Intel, Brookfield to invest up to $30 billion in Arizona chip factories (2 min read)

Intel Corp and Brookfield Asset management just signed a deal to fund up to $30 billion on two new chip factories in Arizona. Brookfield has a 49% stake in this project with Intel retaining the majority ownership. The new factories are meant to make advanced chips and an effort to increase chip production domestically, following the CHIPS and Science Act signed by Joe Biden earlier this month.

US economy headed for recession by mid-2023, majority of economists say (3 min read)

Recent survey shows that 72% of economists expect a recession by the middle of next year and 20% believe that the economy is already in one. GDP had fallen for two consecutive quarters which technically defines a recession but did not meet the unofficial criteria of significant decline in economic activity lasting more than a few months. There were signs supporting both sides of this unofficial criteria. Economists are divided on whether the current economy is in a recession or not, but most agree a downturn is coming as the Feds increase interest rates to slow down consumer spending.

Nordstrom cuts full-year forecast, citing slowing customer demand (2 min read)

Nordstorm just slashed the full year financial forecast as it faces surplus inventory and slowing demand. Their earnings and revenues were better than analysts expected in Q2 with sales increased from $3.6 billion to $4.1 billion. Erik Nordstorm said the significant slow down in traffic and demand started in late June. Cutting the financial forecast is part of its plan to adjust inventory and expenses to align with recent trends.

Why the ESG/Tech Combination Is Relevant (2 min read)

Most broad based ESG exchange traded funds are typically very heavily invested in the tech sector. The reason is because technology has become a vital component of the global economy and intertwined with many ESG focused companies. This article used some of the top holdings in the Invesco ESG Nasdaq 100 ETF (QQMG), an ETF that tracks ESG companies in the Nasdaq 100 Index, to illustrate how ETG and technology overlaps. The examples used were Apple (AAPL) and Microsoft (MSFT)

Active ETFs manage to shine even as mutual funds take a battering (5 min read)

During the first half of 2022, active mutual funds had an outflow of $640 billion globally while active ETFs had an inflow of $51.8 billion. Active ETFs have been benefiting from the overall migration trend from mutual funds to ETFs. Although it is still a relatively small part of the ETF market, the growth has been rapid. Active ETFs allow asset managers to stay “active” while also taking advantage of the structural benefits, such as low fees and tax treatment. Many fund companies have already converted their existing mutual funds into ETFs as a way to grow their business. 

88% of investors worry about inflation, rate hikes. Here’s how to prepare your portfolio as interest rates continue to rise (2 min read)

An advisor recommended these two changes to anticipate rising interest rates. Choose value over growth stocks. Value companies are based on future projections while growth companies are based on current above average returns. Rising rates will increase the cost of doing business which can hammer the returns on growth companies. Another recommendation is to allocate into short duration fixed income. Duration measures the sensitivity to interest rates movements. The lower the duration, the less sensitive it becomes.

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