Morning Market Download from Invincible Money

Personal finance + economics + markets

Finance in 5 minute a day to help you make better money decisions.

Economy

Most economists and major banks like JP Morgan are expecting a recession in the later half of this year. The rest think we’re already in a recession. How long will it last? The average is 17 months.

2,100 stores have closed in the U.S. so far this year with Bed Bath & Beyond leading with 896 stores as they just filed for bankruptcy.

Walmart has closed 22 stores, notably shutting down stores in Chicago and San Francisco due to increasing levels of shoplifting.

Layoff du jour: Unity Software will lay off 8% (or 600 employees) of its workforce.

South Korea was the first country to stop hiking rates, but they aren’t ready to cut yet, even as inflation hit a 14-month low of 3.7%. They’re targeting 2%, just like the U.S.

The latest ISM purchasing managers index showed the services sector is steadily growing as April’s number rose to 51.9 up from 51.2 in March. Anything above a 50 is growth. Prices were also up meaning inflation is persistent.

ADP Payroll numbers: US companies added 296,000 jobs in April, which was double expected and the most since July. (sorry Jerome)

Wage growth down 6.7%.

Gold hit an all-time high and sits at $2,050.

One of my favorite investors, Jim Rogers, said the dollar is in decline and if it accelerates, gold, silver and commodities are worth looking at. Also, that silver may be undervalued.

News

In the ongoing ESG fight, the state of Oklahoma has banned 13 banks, including BlackRock and JPMorgan Chase, from doing business with government entities over alleged efforts to boycott energy companies. The energy sector is a big part of Oklahoma’s economy.

Dem. Senator AOC and Rep. Senator Gaetz team up to sponsor a bi-partisan bill prohibiting members of Congress from trading stocks. No word yet on how Nancy Pelosi will vote.

Darden Restaurants, which owns Olive Garden, acquired Ruth’s Chris Steak House for $715 million.

Stocks

AMD reported a 9% drop in revenue and shares were down 8%.

Starbucks also dropped 8% despite beating EPS and revenue expectations and opening 464 net new locations during Q1. Now that’s a lot of (overpriced?) coffee!

Crypto

The largest and longest running crypto conference, Consensys, happened in Austin, TX last week. Here are the 3 biggest takeaways (per Coinbase):

1. The U.S. may finally be progressing towards major crypto legislation.

2. Paypal and Mastercard are significantly expanding their crypto offerings.

3. Fortune 500 execs identified obstacles in the way of mass adoption.

Despite the crypto winter and the lack of regulatory clarity, there are still serious people working on the growth and adaption of crypto in the U.S.

Be a Better Investor

Get Rich

Here are 3 ways to get rich. Remember, getting rich takes time, discipline, and patience. There are no shortcuts or magic formulas that can guarantee success. It's essential to stay focused, motivated, and resilient in the face of setbacks and challenges.

1. Save and invest wisely: Develop a habit of saving a portion of your income and invest in assets that can generate income or appreciate in value over time, such as stocks, real estate, or mutual funds.

2. Start a business: Entrepreneurship can be a path to wealth, but it requires a lot of hard work, risk-taking, and perseverance.

3. Live below your means: Avoid overspending and unnecessary debt, as they can erode your wealth over time.

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