and potentially lower the overall cost basis of the investment.

Dollar cost averaging is often used as a long-term investing strategy, and can be applied to a range of investments, including stocks, mutual funds, and exchange-traded funds (ETFs). It can be a good option for investors who want to make regular contributions to their investment portfolio and reduce the risk of investing a large sum of money at a potentially unfavorable time.

Legal StuffNothing in this newsletter is financial advice. Always do your own research and think for yourself.