Billionaire investor Ray Dalio predicts the Fed will hike interest rates to at least 4.5% - and warns a major recession is likely (2 min read)
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Ray Dalio predicts that the Fed will continue increasing rates to at least 4.5% in order to tame inflation and the stock market will plunge about 20% as a result. The Fed is trying to pull money out of the economy and that means rates will need to rise to a point where demand for private credit decreases. This will bring the private sector down which in turn will also bring the economy down. The continuous rate hike will cause a major recession but it’s delayed until people exhaust their wealth and are forced to cut back on spending.

Adobe shares plunge on deal to acquire design platform Figma for $20 billion (2 min read)
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Adobe announced on Thursday that it will acquire Figma for $20 billion in cash and stock. Figma is a cloud-based software company that competes with Adobe’s XD program. Their revenue this year is expected to be at $400 million which means Adobe will pay 50 times the revenue to acquire Figma. This deal came during a time when sales multiple for cloud software companies are decreasing dramatically. Shares of Adobe sank 16% after the news, their biggest dropped since 2010.

The Oil Market Isn’t Broken, It’s Just Responding To A Supply Surplus (1 min read)
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As oil prices continue to fall, commodity analysts at Standard Chartered said the fundamentals of the oil market are not broken and are just responding to a surplus. The commodities market update from the Strategic Petroleum Reserve shows that the global oil market is in excess surplus and estimates a surplus of 1.82 million barrels a day in Q3. While some forecasters are blaming market mechanism failure and volatility for the drop in oil prices, Standard Chartered analysts said the market is still functioning well and the simple answer is because of sharp increase in supplies and weak demands.

KraneShares Debuts Pan-Asian Dividend Growth ETF (1 min read)

The KraneShare S&P Pan Asia Dividend Aristocrats Index ETF (KDIV) was launched on Thursday. It tracks the S&P Pan Asia Dividend Aristocrats Index which includes companies in Asia that have consistently increased their dividend annually in the past seven years or more. Holdings in the index are weighted by their dividend yield. KDIV is one of the few dividend ETFs on the market that focus on Asian companies. It has a management fee of 0.69% and is listed on the NYSE.

UFO Lifts Off on Apple Day (2 min read)
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Volumes of the Procure Space ETF (UFO) soared last week when Apple announced the new iPhone will incorporate satellite technologies. Investors were looking to gain exposure to satellite companies after the announcement. Globalstar Inc., a mobile satellite communication company, jumped over 42% after the company said it will partner with Apple but was halted during the trading day. UFO gained a tremendous higher volume during that time as investors were using it as a potential proxy. Globalstar Inc. is the second largest holding in UFO and their volumes remained relatively high compared to the same time last month.

Listen up Gen Z: How to invest as young person (7 min read)
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This article compares the type of investment services and the deciding factors for each. Using a robo adviser is the best all-around choice for young investors because the fees are low and do not require much financial knowledge. The downside is that they only give you a number of model portfolios to choose from and not much customization. If you have some experience with investing then self-directing is a better choice. It's the lowest in fees as you are just paying for the trades but you need to make every financial decision yourself. If you are dealing with a huge sum of money like inheritance, then hiring a financial advisor is more suitable. They offer a full holistic approach but come with much higher fees and typically need investable assets of at least $250,000. The information is provided for Canadians but most of it still applies to the US market as well. 

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Thanks,
Thomas

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