Morning Download from Invincible Money 

Personal finance + economics + markets

Good morning investors! Time to start the week so let’s begin with this interesting stat:

🌎 About 10% of US households hold international equity.

But you don’t have to because the U.S. market has become one of the best performing markets thanks to recent highs and index funds are made up of large multinationals that have exposure to international markets.

Today we cover:

• Why Fed’s so happy

• Where Americans are moving

• Stocks continue to soar

📊 Economy 

U.S. Paychecks are slow to grow

The second quarter wasn't very good for workers with U.S. wage gains cooling - growing just 1% in the second quarter. However, the Fed appears to be happy as slower wage growth helps control inflation.

This is happening due to a variety of reasons, including more workers choosing to work from home, employees jumping ship more often, and some willing to take a pay cut.

A Few Other Things:

• The US dollar is in a decline after soaring to a two-decade high in 2022.

• U.S. stores plan on using AI to reduce shoplifting incidents.

📰 News

America needs more construction workers

The pandemic is over and workers are getting back to work but one industry is still facing shortages.

According to reports, construction firms will have to attract about 546,000 additional workers, on top of the normal hiring, to meet demand. However, there aren’t just enough workers in the US.

• Companies are looking to import talent from other countries.

• The gap may widen in the near future.

Experts believe that companies need to improve safety standards and offer more to attract workers.

China to overtake the US with Beidou?

China’s Beidou constellation is changing the GPS game. The GPS system is owned by the US. with some countries playing supporting roles. However, China now has its own satellite navigation system that's spurring massive development in the country.

Experts believe that it might soon challenge America’s dominance as Russia may join hands with China. Russia already has GLONASS, yet GPS remains the most widely used global navigation satellite system.

Quick hits:

Key Fed inflation rate is now the lowest in about 2 years. Core PCE rose 4.1% from a year ago, lower the estimated figure of 4.2% and falling from May’s 4.6%

Subway is offering free sandwiches (for life) to anyone who changes their name to Subway. (Not worth it 😛)

📈 Stocks

S&P 500 4,5825.2 (0.99%)
DJIA 34,459.03 (0.53%)
NASDAQ 14,316.30 (1.93%)
VIX 13.33 (-7.49%)

Keep an eye on EV Stocks

The EV market is ready for another push thanks to the Biden administration proposing modest increases to fuel efficiency standards. This may increase the shares of EVs on the road and boost companies like Tesla and GM.

Tesla is already having a great run, as the company rose nearly 5% last week. However, it hasn't crossed the 52-week high, which shows more growth potential. On the other hand, Chinese company Nio rose nearly 35% last week.

Other companies such as GM and Ford are also investing in EVs. Ford’s expected to bleed nearly $4.5 billion on electric cars this year. Furthermore, GM is planning to invest in EVs as well. This indicates that now might be a good time to consider these stocks.

Major earnings to watch this week:

• PayPal (2-Aug-2023)

• Shopify (2-Aug-2023)

• Apple (3-Aug-2023)

• Amazon (3-Aug-2023)

🔐 Crypto

Bitcoin $29,382.33 (-0.01%)
Ethereum $1,876.25 (-0.17%)
Total market cap $1.26 Trillion (-0.19%)
* Prices as of 30 Jul, 9:15pm UTC

Rig Makers Continue to Expand in Russia

With the US market getting more and more saturated, mining rig makers such as MicroBT and Bitmain are entering the Russian market.

Sanctions haven’t been able to stop these companies from attempting to make a mark in Russia as they argue that they do not explicitly ban ‘mining’. As a result, more machines are flowing into the country than in any other country.

Cheap energy, easy laws, and cold climate make Russia a great option for miners.

💵 Personal Finance

Rich Americans are moving to these 10 states

Americans are either leaving the US or leaving states that are too expensive. If you don't want to move to countries like Indonesia, Portugal, or Thailand and want to continue to live in the US then consider these popular states:

• Florida where net migration stands at 27,567.

• Texas where net migration stands at 9,008.

• North Carolina where net migration stands at 5,446.

• Arizona where net migration stands at 4,563.

• South Carolina where net migration stands at 4,510.

These states may not be the most affordable options in the U.S., but they’re popular among households earning $200,000 or more per year. They are known for being tax friendly (Texas and Florida, for example, have no state income tax).

Why are Americans moving? Watch “8 reasons to move out of the U.S.”
(if you’re an international reader, I’d love you to comment on the video on if you agree or disagree.")

Baby Boomers have more exposure to stocks than needed

When it comes to stocks, more exposure is not always good.

“About 37% of boomers have more equity than we would recommend for their particular life stage,” said Mike Shamrell, vice president of thought leadership at Fidelity Workplace Investing.

The firm suggests Boomers rebalance and carefully assess downside risks. Furthermore, it highlights the importance of identifying the sweet spot and being aware of the risks of 'play' money.

Investing is important at all ages, even after retirement. However, you must know when, where, and how much to invest.

Check out this video below for tips on what not to do when investing your money:

💰 Be a Better Investor

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