🌮 Chipotle's rival went public

The Mediterranean answer to Chipotle just went public, big time | Wall Street fired another batch of suit-wearers | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for June 19th in 3:15 minutes. 💡 Modern investors are full of bright ideas and savvy research. So [fill in the three-minute survey]( about how you feel about today's markets, and you'll get access to the results and the chance to win some Finimize swag and a pair of AirPods Pro. [Take the quick survey here]( Today's big stories - Cava, the Mediterranean answer to Chipotle, hosted a toast-worthy stock exchange debut - Here’s how you might shield your portfolio from El Niño’s potential catastrophes – [Read Now]( - Wall Street mailed out more pink slips, even though stock markets are looking plush Taste The Stars [Taste The Stars] What’s going on here? Cava might be known as a cheaper alternative, but this restaurant chain’s New York Stock Exchange [debut]( last week was pure, unadulterated luxury. What does this mean? Cava’s sort of like Chipotle, but with Mediterranean food. So investors, all too aware of how many Americans make a habit of paying extra for guac, were salivating at the chance to buy into what could be the next go-to lunchtime spot. That’s why investment bankers had already lifted the opening price of $22 a couple of times before the stock started trading, and that doubled over the course of the day. Cava swaggered off with a $5 billion valuation by the end of it, nearly nine times its sales last year. And get this: that’s around double Chipotle’s valuation, and Cava hasn’t ever turned a profit. But with only 260-ish stores around the US versus Chipotle’s 3,000-plus, the fledgling’s future will hinge on whether barbacoa-hooked Americans develop a hankering for falafel. Why should I care? For markets: Timing is everything. Cava’s stock price might seem excessive, a bit like starving investors ordered way more than they could eat. But initial public offerings (IPOs) can be like that: there usually isn't much information around these new firms, which makes gauging a fair price tricky. Investors, then, often go off the general market mood. And this year, the S&P 500 is up 15%, the Nasdaq 100 nearly 40%, and Chipotle – Cava’s Mexican lookalike – almost 50%. The bigger picture: Party like it's 2023. Today’s market has more than a faint resemblance to the millennium bubble: the artificial intelligence buzz is mirroring the turn-of-the-century internet frenzy, and tech stocks are flying like they were back then. The IPO market, though, is distinctly flatter. While Cava’s marks an $8 billion running total in the US this year, that’s way behind 2021’s $154 billion – and a whole world away from the champagne-worthy $284 billion in [1999](. You might also like: [These three stocks are sitting pretty on Goldman’s conviction list.]( Copy to share story: [/taste-stars]( 🙋 [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=Taste The Stars&utm_campaign=daily-global-19-06-2023&utm_source=email) Analyst Take El Niño Is Back, And You Just Might Want To Weatherize Your Portfolio [El Niño Is Back, And You Just Might Want To Weatherize Your Portfolio]( [Photo of Reda Farran] Reda Farran, Analyst [El Niño]( – the on-again, off-again climate phenom – is coming back after about four years away. And as usual, it’s [posing some risks]( that are simply too big for investors to ignore. El Niño has a habit of unleashing the kinds of extreme weather events that can [wreak havoc on markets](. And this time around, the timing is [especially bad](: the world economy is already in a pretty fragile state, still trying to bounce back from Covid and grappling with high inflation and recession threats. So that’s today’s Insight: [how to protect your portfolio from El Niño’s potentially cataclysmic effects.]( [Read or listen to the Insight here]( SPONSORED BY CFA INSTITUTE Thrive in the global investment industry [Level up your investment industry knowledge]( with CFA Institute. Dig into industry terminology, foundational concepts, functions and roles, and gain access to [real-world scenario practices and case studies]( so you can understand how markets operate and the factors influencing market dynamics. You will [deepen your understanding of the investment industry](, giving you the confidence to innovate, ask the right questions, and think critically about investments. You can work through the [six online courses]( in your own time, then take the final assessment and earn the [Investment Foundations Certificate and digital badge]( when you pass. So whether you want to excel at the job you’re currently in, start a fresh career in the investment industry, or simply identify opportunities and make better investment decisions, you can [skill up and stand out with the Investment Foundations Certificate](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Watch The Pennies [Watch The Pennies] What’s going on here? Citigroup sliced 5,000 jobs last week, signaling that Wall Street’s still being very frugal with its coins. What does this mean? Stock markets are pumped and IPOs are cropping up again, so you’d think Wall Street would be ready to party. Not quite: 11,000 workers have been given their marching orders, partly because a struggling Wall Street added too many new names to its books over the last couple of years. Some big-name players, though, are trying to hold onto their number crunchers, cutting costs by not replacing folks that leave or retire out of choice. So even though the investment banking sector’s in a bit of a lull, that’s a sign some firms think the party’s only on pause. Why should I care? For markets: Put the fancy cufflinks away for now. Companies have been shaking hands on a lot fewer deals lately, leaving boardrooms crying out for some Succession-style action. But because those deals are usually funded with debt, they’re a lot more expensive to pull off now that interest rates are up at neck height. So even though the market’s in a heady spot, investment bankers will be waiting until it’s that little bit cheaper to sign the dotted line with their personalized fountain pens. Zooming out: Alexa, play “Dolly Parton, 9 to 5”. Here’s a riddle: big banks, Big Tech, and everyone in between seem to be shedding jobs this year, yet unemployment in the US is at record lows. Here’s what gives: for one, most workers toil away for small, slimmer, private companies that are less pressured by thirsty-for-profit shareholders. And for another, the labor participation rate – that’s the percentage of folks who can work and have a job – is at a 40-year low if you strip out the pandemic years. Since unemployment’s down low, you can assume a lot of Americans are simply choosing freelance hustles over slaving away for fat cats. You might also like: [How to invest like the uber-wealthy.]( Copy to share story: [/watch-pennies]( 🙋 [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=Watch The Pennies&utm_campaign=daily-global-19-06-2023&utm_source=email) 💬 Quote of the day "Life is a tragedy when seen in close-up, but a comedy in long-shot." – Charlie Chaplin (an English comic actor, filmmaker, and composer) [Tweet this]( SPONSORED BY CME You could hedge your portfolio better than ever with futures [Futures]( are different than trading straight stocks, it's true. But when you strip out the jargon, they’re simply [contracts that let you buy or sell an asset]( for a set price sometime in the future. You could [use futures to profit]( if an asset’s price changes as you expect it to, or to cover your back by [using the trade as a hedge.]( And really, it's just another asset traders can use to express their opinion on the markets when you look at it step-by-step. This [free guide]( walks you through [what futures are, key terms]( you should know, a [worked example of trading them](, and their risks. So if you want to get to grips with futures, [check out the free CME x Finimize Futures 101 guide here](. DisclaimerCME Group futures are not suitable for all investors and involve the risk of loss. Copyright © 2023 CME Group Inc. [Discover The Guide]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. American cheese may never be the same again. From "so bad it's good" to "[just plain good](". 2. Everyone has secret talents. For this guru, it's [quitting](. 3. Orcas are fed up. They're making sure [boats leave their ocean](, once and for all. 4. The original's always best. Here's why [Jurassic Park has never been topped](. 5. Get your kit off. The Greeks did, on literally [every occasion](. 🌍 Finimize Live 🥳 Coming Up Soon... 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