Morning Download from Invincible Money 

Personal finance + economics + markets

Good morning investors! I hope everyone has a great weekend and takes time to go outside and hug a tree or pet a dog or something non-screen related (you won’t miss anything).

Today we cover:

1. Good economic news (again)

2. TV and movie production abruptly stops

3. If XRP isn’t a security, is any crypto?

4. Index funds vs ETFs - Part 3

📊 Economy 

Latest economic data gives hope

The Producer Price Index (PPI) for June came in at 0.1% (below expectations) and the U.S. Department of Labor released numbers showing Americans filing new claims for unemployment benefits fell last week.

These are good numbers, but the CME Fedwatch Tool is still giving a 92% chance of a rate hike at the next FOMC meeting.

📰 News

The Writers Strike in Hollywood: A Major Test of Wills

The Writers Guild of America (WGA) and the Actors union (SAG-AFTRA) are on strike with the Alliance of Motion Picture and Television Producers (AMPTP) over a number of issues, including higher wages, improved residuals, and more transparency in the streaming era. The strike has now entered its third month, and it is unclear when it will end.

The AMPTP has refused to make any significant concessions, and the studios have said that they are willing to let the strike drag on for months or even years if necessary. The strike has had a significant impact on Hollywood, with production on many TV shows and movies being delayed or canceled. The studios are losing millions of dollars each day, and the strike has also put a strain on the relationships between the WGA and the AMPTP.

The strike is a complex issue with no easy answers. However, it is clear that it is having a significant impact on Hollywood, since everything just shut down and film and TV production will half.

Let’s hope your favorite show doesn’t get cancelled!

📈 Stocks

S&P 500 4,510.04 (0.85%)
DJIA 34,395.14 (+0.14%)
NASDAQ 14,138.57 (+1.58%)
VIX 13.61 (+0.52%)

Stocks on a roll

Positive earnings reporters this week could keep the stock market rolling along, starting with Pepsi and Delta Airlines yesterday and JPMorgan and others today.

🥤 PepsiCo, Inc. [PEP +2.38%] beat analysts expectations for both Q2 revenue and profit with $2.09 EPS (vs. $1.95 expected), which was up 12.4% year over year.

EPS was up 93% over last year. Net revenue was up 10.4% from Q2 last year, at $22 billion.

Our take: Pepsi seems to be doing better, but when you compare is to the rest of the beverage market, they may just be riding a positive wave so always look at the industry as well as the stock.

✈️ Delta Airlines [DAL -0.52%] fell slightly despite beating earnings and raising it’s yearly outlook as the CEO said he expects an increase in travel spending to remain “for quite some time.”

Delta reported Q2 $2.68 EPS (vs $2.41 expected) and revenue of $14.6 billion (vs. $14.4 billion expected).

🔐 Crypto

Bitcoin $31,509.53 (3.9%)
Ethereum $2,012.85 (7.7%)
Total market cap $1.3 (+6.6%)
* Prices as of July 13th, 11:20 PM EST

Ripple (XRP) deemed not a security, market rips!

Most of the crypto market was up on the news of the judgment in the SEC v. Ripple Labs case that deemed XRP NOT a security.

This case has been working its way through the court since 2020, wherein the SEC argued that Ripple didn’t register XRP as a security before offering $1.38B worth of the token for sale.

Short history: For years the SEC has been telling everyone that all crypto, except Bitcoin and maybe Ethereum, is a security and needs to be registered and regulated by the SEC.

Now what? So the market is asking the question: if XRP isn’t a security, what is?

For more on who wins and loses in this judgment, check out this article.

Former Celsius CEO arrested

Alex Mashinsky, former CEO of Celsius, was charged with 7 counts, alleging fraud and securities manipulation. The FTC also announced a $4.7 billion settlement against Celsius. It states that creditors and investors have to be repaid first.

• The SEC accused him of manipulating the price of Celsius’ token, CEL and misrepresenting the company’s “central business model and the risk to investors” by claiming they didn’t engage in risky trading.

💵 Personal Finance

Index fund vs ETF - Part 3 of 3

Index funds and ETFs are both types of investment funds that track a specific market index. However, there are some key differences between the two.

Index funds are mutual funds that track a specific market index. They are bought and sold at the end of the trading day, and their price is determined by the net asset value (NAV). Index funds typically have low fees, and they are a good way to get broad exposure to a particular market index.

ETFs are exchange-traded funds that also track a specific market index. However, ETFs can be bought and sold throughout the trading day, and their price is determined by supply and demand. ETFs typically have slightly higher fees than index funds, but they offer more flexibility and liquidity.

Here are some additional things to consider when choosing between an index fund and an ETF:

• Your investment goals: If you are investing for the long term, then an index fund may be a good choice. However, if you are investing for the short term or if you need to be able to sell your investments quickly, then an ETF may be a better choice.

• Your investment style: If you are a hands-off investor, then an index fund may be a good choice. However, if you are an active investor who likes to trade frequently, then an ETF may be a better choice.

• Your brokerage fees: Some brokerage firms charge higher fees for trading ETFs than for trading index funds. Make sure to compare the fees before you choose an investment.

In short: Ultimately, the best choice for you will depend on your individual investment goals and preferences. If you are looking for a low-cost, diversified, and passively managed investment, then either an index fund or an ETF could be a good option for you. However, if you want more flexibility and liquidity, then an ETF may be a better choice.

Here you can read Part 1 and Part 2.

💰 Be a Better Investor

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