US Employers Add 315,000 Jobs as More Workers Join Labor Force (4 min read)
The recent job report shows the unemployment rate increased to 3.7% as the labor force participation climbs higher. The labor force participation rate, which is the share of the population working or looking for work, rose to 62.4%, the highest since March 2020. The increase in labor participation could lead to cooling down on the monthly wage growth. All of this suggests the tight labor market is easing and showing signs that inflation might be coming down. This is positive news as the Fed debates on rate decision later this month.
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Oil producer group OPEC+ surprises energy markets with a small production cut (2 min read)
OPEC+ announced on Monday that they agreed to cut production to 100,000 barrels per day in October, reverting back to August production level. The increase in production announced last month was only intended for the month of September. The next OPEC+ meeting is on October 5. The news on production cutback also came amid a tense energy dispute between Russia and the West as the Nord Stream 1 pipeline was announced to be closed indefinitely when it was supposed to reopen on Saturday after three days of maintenance. The EU had accused Russia of weaponizing energy supplies. European gas prices jumped by 25% after the news.
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1 in 5 home sellers is now dropping their asking price as the housing market cools (2 min read)
The US housing market is cooling down. 1 in 5 listed houses dropped their asking prices in August. The median listing price also dropped to $435,000 from $449,000 in July. Even with the decrease in price, the average house was sold less than its list price and typically sits on the market 5 days longer compared to the same time a year ago. Experts believe the listed house will continue to stay on the market post Labor Day which might drive more sellers lowering the price.
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Direxion Plans Energy-Focused Single-Stock ETFs (2 min read)
Direxion has filed to launch a suite of leverage and inverse single-stock ETFs focusing on key energy stocks. The underlying stocks are Chevron, ConocoPhillips, ExxonMobil, and EOG Resources. They are in the top five holdings in the Energy Select Sector SPDR ETF (XLE) which is the largest energy ETF. The energy sector has been soaring since last year on rising oil prices with XLE up 74% in the last 12 months. However, in the last few months investors pulled back from this sector as oil prices slowly came back down. Direxion's new ETFs offer a way to play both sides of the key stocks in this sector and are expected to launch in November.
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Gold ETFs Are On a Losing Streak (2 min read)
Gold prices slid even further after the Fed reiterated their commitment to stomp inflation with rising rates, even if it means a mild economic downturn. Gold and related ETFs have been dropping for five consecutive months, making it the worst losing streak in the last four years. In a high interest rates environment, the dollar is stronger and investors are more attracted to new government bond issues than assets without yield like gold. Unless the interest rates drop, dollars weaken, and a real recession emerges, the gold prices and related investments will remain low.
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How to Finally Make Those Big Money Moves That Scare You (3 min read)
It might be difficult to make big money moves like investing for the first time or starting a new side gig. There are few ways to make it easier and less intimidating. Make sure you have a clear picture of your financial health by tracking all your expenses and income, and set a budget to follow. Build a solid emergency fund which should be about several months of expenses. Emergency fund is like a safety belt and can give you confidence when dealing with big money moves. Take your time to learn, do more research and ask for help if necessary. And finally, you can always and should start small and slowly ease yourself into it.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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