Good morning investors! We are living in constant uncertainty, whether it’s the stock market, crypto, or the economy as a whole. Challenges are looming above our heads. The more cash you can save, the better.

👀 Fun fact: September is said to be the worst month for Bitcoin. The cyrptocurrency has fallen in each of the past six Septembers, and has averaged a decline of 6% in each September on record.

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📊 Economy and News

The Commerce Department released revised numbers, including consumer spending which went lower than expect – to 0.8%. It fell 0.9% from the previously estimated figure of 1.7%.

Spending in the second quarter was nearly flat growing at its weakest pace since the first quarter of the previous year.

What next? Moody argues that consumer spending may fall even more.

Consumers are spending less on services and nondurable goods. Rising rates and inflation is making Americans more cautious.

What else? Revised numbers showed that business investment was much stronger than what was estimated.

📈 Stocks

S&P 500 4,299.70 (+0.59%)
DJIA 33,666.34 (+0.35%)
NASDAQ 13,201.28 (+0.83%)
VIX 17.34 (-4.83%)
* Prices as of Sept 28th, 21:00 PM UTC

TCW Group CEO Katie Koch wants investors to be careful because she thinks a recession is on the horizon.

“We haven’t had a real one for over a decade and a half,” she reminded people predicting things are about to worsen.

She recommends investors avoid stocks and try other investment options such as mortgage-backed securities.

Remember 2008? Other experts seem to share similar opinions. Today’s market conditions “rhyme with 2008,” according to a JPMorgan expert.

The market has been down for a while and we might see it go lower. In fact, some experts expect it to fall about 40%.

May be next year? Most economists don’t expect the US economy to slip into a recession this year — although next year is another question — but tension is evident.

But why? Slower consumer spending, the threat from the resumption of student loan payments, the risk of a government shutdown, several strikes, and rising oil prices are all bad for the economy.

More worries: In addition to this, we’re about to face a debt crisis, warned Ray Dailio, the founder of hedge fund Bridgewater Associates. He expects growth to fall as low as zero.

Btw, if you haven’t seen this incredible video from Ray Dalio (founder of the world’s largest hedge fund), it’s worth your time.

Links that don’t suck:

Your thoughts?

What do you think? Take the poll on my Twitter.

🔐 Crypto

Bitcoin $27,083 (+3.2%)
Ethereum $1,656 (+3.9%)
Total market cap $1.12 (+2.8%)
* Prices as of Aug 4th, 12:20 AM UTC

Here’s all you need to know about crytpo:

💵 Personal Finance

Interest rates are very high and we’re expecting another hike in October.

Technically speaking, a rise in interest rate doesn’t necessarily make everything more expensive. However, it does have a very big impact in the U.S., since we live on credit.

When the Federal Reserve (the "Fed") raises interest rates, it means that they are increasing the cost of borrowing money. The Fed can do this by raising the federal funds rate, which is the interest rate that banks charge each other for overnight loans.

When the federal funds rate increases, it becomes more expensive for banks to borrow money from the Fed or from each other, and they may pass those higher costs on to consumers by raising the interest rates on loans, such as mortgages, car loans, and credit cards. This can make it more expensive for consumers and businesses to borrow money, which can slow down economic growth.

But why? The Fed may raise interest rates for a number of reasons, including to combat inflation or to slow down an overheating economy. By making borrowing more expensive, they can reduce the amount of money flowing through the economy, which can help to keep prices from rising too quickly. However, raising interest rates can also have negative effects, such as slowing down job growth and reducing consumer spending (which can also slow inflation).

What to do when interest rates rise?

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