🚘 Watch your bumper, Tesla...

Tesla and Volkswagen are on a collision course | Economic support keeps on giving | Hey {NAME}, you’re on the free edition of Finimize. [Upgrade to Premium](: no ads, a third story every day, free events, and loads more on our mobile app. [Start for free here]( SPONSORED BY Hi {NAME}, here's what you need to know for March 17th in 2:59 minutes. ✍️ We’re looking for [a new editor]( to join the team. You’ll be editing this very newsletter, sprucing up our analysis and coming up with some banging puns along the way. So if you have a background in writing, know your interest from your inflation, and work in or around London, you can [apply here](. Today's big stories - Volkswagen is aiming to sell one million electric vehicles this year - You might want to consider switching out some of your traditional investments for some wildcards right about now – [Read Now]( - Goldman Sachs upped its US growth forecasts on the back of the country’s economic support package Plug Life [Plug Life] What’s Going On Here? Sparks could be about to fly: Volkswagen – the world’s second-biggest carmaker – [announced]( on Tuesday that it’s aiming to sell one million electric vehicles (EVs) this year. What Does This Mean? Volkswagen’s new target represents a big step up from the 231,000 EVs it delivered last year, and could see the German carmaker get one over on Tesla: its [biggest]( EV rival produced 500,000 vehicles last year, and plans to [increase]( that by 50% or more this year. And even if Volkswagen can’t catch up in 2021, it has the longer term in mind: the company’s aiming to become the world’s biggest EV manufacturer by 2025 at the latest ([tweet this](). Investors, for their part, seem pretty optimistic about its chances: they sent the company's shares up 7%. Why Should I Care? Zooming in: It’s all down to the batteries. Batteries are the most expensive part of an EV: get ‘em cheap and companies will slash the cost of their cars, making them a more appealing buy for customers and – fingers crossed – pushing up sales. That might be why Volkswagen also [unveiled]( plans to build six battery factories in Europe by 2030 – a move that should cut its battery costs by as much as 50%. For markets: These valuations are looking a bit skewiff. Volkswagen’s odds of overtaking Tesla’s sales are looking pretty good, but its odds of overtaking its rival’s market value – $670 billion to Volkswagen’s $145 billion – are far slimmer. Some investors reckon this valuation gap can partly be explained by Tesla’s superior software – specifically its autonomous driving technology. Then again, it’s not like Volkswagen hasn’t got the edge in other ways: it already has the infrastructure to churn out millions of vehicles every year. You might also like: [How to profit from the buzz around electric vehicles.]( 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=Plug Life&utm_campaign=daily-global-17-03-2021&utm_source=email) 2. Analyst Take Tradition Is Out, Wildcards Are In What’s Going On Here? Plenty of retail investors take [the traditional approach]( of dividing their portfolios between just two asset classes: stocks and bonds. And it’s been a pretty reliable option for a long time, earning an average of [6-8% over the past 30 to 40 years](. But its days might be numbered. Because here’s the thing: the head of Singapore’s sovereign wealth fund is expecting that sort of portfolio to generate a return after inflation of [just 1-2% a year]( over the next decade. It’s not providing much by way of diversification either, since stock and bond prices are moving in the same direction on the back of [rising inflation expectations](. Luckily, the solution is relatively simple: [choose a few left-field investments]( that’ll bring another dimension to your portfolio. That’s today’s Insight: the [five simple tweaks you can make to your portfolio]( to boost its returns. [Read or listen to the Insight here]( SPONSORED BY INVESTENGINE Grab your tax-free ISA while you can With this year’s ISA deadline fast approaching, you’ll want to make the most of your [tax-free allowance](. So here’s an idea: invest that £20,000 allowance with InvestEngine and [get a £50 welcome bonus](. With InvestEngine, you’ll get a [low-fee portfolio]( tailored to you and built for [income or growth](. It’s easily accessible with no setup fees, and you can [transfer your existing ISA for free](. And once you’ve put it in InvestEngine’s capable hands, they’ll manage it all for you. Just [fill in their