Carvana stock could fall to $1
(3 min read)
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Nearly all aspects of Carvana's operations declined from a year ago. Demand for used cars elevated during the pandemic due to supply chain issues and shortage of semiconductor chips. But rising rates and inflation this year have led to less consumers willing to pay the record prices. Carvana stocks lost more than 39% on Friday after reporting Q3 financials that were below estimates, and this year it has already plummeted by 96%. Morgan Stanley downgraded the stock to $1 price target and warned about the deterioration in the used car market.

Gold soared after US job report
(1 min read)
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The US job report released on Friday shows employers hired more than expected in October, but the unemployment rate also went up by 3.7% in the same month. This might be an indication of the labor market starting to loosen up. It raised the optimism that rate hikes going forward would be less aggressive as the Fed said it’s possible depending on their evaluation of the economy’s condition. The dollar dropped as a result while pushing the gold price 3% higher, making gold even more appealing to oversea buyers.

China stocks jumped over rumors
(4 min read)

Chinese markets and the yuan surged over the rumors that China plans on reopening and the US inspections on Chinese company audits were completed. The Hang Seng Index in Hong Kong rose 5.3% while the Shanghai Composite in Mainland China went up 2.4%. The rally extended to all the China-sensitive commodities and stocks around the world as well. However, a Chinese official said he is not aware of any changes to the country’s Covid policies. A conclusion to the audit checks has also not been confirmed by either Chinese or US officials.

ETFs for rising rate environment
(6 min read)
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The Fed has raised rates again and the hikes will not stop any time soon as their previous anticipated peak rate just got higher. As rates continue to go up, it can hurt a number of sectors like utilities, real estate, or telecom. However, there are sectors and asset classes that are poised to benefit in a rising rate environment. According to Zacks Investment Research, they are banking, insurance, value, short duration and floating rate bonds. This article highlighted an ETF for each of the categories and how it would react to high interest rates.

New high income ETFs
(2 min read)
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VanEck recently launched the VanEck Dynamic High Income ETF (INC). The new ETF came at a tricky time as the markets have massively sold-off this year and uncertainty remains. But high-yield fixed income products actually had a surge in inflows recently as investors are searching for more returns. More than $1 billion was poured into a similar product, the SPDR Bloomberg High Yield Bond ETF (JNK), in the last week. INC is actively managed by VanEck’s quantitative head that invests across high-yielding equity and fixed income markets.

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

Thanks,
Thomas

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