Good morning investors! All indexes were down yesterday and the telecom sectors seem to have stuck in a lull.
Today we cover:
Jamie Dimon rings the ‘danger’ bell. 🔔
Going to be a busy time for Apple.📱
Coinbase versus SEC. 🥊
Follow us on Twitter for more.
🔈 Audio version: Apple Podcasts | Spotify | YouTube
📊Economy and News
Jamie Dimon sees danger
JPMorgan Chase CEO Jamie Dimon is “cautious about the U.S. economy over the next two years because of a combination of financial and geopolitical risks.”
He believes that the rising US debt will play a crucial role in changing the situation. Plus, he’s also concerned with the ongoing situation in the Middle East and Ukraine.
In Dimon’s view, the relatively buoyant stock market of recent months “has lulled investors on the potential risks ahead.”
Global hits:
Biden administration proposes a rule (limit OD fees to $3) that could save consumers $3.5 billion a year in bank fees.
UK inflation posts the first rise in almost a year, reducing the chances of rate cuts.
China’s population declines for a second straight year as the economy stumbles.
Update: Homebuilder sentiment is up due to mortgage rates trending down. However, Cantor Fitzgerald’s CEO thinks the real estate market is about to turn “very ugly.”
Reminder: Holiday sales climb, boosting retailer hopes that shoppers will spend during uncertain 2024. However, experts believe that Wall Street should worry about retail.
📈Stocks
S&P 5004,739.21 (-0.56%)
DJIA37,266.67 (-0.25%)
NASDAQ 16,736.28 (-0.56%)
BRENT CRUDE 77.79 (-0.12%)
* Prices as of Jan 18th, 12:20 AM UTC
Eat this apple with caution 📲
Apple is now the biggest phone seller in the world.
It over Samsung Electronics, which had been the number one seller for 12 years. Apple now enjoys a 20% global share, whereas Samsung is now down to 19.4%. However, the path ahead is difficult for the company.
Samsung is coming up with a new Galaxy S24 lineup with AI-powered photo editing, search features that could dethrone the iPhone. In addition, Apple is facing challenges, including lawsuits.
Experts believe that the U.S. Department of Justice is preparing to file an antitrust suit against Apple that could come as soon as March. Apple has been facing accusations of anticompetitive behavior from names like Epic Games and Spotify, and could soon be dealing with a complicated case.
Experts believe this could have a negative impact on the stock.
Plus, Apple is once again banned from selling watches in the US with blood oxygen sensor.
Worth checking: Shien US IPO in danger? China has launched a security review of the company.
Interested in pharma? Check this list of companies trying to win the weight loss drug market.
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Investors purchase a portfolio of full barrels and can then capitalize on the aging process of the spirit. Just think about it, older whiskey sells for a higher price than younger whiskey. A naturally appreciating asset, that’s something hard to find with anything else.
Plus, CaskX has simplified whiskey investment by storing barrels at the original distilleries and arranging insurance coverage. You can simply monitor the status of investments from an online portal and even initiate a sale when the time is right.
🔐Crypto
Bitcoin $42,602 (-0.32%)
Ethereum $2,527 (-0.01%)
Total market cap $1.68 (-1.09%)
* Prices as of Jan 18thd, 12:20 AM UTC
Coinbase fights SEC
All eyes are on the Coinbase and SEC legal battle over crypto securities. The case may impact the future of crypto tokens in the US and change the landscape.
The SEC sued Coinbase in June last year claiming some crypto tokens available on the platform should have been registered as securities.
Coinbase has asked the court to dismiss the lawsuit alleging the largest US crypto exchange is flouting its rules.
On the first day, the SEC said buyers of digital assets were purchasing the tokens as investments akin to stock shares or bonds.
But Coinbase's lawyers disagreed, noting that “buyers of such tokens were not signing contracts entitling them to proceeds of a common enterprise.”
The case may take a while to solve. For now, let’s focus on BTC and ETH as both appear to be preparing for another bull run.
Also, the US isn’t the only country where crypto is facing such challenges. Thai SEC has turned down spot BTC ETFs yet Ripple CEO expects more approvals. At the same time, Gemini is ready to enter France amid clashes with US regulators.
💵Personal Finance
Understanding private debt as an investment
Private debt is a form of investment that isn’t financed by a bank. The keyword here is ‘private’ as it refers to the investment instrument and not the borrower, as private debt is available to both public and private companies.
Private debt is typically used to finance buyouts, though it can also be used for other tasks such as expansions. The industry has grown by leaps and bounds since the 2008 crisis and has become an established asset class in its own right.
The chart above highlights how the industry is growing, especially now that Europe is catching up. Private debt AUM in Europe has grown by 380% over the past 10 years, and now constitutes over 20% of total AUM for the asset class.
In addition, the Asian private debt market has also taken off. Small and mid-sized companies faced an annual funding gap of over $4 trillion in 2019, which indicates the potential. In fact, about 23% of fund managers believe that Asia is an emerging market with the highest potential.
Private debt usually offers a return of 8 to 14%, which is pretty good. In fact, on a risk-adjusted basis, it outperforms corporate and high-yield bonds.
💰 Be a Better Investor
“All successful people men and women are big dreamers. They imagine what their future could be, ideal in every respect, and then they work every day toward their distant vision, that goal or purpose.”
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.