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Coinbase beats on revenue and earnings, but usage continues to decline (3 min read)

Coinbase reported better than expected revenue in the last quarter, but it still fell nearly 75% from a year ago as “crypto-winter” continued to drag on the price of cryptocurrencies. Their monthly active users have also shrunk to 8.3 million from 8.5 million, while trading volume was 9% lower than the previous quarter. The SEC’s recent effort to govern crypto tokens and services as securities may possibly impact Coinbase’s business in the near term. Coinbase stock plunged heavily in 2022, but so far this year it has surged more than 75%.

Walmart warns it’s in for a tough year (2 min read)

Walmart's sales in Q4 increased by 8.3%, driven by grocery sales as shoppers bought essentials instead of gifts. However, the company forecasted slower sales and profit growth for 2023 due to a challenging retail sector and inflation pressure on its core lower-income shoppers. Walmart also recently raised its minimum wage, which will likely impact profit margins. The retail sector is expected to have a weaker 2023, with several retailers, including Party City and Rite Aid, on bankruptcy watch, according to credit rating agencies.

Canada's inflation slows in January, making rate pause more likely (3 min read)
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The annual inflation rate in Canada slowed to 5.9% in January, which was better than the 6.1% that analysts had expected. The CPI also rose less than forecast, at 0.5% compared to 0.7%. The new inflation figures should allow the Bank of Canada to keep interest rates steady at its next meeting and be the first major central bank to hold off on further rate increases. The Bank of Canada currently forecasts inflation will slow to about 3% by the middle of 2023, and come down to its 2% target next year.

Morgan Stanley Says S&P 500 Could Drop 26% in Months (3 min read)
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A Morgan Stanley strategist said US stocks are currently flashing warning signs and the S&P 500 could fall as much as 26% in the first half of 2023. The market rally this year has left US stocks at their most expensive since 2007 in terms of equity risk premiums. The risk-reward now is very poor, especially with the Fed’s monetary tightening not ending soon and interest rates to remain high for longer. Other Wall Street banks have also warned stock markets could potentially fall in the coming months, but Morgan Stanley is the most pessimistic among them.

ETFs Notch Muted Gains as Markets See-Saw (2 min read)
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US-listed ETFs brought in a net of $2 billion inflows last week, a significant reverse from the $5.3 billion net outflows the week prior. Despite the losses across equity markets last week, the majority of the inflows were in US and international equity ETFs. Fixed income ETFs, on the other hand, continue to lose assets for the second straight week. More on the flows by asset classes, ETFs, and the list of top weekly performers is available in the article.

Ray Dalio All Weather Portfolio - The Definitive Guide (10 min read)
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The All Weather Portfolio was created by Ray Dalio and his firm Bridgewater Associates, and was designed to perform well under different economic environments. The portfolio consists of 55% US bonds, 30% US stocks, and 15% hard assets. Since 2006, it has compounded at a rate of return slightly less than the S&P 500, but it also had much smaller drawdowns during most major crises. This article examines the All Weather Portfolio in depth and highlights insights from it that may benefit investors when managing their own portfolio.

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