🎸 Panic at the stock market disco

Shock, shock, horror | Driving to the stock market | Hey {NAME}, you’re on the free edition of Finimize. [Upgrade to Premium](: no ads, a third story every day, free events, and loads more on our mobile app. [Start for free here]( SPONSORED BY Hi {NAME}, here's what you need to know for March 30th in 3:00 minutes. 📝 Investor sentiment is currently balanced between the bulls and the bears and we’re keen to know [where you sit]( on that spectrum. Take our first-ever [Casual Investor Survey]( and have your say about what happens next to the economy, stock markets, and cryptocurrencies. Today's big stories - A single investment manager sold over $20 billion worth of shares last week, unnerving investors - Morgan Stanley’s global oil strategist shares his analysis on whether oil’s price is set to squeeze higher or fall away – [Read Now]( - British used car retailer Cazoo agreed to list shares in the US via an on-trend special-purpose acquisition vehicle Egos Trip [Egos Trip] What’s Going On Here? Obscure US [investment firm]( Archegos Capital Management [sold]( more than $20 billion worth of shares late last week, briefly unnerving investors around the world. What Does This Mean? American media companies ViacomCBS and Discovery saw their stock prices plummet 27% on Friday, marking their worst days ever. Chinese internet stocks such as Baidu, Vipshop, and Tencent Music tanked too, albeit a bit less dramatically. Such large share-price moves at such large public companies mean there has to be hefty selling going on somewhere – and when it emerged that those chunky trades originated from a single seller, other investors began to freak out. Concerned that Archegos knew something they didn't, they started preemptively selling shares of other companies too. But they needn’t have worried: it was just another case of one investor’s big bets gone horribly wrong…  Why Should I Care? The bigger picture: Be careful when betting with other people’s money. Archegos had borrowed heavily from various banks to invest – and that’s not for the fainthearted. Such [leverage]( artificially increases the size of your bets: any gains will be bigger, but losses are supersized too ([tweet this](). And if investments made on leverage start to falter, watchful lenders will demand extra deposits. Failure to respond fast enough leads to forced selling of those investments in an attempt to limit the lenders’ losses – which is why $20 billion worth of shares got dumped on Friday. For markets: Business as usual. The fire sale might’ve been unsettlingly unprecedented in size, but its repercussions should be relatively contained. Besides Archegos, the only big losers appear to be the banks that lent it money – most notably [Nomura and Credit Suisse](. US and Chinese stock markets barely blinked on Monday, and the specific shares involved largely remain above where they were at the start of the year. You might also like: [How borrowing money can boost your returns – and your losses.]( 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=Egos Trip&utm_campaign=daily-global-30-03-2021&utm_source=email) 2. Analyst Take What’s Next For Oil’s Price? What’s Going On Here? As a savvy investor, you’ll probably know that professional investors’ [number-one concern right now is rising inflation](. You’ll also probably know that [investing in oil]( is one popular way to shield your portfolio from inflation’s cash-corroding effect. But there’s a great debate about the future direction of oil’s price. See, the rise of electric vehicles will mean less demand for oil, while falling investment by oil companies could mean [its supply might soon run low](. And put simply, whether oil’s demand or supply peaks first could determine whether [oil’s an attractive investment]( – sending its price higher – or a dud that loses you money. There’s no one better to share their [analysis on this key issue]( than Martijn Rats, Global Oil Strategist and Head of European Oil & Gas Equity Research at Morgan Stanley. So that’s today’s Insight: [Martin’s expert take]( on where oil’s going next and whether prices are poised to shoot up or crash down. [Read or listen to the Insight here]( SPONSORED BY INVESTENGINE Grab your tax-free ISA while you can The April 5th deadline to [use your ISA allowance]( is fast approaching. Quick reminder: you can [invest up to £20,000 a year]( without paying a penny in tax when you invest in an ISA. So you might want to make an investment before the cutoff – and with InvestEngine, you’ll get a [£50 welcome bonus](* when you do. InvestEngine’s [low-fee portfolio]( is tailored to you and built for income or growth. It’s easily accessible with no setup fees – and if you already have an ISA, you can transfer it for free. Once you’ve put your funds in InvestEngine’s capable hands, they’ll manage everything for you. Just fill in their questionnaire and kickstart your investments with that [£50 welcome bonus](. [Get Started]( Disclaimer: Capital at risk. ISA rules apply. *Welcome bonus terms and conditions apply, subject to minimum investment. Investengine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority FRN [801128]. [Turn off adverts]( Cazooal Hookup [Cazooal Hookup] What’s Going On Here? British used car retailer Cazoo [agreed]( on Monday to publicly list shares in the US via an on-trend [special-purpose acquisition vehicle]( (SPAC). What Does This Mean? Everything’s happening online nowadays – including car sales. Cazoo aims to provide a premium preowned purchasing experience: it buys up old cars, reconditions them, and then sells them on through its website. There’s doorstep delivery, and if you’re not satisfied then the company – unlike your standard sawdust-in-the-gearbox seller – simply picks the car back up. The approach seems to be catching on: Cazoo expects its sales to grow 300% this year. Something similar's happening to the company’s valuation, too. Cazoo’s agreement to merge with the Ajax I SPAC – an already-listed “blank-check” company whose sole aim is to merge with another firm – values the used car business at $7 billion: a nice bump from [$2.6 billion]( at its last funding round in only October. Why Should I Care? For markets: Europe is more profitable, for a change. Cazoo’s US contemporary Carvana would probably prove stiff competition: its share price has increased fourfold in the past year, giving it a market value of just under $45 billion. But Cazoo reckons the European market is much more attractive than America anyway, with a higher population density setting it up for greater profitability. Eventually, that is: the company doesn’t expect to actually make any money until 2024. The bigger picture: SPAC, USA, OMG. Europe’s [$1 billion]( worth of SPAC listings over the past year is peanuts compared to the US’s $300 billion. That could be down to more favorable stock exchange [rules]( – but Europe’s startups also tend to be twice the age of US equivalents when they make their stock market debuts. By that stage they’re often more profitable and likely less interested in handing over an up to 20% ownership stake to the SPAC’s sponsor. You might also like: [The opportunities and risks of investing in SPACs.]( 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=Cazooal Hookup&utm_campaign=daily-global-30-03-2021&utm_source=email) 💬 Quote of the day “Always work hard on something uncomfortably exciting.” – Larry Page (an American computer scientist and internet entrepreneur) [Tweet this]( SPONSORED BY INVESTENGINE Revitalize your income With interest rates on bank accounts offering next to nothing, [InvestEngine]( reckon it’s about time you start looking elsewhere for income. So they’ve come up with a smart and straightforward idea: income portfolios that offer yields of up to 4.6%* – depending on how much risk you’re comfortable with – and pay out monthly to your bank account. Simple as that. [InvestEngine’s]( fees are entirely reasonable too – just 0.25% a year. Visit their site to see which Income portfolio they’d suggest for you. [Find Out More]( Disclaimer: Capital at risk. *Estimated & variable yield as at 28.02.21. Investengine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority FRN [801128] [Turn off adverts]( 📚 What we're reading - How coronavirus hit the slopes ([Vanity Fair]() - Does microdosing work? ([LifeHacker]() - Know this about deepfakes ([Business Insider]() - Get $10 in free bitcoin with Swan ([Swan Bitcoin]()* *This sponsored content helps us keep the newsletter free. 🌏 Finimize Events 🌽 How to Get More Joy From Soy Learn how to profit from the oat milk lovers and apple tree huggers: join us on April 6th for [Crafting a Vegan Portfolio](. 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