💥 A bigger bubble than 2008

Bubble sweet bubble | Settle an argument for US | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for June 16th in 3:10 minutes. 🌎 Open banking is completely redefining the way the world pays. So join Plaid’s head of UK for [The Digital Banking Revolution]( on Wednesday, and get the jump on the future of payments. [Grab your ticket]( Today's big stories - House prices around the world are looking worryingly similar to how they did before the 2008 financial crisis - Three factors influence your returns if you’re a long-term investor, and here’s how you can take advantage of them – [Read Now]( - The US and the EU reached a deal to end a 17-year dispute over aircraft subsidies Party Crasher [Party Crasher] What’s Going On Here? Not to burst your bubble, new homeowners, but home prices around the world are flashing the same warning signs they did in the lead-up to the 2008 financial crisis… What Does This Mean? Nowadays, home isn’t just where the heart is: it’s where our old jobs, new puppies, and frivolous lockdown purchases are too. That’s encouraged homeowners to move to bigger and better places, and – thanks to a combination of record-low interest rates, pandemic savings, tax incentives, and government stimulus programs – there’s been no reason not to. No surprises, then, that the global housing market is now in a bubble. According to a new report from Bloomberg Economics, New Zealand, Canada, and Sweden rank as the world’s frothiest, closely followed by the US and the UK. That’s based on how high certain indicators – like the ratio of house prices to rent or locals’ salaries – are, even compared to where they were before the 2008 financial crisis. Why Should I Care? For markets: Leave banks outta this. The report points out that we might see the market drop off steadily rather than in one fell swoop. But neither would be good news for banks, whose mortgage-lending heavily exposes them to the real estate market. And they could do without the extra headache: the sector’s stocks fell earlier this week after JPMorgan said it’s anticipating a bigger-than-expected drop in trading revenue this quarter, suggesting that the [trading boom]( – in stocks and bonds, at least – is starting to tail off. The bigger picture: Crypto is… inevitable. Cryptocurrency trading, meanwhile, is still going strong. That might be why investment bank Goldman Sachs recently [unveiled]( a dedicated cryptocurrency trading team, and why it’s now [expanding]( its crypto offering from bitcoin products to ether products. That might be smart: a new survey suggests hedge funds will [hold]( 7% of their total assets in crypto within five years, and investment banks count plenty of them as their clients ([tweet this](). You might also like: [Is now the perfect time to buy a home?]( 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=Party Crasher&utm_campaign=daily-global-16-06-2021&utm_source=email) 2. Analyst Take What A Difference A Decade Could Make What’s Going On Here? After all the drama we’ve seen over the last twelve months, you might be tempted to put together [a more relaxing portfolio]( – of, say, ten years or so. If you are, it’s worth knowing the [three factors]( that, put together, are responsible for your long-term stock market returns. Those factors [impact returns differently]( depending on the wider economic environment – if stocks are at sky-high levels, for example, or if we’re in a recession. But if you understand what effect they’re having right now, you could turn them to your advantage to [maximize your returns for the next ten years](. So that’s today’s Insight: how these factors are impacting returns, and [which stocks, sectors, and countries to invest in]( to turn them to your advantage. [Read or listen to the Insight here]( SPONSORED BY ELECTRIC Electrify your IT, beat the competition Isn’t it annoying when something goes wrong with your IT at precisely the wrong time? Scratch that. It’s always precisely the wrong time. With [Electric](, you’ll get [real-time IT support]( right when you need it. Electric’s solutions are [chat-based and lightning-fast](, which means no more wasted hours on the phone. Time is money, after all. In fact, according to Forrester’s Total Economic Impact report, companies that use Electric experience a 105% ROI on their services. You’ll even [get a pair of Beats Solo3 wireless headphones]( just for taking a qualified meeting.