Finimize - 😬 Elon’s got a bad feeling about this

Hi Reader, here's what you need to know for June 7th in 3:10 minutes.

💥 The Finimize NFT Fest is less than two weeks away, so it’s time to get the fun started. RSVP for the Fest and attend at least two sessions to get a free NFT domain, courtesy of Unstoppable Domains. One lucky winner will even bag a free pair of Airpods and a Finimize subscription – who wouldn’t want that? RSVP now

Today's big stories

The value of new stock market listings has tumbled this year
Elon Musk told a team of execs that he has a “super bad feeling” about the global economy – Read Now
China’s national holiday spending suggests a rebound might be underway

Cliffhanger

What’s Going On Here?

Data out over the weekend showed that the global value of initial public offerings (IPOs) has nosedived this year.

What Does This Mean?

2021 was the busiest year ever for stock market listings, as companies scrambled to go public to make the most of sky-high valuations. But the war, rising inflation and interest rates, and the threat of global recession have conspired to make markets choppier and companies more timid. That much is clear from the latest data, which shows that the value of global IPOs was 71% lower in the first five months of this year than the same time in 2021. The collapse was especially stark in Europe and the US, where the value of new listings has tumbled more than 90% this year (tweet this). And you don’t have to look far to pin the blame: the regions have hosted just two of this year’s 10 highest-valued IPOs, and the SPAC boom – remember SPACs? – has faded as quickly as it arrived.

Why Should I Care?

The bigger picture: No pressure.
There are still some major IPOs in the pipeline that could give the market a boost, mind you. GlaxoSmithKline’s consumer health business Haleon is expected to be the biggest listing in London for a decade, while insurer AIG’s life and asset management segment is set to be valued at over $20 billion when it joins the stock market. And let’s not forget Porsche: its parent-company Volkswagen is planning to list a number of the luxury carmaker’s shares on the market later this year.

Zooming out: It’s all coming up energy.
Analysts have also speculated that sky-high oil and natural gas prices will make energy and energy-adjacent companies more likely to list on the stock market. And there are already signs that’s playing out, with listings on energy-heavy Gulf stock exchanges on track for their best first half-year ever. Just look at Borouge: the chemicals company – which is co-owned by oil company ADNOC – just raised $2 billion in Abu Dhabi’s biggest-ever listing last week.

You might also like: How to prepare before dealmaking tumbles too.

Copy to share story: https://www.finimize.com/wp/news/cliffhanger/

🙋 Ask a question

Analyst Take

Elon Has A “Super Bad Feeling” About The Economy

Stéphane Renevier, Analyst

Last week, Elon Musk told top Tesla execs he had a “super bad feeling” about the global economy.

And he’s not the only high-profile CEO to forecast gloom and doom: JPMorgan Chase’s Jamie Dimon warned investors to brace for a “hurricane” too.

That’s particularly worrying because the two of them have been relatively optimistic about the stock market’s chances until now, with Elon’s $44 billion Twitter bid a case in point.

But here’s the thing: there’s no reason to panic if you just add some robust assets to your portfolio. You’ll sleep soundly, even when Musk is tweeting.

So that’s today’s Insight: why you should be worried, and why – if you make some smart choices with your portfolio – you shouldn’t be.

Read or listen to the Insight here

No mo’ investing FOMO

Wish you’d bought into Amazon back before it got big? How about Netflix?

Those two stocks have something in common, besides being in the tech world: The Motley Fool spotted them before they blew up.

The ship might’ve sailed on Amazon and Netflix, but you can get The Motley Fool’s report on the next five hot stocks, so you know what to look out for.

The report is totally free, and the stocks won’t break the bank either: they’re all under $49 right now.

Get ahead of the next big thing: download your free report.

Get Your Free Report