😩 The market's red

but opportunities still exist

Author

Michael Wight
August 07, 2023

Morning Download from Invincible Money 

Personal finance + economics + markets


Good morning investors! Let’s start talking about recent happenings, but first have a look at this interesting stat:

  • 2021 holds the record for the most number of IPOs – 1,035.

An IPO can be a great way to make money but you need to be able to identify good names. We’ll talk about this and more in today’s newsletter:

Today we cover:

  • What the job report says

  • Predicting the stock market

  • How to benefit from IPOs

📊 Economy 

Job growth in the previous month did not reach expectations – 187,000 versus 200,000 expected. The number might not have met projections; however, it's still higher than June's figure of 185,000.

The unemployment rate is 3.5%, slightly above the lowest level recorded in 1969 and close to the estimated figure of 3.6%.

📰 News

Prepare for higher highs, says the chart

“The S&P 500's recent price action aligns with the characteristics of a secular bull market, supporting the case for a long-term bullish trend,” said an article published on SeekingAlpha.

The article goes into detail covering past S&P 500 actions and predicts where the market is heading.

The article concludes that the current industry has all the signs of a bull market.

It suggests investors “lean toward growth-oriented investment allocations and prudently try to ignore 100% normal and to be expected volatility and givebacks that occur even in the context of the strongest bullish trends.”

In simple words, the market is heading to new highs but there may be some hiccups in between. Investors need to prepare for small pullbacks and invest in the right assets to benefit from the upcoming boom.

Our tip: Look for stocks with potential and BUY for the long-term.

Quick hits:

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📈 Stocks

S&P 500 4,478 (-0.53%)
DJIA 35,065 (-0.43%)
NASDAQ 15,274 (-0.51%)
VIX 17.10 (7.41%)
* Prices as of Aug 5th, 12:20 AM UTC

Amazon impresses as Apple fails to leave a mark

🚛 Amazon: Amazon surged 8.27% a day after the company reported blowout earnings. Moreover, experts believe that the company can grow even more as it's yet to cross the 52-week high of $146.57 and is currently trading at $139.57.

🍏 Apple: Apple fell 4.80% during normal trading hours to close at $181.99 after the company reported decreased revenue for hardware sales, including iPhones.

iPhone sales fell to $39.67 billion, lower than $40.67 billion during the same period in 2022. This is in line with what analysts had expected and all eyes are now on the upcoming iPhone model expected to release this fall.

Major Movers:

🔐 Crypto

Bitcoin $29,101 (+0.30%)
Ethereum $1,839 (+0.30%)
Total market cap $1.22 T (+0.22%)
* Prices as of Aug 7th, 3:20 AM UTC

Coinbase versus SEC: the battle heats up

Coinbase has requested a judge to dismiss the case filed by the SEC against it on grounds of the body “stepping outside of its jurisdiction.”

"The transactions over Coinbase’s platform and Prime are not, and do not involve, contractual undertakings to deliver future value reflecting the income, profits, or assets of a business. They are commodity sales, with the obligations on both sides discharged entirely the moment the digital token is delivered in exchange for payment," the filing said.

The filing pointed to last month's landmark decision where a judge partially ruled in favor of Ripple concluding Ripple's programmatic sales were not securities transactions.

The SEC must respond to the filing by October 3rd.

💵 Personal Finance

How to benefit from IPOs

IPOs allow investors to enjoy great perks. In recent times, companies such as Airbnb and CureVac BV offered great results. The former soared 114.7% above the IPO price and the latter offered up to 596% return from the offer price.

An IPO can be an easy way to improve your financial situation. Here are some of the benefits of investing in an IPO:

  • You get a chance to make quick money in the form of listing gains.

  • Prices are usually low at the time of an IPO, thus offering easy entry.

  • Companies offer a lot of information at the IPO stage, thus making the decision easier.

However, not all IPOs are successful. Robinhood, for example, failed despite being a big name. Its shares fell 10% within minutes of the bell ringing. Some other companies to have faced a similar fate include Uber, Etsy, and Omeros.

So, how to choose the right IPO to invest in? Here are a few pointers to remember:

  • Understand the business model and look at the company's long-term prospects. Ensure the model is sustainable and don't blindly follow big names.

  • Choose a company that has proven itself and has strong supporters and brokers.

  • Do not look solely at the past when gauging a company, rather look at its growth potential.

  • Ensure the price is right as not all IPOs are justified and some companies are known for starting ‘expensive’.

Despite all this, you may still face some challenges. Remember to be cautious because the stock market is unpredictable.

Are you ready to invest in an IPO? Here are some upcoming IPOs:

  • Fitell on Nasdaq between $5 and $6 per share (next week)

  • BioLingus on Nasdaq between $15 and $16 per share (date not announced)

  • Healthy Green Group Holding on NYSE between $6 and $7 per share (date not announced)

For more, check this amazing video covering how to invest in an IPO:

💰 Be a Better Investor

“Investing is not about beating others at their game. It’s about controlling yourself at your own game.”

Benjamin Graham

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