😨 Not even Apple is safe

Investors are united | Honda's getting nervous | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for May 16th in 3:05 minutes. 💥 Digital art fans, listen up: the first-ever NFT event designed for the retail investing community is finally here. Join our expert speakers at the [Finimize NFT Fest]( on June 15th, and find out how to evaluate, create, and truly understand NFTs through a series of Q&A sessions and world-class workshops. [Get your free ticket]( Today's big stories - Investors pulled money out of every market last week, according to a new report - Ethereum is up against some tough competition, so we’ve looked into whether you should still buy into the blockchain – [Read Now]( - Japanese automaker Honda gave a mixed results update All Together Now [All Together Now] What’s Going On Here? It’s nice to know we can all agree on something in these divisive times: investors [pulled]( money out of every market last week, according to a Bank of America report out on Friday What Does This Mean? It’s not exactly a ringing endorsement for the global economy when investors are bailing on everything all at once, but that’s exactly what happened between May 4th and May 11th. Global bonds lost a net $11 billion even after higher US interest rates pushed up yields, while cash and gold funds hemorrhaged $20 billion and $2 billion respectively. Stocks weren’t spared either: investors pulled $6 billion out of the market, most heavily those of European and emerging market (EM) companies. That makes sense: the Russia-Ukraine conflict is leaving Europe’s investors with a nasty taste in their mouths, while EMs are at risk from high food and energy prices, the rising cost of debt, and China’s economic slowdown. Why Should I Care? Zooming in: Tech, tech, tech… kaboom. Tech stocks were particularly badly hit, suffering their biggest weekly withdrawal of the year at over $1 billion. Not that it’s especially surprising: the tech-heavy Nasdaq 100 index did just post its sixth-straight weekly drop, as the Federal Reserve’s aggressive rate hikes push investors to dump expensive-looking stocks ([tweet this](). Even Apple – a supposedly stable blue-chip company – is down 20% from its peak, putting it squarely in bear market territory. For you personally: Buy the dip? Hey, look on the bright side: the analysts behind the report have pointed out that the fact that investors are pulling money out of every market – [safe havens]( and risky assets alike – could be a sign of “true market capitulation”. In other words, sentiment is now so negative that we might be near the bottom of the market – something you might be tempted to capitalize on… You might also like: [Is Ray Dalio’s “bubble indicator” telling you to buy the dip?]( 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=All Together Now&utm_campaign=daily-global-16-05-2022&utm_source=email) Analyst Take Where Will Ethereum Go Next? [Where Will Ethereum Go Next?]( By Jonathan Hobbs, Analyst Where Will Ethereum Go Next? Look, it’s no secret that Ethereum is a major player in the crypto market. But it’ll need to stay on its toes if it’s going to have any chance of keeping it that way, with major upstarts like [Solana and Avalanche]( nipping at its heels. So that’s what it’s doing: it’s switching to [a proof-of-stake (PoS) blockchain](, which means there’ll be no more energy-sucking, competitive ether mining. PoS will mean Ethereum consumes far less electricity. And [validators](, unlike miners, won’t have to fork out on expensive mining equipment and cover sky-high electricity bills. That’s when Ethereum can move onto [the next 2.0 upgrade](: sharding. That is, making Ethereum transactions a lot faster and cheaper. So that’s today’s Insight: how Ethereum got here, and [where it’s going next](. [Read or listen to the Insight here]( SPONSORED BY AFFINITY Outperform the M&A benchmark Companies struck a record number of deals last year. [Affinity]( wants to make this one even bigger: the “relationship intelligence platform” gives you the insights you need to find, manage, and close more deals. You can get started with Affinity’s [2022 M&A Benchmark Report](, where you’ll find out how investment banks are sourcing and closing more mandates at a faster pace. Plus, you’ll find out how [investment trends]( and the bumpy financial climate are impacting mergers and acquisitions – setting you up to better predict upcoming buyouts. [Explore the world of dealmaking with Affinity](. [Get The Report]( Chip Happens [Chip