‘This is serious’: JPMorgan’s Jamie Dimon warns U.S. likely to tip into recession in 6 to 9 months (3 min read)
Jamie Dimon, the CEO of JPMorgan Chase, said in an interview on Monday that the US and global economy will head into a recession six to nine months from now. There are already several alarming indicators such as inflation at a four-decade high, interest rates rising more than expected, the impact of quantitative tightening and Russia’s war in Ukraine. He is not sure how long the recession will last but is certain that the markets will be volatile. He also warned that the S&P 500 can easily slide another 20% from its current level.
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Chinese chip stocks tumble after U.S. calls for new curbs on high-end tech (3 min read)
Chinese chip stocks fell on Monday after the US announced a new export restriction. US chip makers are now required to apply for a license prior to selling advanced chips or related manufacturing equipment to China. This new export control was created to limit China’s ability to produce advanced military systems. China’s largest chip makers plunged between 9% to 20% after the announcement. US chip makers such as Nvidia and AMD also tumbled on Friday over the fears of falling demand. It remains to be seen how damaging the new restriction will be on businesses.
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Ark’s Cathie Wood issues open letter to the Fed, saying it is risking an economic ‘bust’ (2 min read)
In an open letter to the Fed, Cathie Wood said the central bank is making a mistake and risks putting the economy into a recession. She claims that the Fed raising rates to stop inflation is unnecessary and excessive. The Fed looks at employment and prices indexes for signs of inflation but she believes commodity prices are a better indicator. The price of commodities are falling on a year to year basis which means the economy is heading towards deflation instead of inflation. Similar criticisms have also emerged recently that the Fed might be going too far with their hawkish stance.
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Tired of ‘Mad Money’ Picks? This ETF Shorts Jim Cramer (6 min read)
Tuttle Capital Management has filed to launch the Inverse Cramer ETF (SJIM), an ETF that will bet against CNBC’s Jim Cramer. Since the start of his show “Mad Money” on CNBC, Jim Cramer has been a target of scorn from some in the investing community and earned a reputation of making multiple calls per day but only to quickly change his views after. SJIM will be actively managed to decide which stock to go long or short based on what Jim says. The portfolio will have 20 to 25 equally weighted positions and will not be held longer than a week.
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NightShares Debuts Mixed Daytime/Overnight ETF (1 min read)
NightShares is the only ETF provider that focuses on equities movements after market close. They previously launched their first two ETFs, NightShares 500 ETF (NSPY) and NightShares 2000 ETF (NIWM), which tracks the overnight performance of large cap and small cap stocks respectively. The provider just launched their third ETF, NightShares 500 1x/1.5x ETF (NSPL). The new ETF offers a slightly different approach by providing long exposure during trading hours and 1.5x exposure in the after-hours. All of their ETFs use futures and total return swaps.
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How much should you be investing? Some experts recommend at least 15% of your income (5 min read)
Determining how much to invest depends on your unique financial situation and investing goal. Review your current finances and see how much you have left every month after paying debts and setting aside emergency savings. Set a clear investment goal so you know what you are investing for and how much time should be given to let it grow. Generally, it is recommended to invest around 15% to 25% of your after-tax income. If that seems too high for your budget, you can start with just a set dollar amount that you are comfortable with. The important thing is to start and stay consistent, and work your way up to that goal. The earlier you start, the more time your investment can benefit from compounding and appreciate in value. The article has a table that shows the median investment holdings for families across income levels, race, ethnicity, and ages.
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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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