💲 Capital One's capital won

Capital One used its cash to take over the credit card scene | China cut an interest rate, eager to turn its ailing property market around | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for February 21st in 3:15 minutes.   🔒 Even if you're on the pulse of financial news, it's tough to decide whether opportunities deserve your investment or your ignorance. So join us for [Unlocking Trading Opportunities In 2024]( next Monday, and find out when to seize the day and when to stay away. [Grab your free ticket]( Today's big stories - Capital One agreed to buy Discover Financial for $35 billion, dominating the credit card scene in the process - Forever is a long time, but these “buy-and-hold forever” fund picks are aging well – [Read Now]( - Chinese authorities took a healthy slice out of a key mortgage rate, a last-ditch effort to keep the property market from crumbling Take The Credit [Take The Credit] What’s going on here? Capital One planned to [buy]( banking and payment processing firm Discover Financial Services for $35 billion, and there will be nothing humble about the US’s soon-to-be biggest credit card company. What does this mean? Capital One’s deal is one of the credit industry’s biggest since the 2008 crisis. It’s an all-stock transaction, where the Warren Buffett-backed credit company will pay Discover shareholders a little more than a Capital One share for each of their existing ones. That seems like a decent trade: that one-and-a-bit share was worth 26% more than a single Discover stake on the Friday before the news broke. When the dust settles, the combined twosome will become the biggest credit card company in the US, leaving JPMorgan Chase and Citigroup in the rearview mirror. Why should I care? Zooming in: Spend, minions, spend. Capital One is vying to create a payment network strong enough to rival the likes of Visa, Mastercard, and American Express. More spenders use credit cards these days, after all, not least because punchier prices are making their debit cards and coin purses dustier than usual. That’s a dream for banks, since they take home a percentage every time a shopper swipes the plastic. Capital One has lined up just the right partner, then: Discover's network business means it has some sway over the fees that vendors pay. The bigger picture: Direct debits are the American Dream. US households now owe a record-breaking $1.1 trillion from credit cards alone. In fact, with nearly two-thirds of American homes relying on credit cards, the average household has $5,875 to pay off. Today’s eye-watering interest rates will only make those debts more expensive to keep up with. So unless the Federal Reserve suddenly decides against keeping rates higher for a while longer, American borrowers will find it increasingly tricky to pull themselves out of the red. You might also like: [How mergers and acquisitions help or harm your portfolio.]( 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=Take The Credit&utm_campaign=daily-global-21-02-2024&utm_source=email) Analyst Take How Ten “Forever Funds” Have Fared Over the Past Five Years [How Ten “Forever Funds” Have Fared Over the Past Five Years]( Way back in 2019, our partners at interactive investor asked some investing pros to help them come up with ten [“buy-and-hold forever” funds](. Now, markets have been [through a lot]( since then – the pandemic, the inflation, and some sharply rising interest rates. And so, it might seem like a rough period over which to evaluate an investment’s performance, but [evaluate they did](. They took a look at the old list, tossed out a few, and added a few [new ones]( in. That’s today’s Insight: [how ten “buy-and-hold forever” funds are doing, five years on](. [Read or listen to the Insight here]( SPONSORED BY STREETBEAT Your ideal portfolio, made just for you In the realm of investing, one size does not fit all. After all, your financial aspirations and interests are unique to you. Now, you can use [Streetbeat’s AI-powered financial advisor]( to craft a personalized portfolio that represents your interests and directs you toward where you want to be financially. So whether you’re banking on [green energy]( to build up your kid’s college fund, or trying to profit from a pivotal trend like [artificial intelligence](, Streetbeat can create a portfolio that fits just right. You won’t fall off track if you forget to check in, either. [Streetbeat’s AI]( automatically rebalances your portfolio to keep it aligned with your standards and preferences. Plus, it’ll keep you clued in, analyzing market data and sentiment to tell you why markets are moving – and what that means for you. [Unlock the power of knowledge with Streetbeat](. [Find Out More]( Streetbeat, LLC ("Streetbeat") is an SEC-registered investment adviser. