👀 China's in trouble

China was told to hit the brakes on production | Rate cuts looked more likely for the UK | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for May 10th in 3:16 minutes.   👀 You could impress your boss by working late or buying the first round at the pub. Or you could [nominate your CEO or company to sit on the Modern Investor Summit main stage](, à la Ray Dalio and Jamie Dimon, and save yourself the bother. Today's big stories - China drew international flak for exporting too much stuff and sending prices tumbling - How to spot the stocks that will multiply their value several times over – [Read Now]( - The Bank of England played it cool, but rate cuts seem to be on the way Goods Measure [Goods Measure] What’s going on here? China was under the spotlight for “[overcapacity](”, as major economies threatened tariffs on its exports. What does this mean? China’s been shipping huge numbers of everything eco-conscious – from steel to EVs and solar panels – across the world, desperate to sell its factories’ wares despite waning local demand. And this week, European Union bigwigs joined the chorus of grumbles against that hyper-production. Now, China’s reply is that its clean-energy hustle is all about driving innovation rather than giving handouts to failing companies. And despite the global scrutiny, the country’s not about to stop flogging the fruits of its labor. So, determined to claw back a fighting chance at selling their own stuff in a sea of cheap Chinese prices, major economies are contemplating stamping tariffs on China’s exports. Why should I care? Zooming out: Double-pronged. The problem is twofold. China’s massive investments mean factories have been making more stuff. At the same time, a lack of demand in the housing market means construction companies aren’t spending like before – and neither are everyday folk. So in order for China to keep its economy moving, it needs to sell that surplus somewhere. One possible fix might involve setting up shop abroad: that would cleverly sidestep trade barriers by allowing Chinese companies to operate locally, while also keeping those overseas grumblers happy. The bigger picture: Everything must go. China’s overcapacity is the discount sale that keeps on giving, with prices being slashed on everything from tees to toys at the fastest pace in over a decade. Tariffs could narrow the price gap between Chinese and Western brands, but it’s a tricky balance: some global companies with stores in China are sweating possible trade tariffs, worried that they’ll be caught in the crossfire. But hey, at least China’s cheap prices are taking some of the wind out of global inflation, giving cash-strapped shoppers a chance to nab a rare bargain. You might also like: [Geopolitics risks are on the up, so here’s how to hedge your portfolio.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Goods Measure&utm_campaign=daily-global-10-05-2024&utm_source=email) Analyst Take Six Secrets To Bagging The Next Nvidia [Six Secrets To Bagging The Next Nvidia]( By Theodora Joseph, CFA, Analyst If you’re feeling a twinge of regret for missing out on Nvidia, which has soared over 2,000% in the past five years, don’t be so hard on yourself. Nvidia isn’t the only golden goose in the market. There are a ton of other stocks like Nvidia out there, [the so-called multi-baggers](: the shares that multiply their original value several times over, like the quadrupling four-baggers or the quintupling five-baggers. That’s today’s Insight: [how to spot the stocks that will multiply their value several times over](. [Read or listen to the Insight here]( SPONSORED BY GRAYSCALE When it comes to crypto, you need a specialist [Crypto]( has been grabbing more than its fair share of attention this year. No wonder: [bitcoin]( hit its highest price ever – above $73,000 per coin – this March. [Grayscale]( is the world’s biggest crypto asset manager*, with over a decade of experience operating crypto-focused funds. The company is on a mission to “transform disruptive technologies of the future into investment opportunities today.” So far, so good: Grayscale manages a suite of [different crypto investment products]( spanning single-asset, multi-asset, and thematic exposures. [Discover the specialist when it comes to crypto investments](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Knock For Six [Knock For Six] What’s going on here? The Bank of England (BoE) held interest rates [steady]( at 5.25% for the sixth time running. What does this mean? Interest rates may be stuck at their 16-year high for now, but the UK might just be edging toward a rate cut. The vote was seven-to-two for the hold during this round, with one more policymaker looking to lower rates than on the last vote. That’s partly because the BoE is now predicting that inflation will land at 2.5% later this year – down from 2.75% as expected – and just 1.5% by the end of next year. Traders are betting with near certainty on a rate cut by August now, while odds for an early trim in June are 50/50. Why should I care? For markets: A solid prospect. The UK’s FTSE 100 has been doing well lately, helped along by the global economy’s recovery. It’s packed with global giants operating in “old economy” sectors like financials, energy, and materials, see – and they’re less vulnerable to inflation and interest rate hikes. It’s cheap too, attracting bargain-hunting investors. But not everyone’s convinced. Many are sticking with AI-driven US stocks, while others argue that British stocks could falter if economic outlooks take a turn. Still, the FTSE 100 could complement US stocks in your long-term investment strategy: the index could thrive if inflation and interest rates tick up alongside the global economic recovery. The bigger picture: Down but not out. Despite a strong economy and signs of accelerating inflation, the Federal Reserve said there are no rate hikes in sight. And if the world’s hottest economy isn’t sniffing at rate hikes, there’s only one way for interest rates in weaker economies to go: down. Sweden and Switzerland have already trimmed their rates, after all. And if US inflation checks in next week without any ugly surprises, markets might retire their “higher-for-longer” worries – at least until their focus shifts toward the prospect of slower economic growth. You might also like: [Here’s why central banks have so much power over your portfolio](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Knock For Six&utm_campaign=daily-global-10-05-2024&utm_source=email) 💬 Quote of the day "Give me a couple of years, and I'll make that actress an overnight success." – Samuel Goldwyn (a Polish-American film producer) [Tweet this]( SPONSORED BY VANTAGEPOINT Don’t (only) sweat the Fed One big question is plaguing independent traders, institutional investors, and US economists. “When will the Federal Reserve start cutting rates?” But the analysts over at [VantagePoint]( are paying that topic next to no mind. They’re using AI trading technology to find [proactive pointers](, rather than only watching lagging indicators. The combination of using more speculative information and trend-tracking in addition to backward-looking data isn’t necessarily new – but this [AI-driven method]( sure is. So instead of just waiting nervously for the next Federal Reserve meeting, you might want to [discover a new way to assess the markets]( in the meantime. [Find Out More]( This content is for US investors only. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( 💸 dollarama Over the past two decades, bonds performed well when stocks didn’t, so owning a healthy mix of both ([60% stocks and 40% bonds](, as the classic portfolio goes) resulted in a more balanced portfolio with higher risk-adjusted returns. But the pandemic changed that. Now, inflation has calmed down since then, but it could still prove [more volatile than hoped](, and the threat of higher-for-longer rates hasn’t disappeared. [That's where the US dollar comes into the picture](. [Read The Quicktake]( 🎯 On Our Radar 1. Turning the lights out. Thousands of years ago our ancestors went deep into the dark [underground to make art.]( 2. Proof of work versus proof of stake. Here's [how to check whether your crypto transactions are safe](.* 3. On a level. The whacky world of people who leave [one-star Yelp reviews](. 4. Time to take your first steps. Here's how to [get started on your investment journey](.** 5. The dark truth. NASA’s new visualization takes us [inside a black hole](. **Your capital is at risk. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. When you support our sponsors, you support us. 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