Finimize - ⚠️ US stocks could crash this month

The September stock slump | Bonds' newest villain |

Hi Reader, here's what you need to know for September 3rd in 3:10 minutes.

☕️ Finimized over a matcha latte at Café Fleur in London, UK (14°C/58°F 🌧)

Today's big stories

  1. Signs are mounting that September won’t be a good month for US stock prices
  2. The US recovery is on the slide, but that could open up stock market opportunities for you in Europe instead – Read Now
  3. One big-name bond investor is calling it quits on bonds

Out Of Luck

Out Of Luck

What’s Going On Here?

The US stock market hit another record high on Thursday, but there are signs that all this good fortune is about to run out.

What Does This Mean?

A slump wouldn’t be totally unprecedented: research firm CFRA has pointed out that the S&P 500 has delivered a positive return in September less than half the time since World War 2. In fact, the key US stock market index has actually fallen by an average of 0.56%. Plus, there’s added pressure from the Delta variant this year, whose spread – and all the knock-on economic effects it brings – could accelerate with a return to school. That’s on top of the slowdowns some retailers and restaurants are already reporting.

Then there‘s the little matter of the US central bank: the Federal Reserve is expected to include details of when it’ll reduce support for the US economy at its update later this month. And even if it doesn’t start rolling back its bond-buying program for some time, stock prices are bound to fall long before it takes any action.

Why Should I Care?

The bigger picture: Brace yourself.
Economists seem to know what’s coming: they’ve cut their average third-quarter US economic growth forecasts to 6.2%, down from 6.9% a few months ago. And here’s another warning sign besides the numbers: investment management giant Fidelity is planning to hire 9,000 people to handle the high demand for stocks from retail investors, and finance firms have a history of hiring surges right before a big crash.

For you personally: Demand might already have disappeared.
CMC Markets announced on Thursday that it had been seeing lower-than-expected trading activity. The retail trading platform – which partly put its disappointing update down to the loss of investor interest as they ventured out of their homes – said it’s expecting its annual profit to be as much as 25% lower than investors were expecting, and its shares fell 28%.

Copy to share story:

🙋 Ask a question

Analyst Take

American Investors’ Loss Is European Investors’ Gain

What’s Going On Here?

There’s been a lot of talk about the Delta variant lately, not least its risk to America’s economic recovery.

And the bad news is that recent data from hotels, airlines, restaurants, and even job postings suggests it’s already starting to take its toll.

The good news is that a weakening US economy makes Europe’s coronavirus recovery all the more enticing.

Even better, you’re able to position yourself so you can profit no matter what the Delta variant does to the stock market over there.

And that’s today’s Insight: how to profit even if Delta spreads and Europe’s stocks fall.

Read or listen to the Insight here

🤝 Work with us

If your business shares our goal of changing the world of finance for the better, there’s no better place to showcase your mojo than this spot in our daily newsletter.

You’ll get your message out to more than one million engaged investors, and speak directly to the very people who can help take your business to the next level.

Interested? Just drop us a line.

Work With Us

Trash Talk

Trash Talk

What’s Going On Here?

Legendary investor Bill Gross said this week that bonds – once his bread and butter – are now complete “trash”.

What Does This Mean?

Bill Gross co-founded major bond investment firm PIMCO back in the 1970s, so it’s no surprise that investors take note of his opinions even now he’s retired. And their ears perked up this week: Gross said he reckons 10-year US government bonds – a.k.a. “Treasuries” – could fall by around 3% over the next 12 months (tweet this).

He might be onto something: the Bloomberg Treasury index is down 1.4% this year, which puts it on track for its first annual decline in eight years. And even corporate bonds are slipping, with so-called “investment-grade” bonds all set for their worst year since 2015. Little wonder, then, that Gross is recommending investors avoid both bonds themselves and bond investment funds.

Why Should I Care?

For markets: Here’s why Bill might be right. 
The US central bank has been buying about 60% of all newly issued government bonds, but that bond-buying is set to start slowing in the next few months. The supply of new bonds, meanwhile, isn’t expected to drop off anytime soon. And if investors listen to Gross and do away with the bonds in their portfolios, demand could drop sharply and drag prices down with them.

The bigger picture: There really is no alternative.
Stock and bond prices usually move in opposite directions, or at least not sharply in the same direction. So it’s strange that they’ve both been rising strongly in the US over the last five months. That’s partly down to our old friend “TINA”: bond yields are so low that “there is no alternative” – stocks are the only real choice investors have had. That correlation might hold in future, but the direction might reverse course: Gross doesn’t just think bond prices will tumble soon, but that stocks could follow if company earnings growth starts to fall short of investors’ expectations.

Copy to share story:

🙋 Ask a question

💬 Quote of the day

“You can’t stay mad at somebody who makes you laugh.”

– Jay Leno (an American television host, comedian, and writer)
Tweet this


Save money on your mortgage

Interest rates are historically low right now, and you might be wise to take advantage.

Seriously. A low rate could save you tens of thousands over the life of your home loan.

Morty makes it quick and easy to secure exactky that: we’re talking pre-approval in five minutes and closing in as little as three weeks. That’s half the industry average.

Plus, with Morty, what you see is what you get: instant, accurate loan prices without teaser rates or unexpected fees.

That means once you get pre-approved, you’ll know exactly how much you can afford.

Get a jump on the home loan process: schedule your free consultation today.

Get Started

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

🎯 On Our Radar

  1. Hear ye, hear ye. The Motley Fool is doubling down on three exciting stocks.*
  2. Sweden accidentally HODLed. Now, it has to pay drug dealers $1.5 million.
  3. Trailers seem eerily familiar? There’s a reason.
  4. Food, squared. This startup wants you to eat everything in cube form.
  5. Type-two fun is the best fun. Even science says so.

