Japan finally changed its long-term tactic | Oil could hit $150 a barrel | [Finimize]( â TOGETHER WITH â Hi {NAME}, here's what you need to know for November 1st in 3:15 minutes. â ð§° You have a sharp mind, sturdy strategy, and gleaming goals. Join us for [Mastering Tools for The Modern Trader]( on November 2nd, and find out how to unlock a trustworthy toolkit to match. [Grab your free ticket]( Today's big stories - The Bank of Japan shook up its seven-year-old economic tactics
- Hereâs how you might double your money using Treasuries â [Read Now](
- The World Bank cautioned that oil prices could top $150 per barrel A New Dawn [A New Dawn] Whatâs going on here? Faced with long nights worrying about inflation, the Bank of Japan (BoJ) claimed to have seen the light, [welcoming]( a rebirth of financial control. What does this mean? Japanâs economy has been stuck in the mud for decades, and the countryâs central bank has battled that deflation with â[yield curve control](â since 2016. The tactic involves keeping both short and long-term interest rates low, which should get the country shopping and put some meat on pricesâ bones. That eventually worked a little too well though, so faced with the fresh foe of above-target inflation, the BoJ loosened its grip on 10-year government bond yields â a key long-term interest rate â a few months ago. And on Tuesday, it relinquished even more control. The bank no longer has a rigid upper limit set on the 10-year yield, meaning investors can have a bigger impact on determining its rise and fall. Case in point: the 10-year government bond yield hit its highest point in nearly nine years after the announcement. Why should I care? For markets: Loyalty counts for nothing. While itâs clear that the BoJ is branching out from yield curve control, the central bank has kept the planâs juicier details to itself â and that might be a careful ploy. Investors may want higher returns for the increased uncertainty involved in holding Japanese bonds, which should have the ripple effect of increasing interest rates. And because higher rates would also make the countryâs currency more attractive to foreign investors, a fresh flush of popularity could prevent the yen from falling any further. The bigger picture: The world is changing. Interest rates, global trading relationships, and geopolitical tensions could transform markets for good. And in that sort of environment, thereâs no guarantee that yesterdayâs top-performing investments or sectors will still be winners tomorrow. Diversification, then, is key: commodities, âtangible assetsâ like real estate, bonds, and even a spot of crypto could spread out the risk that stocks can carry. You might also like: [Investing in Japan just got a lot more interesting.]( Copy to share story: [( ð [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=A New Dawn&utm_campaign=daily-global-01-11-2023&utm_source=email) Analyst Take
You Could Double Your Money With The Worldâs Safest Asset, Actually [You Could Double Your Money With The Worldâs Safest Asset, Actually]( By Russell Burns, Analyst [Life in Bondland]( hasnât been this exciting in years. Longer-dated [US Treasuries]( have seen their prices crushed, with some falling 50% as higher inflation and higher interest rates take a heavy toll. That kind of market selloff tends to signal one thing: [opportunity](. But before you go buying up any ole government note, letâs take a look at the US bonds that could [double your money](, how much time theyâd take to do it, and the hidden danger in bond ETFs. Thatâs todayâs Insight: [how you might double your money in super-safe Treasuries](. [Read or listen to the Insight here]( SPONSORED BY CHAIKIN ANALYTICS A Wall Street legend just hit the "buy" button [Marc Chaikinâs Power Gauge]( system is lighting up for a âbuyâ. The Wall Street legendâs $5,000 system is used by hundreds of global banks, hedge funds, and brokerages to indicate [the rating]( â bearish, bullish, or neutral â of individual stocks When market tides start to change, analysts and investors check Chaikinâs âPower Gaugeâ to assess not only a stockâs rating, but also its projected prices. And right now, Chaikinâs gauge is lighting up on one stock in particular. You can check out [three of the systemâs most popular stocks for free]( â including the [one thatâs lighting up right now](. [Discover More]( DisclaimerThis ad is sent on behalf of Chaikin Analytics, 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. Privacy policy. When you support our sponsors, you support us. Thanks for that. Cash On The Barrel [Cash On The Barrel] Whatâs going on here? Crude oil could cost over $150 a barrel if conflict in the Middle East intensifies, according to the World Bankâs [warning]( on Monday. What does this mean? The World Bank had expected the tepid global economy to drag commodity prices down by about 4% next year, with oil prices dipping to around $81 a barrel from this quarterâs $90. But the longer conflict in the Middle East continues, the more volatile energy and food prices may be. So far, oil prices have held up relatively steady. Yet in the worst-case scenario â thatâs if major producers like Saudi Arabia limit their exports of the slippery stuff â prices could fly to between $140 and $157 a barrel. And even if less extreme supply cuts take hold, oil could still hit up to $121. Why should I care? For markets: The tide that lifts all prices. European gas prices have already picked up this month, with investors concerned that supply may get scarce. And because energy is a key cost for every business, the price of goods and services across the board will likely go along for the ride if gas prices keep ticking upward. Thatâs a recipe for higher inflation and interest rates, the opposite of what the languishing global economy needs. The bigger picture: One manâs trash is anotherâs treasure. Big US oil companies will be foaming at the mouth thinking about the prospect of bloated oil prices. Major firms like Exxon and Chevron have recently made hefty acquisitions, underpinned by the belief that the world will still rely on oil for years to come. Whatâs more, the deals are designed to make the massive companies more flexible by enlisting smaller, local resources, allowing them to react faster when the volatile market shifts. So if the World Bankâs worst-case scenario does come true, you can bet Big Oil will be ready to act. You might also like: [Why oil prices matter, far more than you realize.]( Copy to share story: [( ð [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=Cash On The Barrel&utm_campaign=daily-global-01-11-2023&utm_source=email) ð¤ Partner with us Finimize is much more than just this newsletter: weâre a full-blown [one-stop shop]( for engaging with [modern investors](. So whether youâre a fintech, founder, or just a fed-up exec, rest assured â weâve got [the solutions]( you need. [Book A Demo]( ð¬ Quote of the day "What worries you, masters you." â John Locke (an English philosopher and physician) [Tweet this]( SPONSORED BY CHAIKIN ANALYTICS Unlock Wall Streetâs secret logic Marc Chaikinâs a major name on Wall Street, mainly thanks to his âPower Gaugeâ. Chaikinâs famed [stock indicator]( pointed investors toward Tesla, Moderna, Riot Blockchain, and Nvidia in their early days. And now, you can [give it a go](: search through thousands of stocks on the gauge, and see their future projected prices and whether theyâre rated as [bearish, bullish, or neutral](. Banks, hedge funds, and major brokerages pay up to $5,000 a month to access this system, but Chaikinâs giving you access to [the systemâs rating on three popular stocks for free](. [Find Out More]( DisclaimerThis ad is sent on behalf of Chaikin Analytics, 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. Privacy policy. When you support our sponsors, you support us. Thanks for that. ð¤ Q&A · [RE: Shock The System]( âWhatâs the impact of high interest rates on the stock market and the economy?â â Anees in Leicester, UK âThe US economy, for example, has various interest rates, and the central bank's federal funds (fed funds) rate is a key one when it comes to managing inflation. The fed funds rate directly impacts stocks and the economy, because higher rates can harm stock valuations. Remember: investors often value stocks based on the present value of their future cash flows. When interest rates rise, so does the discount rate used to convert future values into todayâs dollars, which means those forward-looking cash flows end up being worth less. Higher interest rates also make it more expensive to borrow money, which reduces corporate and consumer spending and dents economic growth.â [Finimize] ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
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