🔧 How to fix the 60/40

China makes the rest of us look like schmucks | Airlines get back up again | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for June 21st in 3:06 minutes. 💩 You’d be forgiven for not wanting to go anywhere near the crypto market right now. But join Finimize analyst Reda Ferran for [5 Questions To Ask Before Investing In Any Crypto Project]( on June 22nd, and you might actually dare to consider the possibility of buying in again… Today's big stories - China's IPO market is much, much bigger than those of its rivals this year - The 60/40 has had a terrible quarter, but a few tweaks could make it as effective as ever – [Read Now]( - The airline industry is finally expected to return to profit next year Beauty Sleep [Beauty Sleep] What’s Going On Here? Data out on Monday [showed]( that the value of Chinese initial public offerings (IPOs) is the highest in the world so far this year. What Does This Mean? Plenty of cogs in the Chinese economy have ground to a halt this year, but stock market listings aren’t one of them. That’s largely because the government sent officials to Shanghai’s stock exchange amid the city-wide lockdown, leaving them to approve IPOs by day and recuperate on inflatable beds by night. It was in the country’s interests to do just that, given how keen it is for companies in sectors essential to economic growth – renewables, chipmaking, high-end manufacturing – to keep listing. And it worked a treat: China averaged over one IPO a trading day during the lockdown, raising nearly $9 billion in April and May ([tweet this](). That means the amount of money raised by Chinese IPOs is up 7% this year from last, even as the rest of the world has seen an 80% dropoff. Why Should I Care? Zooming in: Needs must. Keep in mind too that some Chinese companies’ hands were tied here. For one thing, those that received the green light just before lockdown were regulation-bound to go ahead. And for another, the government still hasn’t finalized rules around whether companies that hold a lot of sensitive user data can list abroad, which means any that needed a cash boost had next to no choice but to list domestically. The bigger picture: Eeny meeny miney… If the going was good when China was in lockdown, analysts think companies could be even more enthusiastic to list now the country’s out of it. It helps too that one of the main alternatives looks a lot less appealing: the US stock market is tanking due to high inflation and rising interest rates, while China’s stock market is up 15% from its lows in April. You might also like: [China’s best-performing hedge fund is up 138% this year. Here’s its next play.]( 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=Beauty Sleep&utm_campaign=daily-global-21-06-2022&utm_source=email) Analyst Take How To Fix The Faulty 60/40 [How To Fix The Faulty 60/40]( [Photo of Reda Farran] Reda Farran, Analyst What’s Going On Here? The time-honored [60/40 investment strategy]( – 60% stocks, 40% bonds – hasn’t exactly covered itself in glory lately. The portfolio is set for its [worst quarterly performance]( in decades, as concerns that we’re on the verge of stagflation simultaneously undermine the prices of both stocks and bonds. But you don’t need to give up on the old faithful diversification strategy entirely. Instead, you might want to just consider fixing it up with [a new approach](. That’s today’s Insight: [how to fix the 60/40](. [Read or listen to the Insight here]( SPONSORED BY INNOVEGA “The metaverse is the next chapter for the internet” Thing is, Mark Zuckerberg thinks that developing the smart glasses the metaverse needs will be “one of the hardest technical challenges of the decade”. [Innovega]( is up for the challenge: its expert team has been rustling up a combination of personalized, next-generation [smart contact lenses]( and [high-performance glasses](. And now you can [invest in Innovega]( on [StartEngine](, where more than 2,600 investors have helped Innovega secure high-profile contracts and to file patents. This could be a massive opportunity: market researchers predict [the metaverse market]( will be worth $400 billion by 2028 and $3 trillion by 2031. [Check Innovega out on StartEngine](. [Find Out More]( You should read the [Offering Circular]( and [risks]( related to this offering before investing. This Reg A+ offering is made available through StartEngine Primary, LLC, member [FINRA]( [SIPC](. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. Liftoff [Liftoff] What’s Going On Here? A major airline organization [predicted]( on Monday that the industry will return to profit next year. What Does This Mean? Airlines enjoyed their best-ever run of profits before the pandemic hit – a key reason many of them were able to survive at all, albeit now with a collective debt of around $650 billion. And while they’re a long way from those heady days, they have been getting back on track: the industry’s record $138 billion loss in 2020 fell to $42 billion last year, and it’s expected to fall to $10 billion this one. That should, the International Air Transport Association predicts, allow the industry to get back to profitability in 2023. But it won’t be without obstacles: there are doubts over how long bumper post-Covid sales will last, especially as higher fuel costs force airlines to raise ticket prices on already cash-strapped customers. Some execs aren’t worried, mind you: they point out that passenger numbers held steady in 2009 after the financial crisis, and even started to rise in 2010. Why Should I Care? The bigger picture: Fuel for thought. Airlines also [warned]( on Monday that the industry’s goal of net-zero by 2050 would be hard to achieve unless governments did more to help. Still, higher fuel prices might actually speed up the transition: the price gap between regular jet fuel and sustainable fuel has narrowed significantly since prices of the former boomed, meaning airlines might be more prepared to make the switch. Zooming out: EasyJet isn’t happy. Another issue facing airlines is staff shortages, which are now so bad that London Gatwick and Amsterdam Schiphol are capping the number of flights to help them cope. That’s not good news for airlines like EasyJet, which counts those airports as two of its biggest bases. It was forced to [cut]( capacity on Monday as a result, and analysts suspect the airline could make up to $250 million less in profit this year. You might also like: [How to profit from a resurgent airline industry.]( 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=Liftoff&utm_campaign=daily-global-21-06-2022&utm_source=email) 💬 Quote of the day “I’m lazy. But it’s the lazy people who invented the wheel and the bicycle because they didn’t like walking or carrying things.” – Lech Walesa (a Polish statesman, dissident, and Nobel Peace Prize laureate) [Tweet this]( 🎯 On Our Radar - Glastonbury is back. Here’s [where it all began](. - These investment strategies are priceless. Literally: you can [get them for free.](* - Would you volunteer to live with cockroaches? We know times are lean, [but…]( - Robots have feelings too. Just keep it to yourself, or [lose your job](. - Man outruns horse. [Horse]( falls into existential crisis. ❤️ 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. 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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