Happens] What’s Going On Here? Honda [gave]( a mixed results update on Friday, with the Japanese carmaker unable to shake the same nagging problems that have been lingering for months now. What Does This Mean? First, the good news: Honda sells a lot of cars internationally, meaning its revenue is worth a lot more when it’s converted back to a flailing yen. That pushed up its full-year sales by a better-than-expected 10% from the year before. But there are reasons to be nervous: the company sold just 4.1 million cars last financial year – fewer than it did the year before and the year before that. That suggests these supply chain disruptions and chip shortages aren’t going away, and won’t be anytime soon. Layer on Chinese [lockdowns]( and higher raw material costs, and the company’s expecting its operating profit to shrink 7% this year from last – not exactly the 8% increase analysts were banking on… Why Should I Care? The bigger picture: The yen gives with one hand. The weaker yen comes with a downside: it makes already-pricey imported commodities even more expensive, which could end up denting Japanese carmakers’ profit margins. That’s partly why they all seem to be letting investors down right now: Nissan’s profit projections [fell]( short of forecasts too, and Toyota – renowned for its strict cost management – is [predicting]( that its operating profit will drop by 20% this financial year. For markets: Expectations probably shouldn’t be this high. Japanese companies have another problem on their hands: the gap between consumer inflation and producer inflation – which reflects the rise in prices that factories charge wholesalers – hasn’t been this big since 1980. That suggests Japanese companies are going to have to take a hit to their profit margins, even as analysts’ estimates for Japanese company profits are at their highest in 17 years, according to Bloomberg. So whether analysts end up downgrading those estimates or companies end up missing them, investors are going to be disappointed. You might also like: [How to profit if the yen bounces back.]( 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=Chip Happens&utm_campaign=daily-global-16-05-2022&utm_source=email) 💬 Quote of the day “There is no royal flower-strewn path to success.” – Madam C.J. Walker (an African American entrepreneur, philanthropist, and activist) [Tweet this]( SPONSORED BY MONEYFARM Not today, inflation Rising inflation can really whittle away those hard-earned cash savings of yours. So you might want to think about putting that cash into[an investment portfolio]( designed to [grow your wealth]( over the long term instead. [Moneyfarm]( makes that easy: you’ll get a [curated investment portfolio]( that suits your personal financial situation, goals, and attitude to risk. Your portfolio will be actively managed by [Moneyfarm’s]( experienced team, and you can hop on the phone with your [dedicated investment consultant]( anytime to talk through big decisions. [See how easy it can be to grow your portfolio with Moneyfarm](. [Visit Moneyfarm]( With investing, your capital is at risk. When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar - A digital day in the life. Spend 24 hours with a [pro Twitter flirt](. - Talk about a big-screen experience. Check out the souped-up screen on Ledger’s new [Nano S Plus](.* - The end of an era. This 79-year-old just lost his website of [nearly 30 years](. - Big banks want to get with the times. Would [introducing crypto]( help?* - Think of your craziest dream. It’ll come in handy if you [play this game](. When you support our sponsors, you support us. Thanks for that. 🌎 Finimize Live 🎉 Coming Up This Week All events are in UK time. 📈 [How To Identify High Growth Metaverse Stocks](: 12pm, May 16th 🙌 [How To Invest In Community-Led Projects](: 5pm, May 16th 🌎 [How To Invest In The Global Chip Shortage](: 5pm, May 17th 🏡 [How To Buy A Digital Condo](: 12pm, May 18th 🚗 [The Leaders Of The EV Revolution](: 5pm, May 19th ♻️ [How To Pick Winning ESG Stocks](: 5pm, May 20th 💪 And Then After That… 🧐 [A Guide To Investing In Derivatives](: 6pm, May 23rd 📈 [How To Invest Thematically](: 12pm, May 24th 🎨 [How To Build And Manage A Balanced NFT Portfolio](: 5pm, May 24th 📈 [The Future Of The M&A Market](: 5pm, May 26th 🏘 [How To Diversify Your Crypto Investments Through Commercial Real Estate](: 6pm, August 3rd 🏡 [Tokenizing Real Estate](: 6pm, September 13th ❤️ 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. 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