💪 China defeats coronavirus

Economic recovery for dummies | Morgan Stanley's earnings are a piece of cake |

Hi Reader, here's what you need to know for April 19th in 3:03 minutes.

🎉 We’re looking for leaders to join our 2021 events program and host conversations about the biggest investing trends. It’s your chance to grow your network, get featured in front of our global audience, and gain valuable experience in producing live events. Apply here

Today's big stories

  1. The Chinese economy grew at its fastest pace on record last quarter
  2. There’s still a huge amount of potential upside if you invest in America’s smaller stocks – Read Now
  3. Morgan Stanley joined other investment banks in reporting better-than-expected earnings on Friday

K.O.Vid-19

K.O.Vid-19

What’s Going On Here?

New data out on Friday showed the Chinese economy grew at its fastest pace on record last quarter, proving that this apparently unbeatable pandemic is anything but.

What Does This Mean?

The world’s second-biggest economy grew 18% compared to the same time last year. And sure, most of the Chinese economy was shut down in the first quarter of 2020 because of the coronavirus outbreak. And sure, the pandemic’s lingering effects were noticeable in the numbers, with China’s manufacturing industry – which makes up 38% of its economy – growing slower than expected. But that drop-off was more than offset by the 34% rise in retail sales, which has put China on course to smash its annual growth target of 6%. Fatality!

Why Should I Care?

For markets: The big just got bigger.
The International Monetary Fund (IMF) – a major international economic organization – actually reckons China’s economic growth will go back to pre-pandemic levels this year, hitting as much as 8.4%. That tallies with the consensus that China and the US will drive the global rebound in 2021, with the latter’s economy projected to grow by a tidy 6.4%. That should come as a relief to investors, who are hoping strong economic growth will make sure this stock market rally just keeps rallying.

The bigger picture: Can’t we all just get along?
While the two biggest economies are expected to lift global growth, their tech war – recently escalated by the US’s decision to blacklist seven Chinese supercomputing firms – could do the exact opposite. In a research report out on Friday, the IMF said the US and China’s unwillingness to share tech could cut as much as 5% off the economic output of various countries around the world (tweet this). That’d be more than 10 times the damage their existing trade tariffs are estimated to have done…

Copy to share story: https://www.finimize.com/wp/news/k-o-vid-19/

🙋 Ask a question

2. Analyst Take

Why America’s Small Stocks Are (Still) Worth A Little Look

What’s Going On Here?

Smaller US stocks have surged since we last wrote about them back in November: the country’s key “small-cap” index is up 40% – twice as much as its large-cap cousin.

But with that index’s rise stalling in March, you’d be forgiven for thinking the rally’s run its course.

Not quite: there are a couple of reasons why small caps still might have a lot further to climb, and why now’s the perfect entry point.

Here’s a hint: the economic recovery is coming in handy,

So that’s today’s Insight: why small caps are as good an investment now as they were a few months back, and how best to profit from their ongoing rise.

Read or listen to the Insight here

SPONSORED BY TURBOTAX

Oh geez. Tax Day is May 17th.

Oh cool. TurboTax has you covered.

With TurboTax, you’ll get personalized guidance on your tax situation. So whether you sold one stock or 1,000 this year, TurboTax can tell you what it means for you.

Its TurboTax Premier product makes things effortless, searching more than 400 tax deductions and credits to find every tax break you qualify for.

And since you can import over 1,500 stock and 2,250 cryptocurrency transactions automatically, you’ll be able to do your taxes way more accurately in a fraction of the time.

It’s not just stocks and bonds either: you’ll be able to keep track of your bonds, ESPPs, rental income – you name it.

What a load off your mind: sort your taxes in no time today.

Try TurboTax Now

When you support our sponsors, you support us. Thanks for that.

Infinite Fest

Infinite Fest

What’s Going On Here?

Morgan Stanley might’ve been late to the party, but the investment bank finally joined three of its rivals in celebrating record-setting earnings late last week.

What Does This Mean?

Morgan Stanley’s earnings blew past expectations last quarter, with revenue from the firm’s investment banking business more than doubling compared to the same time last year. That segment raked in massive fees by helping special-purpose acquisition companies list on the stock market – just like Wells Fargo, Goldman Sachs, and JPMorgan, all of which reported blowout earnings of their own earlier in the week. So despite losing nearly $1 billion from the Archegos Capital Management debacle, Morgan Stanley still pocketed a record-breaking profit of over $4 billion.

Why Should I Care?

Zooming in: Morgan Stanley’s strategy is paying off.
Morgan Stanley spent $13 billion buying online broker E*TRADE last year, and the move looks like a shrewd one: E*TRADE – which now boasts over 7 million clients, 7% more than at the end of 2020 – benefited heavily from the burst of new retail traders last quarter. Eaton Vance was money well spent too: Morgan Stanley bought the investment management firm for $7 billion in 2020, pushing up the pot of money it looks after to $1.4 trillion dollars – from “just” $600 billion this time last year.

The bigger picture: Banks’ bread and butter looks a little stale.
The interest banks make on loans is a more stable source of revenue than, say, investment banking, making it essential to their survival. And while Morgan Stanley lent out 15% more cash last quarter, it might be worried that the four biggest US banks all reported a drop-off. Households, it seems, not only don’t need new loans: they have enough loose change to pay off existing ones. And even though businesses are keen to borrow, there’s a much cheaper way for them to do it: they can sell bonds – which currently boast ultra-low yields – to fund their future growth.