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

🌎 Finimize Live

🎨 Picture this

Imagine making money by investing in art. Or antiques. Or even real estate. There’s a whole world of investment opportunities out there, and Roger’s Dominik Stroukal will be painting a picture of how they could work for you at The Pros and Cons of Alternative Investments.

🤔 The Pros And Cons Of Alternative Investments: 5pm UK time, September 6th
📚 How To Navigate Investing In A Meme Stonk World: 2pm UK time, September 8th
💥 How To Master The Crypto Ecosystem: 5pm UK time, September 14th
🎨 WTF Is Next For NFTs?: 1pm UK time, September 16th
How To Be Greener About Bitcoin: 6pm UK time, September 16th
🔌 When Will Microchips Bounce Back?: 1pm UK time, September 17th
💰 A Guide To Valuing Crypto Assets: 5pm UK time, September 17th
🚗 How To Profit From The EV Boom: 5pm UK time, September 20th
🔒 Navigating The World Of Bitcoin Security: 6pm UK time, September 21st
🚀 Should You Jump On The NFT Bandwagon?: 1pm UK time, September 22nd
📱 How To Be A Diligent Tech Investor: 4pm UK time, September 22nd
♻️ How To Turn Your Portfolio Green : 6pm UK time, September 23rd
🛢 How To Build A Commodities Portfolio: 6pm UK Time, September 27th
🤠 How To Win Big With Fractional Shares: 5pm UK time, September 28th
🤖 The Pros And Cons Of Algorithmic Trading: 6pm UK time, September 29th

❤️ 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:

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: Carl Raw - Unsplash, Mega Pixel - Shutterstock | Anna Kutukova, Tapui - Shutterstock


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 or through one of our partners. © Finimize 2021

View Online

Key phrases

Older messages

🤕 China isn't so perfect after all

Wednesday, September 1, 2021

China stumbles | Sling your hook, Just Eat | Finimize Hi Reader, here's what you need to know for September 2nd in 3:11 minutes. ☕️ Finimized over a chocolate dulce de leche tea at El Gato Negro in

👴🏻 Zoom gets old fast

Tuesday, August 31, 2021

You're not the only one sick of Zoom | The ECB puts its fingers in its ears | TOGETHER WITH Hi Reader, here's what you need to know for September 1st in 3:08 minutes. 💉 If ever there was a time

😬 A Fed's gotta do what a Fed's gotta do

Sunday, August 29, 2021

The Fed makes its announcement | Peloton is a four-letter word | Finimize Hi Reader, here's what you need to know for August 30th in 3:13 minutes. 🏖 Look, no one's more bummed about this than

👩‍💻 Look busy, Salesforce is coming

Thursday, August 26, 2021

Salesforce is on SAP's tail | US buys Japan's smarts | Finimize Hi Reader, here's what you need to know for August 27th in 3:02 minutes. 🤓 If you want to know work out what a company's

👀 The Fed could send stocks tumbling

Wednesday, August 25, 2021

The Fed keeps us on tenterhooks | The feeling is mutual | Finimize Hi Reader, here's what you need to know for August 26th in 3:10 minutes. 💉 If ever there was a time the world needed healthcare

📈 Pinterest rates are skyrocketing

Thursday, October 21, 2021

PayPal only has eyes for Pinterest | Please don't leave airline results unattended | Finimize Hi Reader, here's what you need to know for October 22nd in 3:05 minutes. 🦈 If you spent your

How the 1% avoid taxes

Thursday, October 21, 2021

View in browser Bloomberg As the supply chain crisis threatens holiday shopping seasons all over the world, President Joe Biden is pretty powerless to do much about it. Ports, yards and warehouses are

FTT+ Expert Charley Ma: Lending - The OG Fintech Wedge

Thursday, October 21, 2021

​ ​ ​Hi everyone, Charley here. As y'all might have heard, I helped my company Alloy launch our new credit underwriting decision engine yesterday! A big reason why I joined the team earlier this

Need an extra day?

Thursday, October 21, 2021

Start investing with $20 and one month free. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

💸 Money Cheat Sheet: Ask for More!

Thursday, October 21, 2021

Including a new calculator to help you do it. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Credit Suisse’s healthcare advisory unit suffers mass exodus

Thursday, October 21, 2021

Managing director Maneet Singh resigned Wednesday... View in browser INSIDER INSIDER Subscribe Insider Exclusive ENTERPRISE Credit Suisse's healthcare advisory unit suffers mass exodus Credit

Exporters in China are raising prices by 10% or more, adding to inflation risk on top of the existing shipping crisis

Thursday, October 21, 2021

Rising input cost are prompting Chinese exporters to hike prices, adding to global inflation risk amid the global shipping crisis. View in browser Business Insider Business Insider Business Insider

Fintech News Issue #334

Thursday, October 21, 2021

The Other Side of Pandemic See Online Issue #334 2021-10-21 COVID-19 reshaped our financial world. From the way we transact, to our digital knowledge, now it seems like if we can't use cash as we

The Daily StockTips Newsletter 10.21.2021

Thursday, October 21, 2021

I've Screened the Market for what I Consider the Best, Safest, & Most RELIABLE Profit Opportunities! (Paid Subscriber Service) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Apollo CEO talks culture — Credit Suisse’s talent exodus — PayPal considers Pinterest purchase

Thursday, October 21, 2021

View in browser Insider Finance Insider Finance Subscribe Hi, and welcome to Insider Finance. This is deputy editor Meredith Mazzilli. Some news before we dive in: This is the second-to-last edition