☕ A coffee high – literally

Record-high robusta coffee bean prices, piles of cash for defense giants, and bunkers for the end of the world | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for August 28th in 3:15 minutes.   ⌚️ Time is precious. So join us for [Five Portfolio Hacks For Busy Investors]( at 5pm on September 12th and find out how to make the most of your investments with a packed schedule. [Grab your free ticket]( Today's big stories - Coffee prices are picking up, causing a headache for both suppliers and caffeine addicts - Three vintage lessons you can take from the latest sell-off – [Read Now]( - Defense giants are about to be holding record levels of cash, with military budgets on the rise around the world Buzzkill [Buzzkill] What’s going on here? Robusta coffee bean prices have hit record highs, making for serious lows for those who struggle without their morning brew. What does this mean? Your cup of joe is probably made from one of two bean varieties: arabica or robusta. And it looks like your routine is about to cost a little more either way. Robusta beans hit record highs over the past week, while arabica reached levels not seen for over a decade. See, bad weather in Brazil and Vietnam – two of the world’s biggest coffee producers – has ruined crops and pushed down production. At the same time, buyers are clamoring for both beans: arabica because it’s sweeter and makes for better blends, and robusta because it’s used in increasingly popular instant coffee. That’s squeezing prices higher, leaving night owls facing a tough choice between tight budgets and – shudder – cold showers. Why should I care? For you: Bitter pill to swallow. Inflation might be falling, but even cheaper cups of coffee look set to get more expensive. Big brands like Starbucks and McDonald’s – the go-to coffee houses for millions – use 100% arabica beans. And staying home might not help much either: Nespresso uses 90% to 95% arabica, with a little robusta too. Plus, if major names start cutting costs by substituting sweet arabica beans with a cheaper alternative, you might be left with a bitter taste in your mouth – literally. Zooming out: Not even an espresso martini will take this edge off. It’s been a rough year for mocha drinkers and tiramisu eaters. Cocoa prices have more than doubled this year, with crops wiped out by extreme weather. Although, while cocoa and coffee might be staples in investors’ pantries, they’re not a typical commodity in their portfolios. For most investors, gold’s the real pick-me-up when it comes to diversifying away from stocks and bonds. You might also like: [Gold hit a record last year, and it may be just getting shined up](. 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=Buzzkill&utm_campaign=daily-global-28-08-2024&utm_source=email) Analyst Take Why It May Be Time For A Return To The Investing Classics [Why It May Be Time For A Return To The Investing Classics]( The big US stock index typically [falls]( between 5% and 10% at least once a year – and the recent sell-off was a vivid reminder of that. When those stomach-dropping dips happen, they can be a money-making [opportunity]( – if you’re able to take advantage of it. Here’s how some of the market’s players fared, and three [vintage lessons]( you can take from the latest ups and downs. That’s today’s Insight: [the latest sell-off, and why it may be time for a return to the investing classics](. [Read or listen to the Insight here]( SPONSORED BY IG The A to Z of options trading, for beginners through to the initiated When it comes to perfecting your investment strategy, you can never have too many options. So make sure you’re [not neglecting options](, which give you the choice to buy or sell a specific asset on a specific day at a specific price. See what we did with the “options” thing? They’re trickier to deal with, especially if you’re just used to ETFs and single stocks. But used correctly, and options can help you [diversify your portfolio and hedge to help you manage risk](. So take a look at [IG Academy’s free resources](: the guides cover everything from the basics of options to specific popular trades, like covered calls and short iron condors. Fancy, indeed. [Discover your options with IG Academy.]( [Get Started]( 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.]( Cash Cows [Cash Cows] What’s going on here? The world’s biggest aerospace and defense companies look set to roll in record cash over the next three years. What does this mean? The top 15 defense contractors are likely to nearly double their “free cash flow” – the extra cash a company’s left with at the end of the day – to a hefty $52 billion by 2026. That windfall is being driven by pumped-up military budgets, as governments increase spending because of the situations in Ukraine, the Middle East, and Asia. Order books are bursting at the seams and, although it usually takes a few years for these contracts to translate into sales, the cash is already piling up. Why should I care? For markets: An endless cycle. Defense giants have to spend their newfound cash wisely. So far, the industry’s been sticking to its usual playbook of aggressive buybacks, with companies spending billions to scoop up their own shares to make the remaining ones rarer and pricier. But with so much focus on buybacks, lawmakers are starting to question whether enough is being invested into new facilities and production. In fairness, it’s tricky to decide where to flash the cash. There’s the possibility of firing up the factories, but many haven’t been used to maximum capacity for years. And while firms could use their funds to buy up other companies, that decision could be slowed down by regulatory roadblocks. The bigger picture: A safe pair of hands. Strong cash flows aside, the defense industry might feel the love for other reasons, especially during an election year that’ll see half of the world head to the polls. Many investors will be looking to protect their portfolios from political fallout, which means finding sectors that tend to stay strong regardless of election outcomes. And around the world, defense is often a top priority for every party, with government funding and long-term contracts making the sector seem like a reliable bet for investors – even in politically turbulent times. You might also like: [Europe is up in arms, and its defense stocks have been gaining ground.]( 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=Cash Cows&utm_campaign=daily-global-28-08-2024&utm_source=email) 💬 Quote of the day "Hope is but the dream of those who wake." – Matthew Prior (an English poet and diplomat) [Tweet this]( Take a seat on the Summit’s main stage Thousands of retail investors tuned into our [Modern Investor Summit]( sessions last year. Eager to discover the smartest tools and savviest tricks, they piled into fireside sessions, Q&A panels, and keynote speaker slots with the likes of Jamie Dimon. Now’s your chance to secure a spot at the next one. Our [Summit]( is slated for December this year, and we’re on the lookout for speakers with big ideas and serious know-how. [Take a look at last year’s recording of CFA Institute’s session]( to get a feel for it: the platform detailed sustainable investing techniques, as well as explaining its own climate finance courses. If you’re ready for your turn, [talk to the team to bag your spot before they fill up.]( [Drop Us A Line]( 🎯 On Our Radar 1. For the end of the world. Inside the world of those who have [apocalypse-proof bunkers](. 2. Bitcoin's the OG crypto. It's also tricky to value, but [this guide can help](.* 3. Down in the depths. A holographic camera has revealed there’s [more to Loch Ness than just the monster](. 4. ESG investing isn’t just a feelgood theory. Here’s how you could [put principles into practice](.* 5. Good for the gut. Kombucha to kimchi, here’s how to [ferment at home](. 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