questionnaire](, and kickstart your investments today. [Get Started]( Disclaimer: Capital at risk. ISA rules apply. Welcome bonus terms and conditions apply, subject to minimum investment. Investengine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority FRN [801128]. [Turn off adverts]( Missing Piece [Missing Piece] What’s Going On Here? Goldman Sachs [upped]( its US growth forecasts over the weekend, but just as noticeable is what the investment bank left out of its updated prediction… What Does This Mean? The US just [agreed]( to pump $1.9 trillion into its economy, so Goldman’s decision to bump up its growth forecast – from 6.9% to 7% this year, and from 4.5% to 5.1% in 2022 – hasn’t come as much of a surprise. And while those adjustments might not sound like much, Goldman’s previous estimates had already taken $1.5 trillion of economic support into account and were already well ahead of economists’ forecasts of 5.5% and 3.8% for this year and next. There might be more growth to come too: Goldman’s forecast didn’t even pencil in the boost from the potential [$2 trillion]( infrastructure spending the US president touted in his election campaign. Why Should I Care? For markets: Invest in the pickaxes, not the gold. If the $2 trillion infrastructure investment goes ahead, it’s expected to be spent on building greener homes, expanding the EV charging network, and fixing highways, bridges, and airports. But since it’ll need to gather enough political support to pass, that’s a pretty big “if”. Still, the prospect alone has [pushed up]( the stocks of companies that stand to benefit – from equipment makers to engineering companies. The bigger picture: Tax hikes could keep the US economy from overheating. Spending trillions is easy, but finding trillions is another matter entirely. One potential solution, then, is to up taxes on businesses and the wealthy. And while skeptics might argue that the move would hurt economic growth, that might not be true: higher taxes could curb consumer and company spending, which would slow down price increases at a time when excessive government spending is at risk of pushing up prices too fast (i.e. [inflation](). That’s when the central bank would be forced to tweak interest rates, which could be [bad news]( for your stocks... You might also like: [How to pick the stocks that’ll benefit from big infrastructure spending.]( 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=Missing Piece&utm_campaign=daily-global-17-03-2021&utm_source=email) 💬 Quote of the day “Love with your mouth shut, help without breaking your ass or publicizing it: keep cool, but care.” – Thomas Pynchon (an American novelist) [Tweet this]( SPONSORED BY INVESTENGINE Give your portfolio the expert treatment Managing investments is no small feat, and you’ve got quite enough on your plate as it is. But you’d be wise to keep your portfolio [diversified and rebalanced regularly]( – and if you can do that with minimal effort and cost, all the better. With [InvestEngine](, you’ll get a [diversified investment portfolio]( managed by experts and tailored to your needs. And whether you’re focused on growth or income, InvestEngine will manage your portfolio for just [0.25% a year](.* Let them know what you need, and [get started today with a £50 bonus](. [Get Started]( Disclaimer: Capital at risk. *ETF costs apply. Welcome bonus terms and conditions apply, subject to minimum investment. Investengine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority FRN [801128]. [Turn off adverts]( 📚 What we're reading - Vaccine? No thanks ([Vox]() - Don’t just present your idea: Pitch it ([Pitch]()* - Philly dims the lights ([ABC]() - Everyone is beautiful, no one is horny ([Bloodknife]() *This sponsored content helps us keep the newsletter free. 🤔 Q&A · [RE: All That Glitters]( Q: “What can happen if inflation’s much higher than the central bank’s target for a long time?” – Elizabeth in British Columbia, Canada A: “If the prices of goods and services shoot up and the cash in bank accounts can’t keep up, people won’t have as much money to spend on day-to-day things, leading to a slowdown in economic activity. That’s what happened in Turkey in summer 2018: the country’s inflation was three times higher than the central bank’s target, encouraging investors to sell Turkey’s currency, stocks, and bonds, as well as take their cash out of the country.” [Finimize] 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? 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