👀 Investors broke a fund record

Investors made an unconventional decision, Japan's stock market tumbled, and tips for making friends as an adult | [Finimize]( [TOGETHER WITH](#) Hi {NAME}, here's what you need to know for September 28th in 3:15 minutes. - Investors have pushed a record $6.8 trillion into US money market funds - How to prepare for the decline of today’s stock market winners – [Read Now]( - Japan’s surprise leadership result sent a shock through the country's stock market 😎 They say nothing is for free, but some Finimize socks could well be. Complete this [super-quick survey]( for us and you could win your very own pair. [Fill it in here]( Market Day [Market Day] What’s going on here? Investors went mad for US money market funds, leaving them stuffed with a record-breaking $6.8 trillion. What does this mean? Money market funds park cash in short-term, super-safe debt like government bonds. Investing in one is similar to keeping cash in a savings account, in that you can dip in and out easily. And since the Federal Reserve’s (Fed) bumper interest rate cut, investors have piled $126 billion into these funds – even though their average returns have fallen. From record highs of 5.2% in December, fund yields are currently sitting around 4.9%. But, wary of a potential recession, it seems investors are playing it safe – despite data suggesting the US is in the clear, at least for now. Why should I care? For markets: So much for stocks. Now, rate cuts would usually make stocks look more attractive – not money market funds. Lower interest rates reduce returns on things like bonds and savings accounts, so investors tend to eye up riskier assets for more lucrative opportunities. Plus, stocks and corporate bonds have historically performed well in the year following a rate cut… If the economy holds steady, that is. The bigger picture: This (probably) isn’t forever. It’s possible that Americans are just stashing their cash until they decide where to put it, sure. But skeptics aren’t convinced that money will be flooding into stocks anytime soon, and you can see why. Economic concerns aside, stock valuations are touching the ceiling – leading many investors to wonder whether there’s any room for them to grow. Plus, there’s the small issue of the big US election looming ahead. Either way, data shows that money market fund assets usually peak around nine months after the Fed starts trimming rates – so even if the cash is destined for stock markets, we could be waiting a while. You might also like: [Geopolitical worries, market fears, and the investment everyone’s using to bear them both](. 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=Market Day&utm_campaign=daily-global-28-09-2024&utm_source=email) TODAY'S INSIGHT The Bigger They Are, The Harder Tech Titans Could Fall Theodora Lee Joseph, CFA [The Bigger They Are, The Harder Tech Titans Could Fall]( [Intel, Starbucks, and Estée Lauder]( have something in common – and it’s not the fact that their products are indispensable to New York’s most glam and caffeinated workers. Once market darlings, all of their shares have plunged between 20 and 60% this year, proving that even the brightest stars can fade. History shows that no company stays on top forever, so it's essential that retail investors grasp [the life cycle of these market leaders]( and avoid putting too much weight in their portfolios. That’s where [Bridgewater]( comes in: it’s done the research and I’ve pulled out the key takeaways, zeroing in on [how today’s tech giants might – or might not – hold onto their top spots](. That’s today’s Insight: [how to prepare for the market’s winners to become the losers](. [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]( Changing Of The Guard [Changing Of The Guard] What’s going on here? The election of a new ruling party leader in Japan caused futures – where investors agree to buy or sell an asset at a set price on a future date – of the country’s Nikkei 225 stock index to drop 4%. What does this mean? Elections spell economic uncertainty by nature: a new, different government can easily mean fresh policies with difficult-to-predict outcomes. Japan’s recent leadership contest is a prime example. See, a “continuation” candidate with similar policies to the previous head honcho was expected to win. Instead, a totally different contender won the leadership election and will become prime minister next week. The result means current policies of uber-low interest rates – ones that encourage a weaker yen and buoy the export industry – will probably change. So it makes sense that the yen rallied 2% against the US dollar while Nikkei 225 futures stumbled. Why should I care? For markets: It’s up in the air, for now. With the country’s surprise new leader, it’s expected that the Bank of Japan will push interest rates higher – probably in December. And that new leader has also hinted at increasing taxes on companies' profit. The reasoning: big businesses – which have seen profit spurred on by a weaker yen – ought to share the burden of inflation. So far, it’s been Japanese consumers contending with the harshest pinch from higher costs. The bigger picture: No one’s an island… except Japan. If interest rates are, indeed, on the way up in Japan, that’ll be quite the contrast to most of the developed world. Elsewhere, they’re largely being trimmed as inflation concerns ease. That matters: the difference between interest rates is a key driver of currency movements. The Japanese yen fell against a host of major currencies over the last couple of years, as many central banks raised interest rates while those in the Land of the Rising Sun stayed put. But as rates are now heading north in Japan and south elsewhere, the exact opposite is happening. You might also like: [How the pros are investing ahead of the US election](. 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=Changing Of The Guard&utm_campaign=daily-global-28-09-2024&utm_source=email) QUOTE OF THE DAY "All you need is the plan, the road map, and the courage to press on to your destination." – Earl Nightingale (an American speaker and author) [Tweet this]( 💡 We'd look good together Our [million-strong community]( is filled with active, switched-on investors, constantly looking for tips and tricks that will help them increase their net worth. So if you’re looking to [promote a finance-related product or service](, find out how we might pair up in a partnership you can bet on. [Drop us a line](. [Get Your Name Out There]( 🎯 On Our Radar 1. One is the loneliest number. It’s hard to [make friends as an adult](. 2. Back to the futures. Get to the root of trading futures and (why you’d want to) with this [free guide](.* 3. Salt of the earth. A ruby [grew out of a platinum ring](. 4. Active ETFs are evolving fast. Find out how the right ones could help you [beat the market](.** 5. There’s more to life than looks. Meet Wild Thang, [“the world’s ugliest dog”](. ** Your capital is at risk. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... 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