Copy to share story: https://www.finimize.com/wp/news/infinite-fest/

🙋 Ask a question

💬 Quote of the day

“You can never leave footprints that last if you are always walking on tiptoe.”

– Leymah Gbowee (a Liberian peace activist)
Tweet this

🌏 Finimize events

💪 Choose your fighter

Every month we host conversations with CEOs and founders at our Crowdfunding Club, giving them a chance to pitch why you should invest in their ideas before they go public. And at our next session, it’s the turn of the founder of RYSE – the next big thing in the $158 billion smart home industry.

🔥 The Three Most Important Trading Signals: 6pm UK time, April 20th
👩‍🎨 Are NFTs A Digital Bargain Or Bubble?: 2pm UK time, April 21st
💡 Investing In Small Stocks: 6pm UK time, April 21st
🏡 The Pros and Cons Of REITs And Real Estate: 1pm UK time, April 22nd
📈 How To Inflation-Proof Your Portfolio: 6pm UK time, April 22nd
🚀 Space: The Final Investment Frontier: 6pm UK time, April 27th
💰 Crowdfunding Club: 1pm NYC time, April 28th
🛢 The Energy Sector’s New Direction: 4pm UK time, April 29th
🔪 How To Cut Through The Spin: 6pm UK time, April 29th
👋 Live Q&A With CEO Max Rofagha: 1.30pm UK time, April 30th

📚 What we're reading

❤️ Share with a friendYour Referrals: 0

Thanks for reading Reader. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag.

Share your unique link:

https://finimize.com/invite/?kid=177ZWC

You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: tykcartoon - Shutterstock | New Africa - Shutterstock

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | Third Floor, 1 New Fetter Lane, London, EC4A 1AN, UK.

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021

View Online

Older messages

📈 Whoa, Coinbase

Wednesday, April 14, 2021

Coinbase makes one heck of an entrance | Goldman's best-ever results | TOGETHER WITH Hi Reader, here's what you need to know for April 15th in 3:07 minutes. 👋 Come find the official Finimize

😧 Oh no. Higher taxes.

Tuesday, April 13, 2021

Earnings season is ready – are you? | Keep that economic support comin' | TOGETHER WITH Hi Reader, here's what you need to know for April 14th in 3:08 minutes. 🌍 This is your world, major

📈 Microsoft's second-biggest ever buyout

Monday, April 12, 2021

Microsoft adds another string to its bow | Darktrace steps into the light | TOGETHER WITH Hi Reader, here's what you need to know for April 13th in 3:06 minutes. ☕️ Finimized over an affogato at

🍾 There's a new crypto play in town

Sunday, April 11, 2021

So many SPAC puns left unused | The dollar's back in action | TOGETHER WITH Hi Reader, here's what you need to know for April 12th in 3:09 minutes. 🌍 If you want to make sure your money has a

🌮 Eat the rich (companies)

Thursday, April 8, 2021

The US has a one-tax mind | BlackRock loves windmills | Finimize Hi Reader, here's what you need to know for April 9th in 3:11 minutes. 🥤 Finimized over a blueberry and strawberry smoothie at Shell

Longreads + Open Thread

Saturday, July 31, 2021

Precariat, Metaverse, Olympics, Patronage, Warp Speed, Strauss, Oil, Bonds ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Younger and sicker

Saturday, July 31, 2021

Bloomberg Follow Us Get the newsletter The great Return to Office is grinding to a halt. Much of America Inc. had planned to get back to normal come fall, but Covid-19's delta variant had other

Weekly Wrapup: Fox In The Henhouse

Saturday, July 31, 2021

Finshots Weekly Wrapup: Fox In The Henhouse In this week's wrapup we talk about the Chinese ed-tech industry, cigarettes, India's digital currency, chicken prices and Robinhood's much-

Desperate House Hunters Are Making Offers on Homes That Aren’t Even for Sale

Saturday, July 31, 2021

Dream house not for sale? Buyers are making offers anyway. July 30, 2021 MORTGAGES Desperate House Hunters Are Making Offers on Homes That Aren't Even for Sale Dream house not for sale? Buyers are

A lot more contagious

Friday, July 30, 2021

Bloomberg The news around the delta variant in the US keeps getting worse, threatening progress toward any return to some semblance of normalcy. New data released by the Centers for Disease Control and

Is It Time to Sell Your ‘Pandemic Stocks?’

Friday, July 30, 2021

A child tax credit deadline is approaching July 30, 2021 The pandemic forced some abrupt changes, and we're just now figuring out which of those to keep and which to discard. For example, how much

Blackstone's Moment

Friday, July 30, 2021

Plus: Archegos, US Payments, Monzo, Finally ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

FTT Update: This Newsletter Is Not Offsides

Friday, July 30, 2021

​ ​ Hi all, Julie here. Writing this at 6am since WE CLOSE ON OUR HOUSE TODAY! I have to say, the worst part of the mortgage process wasn't all the paperwork, it was getting all of our money into

You And Your Investment Research

Friday, July 30, 2021

Plus! A Successful IPO from Robinhood; Convergence; Underinvestment; Consumer-Friendly Defaults; The Amazon Rollup Boom ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

A look at Robinhood's IPO

Friday, July 30, 2021

Finshots A look at Robinhood's IPO Robinhood is going public after having raised some $2.1 billion on NASDAQ at a $32 billion valuation. So we thought maybe we could look at the company and see