Investing News / Industry

Warning: A Recession is Here

  • Edge Editorial Team

    At Edge Investments, we make investing in small cap stocks enjoyable and edge-ucational. We are here to teach you about investing, keep you up to date on news, and help connect you with companies that you may have a desire to invest in.

    View all posts

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:


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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?

 

 

 

 

Disclosure/Disclaimer:
We are not brokers, investment, or financial advisers; you should not rely on the information herein as investment advice. If you are seeking personalized investment advice, please contact a qualified and registered broker, investment adviser, or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Please do your own research before investing, including reading the companies’ public filings, press releases, and risk disclosures. The company provided information in this profile, extracted from public filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it. The commentary and opinions in this article are our own, so please do your own research.
Copyright © 2023 Edge Investments, All rights reserved.

  • Edge Editorial Team

    At Edge Investments, we make investing in small cap stocks enjoyable and edge-ucational. We are here to teach you about investing, keep you up to date on news, and help connect you with companies that you may have a desire to invest in.

    View all posts

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