The Next Big Economic Reading

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, The Next Big Economic Reading Fed Chair Jerome Powell signaled an interest rate cut during his Jackson Hole speech. Stocks rose after his speech, but Wall Street already priced in rate cuts this year. Powell simply confirmed the sentiment on the Street. Now, the attention will shift to incoming data. Why? Powell said the central bank would be data-dependent when making the rate decision. - “The direction of travel is clear,” but that “the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks,” said Powell. The biggest reading will be August’s payroll report due in the first week of September. The Fed isn’t worried about inflation much. It is watching the labor market to determine how quickly it wants to go when cutting rates. - “Jerome Powell ultimately told us what we already knew, albeit perhaps a little more forcefully than some of his colleagues. It all throws the focus squarely upon the next payroll figure in a couple of weeks, and beyond that, of course, next month’s FOMC announcement,” said Cameron Crise, Bloomberg strategist. Cameron Crise, Bloomberg strategist (Photo: Bloomberg) Namely, a weak jobs report may lead to a 50 basis-point hike. - “…the 25 basis points versus 50 basis points is still an open debate,” John Velis, a foreign-exchange and macro strategist at BNY Mellon. As we wait for the August jobs report, we will get the July personal consumption expenditures price index due on August 30. Economists expect the annual PCE readings (for headline and core) to be a bit higher than June’s levels. If that’s the case, it would be a strange case where the jobs market might be cooling while inflation stays sticky. Anything could happen in the market. So, stay alert. Be prepared for volatility. Top Banking Stock To Own Right Now Today’s Stock Pick: Coastal Financial Corporation (CCB) “Banking-as-a-Service” – what a buzzword, huh? All of a sudden, a boring business of banking gets a Hollywood-style makeup and sounds exciting again. But is it legitimate? The answer is yes. And when I explain why, you’ll see why it makes perfect sense. Listen, you’ve seen the boom of fintech companies like Square (Block), PayPal, Affirm, Coinbase, Chime, and so on. Many of them are entering the banking business by offering checking accounts. For example, Intuit (the parent company of QuickBooks, TurboTax, Mint, and Credit Karma) is offering checking accounts under its Credit Karma umbrella. Wait a minute? Mint is a financial information site offering checking accounts. How is it possible? You and I know that the banking industry is heavily regulated. And Intuit definitely doesn’t have the infrastructure to handle banking functions. Precisely, that’s where Banking-as-a-Service comes into the picture. ** Fintech companies don’t want the headache of banking regulations, so they offer products by affiliating with traditional banks. Banks handle all the functions, and they offer APIs to fintechs for them to plug into their websites. For that service, banks earn monthly fees like a software company. Makes sense, right? That business is B-O-O-M-I-N-G. In fact, the B-a-a-S market is projected to grow at a compound annual growth rate of 25.4% by 2027, according to Market Research Future (MRFR). Better yet, banks now don’t view these fintechs as a threat but as an opportunity. (Source: Business Insider) That’s why Coastal Financial is rushing to become a public company because it saw a tremendous opportunity in this B-a-a-S space. This is a community bank in Washington, but they always have been a scrappy bank. As a three-year-old bank when they entered the town of Sultan in 2000, it began with a modular building that looked like a temporary construction office. Eventually, it was built into a traditional bank. The bank saw an opportunity on Camano Island, an island north of Seattle. And it learned that the fastest way to start helping small businesses was to set up shop out of a car. So, they did. Laura Byers and Myra Reinhardt operated out of their cars for the first six months. One day, Bank of America pulled out from Darrington, and the town is left with zero banks. So, Coastal entered the region. Staying true to its scrappy nature, it operated the business on a card table in the back of a hardware store. Now, they own 14 branches in Snohomish, Island, and King Counties. They are past their scrappy days, but they still have entrepreneurship in their blood. Net Income growth was simply phenomenal. It grew by 34.2% CAGR since 2013 – an absurd number for a bank: (Source: Coastal Financial) Good enough, Raymond James Community Bankers Cup recognized Coastal Financial as one of the top 10% community banks based on various profitability, operational efficiency, and balance sheet metrics. Back to B-a-a-S: Coastal Financial went all-in with B-a-a-S model, and you can see its growth. It’s hard to deny the potential. BaaS fee income grew rapidly lately. We are talking about net income, not revenue. That’s wonderful growth. Enviable, even. They earned $6.1 million from BaaS fee income in the most recent quarter. So, it grew 54.4% year over year. (Source: Coastal Financial) Still virtually unknown: Obviously, this growth is eye-popping for its BaaS model. The potential is massive. But the bank remains relatively unknown. It went public only recently in mid-2018. However, you and I know that this type of growth won’t be ignored for too long. By that time, Wall Street will catch on. Efficiency ratio: It is the popular metric to measure a bank’s performance. It divides expenses by revenue. A lower efficiency ratio is better. Coastal Financial started with a 78.5% ratio in 2014, and it has 43.19% now, making it one of the best performing banks in the country. (Source: Coastal Financial) Bottom line: The sky is the limit for Coastal Financial. It has a very good business in its traditional banking division. The bank is supported by the biggest employers in Washington, and Raymond James recognized it as a top community bank in the nation. But their BaaS model is exploding. Can you name a bank with a 30%+ net income CAGR? It is a huge, huge opportunity for Coastal, and you can get in very early.   [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](     © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](