Tesla and Volkswagen are on a collision course | Economic support keeps on giving | Hey {NAME}, youâre 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. âï¸ Weâre looking for [a new editor]( to join the team. Youâll 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 â [Read Now](
- Goldman Sachs upped its US growth forecasts on the back of the countryâs economic support package Plug Life [Plug Life] Whatâs Going On Here? Sparks could be about to fly: Volkswagen â the worldâs second-biggest carmaker â [announced]( on Tuesday that itâs aiming to sell one million electric vehicles (EVs) this year. What Does This Mean? Volkswagenâs 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 canât catch up in 2021, it has the longer term in mind: the companyâs aiming to become the worldâs 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: Itâs all down to the batteries.
Batteries are the most expensive part of an EV: get âem cheap and companies will slash the cost of their cars, making them a more appealing buy for customers and â fingers crossed â pushing up sales. That might be why Volkswagen also [unveiled]( plans to build six battery factories in Europe by 2030 â a move that should cut its battery costs by as much as 50%. For markets: These valuations are looking a bit skewiff.Â
Volkswagenâs odds of overtaking Teslaâs sales are looking pretty good, but its odds of overtaking its rivalâs market value â $670 billion to Volkswagenâs $145 billion â are far slimmer. Some investors reckon this valuation gap can partly be explained by Teslaâs superior software â specifically its autonomous driving technology. Then again, itâs not like Volkswagen hasnât 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: [( ð [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 Whatâs Going On Here? Plenty of retail investors take [the traditional approach]( of dividing their portfolios between just two asset classes: stocks and bonds. And itâs 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 hereâs the thing: the head of Singaporeâs 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. Itâs 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]( thatâll bring another dimension to your portfolio. Thatâs todayâs 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 yearâs ISA deadline fast approaching, youâll want to make the most of your [tax-free allowance](. So hereâs an idea: invest that £20,000 allowance with InvestEngine and [get a £50 welcome bonus](. With InvestEngine, youâll get a [low-fee portfolio]( tailored to you and built for [income or growth](. Itâs easily accessible with no setup fees, and you can [transfer your existing ISA for free](. And once youâve put it in InvestEngineâs capable hands, theyâll 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] Whatâs 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 Goldmanâs decision to bump up its growth forecast â from 6.9% to 7% this year, and from 4.5% to 5.1% in 2022 â hasnât come as much of a surprise. And while those adjustments might not sound like much, Goldmanâs previous estimates had already taken $1.5 trillion of economic support into account and were already well ahead of economistsâ forecasts of 5.5% and 3.8% for this year and next. There might be more growth to come too: Goldmanâs forecast didnât 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, itâs expected to be spent on building greener homes, expanding the EV charging network, and fixing highways, bridges, and airports. But since itâll need to gather enough political support to pass, thatâs a pretty big âifâ. Still, the prospect alone has [pushed up]( the stocks of companies that stand to benefit â 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](). Thatâs 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 thatâll benefit from big infrastructure spending.]( Copy to share story: [( ð [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) ð¬ Quote of the day âLove with your mouth shut, help without breaking your ass or publicizing it: keep cool, but care.â â Thomas Pynchon (an American novelist) [Tweet this]( SPONSORED BY INVESTENGINE Give your portfolio the expert treatment Managing investments is no small feat, and youâve got quite enough on your plate as it is. But youâd be wise to keep your portfolio [diversified and rebalanced regularly]( â and if you can do that with minimal effort and cost, all the better. With [InvestEngine](, youâll get a [diversified investment portfolio]( managed by experts and tailored to your needs. And whether youâre 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]( ð What we're reading - Vaccine? No thanks ([Vox]()
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