Whelp, it’s official!
The US economy is technically in a recession.
Defined by two consecutive quarters of economic decline measured by GDP, the largest economy in the world shrank by 1.6% in Q1 and 0.9% in Q2.
While the National Bureau of Economic Research is likely to not declare a recession for some time, the economy has never seen consecutive quarterly growth declines without being in a recession since 1949.
Despite this, the market rally continued as earnings reports sent mixed messages about the current state of the economy with many exceeding expectations and others flopping miserably.
Here is how major indexes performed this week:
If you enjoy our newsletter, please share this with a friend and subscribe so that we may deliver more value to our investment community!
Newsletter Sponsors
Imagine improving warehouse productivity by 35% to 50% with the click of a button. 🤯
That is exactly what Verses (NEO: VERS), a next-generation AI company and developer of AI operating systems, is doing.
During our exclusive Deal Night event, we sat down with Founder & CEO Gabriel Rene to discuss Web 3.0, big brand partnerships, and more! 💰
If you are intrigued by the possibilities of the Spatial Web and Artificial intelligence, you do not want to miss out on this enlightening interview with Mr. Rene and his company Verses.
The Newly Institute is a leader in mental health treatments for addiction and chronic pain in Canada. 🧠
Newly was founded with the goal of providing effective long-lasting change surrounding mental health illnesses within the community and for its clients.
Recently at our exclusive Deal Night event, we sat down with CEO Arthur H. Kwan to discuss Newly’s competitive advantage, contracts with veterans & first responders, plus their future outlook for the company. 🔥
If you are considering investing in the Mental Health Treatment/ Psychedelic space, you won’t want to miss out on this insightful interview. 🍄
Top News
Three People Charged in First-ever Crypto Insider Trading Case
The adoption of cryptocurrencies and blockchain technology is well underway, but that doesn’t mean there won’t be a few bumps along the road.
In yet another crypto scandal, the SEC issued its first-ever insider trading charge, thus strengthening the claim that some crypto assets are without a doubt securities.
🚨 Ishan Wahi, a product manager at Coinbase, his brother, and a friend, are being charged with wire fraud by the SEC.
🤫 Wahi shared confidential info about new crypto assets set to be released on the exchange, and his brother & friend bought and sold at least 25 of these for profit.
💰 In total, they acquired $1.5 million in illicit gains, trading at least 14 times between June 2021 and April 2022.
🚔 Ishan Wahi could face up to 40 years in prison, while his brother and friend are being tried for a 20-year sentence each.
🕵️ The SEC is now further investigating Coinbase (COIN) for allowing unregistered cryptocurrencies to trade on their platform.
Should crypto assets be considered securities?
Here is what our IG community had to say 👈🔥
The global space economy is “Ready for Take-off!”
The space race is on once again as countries ramp up their spending for space exploration and out-of-this-world business opportunities.
However, unlike the original contest set in the 1960s, the market is now dominated by commercial firms with approximately 90% of spacecraft launched being backed by the private sector.
💥 Spending in the sector surpassed a record $469 billion in 2021.
💨 With a 9% increase year-over-year, this is the fastest annual growth rate since 2014.
🚀 The first half of 2022 saw 75 rocket launches, matching the record pace set in 1967
👽 “Over 90 countries operating in space now,” with the US being the largest spender at $60 billion annually; 4x the next largest, China.
Looking to invest? Here is how small-cap space stocks performed YTD:
- Astra Space (ASTR) = -80.30%
- Mynaric AG (MYNA) = -27.67%
- Rocket Lab USA (RKLB) = -65.76%
Are you bullish on space stocks?
If you are curious to learn more about small-cap stocks, check out our recent article where we dive deep into profitable opportunities in the small-cap market.
Apple Inc., the recession-resistant retailer
It is no surprise that Apple Inc. set the standard for business success.
As the largest publicly traded company in the world, boasting a $2.64 trillion market cap, Apple is proving once again why its brand is more powerful than any other as they overcome the recessionary headwinds that plague financial markets today.
📱 Despite seeing “inflation in our cost structure […] in things like logistics and wages and certain silicon components, […] We had a record level of switchers and saw double-digit growth for customers new to iPhone,” CEO Tim Cook said.
🤑 The company posted a record $83.0 billion for Q3, with a gross margin of 43.26%.
🍎 Apple (AAPL) spent over $28 billion in share buybacks and dividends during the quarter.
Here is how Apple’s revenue streams are performing YoY:
- iPhone = $40.67 billion, +3%
- Mac = $7.38 billion, -10%
- iPad = $7.22 billion, -2%
- Services = $19.60 billion, +12%
- Other Products = $8.08 billion, -8%
Do you consider Apple (AAPL) to be a recession-proof stock?
Did You Know?
If you missed the 10 best days in the stock market since 1930, your total return would be 28% versus 17,715%. 😭
Timing the market is next to impossible and is difficult for even the most successful investors.
Renowned investor Peter Lynch argues, “Far more money has been lost by investors trying to anticipate corrections than lost in the corrections themselves.”
So rather than trying to buy at the bottom, here are the 5 best days and reasons why it is always better to be invested than to wait for the perfect opportunity:
🎁 March 15, 1933: Markets Re-Open After FDR’s Bank Holiday (+15.3%)
💪 October 6, 1931: Hoover’s Attempts to Restore Confidence in Banks (+14.9%)
📉 October 30, 1929: The Day After the Stock Market Crash of 1929 (+12.3%)
🧑🌾 September 21, 1932: Farmers Get a Helping Hand (+11.4%)
👼 October 13, 2008: Central Banks Come to the Rescue (+11.1%)
What is your most successful investment thus far?