U.S. economic growth slowed to 1.1%, triggering new recession fears (4 min read)
​
The US economy grew at an annual rate of 1.1% in the first quarter, a sharp slowdown from 2.6% in the previous quarter due to higher interest rates and the banking crisis. Despite resilience, weaknesses are emerging, including hampered housing and manufacturing, a slowing job market, and the pullback in banks’ willingness to lend. Consumer and government spending were the biggest contributors to lifting the GDP figure in Q1. Many economists continue to expect a recession later this year.

2023 layoff tracker: The latest on which companies have announced job cuts (15 min read)
​
The Fed's year-long rate hiking campaign to chill inflation is now also cooling the labor market. The job market is slowing down, with US employers adding just 236,000 jobs in March, below expectations. Several US companies including BuzzFeed, Lyft, Whole Foods, and Deloitte announced layoffs recently, joining a growing list of firms cutting back due to concerns about economic uncertainty. This article provides a list of major companies that have reduced their workforces this year and their message for the layoff.

Meta shares are up 170% in five months despite virtually no revenue growth (3 min read)
​
After the rally on Thursday, Meta stocks are trading around $238, which is about 170% higher since last November. Despite Q1 being the first quarter in the last four where revenue did not decline, Meta stocks have been attracting investors due to the company’s cost-cutting effort to be efficient. Analysts are now starting to bet that Meta can slowly revive growth, especially the comparison with a weak 2022 will be easier, Reels getting better traction and potentially benefit from the TikTok ban, and Zuckerberg’s emphasis on the company’s investment in generative AI.

Hasbro, Mattel shares rise as toymakers announce multiyear licensing agreement (4 min read)
​
Hasbro and Mattel, two leading toy companies, have signed a multi-year licensing deal to create new products based on their famous brands. The deal includes Monopoly: Barbie Edition by Hasbro and Transformers Hot Wheels and UNO by Mattel. Both companies also just reported their Q1 revenue that beat expectations. The toy industry is facing a slowdown after the pandemic boost and both companies are looking to leverage their strong IP for future growth. Shares of Hasbro and Mattel jumped 14% and 7% respectively, after the news.

Semiconductor ETFs in Focus Ahead of Q1 Earnings (3 min read)
​
Semiconductor stocks have been surging, fueled by growing optimism about the sales downturn reaching its lowest point and increasing adoption of AI technology. This has benefitted semiconductor ETFs which gained as much as 22.4% this year. Companies with a large allocation in these ETFs like Intel, Qualcomm, NVIDIA, and Advanced Micro Devices are reporting Q1 earnings soon. Although the earnings won’t be a surprise, the strong optimism and performance will likely continue to push semiconductor ETFs higher in the weeks ahead.

I have money in an emerging-markets index fund. Should I be worried about China and Taiwan? (6 min read)
​
This article argues that most emerging-market index funds nowadays break every rule about diversification. Chinese stocks account for 32% of the MSCI Emerging Markets Index, with Taiwan another 15%, meaning around half of an emerging-markets stake is at risk in the China-Taiwan situation. With a concentration that high, it makes them risky investments for investors who are looking to diversify exposure in emerging markets.

That's it for today! You can reply to this email if you have any comments or feedback.

Thanks,
Thomas

No longer want to receive these emails? Click here to unsubscribe.