Morning Download from Invincible Money 

Personal finance + economics + markets

Good morning investors! Welcome to Friday! Thank you to every one of the 20,000 daily readers!

Let’s start with this stat:

• Day traders make up a very small percentage of investors, 80% quit within the first 2 years, and 95% lose money.

Day trading can offer big profits, but it may not be suitable for everyone. It might be a better idea to buy and holds stocks. While it’s less exciting, It’s also a lot less work and stress.

Today we cover:

• The stock market remained flat with few surprises

• Alibaba launches open source AI model to challenge Facebook

• How many credit cards should you have?

📊 Economy 

Geopolitical risks continue to be a challenge

A recent Oxford Economics found that geopolitical tensions are the biggest threat to the global economy.

The changing global situation, including the Russia-Ukraine war, increasing Chinese presence, and issues in countries like India and Argentina have changed businesses' perceptions on the market - everyone is still cautious.

On the plus side, inflation doesn’t seem to be an issue anymore.

A few other things:

• China becomes the #1 importer of Ukrainian grain.

• Trump is willing to go to DC to be arrested.

📰 News

Alibaba ready to take on Facebook with its open source AI model

Alibaba launched its large language model named Tongyi Qianwen in April but it couldn’t make a lasting impression. However, now the company is ready to open the AI model to third-party developers, which may help it take a bigger role in the industry.

This move puts Alibaba against Meta, which has similar offers. Plus, it will also challenge OpenAI, the firm behind the world's most popular AI chatbot, ChatGPT.

The decision will not directly benefit Alibaba, but it could help the company attract more users to its AI model. Alibaba has shown great interest in cloud computing and is looking to expand its wings with large investments in the sector.

Our take: Is that everyone? Do all the big tech companies now have an AI model?

Quick hits:

• With stocks growing, the IPO market may also make a comeback.

• Domestic travel suffers as Americans choose to fly abroad.

📈 Stocks

S&P 500 4,501.89 (-0.26%)
DJIA 35,215.65 (-0.19%)
NASDAQ 13,959.83 (-0.13%)
VIX 15.92 (-1.06%)
* Prices as of Aug 4th, 12:20 AM EST

A mixed day for stocks

The day was slow with not much happening after the market notched its worst day in weeks on Wednesday. Experts agree that the market is preparing for a pullback but they aren’t worried as a correction is normal and healthy.

There was some interesting earnings nears too.

PayPal fell more than 10% after the earnings call yesterday and Expedia fell by 16% due to an unexpected fall in gross bookings. But, the real surprise came after the market close when big giants, Apple and Amazon, announced earnings. Amazon rose 10% after the bell and Apple fell 2.5%.

About 79% of S&P 500 companies have issued earning reports for the quarter and about 82% have beaten expectations. However, based on the current reports, earnings are expected to fall around 5% from the previous year.

Major Movers:

• Clorox Co (8.96%) jumped after the company announced fiscal Q4 earnings.

• Cognizant Technology Solutions Corp (7.85%) increased due to positive earnings.

• DXC Technology Co (-29.44%) fell as analysts feel progress is reversing.

• Expedia Group Inc (-16.38%) fell due to poor guidance and weak outlook.

🔐 Crypto

Bitcoin $29.211, (-0.01%)
Ethereum $1,836 (-0.12%)
Total market cap $1.16 (-0.51%)
* Prices as of Aug 4th, 12:20 AM EST

These are the 10 biggest fintech companies

Fintech is a growing field and knowing about the top players can prove to be helpful, especially for investors looking for a good opportunity.

CNBC recently partnered with Statista to study the top fintech companies. The study consisted of 1,500 names across different marketing segments. It evaluated a variety of factors, including user numbers, funding raised, and revenue.

Check out the list of 200 here for some possible good buys.

A total of five companies from the US made it to the top 10.

💵 Personal Finance

Should you pay in cash?

Cash is slowly fading out but it will never completely go out of fashion, at least not in growing economies.

According to a 2022 report, 41% of Americans said that none of their purchases in a week are paid for using cash, up significantly from 29% in 2018. More and more people are opting for plastic money and online wallets, yet there’s space for cash as cash transactions offer several benefits.

Here’s why we don’t think going completely cashless is a good idea:

• Cash makes it easier to budget.

• There’s no credit, hence little to no risk of debt.

• Some people argue that cash is safer than online wallets but this is debatable.

• You avoid credit card fees that are usually around 3% per transaction.

Also, a report found that cash can be a great option for people who want to forget a transaction happened. Since there’s no proof, you’re more likely to forget about it, making cash a good option for ‘guilty’ pleasures.

But, we don’t think it is a good thing. It is important to keep an eye on your money, even if you use cash. You must know how much you’re spending and budget according to your income.

Check the video below for some great budgeting tools to get you started:

Why you should have more than one credit card

Cash might offer some benefits but you can’t survive without a credit card in today’s economy, especially since they come with great perks. But, how many cards should one have?

Either have none or have more than one.

With no credit card, you’ll be in better control of your credit score. Similarly, with multiple credit cards, you will enjoy some amazing benefits.

Having multiple credit cards helps lower debt to credit ratio, which directly impacts credit scores. But, it comes without some issues too. The more credit cards you have, the harder it gets to manage funds. Plus, it increases the risk of going over your budget. So, always play smartly.

💰 Be a Better Investor

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