* So save yourself time, money, and heartache: [visit Electric today](. [Visit Electric]( *You must be an IT decision-maker at a US-based company with 15-500 employees to qualify. When you support our sponsors, you support us. Thanks for that. Plane Clash [Plane Clash] What’s Going On Here? The US and the European Union (EU) finally sat down together on Tuesday, hashed out their differences, and settled a longstanding argument over aircraft subsidies. What Does This Mean? The spat started back in 2004, when the US complained to the World Trade Organization that EU member states were illegally giving financial support to Airbus. That’s when the EU responded by claiming that the US was propping up its homegrown aerospace giant, Boeing, with overly generous state subsidies, as well as space and military contracts that indirectly lowered passenger aircraft production costs. Things [escalated]( further still in 2019, with the US and EU increasing trade tariffs on some $12 billion worth of each other’s exports – everything from aircraft parts to cheese, wine to whiskey. Now, though, the two have extended a temporary truce they struck in March to one that’ll last [five years](. The deal means all future passenger planes made by Airbus and Boeing will be developed without subsidies – and your favorite Bordeaux should get cheaper too. Why Should I Care? The bigger picture: My enemy’s enemy is my friend. The historic agreement – which may also pave the way for a resolution to other US-EU [trade wars]( – comes as China attempts to overthrow the global Boeing-Airbus duopoly. The state-sponsored Commercial Aircraft Corporation of China wants to provide a legitimate alternative by the end of the decade, and its [first]( single-aisle Boeing 737-style jet by the end of the year. Tuesday’s deal, then, could be a sign that the US and EU are taking the threat seriously. Zooming out: Airlines are also addicted to subsidies. Germany’s Lufthansa was hit hard by the pandemic, forcing it to accept a [$10 billion]( bailout from the country’s government. But the airline [outlined]( bold plans for a post-pandemic return to profitability on Tuesday, saying it would raise fresh funds from shareholders to pay back the state aid while streamlining its operations. You might also like: [How to pick and invest in airline stocks like a pro.]( 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=Plane Clash&utm_campaign=daily-global-16-06-2021&utm_source=email) 💬 Quote of the day “No wise man ever wished to be younger.” – Jonathan Swift (an Anglo-Irish satirist, essayist, and poet) [Tweet this]( SPONSORED BY YIELDSTREET Look beyond the stock market With stocks near record-highs, profits are only getting harder to come by these days. In other words, you’d be smart to look at investments that typically don’t move in line with the stock market. [Yieldstreet]( offers a way to do just that: an [alternative investment platform]( where you can invest in real estate, art, aviation, legal finance, and more. You get to choose from their [unique suite of products]( across a range of asset classes, all with different yields, durations, and minimum investments. 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Thanks for that. 🌎 Finimize Live 🥚 Don’t put all your eggs in one basket Because if you drop that basket, you’ll have a really gross, eggy basket, and egg is notoriously very difficult to get out of wicker. Anyway, in completely unrelated news, founder of DURA Private is joining us [How To Put Your Eggs In Different Baskets]( to talk about how to diversify your portfolio and… clean your wicker? Probably. 💵 [How To Bet On The Rise Of Open Banking Payments](: 1pm UK time, June 16th 🥚 [How To Put Your Eggs In Different Baskets](: 5pm UK time, June 17th 🚀 [How To Diversify Beyond Stocks And Bonds](: 6pm UK time, June 22nd 🤑 [How To Earn A Passive Income From Crypto](: 12pm NYC time, June 24th 🌿 [Why Now’s The Time To Invest In Cannabis](: 6pm UK time, June 28th 🍔 [How To Make Money Going Meat Free](: 6pm UK time, June 29th 💄 [How To Give Your Portfolio A Beauty Makeover](: 6pm UK time, June 30th 🤔 [What Does Inflation Mean For Your Portfolio](: 2pm UK time, July 15th 📈 [How To Protect Yourself From Rising Prices](: 6pm UK time, July 26th ❤️ Share with a friend Your Referrals: 0 Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag. Share your unique link: [ You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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