Another confusing signal for the market

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Another confusing signal for the market There was some good news from yesterday’s inflation data. The producer price index was cooler than expected which softened the blow from Wednesday’s red-hot consumer price index data. Wholesale prices jumped 0.2% from the previous month. On a yearly basis, prices rose 2.1% for the highest level since April 2023. These data shows that the path toward the 2% level will be a difficult one. It was easy to bring inflation down from its sky-high level but the final mile will be tough. - “The inflation data are noisy, and the market reflects that reality. There are clear signs of disinflation in lots of places, but the last mile of the inflation fight is going to be the most difficult,” said Jamie Cox, managing partner at Harris Financial Group. After the data was out, New York Fed President John Williams unsurprisingly said that a rate cut is not going to happen anytime soon. Bank of America now sees the first cut happening in December: - “2024 is starting to look like 2015, but in reverse. Then the Fed signaled hikes it could not deliver; now the Fed may be signaling cuts that the inflation data do not justify,” BofA economist Michael Gapen said in a note. - “The acceleration of inflation this year makes a cut prior to December challenging in our view.” BofA economist Michael Gapen (Photo: CNBC) The central bank doesn’t have much case for cutting rates right now. The economy is growing. The labor market is robust. Inflation is rising (at least for now). So, it’ll be on the next few economic data to determine whether (1) inflation will cool down again and (2) the economy and the labor market show any signs of weakening. Today will kick off the earnings season with big banks reporting results. CarMax fell more than 11% on disappointing results yesterday. Stay posted for the results from the banking sector for some clues on the health of the economy. Need an Emerging Market Exposure? Don’t Sleep on This High-Flying Company Today’s Stock Pick: [Kaspi.kz]( (KSPI) If you hold a long-term portfolio, it might be good idea to hold some exposure to emerging markets. [Kaspi.kz]( is a stock that you absolutely need to be aware of. It was originally a retail bank that transformed itself into a digital banking powerhouse. Namely, it holds one of the most-used super apps in the world. It serves Kazakhstan, and it isn’t a country to sneeze at. Its population is fast-growing of 20 million people with nearly half under the age of 30. Believe it or not, nearly 70% of the population uses Kaspi’s app. The company is positioned for major growth because it can create plenty of services to keep growing its app. The app has the 2nd best ratio of average Daily Active Users to Monthly Active Users. In other words, people use Kaspi often in their daily activities. Moreover, the country is poised to cut interest rates that could accelerate economic growth, supporting consumer spending in Kaspi’s app. - "We posit that Kazakhstan's macro backdrop presents a favorable setup for the company and for shares over the medium term as inflation further decelerates and interest rates fall," Wolfe Research analyst Darrin Peller said in a recent note to clients. "These factors, in our view, point to a more encouraging consumer backdrop as discretionary spending power expands.” Kaspi is virtually the heart of the commerce in the country. In fact, out of 2 million businesses, 580,000 of them accept [Kaspi.kz]( payments. Now, the super app offers similar features like Venmo. Consumers can transfer money to each other. But it’s only one of many [features.]( It also offers “buy now, pay later”, loans to small businesses and consumer financing for auto purchases. It even offers grocery deliveries and travel/vacation packages. An online car marketplace is coming soon. The grocery business is growing rapidly. Active consumers exploded by 3.5 times in just one year! Consumers are also spending 3.3 times more on its grocery service year over year. This demonstrates the power of super apps — once it has consumers’ trust, it can expand other services rapidly. Kaspi doesn't hire drivers and couriers but its platform handles the entire delivery value chain to build its competitive moat. As you may guess, the company’s revenue and net income grew at a phenomenal rate. Revenue grew 51% year over year for 2023 while its net income jumped 44%. What’s more, the company expects its net income growth to be around 25% this year. It is a slight slowdown but still a good growth story for a company with a huge future. The future is extremely bright for this company. There are virtually unlimited number of products that Kaspi can release in the future. So, go and claim shares in this stock while it’s early. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](