To The Moon

Here are this week's investing and economic insights:

#MarketTrends

Turn $10,000 into $160,000 passively in 25 Years: The Secret Revealed!

A 7% return on investment may not seem impressive, but understanding the rule of 72 and logarithmic formula reveals that your money could double in around 10 years.

Historical returns show that investing in assets like the S&P 500 is more profitable than savings accounts, which are hindered by low interest rates and inflation.

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The Insight: How To Find The Opportunities

Investors can benefit from understanding the power of compounding and historical asset returns.

Consider investing in assets with higher average annual returns, like the S&P 500, to potentially double your money faster.

Avoid low-yield options like savings accounts, especially in times of high inflation.

#QuoteOfTheWeek

"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."

- Albert Einstein

Understanding and harnessing the power of compound interest is fundamental in stock investing.

Investors who grasp its principles benefit from exponential growth, while those who overlook it may incur losses.

Consistent contributions and patience can amplify wealth through the compounding effect, a key strategy for successful long-term investing.

#What is happening in the economy? 

Why Aussie Shoppers Are Panicking Over Their Wallets!

In Australia, despite the Reserve Bank of Australia maintaining the same interest rates for three consecutive months, consumer confidence remains consistently low due to ongoing pressures related to the cost of living.

As a result, people are being cautious with their spending, and there are growing concerns about family finances, indicating a less optimistic outlook for consumer expenditures.

Australian Employment Boom Amidst Global Turmoil!

The unemployment rate in Australia held steady at 3.7% in August, with employment seeing an increase of 64,900 individuals and a decrease of 2,600 in the number of unemployed people.

The participation rate reached a new all-time high last month, rising from 66.9% to 67%. However, it's worth noting that the underemployment rate also saw a slight uptick from 6.4% to 6.6%.

Essentially, there are more individuals employed, but a growing number of them are not able to secure the desired amount of working hours they seek.

Consumer Inflation Spikes in the United States!

In August, consumer inflation in the United States saw a slightly larger increase than initially anticipated.

The Consumer Price Index (CPI) went up by 0.6% during August, a notable uptick compared to the 0.2% increase observed the previous month and exceeding the expected 0.5% rise.

Over the past year, prices have climbed by 3.7%, marking an increase from the 3.2% inflation rate recorded in July.

Although there was an upward trend in the price index for the month, it largely aligned with economists' predictions, indicating a stabilization of inflation above the 3% threshold.

Consequently, investors are still anticipating the Federal Reserve to maintain the current interest rates in the upcoming week.

EU Considers Tariffs on Chinese Electric Cars!

The EU is contemplating the imposition of tariffs on Chinese electric vehicles (EVs) that receive government subsidies.

This move is pending an industry investigation and specifically focuses on EVs produced in China. Interestingly, it may also impact non-Chinese brands such as Tesla.

The commission has allocated a 13-month period for the investigation, meaning we're likely to witness a year of discussions and debates before any concrete actions are taken.

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Best Regards,

James Lim, SFA Founder

Top 3 discussed stocks :   $Alibaba(BABA)$     $XPeng Inc.(XPEV)$    $Apple(AAPL)$