🔥 Prepare for a fire sale

Stocks have slumped | Debt's hitting private equity firms hard | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for August 24th in 3:11 minutes.   🏦 “The Great Wealth Transition” is here – and it’s gearing up to be as mighty and industry-changing as its name suggests. With an astounding [$84 trillion]( set to change hands over the next twenty years, it’s worth finding out who [stands to gain]( – and who might wind up losing out. [Hear it from our very own CEO, Maxi]( Today's big stories - Global stock markets have spent August in an utter rut - Here's why a troubled Chinese trust is everyone's problem – [Read Now]( - Higher interest rates are hitting private equity firms where it hurts Ticker Shock [Ticker Shock] What’s going on here? Global stock markets had a nasty surprise this month. What does this mean? Stock markets around the world kicked off the year with a boom, as the newfound allure of AI and sunny expectations for interest rate peaks jazzed up share prices. But as the months rolled on, the music changed. A string of strong US economic updates and Europe’s stubborn core inflation made investors rethink interest rate trajectories. Add mounting evidence of China’s economic slowdown to the mix too, and you’ve got a recipe for market jitters. In just the first three weeks of this month, heavyweights like the US’s S&P 500, Europe’s Stoxx 600, and China’s CSI 300 collectively lost a whopping $3 trillion in value – equivalent to the value of the UK’s entire FTSE 100. Why should I care? Zooming in: Maleficent seven. Over in the US, tech giants are feeling the heat. This month the “magnificent seven” – Amazon, Alphabet, Apple, Microsoft, Meta, Nvidia, and Tesla – all suffered their first three-week-long losing streak of 2023. So, with AI being the talk of the town, all eyes are on AI darling Nvidia as it gears up to announce its results. Analysts have set the bar high, upping their price targets just last week. But if the firm doesn’t measure up to those lofty heights, it might just further dent the wider market. For markets: Beware of the bear. Markets, like life, have their highs and lows – and some see this downswing as a sign the market’s healthy. But there is a lot of caution around right now: after all, the ratio of bearish [put options]( to bullish [call options]( purchased is nearing a two-year high, showing investors are getting pretty defensive. And with recent lackluster economic data from the eurozone and the UK, it might be wise to avoid chucking heaps of cash into markets anywhere right now. You might also like: [This one result could decide how Nvidia – and the entire US stock market – closes out the year.]( Copy to share story: [/ticker-shock]( 🙋 [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=Ticker Shock&utm_campaign=daily-global-24-08-2023&utm_source=email) Analyst Take A Major Chinese Trust Is On The Edge. A Collapse Could Tumble Onto The US Too. [A Major Chinese Trust Is On The Edge. A Collapse Could Tumble Onto The US Too.]( By Russell Burns, Analyst China’s indebted property sector can’t [catch a break](. Infamous Evergrande’s filing for bankruptcy in the US, and closer to home, a property-focused trust has [failed to cough up]( on its payments. What follows will be one of three options: a bazooka-sized bail-out, a shaky but sort-of-stable upkeep of the status quo, or a complete financial crisis – one that could [tumble markets]( in the US. So that’s today’s Insight: [how a major Chinese trust on the edge could topple the US too.]( [Read or listen to the Insight here]( SPONSORED BY JITTA Discover the world’s hidden gem investments in minutes It’ll take you hours to get a full analytical rundown of one stock, let alone a list of them. But if you swap search engines and spreadsheets for modern value investing platform [Jitta](, you’ll get the intel you need to make an informed decision without the heavy lifting – or, uh, typing. Jitta analyzes complicated financial numbers, giving you [a comprehensive summary for detailed reading]( and two factors for quick reference: a score of [business quality]( and a line of [fair price](. And if you’re curious about high-ranking opportunities you might’ve otherwise missed, the Jitta Ranking tab will show you [“hidden gem” value stocks]( from around the world. So for no cost and no subscription, you can [quickly assess the performance and price of over 36,000 global stocks](, including those in hard-to-access markets like China, Japan, and Vietnam. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Sinking To New Debts [Sinking To New Debts] What’s going on here? Higher interest rates have pushed private equity firms into some very hot water. What does this mean? Private equity firms are like house flippers, but for businesses. They pool money, borrow some more, buy a company, and then spruce it up – all in the hope of selling it for a profit down the line. But lately that whole “borrow some more” bit has caused trouble, and a number of the biggest players, including KKR and Bain Capital, are feeling the pinch. See, increased interest rates have made borrowing much more expensive recently. Case in point: inflation-adjusted Treasury bonds – a key measure of borrowing costs – have surged to a 14-year peak. The result is that firms are having to hand over their portfolio companies to creditors, and face seeing their investment share and returns in the firms wiped out. Why should I care? For markets: A shame for shareholders. The days of easy money are gone. No one’s immune to higher interest rates, from everyday mortgage holders to private firms and [even public companies](. And if you’ve invested in a debt-laden firm, well, you might find yourself at the back of the queue for a payout. See, common stockholders win when shares climb – but when companies can’t repay their loans, they’re often the last ones to recover their money. So as more companies wrestle with their mounting debts, don’t be surprised if valuations for those with sturdy financial foundations pop – while debt-heavy firms languish. The bigger picture: Cash is king. Lenders aren’t actually too thrilled about taking over these assets. After all, their business model is simple: lend money for interest in return. So if they end up receiving assets in lieu of cash, it won’t be long before we see a fire sale of unwanted holdings. For cash-rich firms, that’ll mean it’s open season for a good old-fashioned bargain hunt. You might also like: [An introduction to private equity firms, funds, and strategies]( Copy to share story: [/sinking-new-debts]( 🙋 [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=Sinking To New Debts&utm_campaign=daily-global-24-08-2023&utm_source=email) 🪧 Forget the billboards Old-school tactics won't engage [modern investors](. Capturing the attention of clued-in whippersnappers takes something a little [more up-to-date]( – like a [promotional partnership]( with Finimize. 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DisclosureLanda does not provide investment advice or recommendations and this content is not a solicitation to buy or sell securities. All securities offered involve potential risks, including the potential loss of capital. Landa is not a broker-dealer, and all broker-dealer services are provided by either Dalmore Group LLC and Rialto Markets LLC. Past performance does not guarantee future results. Review offering materials on our site for more comprehensive risk details. Consult your financial or tax advisor before making investment decisions. [Find Out More]( 🎯 On Our Radar 1. Sleeping solo, together. Couples are trying the [Scandinavian sleep method]( for better rest. 2. You need a lot of time and knowledge to be a value investor. Well, unless you have a [digital assistant to do the heavy lifting for you](.* 3. Brews and bots. AI is [taking over jobs]( in the beer industry. 4. Girlifying everything. The ubiquitous "girl" prefix trend is [raising eyebrows]( online. 5. Canine comprehension. Dogs' brains are [especially attuned]( to certain kinds of human speech – especially women’s voices. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🥳 Coming Up Soon... All events in UK time. 🙋‍♀️ [Ladies Investing Club](: 6.30pm, September 5th 🏠[Beginner's Guide To Building Wealth Through Real Estate](: 5pm, September 6th 📈 [Diversifying Your Portfolio With Real Estate](: 1pm, October 11th 🎉 [Modern Investor Summit 2023](: 12pm, December 5th & 6th ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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