Hi Reader, here's what you need to know for July 19th in 3:11 minutes.

🗞 The US catches all the headlines, but make sure you don’t forget about emerging markets. The likes of Brazil, India, and Turkey have a lot to offer, and you can find out how to make the most of them in Tuesday’s The Hidden Potential Of Emerging Markets event. Get your ticket here

Today's big stories

Aluminum miner Alcoa’s earnings confirmed what investors already knew: the global economy’s in a strong position
There are four ways you can profit if you're convinced the housing market's on the verge of collapse – Read Now
US retail sales for June came in ahead of expectations, suggesting the country’s running hot

Alcoa-holics

What’s Going On Here?

Alcoa – America’s largest aluminum producer – reported its highest-ever quarterly profit late last week, with the world unable to get enough of the intoxicating metal.

What Does This Mean?

Yep, we’re talking about aluminum. But the metal’s essential to everything from cans to car parts, which makes Alcoa a bellwether stock: the company's sprawling business covers all sorts of regions and industries, which means its performance gives us a clue about economic growth as a whole.

This time around, though, global economic growth might’ve given investors a clue about Alcoa’s performance: demand for aluminum – and commodities more broadly – has skyrocketed as the world economy bounces back, and its price has risen 24% this year. Analysts, for their part, shouldn’t have been afraid to dream a little bigger: the company’s second-quarter earnings came in higher than they expected. To top things off, the company raised its shipment guidance for 2021, which should – all else being equal – translate to higher-than-expected revenue for the year overall.

Why Should I Care?

For markets: Inflation catches up with everyone eventually.
The rising prices of metals has been great for Alcoa’s earnings, sure, but higher raw material and energy prices are bound to weigh on its own profits going forward (tweet this). If the company can successfully offset those higher costs, rising profits should lead to a rising share price. But that’s a big “if”: commodity firms don’t exactly have a good track record of passing on their costs, which might be why Alcoa’s stock didn’t move much on Friday.

The bigger picture: Goldman’s a metalhead.
Goldman Sachs thinks aluminum still has plenty of potential: the investment bank is predicting the metal’s price will rise another 20% over the next year. But you could say the bank’s more in ore of another metal at the moment: Goldman thinks supply and demand for iron ore will be out of whack until at least 2023, suggesting the commodity’s “bull market” could keep running and running.

You might also like: How to invest in the commodities boom.

Copy to share story: https://www.finimize.com/wp/news/alcoa-holics/

🙋 Ask a question

2. Analyst Take

How To Profit From A Shaky Housing Market

What’s Going On Here?

We’ve mentioned in a previous Insight that real estate prices are looking uncomfortably high right now – we’re talking 2008-financial-crisis high.

And there are any number of factors that could knock the market off balance, from increasingly risk-averse investors to the removal of government support measures.

No surprises, then, that more and more voices are predicting the bubble’s set to burst.

If you’re one of them, it’s true that you won’t be able to profit by trading house prices. But you can profit indirectly.

So that’s today’s Insight: the four ways you can profit from the housing market’s collapse, and the risks you ought to be aware of before you try.

Read or listen to the Insight here

Keeping up with the cryptocurrencies

There’s always something new and shiny in the world of crypto.

If you understand what’s what, you can make smart decisions and maximize your investments.

Ledger has kindly written a comprehensive article to help you get up to snuff on the latest crypto technology: decentralized crypto exchanges – or DEXs.

DEXs are a nifty tool that let you exchange your crypto directly with another token holder – sans middleman. Seeing as crypto is all about decentralization, that might be worth considering.

Ledger has even compiled a list of the top five DEXs, so you’ll know exactly how to get started.

Learn more about DEXs – and everything else crypto – with Ledger.

Visit Ledger