🔥 Inflation's hot, hot, hot

Inflation stayed stubborn, partly thanks to landlords | Birkenstock went public but investors got cold feet | [🚨 Have you got your free Modern Investor Summit ticket yet? 🚨]( [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for October 13th in 3:06 minutes.   🎤 In just two months, world-renowned finance experts will take to the [Modern Investor Summit]( stage. So grab your ticket to tap into the brains of Ray Dalio, Jamie Dimon, Liz Ann Sonders and more. Move quick: [early bird registration]( closes soon Today's big stories - The weather might be on the turn, but inflation’s staying hot - Bonds look good, but here’s why stocks still look better – [Read Now]( - Birkenstock's shaky debut suggests the IPO market isn't in the clear yet. Set Up Home [Set Up Home] What’s going on here? Inflation nudged up by a more-than-expected 0.4% in [September](, as rent prices settled into a much more premium location. What does this mean? Temperatures might be cooling down in many countries as summer evenings turn into winter nights, but not in the US. Well, at least as far as inflation’s concerned. Prices were 0.4% higher in September than August, locking them in at 3.7% hotter than the same time last year. But at least that’s moving in the right direction, clocking in slightly below August’s 0.6% increase. And when you remove volatile food and energy prices from the mix, the resulting “core inflation” rose 0.3% – bang in line with analysts’ forecasts. Why should I care? Zooming in: Renting is rough. [Shelter]( costs like rent and mortgages were responsible for around 70% of core inflation’s rise. Now, those types of costs bleed into inflation with a lag. Landlords, for one example, need to wait until leases are up for renewal before hiking up rents. And with mortgage rates still on the up across the US, we may see a slow but steady climb for months to come, at least. The bigger picture: High price tags look like a steal. Not to sound all doom and gloom, but those rent rises aren’t the only issue we’re up against. Motor insurance is 20% more expensive than the same time last year, although that’s partly due to a supply shortage of cars. And when prices in general are higher than usual, shoppers are actually tempted to stock up in case everything gets more expensive going forward. That demand ramps up prices a little bit extra, making it harder for central banks to tame runaway inflation. You might also like: [Brace, brace, brace: why a hard landing is still very likely](. 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=Set Up Home&utm_campaign=daily-global-13-10-2023&utm_source=email) Analyst Take Even At These Rates, Bonds Are No Substitute For Stocks [Even At These Rates, Bonds Are No Substitute For Stocks]( By Paul Allison, CFA, Analyst Government bond yields are offering returns that are better than they’ve been in ages. So naturally, plenty of folk are saying bonds are now [a reasonable alternative]( to stocks. And I get what they’re saying: the very long-term return for stocks is around 7%, so with the current 5% yields, bonds come pretty close. And I won’t deny that holding both stocks and bonds as part of a diversified portfolio is [a savvy move](. Bonds can be a great diversifying asset, after all. But, if we’re talking about returns, [nothing beats stocks]( for the long-term investor. That’s today’s Insight: [why bonds look nice, but stocks look nicer](. [Read or listen to the Insight here]( SPONSORED BY TPP Tap into elite trading strategies, performance fee-free There’s [a platform built]( for investors just like you. Smart, clued-up, passionate about building your own financial future. And most importantly, frustrated with the fees charged by your wealth manager. It’s called [TPP](: there, you’ll find [a community of elite experienced investors]( and get eyes on their [most successful trading strategies](. Plus, buckets of advice to help you tailor those methods to fit your personal investing style, goals, and risk appetite. Better yet, you won’t pay a single management or performance fee. So if you want to take your financial future into your own hands, you can [discover the investment revolution with TPP](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Cold Feet [Cold Feet] What’s going on here? Footwear brand Birkenstock’s initial public offering (IPO) got off [on the wrong foot](, with wary investors needing more than socks to warm up to the frozen market. What does this mean? According to the Barbie movie, Birkenstock sandals aren’t just a comfortable choice: they’re transformative tools that enlighten a wearer to “the truth about the universe”. So naturally, investors were expecting an awakening when Birkenstock debuted on the New York Stock Exchange. Well, looks like we’re not quite in sync with Barbie Land. Birkenstock’s shares landed at just over $40 at the end of day one, below their $46 IPO price. That’s the bumpiest first-day run for any $1 billion-plus US listing in the last two years. In fact, of the over 300 big-ticket US IPOs in the past century, only 13 have done worse. So despite being the third-biggest debut in the US this year, the listing did little to reassure investors about the struggling IPO market. Why should I care? For markets: It’s the sole that counts. LVMH’s [less-than-luxe results]( on Wednesday suggested that the high-end retail industry’s recent success is tailing off. And sure, chunky sandals aren’t exactly couture, but with collaborators including Dior and Valentino, Birkenstock has at least one toe in the luxury market. But the footwear firm has the other nine spread all over: the sandals’ diverse sporters are pretty evenly split across different generations, with the typical US wearer owning three pairs. And as a business, Birkenstock is consistently growing, supported by major backers, and makes a profit – rare for a newly public company. The bigger picture: Set a good example. The IPO market has been stirring after a long slumber, with activity up just over a third versus the same time last year. Problem is, three-quarters of those newly listed companies are currently trading below their debut prices. If that tide doesn’t change, the dozens of private companies currently considering IPOs will be sure to twiddle their thumbs for a while longer. You might also like: [How to tell an IPO blockbuster from an IPO flop](. 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=Cold Feet&utm_campaign=daily-global-13-10-2023&utm_source=email) 🤝 Partner with us Finimize is much more than just this newsletter: we’re a full-blown [one-stop shop]( for engaging with [modern investors](. So whether you’re a fintech, founder, or just a fed-up exec, rest assured – we’ve got [the solutions]( you need. [Book A Demo]( 💬 Quote of the day "When you think about it, department stores are kind of like museums." – Andy Warhol (an American visual artist, film director, and producer) [Tweet this]( SPONSORED BY AJ BELL MONEY MATTERS Money matters Research by AJ Bell Money Matters suggests there's a [£1.65 trillion]( gender investment gap in the UK. That means women on average have less cash in their pockets, pensions, savings, and investments. And yet, no one’s talking about it. [AJ Bell]( is on a mission to change that: its [Money Matters campaign]( is encouraging more women to talk about money, offering a range of [educational material, events, podcasts, and articles](. Everything in the Money Matters campaign is designed to help [close the gender investment gap](, and to help women feel good about investing. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Maybe money is good for something. The rich are splashing their cash to [live forever.]( 2. NFT games have become a big hit among gamers and investors alike. Let's look into the [two most popular NFT gaming projects](.* 3. Twitch is finally taking banned users seriously. Well, until [they log out](. 4. Only investing in stocks is like only ever eating tomato pasta for dinner. [Multi-asset investing]( can help you craft a portfolio that truly suits your tastes.** 5. America is extra. These [over-the-top restaurants]( are prime examples. **See important disclosures [here](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🥳 Coming Up In The Next Week... All events in UK time. 💰 [Money Matters: Her Wealth Roadmap](: 5pm, October 25th 📈 [Accessible Strategies For Effective Trading](: 5pm, October 26th 🧰 [Mastering Tools for The Modern Trader](: 5pm, November 2nd 🎉 [Modern Investor Summit 2023](: 12pm, December 5th and 6th ❤️ Share with a friend Thanks for reading {NAME}. 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