Chinaâs growth slowed down | Goldman missed the mark | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for January 18th in 3:11 minutes. â ï¸ You might think that crypto would only add more risk to your portfolio. But join BITâs Ruolan Wang for [How To Hedge Against Volatility With Crypto]( on February 2nd, and find out how the temperamental digital assets could help safeguard your investments. [Get your free ticket]( Today's big stories - Chinaâs growth stalled in 2022, but its unexpectedly strong fourth-quarter figures gave hope for this year
- These three indicators are signaling a comeback for stocks â [Read Now](
- Goldman Sachsâs quarterly results missed expectations by a mile Hopping And Splashing [Hopping And Splashing] Whatâs Going On Here? Data out on [Tuesday]( showed that Chinaâs economy expanded by 3% in 2022 â the slowest rate of growth, excluding the pandemic years, for nearly half a century. What Does This Mean? Spending most of 2022 cooped up in lockdowns meant that China was always going to have a tough time hitting its ambitious growth target of 5.5%. And let's face it, the 3% that the country did achieve is pretty glacial by its own track record ([tweet this)](. In fact, last yearâs growth marked the first time in decades that the world as a whole outpaced Chinaâs economic performance. But itâs not a total sob story: the country had a bit more pep in its step as the year drew to a close, and the fourth quarterâs growth actually outstripped economistsâ predictions. So sure, Covidâs still a nuisance in China, but this weekend ushers in the year of the water rabbit, supposedly bringing patience and prosperity â so the country just might have luck on its side. Why Should I Care? Zooming out: See-saw.
Now that Chinaâs reopening, there's one worry niggling at economistsâ minds: whether this move will help or hinder the fight against inflation. See, some experts think that a reopened, re-invigorated China will be extra-thirsty for resources like oil, sending prices skyward. But others point out that an unfettered China could lead to unclogged supply chains and free-flowing goods, easing price pressures instead. Time will tell which factor packs a bigger punch⦠The bigger picture: Baby bust.
China's one-child policy was scrapped in 2016, so you might expect the birth rate to be booming â especially given the boredom and pent-up energy that lockdowns entail. But China's population actually fell for the first time in 60 years in 2022, and thatâs a problem. Just ask Japan: now labeled âthe land of the setting sunâ, its slipping population has held economic growth back for a generation. Maybe itâs time for a three-child policy. You might also like: [With less to drag on Chinaâs economy, hereâs where to look for opportunities](. Copy to share story: [( ð [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=Hopping And Splashing&utm_campaign=daily-global-18-01-2023&utm_source=email) Analyst Take
Stocks May Be Ready For A Breakout, According To These Three Indicators [Stocks May Be Ready For A Breakout, According To These Three Indicators]( By Russell Burns, Analyst Weâre only a couple of weeks into 2023, but the [S&P 500 is already dropping hints]( that this year could be an interesting one. And if â like me â youâre [obsessed with charts](, you might have [already noticed this](. If not, let me show you [three major technical indicators](, and explain what they say about the potential for a stock market rally. Thatâs todayâs Insight: [the three technical indicators that are pointing to a higher S&P 500](. [Read or listen to the Insight here]( SPONSORED BY IG New Year, new economy Well, maybe. The threat of a portfolio-busting recession is sticking around, so you might want to hold [some defensive stocks]( â thatâs ones like defense, tobacco, and pharmaceuticals. But headache-inducing inflation is expected to let up later this year, as are stock-denting interest rates. In that case, you might want to pick up [some so-called recovery stocks](. That leaves you with a heap of options, so maybe this will help: [IG]( has released its [top defense and recovery picks]( for the upcoming year. Get the rundown today: [discover what IGâs backing this year](. [Find Out More]( Disclaimer Your capital is at risk. The value of shares, ETFs, and ETCs can fall as well as rise, which could mean getting back less than you originally put in. All That Glitters Is Not Goldman [All That Glitters Is Not Goldman] Whatâs Going On Here? Investment bank Goldman Sachs reported some seriously disappointing fourth-quarter [results]( on Tuesday. What Does This Mean? Goldman Sachs isnât alone in laying off workers, but it has been wielding the job-cutting ax with particular gusto compared to other Wall Street residents. And now we know exactly why: the firm missed profit expectations by a country mile, which had a lot to do with slumping investment banking and asset management fees. Thatâs probably why the firmâs trying its best to Ctrl Z the hiring spree it went on when dealmaking was at its height â slashing jobs and other costs left, right, and center. But that frenzyâs come a bit late in the day, and some investors might not be impressed by Goldmanâs Johnny-come-lately cost-cutting antics. Why Should I Care? For markets: No rush for gold.
The world of investment banking is cyclical, and trading revenues and advisory fees ebb and flow â so by the time the results roll in, last quarterâs earnings are already ancient history. That means itâs not the quarterly sprint that counts: itâs all about the multi-year marathon. So sure, last quarterâs numbers were a disappointment â but Goldmanâs a finely-tuned long-distance runner, and there isnât any finish line in sight. Long-term shareholders know that too, which could be why the firmâs share price is still trading near all-time highs. The bigger picture: Banks bounce back.
After the financial crisis hit, experts worried that investment banksâ best days were behind them, and predicted theyâd never see pre-recession profit levels again. But the Wall Street titans clawed their way back, and of the five most famous banking firms, only Citigroupâs share price has been outstripped by the S&P 500 over the last ten years. Thatâs quite a feat for the industry, especially given that it seems to have ditched the profitable but questionable moves that landed it in hot water before. You might also like: [Blackstone expects these nine surprises in 2023](. Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
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