🤝 Congrats, JPMorgan

One big bank ruled them all | The UK and US struck the Houthi movement in the Red Sea | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for January 13th in 3:10 minutes.   🍌 Finimized over a bowl of granola at [Plenti]( in Madrid, Spain (🌤 4°C/40°F) Today's big stories - JPMorgan reported record-breaking profit, putting fellow big banks to shame - If Einstein were a retail investor today, he might like these two big ideas – [Read Now]( - The US and UK launched strikes in Yemen, targeting the Houthi movement that’s been compromising cargo ships Reputation Recuperation [Reputation Recuperation] What’s going on here? JPMorgan might’ve had a less-than-stellar final quarter of the year, but the banking goliath well and truly recovered by announcing a record-breaking full-year profit. What does this mean? JPMorgan made almost a third more profit than the year before, banking a record high just shy of $50 billion – and that was mainly thanks to rising interest rates. See, JPMorgan makes the bulk of its money by bringing in more interest from loans than it pays out. And last year, the bank used rising interest rates to its advantage, charging borrowers more than usual without paying as much interest out to saving account owners. The difference is known as net interest income, and that alone brought in almost $90 billion last year. Investors certainly saw the dollar signs: JPMorgan’s shares climbed 22% over the year. Why should I care? For markets: JPMorgan’s a big, fat fish in a small pond. JPMorgan’s success will only rub salt in other big banks' wounds. Bank of America fell short of expectations, while Citigroup rounded off its worst quarter in 15 years with expansive job cuts. But don’t write off the duo just yet: big banks’ results are often compromised by one-off snags, like underperforming trading teams or occasional chunky expenses. The bigger picture: Bad luck, little guys. Bigger is better, at least when it comes to running a bank during an economic downturn. JPMorgan’s hardened reputation makes borrowers and savers trust that if it came into trouble, the government would help steady the company and keep their cash safe. So while smaller banks are pulling up saving rates to incentivize customers to stick around, big banks like JPMorgan don’t need to follow suit. Plus, they can use that extra cash to scoop up any smaller institutions that crumbled under the pressure. You might also like: [How to invest in financial services 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=Reputation Recuperation&utm_campaign=daily-global-13-01-2024&utm_source=email) Analyst Take Two Places Where Einstein Would Invest Right Now [Two Places Where Einstein Would Invest Right Now]( By Theodora Lee Joseph, CFA, Analyst [Big ideas]( can get you far. That's not just a life lesson, it's true in investing too. So let's take a look at the two biggest ideas there are: [the space economy and the longevity economy](. If Einstein was a retail investor, they'd surely catch his eye. So that’s today’s Insight: [genius-level long plays about time and space](. [Read or listen to the Insight here]( SPONSORED BY ISHARES Invest like the pros Only the very best investors can make money, time after time, by [choosing single stocks](. Even if you crack one prediction, a letdown on another could cancel out your returns – or leave you in the red. That’s especially true in today’s climate of heightened tension and volatility. This year, cash was the place to be: investors flocked to savings and [money market investments]( in record numbers, [enticed by higher interest rates]( and the prospect of waiting out some market turmoil. But now and in 2024, [cash could lose its cache if stocks and bonds rally]( as has been seen historically during “the pause period” – that is, the months between the [final interest rate hike and the first cut](. [Explore how to access these themes by browsing ETFs on iShares.com](. [Find Out More]( iCRMH1223U/M-3292428 When you support our sponsors, you support us. Thanks for that. The Red Line [The Red Line] What’s going on here? The US and UK commenced [strikes]( against the Houthi militant group in Yemen. What does this mean? Many of the world’s most powerful armed nations have been at loggerheads over the last couple of years. So these days, the slightest threat of conflict can make folk call up a nuclear-bunker specialist. Thing is, the Iran-backed Houthi movement isn’t exactly popular in the Middle East. In fact, Saudi Arabia waged its own unsuccessful war against the group in 2015. So this pushback from the West isn’t likely to spill over into the region at large – but with the Houthi group vowing to keep targeting freight ships in the Red Sea, the battle won’t be quickly won or lost. Why should I care? For markets: This is our issue. The US and UK are making it clear that their red lines aren’t just written in ink. But no matter how much they reinforce their boundaries, the Houthis aren’t guaranteed to respect them. If the militant group keeps compromising cargo ships and oil tankers, goods traders will need to take longer – read: pricier – detours around Africa. That’ll make the contents of every precious shipping container more expensive. And don’t count on retailers to take the hit: they’ll pass on every cent they can to their customers, potentially stoking up inflation just when it’s showing signs of losing steam. The bigger picture: The new normal. Naturally, higher prices for oil and commodities will make just about everything on a store shelf more expensive. But no company wants to keep prices up for too long, otherwise budget-conscious shoppers could take their business elsewhere. That means they’ll cut costs elsewhere in their supply chain or switch to cheaper suppliers. So while conflict can spike costs at the time, the effects tend to level off after a few weeks or months. Just think: despite two wars raging, today’s oil price is lower than it was right before Russia invaded Ukraine. You might also like: [Geopolitics don’t matter to stocks, period.]( 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=The Red Line&utm_campaign=daily-global-13-01-2024&utm_source=email) 👀 Get eyeballs on your hard work [Content]( is a proven way to keep customers engaged – even for businesses that have nothing to do with words, audio, or pretty pictures. Discover how the right content could [keep your customers coming back for more](, no matter your business model. [Book A Demo]( 💬 Quote of the day "Love is when you meet someone who tells you something new about yourself." – Andre Breton (a French writer and poet) [Tweet this]( SPONSORED BY IG Discover the sectors struggling with earnings Analysts aren’t expecting much from US companies. More specifically, they predict that [S&P 500 companies]( will have made a little less money than their historical averages. In fact, analysts have lowered their estimates by some margin, enough to bring their predictions for average earnings per share (EPS) to their [lowest since the start of last year](. Companies themselves seem to be lowering their expectations too, with a bigger proportion of S&P 500 firms issuing [negative EPS projections](. Mind you, that doesn’t apply to every industry: [find out which sectors are predicted to reveal the biggest dips](. DisclaimerYour capital is at risk. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Talk about getting caught short. Tesla admits its [cars can’t drive as far as claimed](. 2. You can't have DeFi without stablecoins. Here's [how they work and why they're so important](.* 3. Lettuce feast. [Dishes that look like dishes]( are old news. 4. Crisp basics never go out of style. Give your investment strategy [a refresher](.** 5. Nothing says “conspiracy” like triangles. The pyramids have [baffled archaeologists]( for generations. **Investing puts your capital at risk. When you support our sponsors, you support us. Thanks for that. SPONSORED BY HEALTHWORDS.AI [HEALTHWORDS.AI]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming Up Soon... All events in UK time. 💸 [Your 2024 Crypto Investing Roadmap](: 5pm, January 16th ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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