💸 To buy, or not to buy

The US didn't get the holiday present it wanted | China's carmakers missed their alarm | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for January 6th in 3:15 minutes.   ☕️ Finimized over an oat milk latte at [The Milkman]( in Edinburgh, UK (🌨 6°C/42°F) Today's big stories - The US economy added more jobs than expected in December, prolonging the Federal Reserve’s post-festive headache - These five questions can help you decide how you really feel about stocks – [Read Now]( - Chinese carmakers fell behind their targets, as tough competition in the world’s biggest car market left (almost) no winners You Wish! [You Wish!] What’s going on here? The Federal Reserve (the Fed) might’ve wished upon a star, but its American [employment]( Dream didn’t come true. What does this mean? The latest employment data showed that the US filled around 216,000 jobs in December. And while that’s more than expected, the main kicker was the salaries being paid out. Paychecks were just over 4% higher than the same time last year, and while that does mean Americans can keep up with rising prices, it also means companies can keep upping their price tags. That’s a spiral that could keep fanning inflation, so while the Fed hardly has a reputation for partying hard, the central bank is sure nursing a long-lasting headache right now. Why should I care? Zooming out: Mathemat-ish. Central bankers round their numbers even more than shoppers during January sales. Any inflation reading below 2.5% could be deemed “close enough” to the European Central Bank’s (the ECB) 2% target, the point at which interest rate cuts are firmly on the table. But any number above, and central banks will see red – or, at least, the 3% mark. So when December’s 2.9% stat landed on desks this Friday, the ECB will have noticed the uptick from November’s 2.4%. And even though economists expected a slight increase, that data could keep rate cuts off the table for longer. The bigger picture: Artificial intelligence versus real inflation. High interest rates might be keeping inflation steady now, but they were near zero for much of the last decade. That means something else had been keeping prices in check beforehand – and that could’ve been technology. Cost-saving tech like cloud computing solutions keep companies’ margins wide, and that means they don’t need to push high costs onto their customers in the form of beefier prices. So give it a few months or years, and artificial intelligence may work magic on firms’ books. If so, that should keep prices stable and shoppers happy. You might also like: [Americans are richer than ever](. 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=You Wish!&utm_campaign=daily-global-06-01-2024&utm_source=email) Analyst Take Stocks Are Expensive: That Doesn’t Mean You Should Stay Away [Stocks Are Expensive: That Doesn’t Mean You Should Stay Away]( By Paul Allison, CFA, Analyst It seems like everyone’s talking about how high stock prices are right now. And let’s be real, [they are](. But that doesn’t necessarily mean you should stay away: expensive stocks might still be [a good value]( for your portfolio. To decide whether they are, you just need to ask yourself a [few simple questions](. That’s today’s Insight: [the simple quiz that can help you decide how you really feel about stocks](. [Read or listen to the Insight here]( SPONSORED BY PERCENT A different way to diversify your portfolio Stocks and bonds are great and all, but they aren’t your only option these days – far from it. There’s a [multi-trillion dollar industry]( that large institutional investors (think asset managers and hedge funds) have been investing in for years. Now, with [Percent](, you can access it too. We’re talking about [private credit](: a whole asset class made up of privately negotiated loans, bonds, and other things that don’t trade on public markets. And because banks aren’t involved, the returns on offer are often higher – especially when you compare them to the risks involved. Percent’s the only platform that exclusively offers private credit deals – and in 2023 to date, it had an [average interest rate of over 18%](. If you’re an accredited investor, investing through Percent could help you [diversify your portfolio and increase your returns]( at the same time. You only need $500 to get started: [visit Percent today](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Fully Loaded [Fully Loaded] What’s going on here? Only a third of Chinese carmakers [hit]( their sales target last year, as the world’s biggest car market filled to the brim with competition. What does this mean? Sales of EVs and hybrid cars were 38% higher last year than the one before, with China’s Passenger Car Association reporting a figure just shy of 9 million on Wednesday. But clearly, Chinese carmakers had bigger plans. Of the thirteen brands that made their sales figures public, just four hit their targets. The ones that churn out traditional gas guzzlers fell particularly behind, with only Geely Automobile living up to its own projections. Mind you, electric carmaker BYD stole the focus from any failures, meeting its ambitious target to dethrone Tesla as the world’s top-selling EV maker. Why should I care? For markets: Vacations can be expensive. China’s appetite for EVs is sending a rumble through the car market. But the problem is that electric carmakers are hustling to satiate those buyers, adding more competition to an already crowded market. So for brands that missed the chance to establish themselves as household names in the early days, the most lucrative move could be to funnel EVs into foreign markets. Russia, for example. The only problem: China gives its carmakers hefty tax breaks and subsidies, so they’ll need to watch their books carefully if they expand into less generous areas. The bigger picture: Carmakers sneeze, and chipmakers catch a cold. Carmakers stocked up big-time on the chips they need to run fancy gizmos and gadgets, anticipating more sales than they won in the end. So with inventories nice and fat, chipmakers aren’t having much luck flogging their wares. Mobileye – which makes chips for driver-assistance systems and counts Porsche and Volkswagen as customers – recently unveiled a disappointing full-year revenue forecast. And because that made investors wary of future business from carmakers, they sent Mobileye’s shares down by a quarter on Thursday. You might also like: [How the auto industry is driving toward a better tomorrow.]( 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=Fully Loaded&utm_campaign=daily-global-06-01-2024&utm_source=email) 👀 Get eyeballs on your hard work Content is a proven way to keep customers engaged – even for businesses that have nothing to do with words, audio, or pretty pictures. Discover how [the right content could keep your customers coming back for more](, no matter your business model. [Book A Demo]( 💬 Quote of the day "Everyone is a genius at least once a year. The real geniuses simply have their bright ideas closer together." – Georg C. Lichtenberg (a German physicist) [Tweet this]( SPONSORED BY ISHARES Invest like the pros Only the very best investors can make money, time after time, by choosing single stocks. Even if you crack one prediction, a letdown on another could cancel out your returns – or leave you in the red. That’s especially true in [today’s climate of heightened tension and volatility](. This year, [cash was the place to be](: investors flocked to savings and money market investments in record numbers, enticed by higher interest rates and the prospect of waiting out some market turmoil. But now and in 2024, [cash could lose its cache if stocks and bonds rally]( as has been seen historically during [“the pause period”]( – that is, the months between the final interest rate hike and the first cut. Explore how to access these themes by [browsing ETFs on iShares.com](. [Find Out More]( iCRMH1223U/M-3292428 When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Your Sam Sulek era may need to be postponed. Gym-goers don’t want you [filming their workouts](. 2. Theory will only get you so far in the real world. Here's how to [master options trading](.* 3. Sorry, Bob. The [hairstyle of the year]( has been decided – and it’s a long shot. 4. You should take crypto protection seriously. Here’s [what makes the OG blockchain safer]( than Fort Knox.* 5. Eat it up. We’re leaving [these food trends]( in 2023. When you support our sponsors, you support us. Thanks for that. SPONSORED BY HEALTHWORDS.AI [HEALTHWORDS.AI]( 🌍 Finimize Live 🤩 Coming Up Soon... All events in UK time. 💸 [Your 2024 Crypto Investing Roadmap](: 5pm, January 16th ❤️ 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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