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US rate cut predictions, Uber's major debt, and a strange obsession with fridges | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for September 7th in 3:13 minutes.   ✍️ You can spend 20 seconds watching one to three TikToks, depending on your attention span. Or you could complete [this 20-second survey]( and potentially win some Finimize swag. (Both is fine, too.) [Fill in the quick survey]( Today's big stories - The latest US jobs report left markets unsure about the size of the Federal Reserve’s long-awaited rate cut - How to stay on top, even when the winners stop winning – [Read Now]( - US companies broke records in the bond market, raising $80 billion in a week alone Leave It To The Imagination [Leave It To The Imagination] What’s going on here? The US job market [played]( it cool in August, producing data that left the market guessing about the size of the Federal Reserve’s (Fed’s) next move. What does this mean? Nonfarm payrolls take stock of employment levels in the US every month, excluding a few industries like farming. This time, they were decent – but only just. The US created 142,000 new jobs, easily higher than July’s 89,000 but lower than the 161,000 the number crunchers had predicted. Plus, the US Labor Department revised July’s numbers – which were already low enough to scare investors away from US markets – downward by 25,000 jobs. But unemployment figures softened the blow, easing from July’s 4.3% to 4.2% as predicted, while the average hourly wage was a better-than-expected 3.8% higher than last year. Why should I care? For markets: The financial equivalent of a double espresso. The Fed is most likely to cut interest rates if the economy is struggling while inflation is, for the most part, under control. So the US economy could soon feel the effects of lower interest rates. Cheaper borrowing costs would spur on businesses and individual spenders. Plus, lower rates would make savings accounts less lucrative, so Americans could be tempted to take their cash out of piggy banks and into the stock market. The bigger picture: Alexa, play “Too Little, Too Late” by JoJo. Traders are pretty sure that the Fed will cut its key rate when it meets later this month. The question is by how much: 0.25 or 0.5 percentage points. They’re also predicting more than eight cuts before the end of next year. But investors are worried that the central bank has left rates too high for too long, putting too much pressure on companies and the broader economy. And they’re not just practicing their “I told you so”s, they’ve been ditching stocks in anticipation. You might also like: [Here’s how Warren Buffett’s been investing.]( 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=Leave It To The Imagination&utm_campaign=daily-global-07-09-2024&utm_source=email) Analyst Take Nothing Stays On Top Forever. Here’s How To Deal With That. [Nothing Stays On Top Forever. Here’s How To Deal With That.]( By Russell Burns, Analyst The [biggest companies]( by market value won’t hold their crowns forever: that exclusive club has a revolving door. Innovation, disruption, and competition [keep]( it spinning, with some firms on the way in and others on the way out. And, sure, you could spend hours trying to predict which businesses will occupy the world’s [top ten spots]( a decade from now and still get it wrong. Or you could adopt a simple investing approach that keeps you [winning]( no matter how the group changes. That’s today’s Insight: [how to always be investing in the world’s biggest stocks](. [Read or listen to the Insight here]( You’ve got the keys, now it’s time to start the engine There’s no getting around it: today’s markets are volatile. But if you have steady hands and nerves of steel, you could use Leveraged and Inverse ETFs to [use market movements to your advantage](. You need to know how to use them correctly, though. Leveraged trades mean you can amplify your gains, sure, but the same goes for your losses. Inverse ETFs see you [bet against the market without shorting an asset](. And if you’re going against the grain, you’ll need to have conviction. So we’ve [worked with Direxion]( – the investing platform aimed at decisive investors – to develop a [free guide]( covering the risks, rewards, and need-to-knows of Leveraged and Inverse ETFs. [Read The Guide]( Debt Ahead [Debt Ahead] What’s going on here? Major US companies like Uber [raised]( record-breaking debt this week, racing to make their mark before the next president does. What does this mean? Bonds are the formal version of asking a pal to spot you. Companies sell them to line their coffers quickly. And in return for buying those bonds, investors are paid interest until they get their capital back. Right now, that’s exactly what businesses need. See, they’re worried about the US election: if the next president hikes tariffs and taxes, that could push up inflation and, in turn, interest rates. So in a bid to bring expensive projects forward, companies are selling bonds – and fast. Almost 50 US companies raised a combined $80 billion through bonds this week, with the first $72 billion pulled in during a record-breaking two days. Why should I care? For markets: Your perception shapes your reality. That’s the sort of frenzy you’d only expect after a serious interest rate cut. After all, lower rates make it easier for companies to keep up with interest payments on their debt. Thing is, traders are already expecting the Federal Reserve to start slashing rates, so they’ve priced opportunities as if we’re a few cuts deep – even though rates haven’t been so much as kissed with scissors. That’s a self-fulfilling prophecy. By assuming lower rates, traders have effectively slashed borrowing costs themselves: rates for credit-worthy companies have dropped to a two-year low of 4.8%. The bigger picture: The corporate world isn't all bad. Interest rate cuts are a buoy for bonds. Their prices rise as interest rates fall, padding out the portfolios of the investors who own them. And corporate bonds are especially attractive since they hand out higher returns than government bonds do. On top of that, lower rates make it cheaper for companies to borrow money. And because that bolsters their financial security, investors feel more confident lending them money by buying their bonds. You might also like: [Where in the world you might find the best dividend stocks.]( 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=Debt Ahead&utm_campaign=daily-global-07-09-2024&utm_source=email) 💬 Quote of the day "We travel, some of us forever, to seek other states, other lives, other souls." – Anais Nin (a French-American diarist and essayist) [Tweet this]( 🚀 Get the inside scoop from the biggest leaders in finance Are you in financial services or fintech? We've got something for you. Introducing our [new monthly newsletter]( featuring top insights from leaders at UBS, Citi, BlackRock, Revolut, and more. Get actionable advice on marketing, product building, and leadership in financial services. This week: [Finimize VP Max Rothery interviews Alex Craddock](, Global CMO at Citi and former CMO at BlackRock and Hewlett-Packard. Under his leadership, iShares' assets grew by nearly two trillion dollars, and Hewlett-Packard became the number-one PC brand globally. [Get the full interview and subscribe to the monthly newsletter](. [Subscribe To The Retail Investor Insider]( 🎯 On Our Radar 1. We have officially flown too close to the sun. Our obsession with comfort has [blacklisted the briefcase](. 2. Like Google maps, but for technical ETFs. [Direxion's guide to trading leveraged and inverse ETFs is live.](* 3. Style over substance, and then some. [Fridgescaping]( is the latest cause for outrage on the internet. 4. The selling is arguably more important than the buying. Here’s how to [nail your options strategy](. 5. Air is different here. [Yellowstone]( makes tourists crazy. When you support our sponsors, you support us. 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