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Any historical returns, expected returns or probability projections are hypothetical and may not reflect actual future performance. See Terms and Conditions at [Streetbeat.com](. When you support our sponsors, you support us. Thanks for that. Stack The Odds [Stack The Odds] What’s going on here? China [cut]( an important mortgage rate, desperate to stop the teetering property market from toppling the economy completely. What does this mean? A house is the biggest purchase that most folk will ever make. So when property prices are on the slide, as they have been in China for years, that undermines homeowners’ confidence in their finances as a whole. That makes them hold back from all sorts of purchases, slowing down the economy in the process. So by cutting a common mortgage rate, China’s banks hope to drum up demand for homes and pull up house prices. If that works, China’s under-the-fire, debt-laden property developers might finally catch a break. Why should I care? For markets: Bigger buildings, bigger issues. Real estate prices around the world were on a steady climb for more than a decade, when cheaper mortgage rates and more predictable economies made buying property a less loaded decision. Then the pandemic stunted supply chains, sparking higher prices and interest rates – not to mention the shift toward remote working and countryside living. That landed commercial real estate in a particularly rough patch: owners of office buildings are struggling to fill their blocks or afford more loans to tide themselves over, causing concern for the small banks that lined developers' coffers back when business was better. The bigger picture: China’s falling off-balance. China’s at risk of falling into a “balance sheet recession” – and that’s not just a problem for the country’s dorkiest accountants. That’s the term for when a significant portion of businesses or everyday consumers are focused only on paying off debt, steering clear of spending or investing. Not only does that stop any cash from flowing into the economy, but it turns them off borrowing any more cash. So even if China makes loans more affordable, there’s no guarantee that borrowers would bite. Economists’ mounting sense of déjà vu doesn’t bode well for China: Japan’s balance sheet recession led the country into its infamously lackluster “Lost Decade”. You might also like: [Your real estate investing options, from your own home to property funds.]( 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=Stack The Odds&utm_campaign=daily-global-21-02-2024&utm_source=email) 💬 Quote of the day "I cry out for order and find it only in art." – Helen Hayes (an American actress) [Tweet this]( SPONSORED BY AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS (AAII) Even the best do self-improvement [AAII has a stock screener]( for every investor, whether you’re into data or expert philosophies. The best don’t rest on their laurels, though. If they did, they wouldn’t be the best for long. That’s why [AAII just upgraded its pro-level stock screeners](, making them even more swish and nifty. Now, you can tailor your investment search with [custom screeners](, using personalizable filters – like toggles for large-cap companies only or quantitative boundaries – to narrow down your options. So not only can you see the [stocks, mutual funds, and ETFs]( that suit your goals, budget, and preferences, but you can compare them like-for-like and save your screens for future reference. Forget about setting your Sunday aside for desk research, and [discover the power of screening tools with AAII](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Romance is overrated. Folk are [buying homes with their friends now]( – but they might be in for some nasty surprises. 2. Bitcoiners and gold bugs both believe their favorite investment towers above the rest. Here's why [mixing the two could spell good news]( for your portfolio.* 3. Reality TV doesn’t have to be vacuous. Just check out [the latest series of Love Is Blind](. 4. Robinhood is coming to the UK. Here's your deep dive into [how the neobroker became the best in class](. 5. Laziness is a virtue. The [Dutch concept of Niksen]( could show us why. *Stocks is a derivative product offered by Change Securities B.V. that replicates the performance of your favorite companies’ shares - full or fractional. When you support our sponsors, you support us. Thanks for that. SPONSORED BY HEALTHWORDS.AI [HEALTHWORDS.AI]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live Share the stage with financial legends like Ray Dalio, Cathie Wood, and Jamie Dimon Over 70,000 forward-thinking investors attended our events last year, eager for insights from the world's finance leaders. Now it's your chance to [engage directly with a vibrant community of active retail investors](, dive deep into their needs through live interaction, and amplify your solutions with our focused, event-driven [multi-channel marketing approach](. 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