Tesla could start building a lithium refinery for EV batteries in Texas this year (2 min read)
Tesla considers building a lithium hydroxide refining facility in Texas. It'll be for developing battery-grade lithium hydroxide and the first of its kind in North America. Elon had previously said Tesla needed to get into lithium refining because the price of metal is getting too high. It is still in the preliminary stage with only the application submitted to Texas and nothing has been confirmed yet. If the application is approved, constructions can start as early as Q4 this year. This new project can help Tesla diversify the supply of its lithium as China owns more than 50% of this market while the US is only at 1%. There have also been concerns that China might cut off supplies given the importance of these materials and their dominance in this market .
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World’s largest rice exporter India restricts shipments after below-average monsoon rainfall (2 min read)
India banned the export of broken rice and added 20% tax on exports of other types of rice. The country is trying to preserve their rice supplies after below-average monsoon rainfall curtailed planting. The new export tax was imposed to encourage buyers to go look for other suppliers like Vietnam or Thailand. India is the largest rice exporter in the world and any decrease in their supplies can put an upward pressure on food prices which are already rising globally from heatwaves and Russia/Ukraine war. The ban on broken rice may pose a huge impact for China as they are the largest buyer of it.
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Robinhood Launches Index Of Highest-Conviction Stocks: Here Are The Top 10 Holdings (2 min read)
Robinhood launched a new stock market index called the Robinhood Investor Index that includes their customer’s top 100 stock holdings. The index is weighted based on each user's allocation to the stock in their portfolio and will be updated monthly. Robinhood currently has about 22.9 millions users. Their user base is typically younger and newer to investing. The top 10 holdings are Tesla Inc, Apple Inc, Amazon.com, Inc, Ford Motor Company, AMC Entertainment, Microsoft Corporation, Nio Inc - ADR, Walt Disney Co, AMC Entertainment Hldg Pref Equity Units, and Gamestop.
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Most Interesting New ETFs (1 min read)
There were three ETFs launched recently that are very interesting and first of its kind. They are the KPOP & Korean Entertainment ETF (KPOP), the Amplify Natural Resources Dividend Income ETF (NDIV), and the Direxion Breakfast Commodities Strategy ETF (BRKY). KPOP is the first ETF that provides exposure to entertainment and interactive media companies listed on the South Korea stock exchange. NDIV invests in dividend paying natural resources companies, some of the top holdings include Pioneer Natural Resources and Diamondback Energy. BRKY provides exposure to breakfast commodities such as corn, coffee, sugar, and etc.
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Brazil’s Elections May Mean Wild Ride for ETF Investors (3 min read)
The iShares MSCI Brazil ETF (EWZ) was up 7.7% this year while the S&P 500 is down 18%. EWZ remained positive because of high inflation driving raw material prices up, benefiting Brazil who’s a leading commodity producer. However, Brazil’s market may enter uncertainty until the upcoming election. It is between current president Jair Bolsonaro from the left and former president Lula da Silva from the right. When Bolsonaro won the last election due to da Silva’s conviction, Brazil stocks rallied 44% between Sept 2018 to Jan 2020. Currently de Silva is leading in the poll. Chile’s stock market also rallied 24% this year after their leftist leader won the election. Using this and Bolsonaro’s last victory as reference, it might be a bad omen for Brazil’s stock market if de Silva wins.
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Want to retire early? Answer 1 question first, says financial planner (3 min read)
As young adults pursue financial independence and aim to retire early, they should ask themselves “Why do I want to be financially independent?”. Everyone’s reason can be different with some wanting to spend more time with family while others looking to pursue a passion. Answering the question “why” can guide you when making money decisions and maximize your financial life. Determine what your value is and set goals around it. Once you have a clear vision of your values and goals, it will be easier to decide where to maximize or minimize your spending to help you achieve financial independence.
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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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