🍔 McDonald's needs a Happy Meal

The world stopped eating McDonald's, Europe's richest man snapped up more luxury goods, and the power of the moon | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for July 30th in 3:14 minutes.   🏃‍♂️ Slow and steady doesn't win the race. Be one of the first 1,000 to get an early-bird ticket to our [Modern Investor Summit](, and you'll be in the running to win an Echo Dot speaker. [Grab your free ticket]( Today's big stories - McDonald's sales fell around much of the world, and not even a free toy can distract dissatisfied investors - Here’s how to decide between active and passive strategies – [Read Now]( - Europe’s wealthiest man went shopping, finding a small piece of luxury in Swiss rival Richemont Not Lovin’ It [Not Lovin’ It] What’s going on here? McDonald’s sales [fell]( for the first time since the end of 2020, as diners around the world tightened their waistbands along with their purse strings. What does this mean? Inflation hasn’t just ruined indulgent takeout orders and celebratory dinners: even the humble Big Mac has been taken out of the budget this year. Despite rolling out new low-cost menu items, McDonald’s has struggled to keep sales steady in major markets around the world. So the fast food company ended up making $6.5 billion in revenue last quarter, shy of the $6.6 expected billion, while profit was down more than 12% from last year. That won’t do anything to reassure investors, who have already taken the shine off the Golden Arches by sending the stock down 15% this year. Why should I care? For markets: The savings accounts are spent. Mind you, it seems that Americans are spending their hard-won money somewhere. Data out on Thursday showed that the stateside economy grew by more than expected last quarter, pushed along by hardy spending from everyday folk. But they’re expected to jump off the hamster wheel for the rest of the year, as they’ve whittled away their pandemic savings. Plus, a measure of consumer sentiment fell to its lowest level in eight months on Friday. The bigger picture: Land of the rising… spending. Japan was one of the few countries with an appetite for McDonald’s last quarter. And while that could be because [shrimp and teriyaki burgers]( are harder to pass up than lukewarm nuggets, it’s mainly because the weak yen is attracting tourists from all over the world. The Japanese currency recently hit a 38-year low against the dollar, meaning a shopping trip in Tokyo will cost you less than in Times Square. Case in point: LVMH, Kering, and Burberry’s wares are flying off the shelves in Japan, mainly thanks to luxury-loving vacationers from China. You might also like: [A food crisis is brewing, here’s how to shield 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=Not Lovin’ It&utm_campaign=daily-global-30-07-2024&utm_source=email) Analyst Take Active Versus Passive Investing: Which Is Better? [Active Versus Passive Investing: Which Is Better?]( [Passive investing strategies]( often focus on replicating the performance of a specific index. It’s a steady, calm, and long-term approach – but if you want to beat the market instead of matching it, you might be tempted by [more hands-on active strategies](. The [choice between the two]( depends on individual factors like your financial goals, risk tolerance, and market experience. After all, the more you tinker, the more decisions you need to make. So that’s today’s Insight: [how to decide whether active or passive investing is right for you](. [Read or listen to the Insight here]( Bulls have horns for a reason Change might scare some of us – but it excites plenty, too. Case in point: when financial markets start moving as quickly as they are today, many investors take the opportunity to go against the grain or seek quick turnaround trades. That’s where [leveraged and inverse ETFs]( come in. The first lets traders amplify their high-conviction trades, while the latter lets traders bet on price dips without having to “short” assets. That means you could put a bigger bet on a market move or technical signal without accessing more capital. So if you’re a risk-tolerant trader, you’ll want to [find out how to use them safely and effectively](. Our free guide with Direxion – a platform that specializes in tools for decisive investors – has the lowdown: [discover how you could use leveraged and inverse ETFs to amplify your trades](. [Read The Guide]( See Direxion's disclaimers in their guide [here](. Touch Of Luxe [Touch Of Luxe] What’s going on here? Bernard Arnault, Europe's wealthiest man and the head honcho of luxury empire LVMH, [bought]( a pinky-finger-sized slice of Cartier-owner Richemont. What does this mean? Arnault may simply be topping up the family portfolio, but some analysts believe the purchase could be more strategic. After all, French luxury firm LVMH – which owns aspirational jewelry brands like Tiffany & Co and Bulgari – has a history of buying stakes in its rivals. But if the billionaire businessman wants to use Richemont to steal a march in the jewelry market, the plan is anything but foolproof. For one, the purchase would likely face serious scrutiny from monopoly-busting regulators. And for another, Richemont’s chairman has clearly stated that the company will stay independent – and with 51% of the voting rights in tow, what he says goes. Why should I care? Zooming out: Forget the Olympics, France’s real competition is underway. LVMH’s sales were a measly 1% higher last quarter than the same time last year. But it’s all about perspective: that’s a triumph over Gucci-parent Kering’s 11% fall and profit warning, but far behind Hermès’ 13% uptick. Remember, it’s been a trying time for the luxury market, with US and Chinese shoppers watching their wallets – especially now that Americans’ pandemic savings are drying up. The bigger picture: Going for gold. Not only is LVMH the “creative partner” for this year’s Olympic Games, but it's also one of the biggest backers with a $166 million sponsorship deal. That’s just over a tenth of the total expected sponsorship for the entire event. At first glance, LVMH’s close ties to the Olympics might seem odd. Luxury brands traditionally stick to sports with a strong scent of old money – think Hermès and horses or Rolex and tennis. That may be part of what industry insiders have called the “democratization of luxury”: nowadays, much of the industry's cash comes from selling to aspirational shoppers who want to look richer than they are. You might also like: [How to invest in retail and luxury markets.]( 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=Touch Of Luxe&utm_campaign=daily-global-30-07-2024&utm_source=email) 💬 Quote of the day “Whatever is rightly done, however humble, is noble.” – Henry Royce (an English engineer and cofounder of Rolls-Royce) [Tweet this]( SPONSORED BY IG Forget “less is more”: let’s get all of your options on the table The key to investing is to make the most of your options. And this year, we’re taking that literally. Options trading could [take your portfolio to the next level](: leverage, short-term plays, risk protection, opportunities to benefit even when markets are falling or static – it’s all on the table. So we’ve teamed up with IG. The [award-winning trading platform]( is a dab hand when it comes to options, with tools and strategies to get more out of the market. Over the next few months, you’ll see our [collaborative guides]( and rundowns covering everything you need to know, with pieces designed for complete beginners through to seasoned traders. Stay tuned – and if you can’t wait to get started, you can [swot up ahead of the launch with IG’s introduction to options course](. [Read The Guide]( Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. You could lose more than your original investment. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( ⚔️ The Battle Of The Indexes This year's been one for the few, not the many, with a tiny number of heavy-hitting companies pushing indexes ahead. But analysts reckon the [conditions]( that created that storm could soon switch. And if that happens, [the equally weighted S&P 500]( – which gives each company the same space, regardless of heft or sway – could keep overshadowing its better-known rival. That's today's Quicktake: [the battle of the S&P 500 indexes](. [Get The Lowdown]( 🎯 On Our Radar 1. Care packages. What [specialty foods]( Olympic teams are sending to their athletes. 2. You can build on NFT land just like regular land. Here's what to consider when you’re [scouting for land in the metaverse](.* 3. Artificially unintelligent. AI isn’t quite there when it comes to [writing jokes](. 4. There's nothing like staying active. Here's how [different active investing strategies]( could play out for you.* 5. Full moon, mind, and body. Scientists are finding concrete evidence that the [lunar cycle can affect health](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... 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