Morning Download from Invincible Money 

Personal finance + economics + markets

Together with Growth Daily

Good morning investors! It’s midweek. AKA Wednesday.
The name “Wednesday” comes from the Old English word “Wōdnesdæg,” which refers to the god Woden in Norse mythology, associated with wisdom. Don’t you feel smarter now?

Today we cover:

1. Why more people have multiple jobs

2. The China rebound is…meh

3. U.S. housing recovering nicely

4. Microsoft hits an all-time high!

5. Pay with crypto

6. What’s a financial statement - Part 2

📊 Economy 

More people working part-time

The number of people working part time for reasons beyond their control increased by 452,000 in June 2023. This is the biggest increase in more than 3 years, and it could be a sign that the economy is slowing down.

Economists warn that this could be a harbinger of more layoffs to come. However, they also say that the job market is still strong overall, and that spending has continued.

• According a to recent survey, people working part time are doing it because their employers cut their hours as a result of slowing sales.

• The U.S. Federal Reserve and central banks around the world are aggressively raising interest rates to slow the economy and control inflation, which could further contribute to the slowdown.

China’s rebound is … meh

The Chinese economy is slowing thanks to a 21% youth unemployment rate and a drop in property investing.

• GDP was just 0.8% in Q2 due to lower retail sales.

• Annual GDP was 6.3%, which was less than the 7.3% expected.

My take: China’s post-Covid recovery is slower than anticipated and they’re expected to roll out stimulus in the form of infrastructure funding and aid to consumers and private firms, but they beat their 5% GDP target, so it’s not all bad news.

📰 News

Housing recovery

Home prices in the United States peaked in June 2022 and have been declining since then. However, prices have been recovering steadily in recent months, and some experts believe that the housing market recession is already over.

Why? Easing supply chain constraints, higher mortgage rates, and a decline in buyer demand. As a result, there are now more homes available for sale, which is giving buyers more options.

Data for the nerds:

• The S&P CoreLogic Case-Shiller Index showed that home prices rose 0.5% in April compared with March, the third straight month of modest increases.

• Prices are still 1.8% below the June peak, but they are expected to continue to recover in the coming months.

• High mortgage rates are cooling demand, but they are not expected to derail the housing market recovery.

• As the housing market stabilizes, buyers will have more options and more negotiating power.

Where’d the recession go?

Things are looking up and a recession seems less likely (but never say never). So what happened? Why didn’t we get the recession everyone’s been talking about for over a year?

UBS put together a list of the Top Ten Reasons.

📈 Stocks

S&P 500 4,554.98 (+0.71%)
DJIA 34,951.93 (+1.06%)
NASDAQ 14,353.64 (+0.76%)
VIX 13.30 (-1.34%)

Microsoft hits all-time high! (thanks to A.I. of course)

Microsoft's [MSFT +3.98%] stock price hit an all-time high after the company announced pricing for its new AI subscription service, Copilot.

What is it? Copilot is a tool that can design presentations, offer writing suggestions, summarize meeting notes and rank incoming emails.

• The service is available for a monthly subscription of $30 per month.

• Copilot is still in beta, but is being used by 600 corporate customers.

Forecast: Analysts expect Microsoft's stock price to continue to rise in the coming months, as Copilot is seen as a major innovation in the field of software development. One analyst has a current stock target of $375 (Currently at $359).

Earnings moved stocks higher

Bank stocks lead the market higher as Bank of American [BAC +4.42%] and Morgan Stanley [MS +6.45%] reported.

The second largest bank in the U.S., Bank of American reported net income rose 19% over this time last year to $7.4 billion, while revenue was up 11% to $25.2 billion.

My take: Strong results were also reported from JPMorgan Chase and Wells Fargo, while PNC, a regional bank, cut its forecast. A timely example of regional banks struggling while the big banks do well. Partly a result of billions in deposits flowing out of regionals and into national banks after the collapse of 3 regional banks, including SVP (Silicon Valley Bank).

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🔐 Crypto

Bitcoin $29,799.57 (-1.1%)
Ethereum $1,898.73 (-0.6%)
Total market cap $1.24 T (-1.0%)
* Prices as of July 18th, 11:20 PM UTC

Buy stuff with crypto

Gnosis, a decentralized organization, has launched Gnosis Pay and Gnosis Card, which allow users to make everyday purchases with their crypto using a Visa-certified debit card.

How? The Gnosis Card is connected to a user's on-chain account and can be used to make purchases at any merchant that accepts Visa.

Where? The card is currently available in Europe, with plans to expand to the US and Hong Kong soon.

The details:

• Gnosis Pay is built on the Gnosis chain, which is a layer 2 solution for Ethereum.

• This means that transactions are faster and cheaper than on the Ethereum mainnet.

• Gnosis Card is available to users who hold Safe wallets, which are self-custodial wallets that allow users to control their own private keys.

• The card is currently available in beta, but it is expected to be released to the public soon.

💵 Personal Finance

What’s a financial statement?

Financial statements are important for a number of reasons. They can be used to:

• Assess a company's financial health: By looking at a company's financial statements, you can get an idea of how well the company is doing financially.

• Identify risks: Financial statements can help you identify potential risks that a company may be facing.

• Make informed investment decisions: If you are considering investing in a company, you should carefully review its financial statements.

• Obtain financing: If you are looking to obtain financing for your business, you will need to provide potential lenders with your financial statements.

Financial statements are a valuable tool for businesses and investors. By understanding financial statements, you can gain valuable insights into a company's financial health and make informed decisions about your business or investments.

Part 2 of 3. Read Part 1 here.

💰 Be a Better Investor

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