- GRIT
- Posts
- Japan Avoids Recession
Good Morning! 👋
Happy Monday! Let’s have a great week:
👉 Japan avoids a technical recession
👉 Reddit officially files its IPO
👉 Biden will unveil his budget today
JAPAN: Avoids Recession
Japan dodged a recession with modest economic growth in the last quarter, driven by business investments. However, they still fell short of expectations. Consumer spending remained low, fueling speculation about the Bank of Japan potentially raising interest rates due to wage increases. The economy grew by 0.4% year-over-year, less than the 1.1% forecasted, and showed a minimal quarter-over-quarter growth of 0.1%. This highlights Japan's fragile recovery, especially as high inflation impacts domestic demand.
Source: Reuters
Amidst these developments, the Bank of Japan is anticipated to take a more cautious approach to its economic outlook, particularly regarding consumer spending and manufacturing, in its upcoming policy meeting. This cautious stance reflects the ongoing challenges Japan faces in achieving a stable and robust economic recovery.
🎯 GRIT TAKE: Warren Buffett has been very bullish...Upgrade to GRIT VIP to read the full GRIT Take!
Interested in learning how to invest in small-cap stocks? Sign up for our latest email course, Investing In Small Cap Stocks!
REDDIT: Officially Files
Reddit officially files its IPO to raise $748 million, targeting a $6.5 billion valuation. It will offer about 22 million shares priced between $31 and $34. Additionally, Reddit has reserved 1.76 million shares for early users and moderators, who can sell their shares immediately after the IPO, bypassing the usual six-month lock-up period.
Source: MarketWatch
The company warns that this could lead to more fluctuation in its stock price. Reddit aims to list on the New York Stock Exchange with the ticker "RDDT." This IPO is notable as it's the first major tech and social media IPO since Pinterest in 2019. In 2021, Reddit sought a $10 billion valuation after raising $1.3 billion. Its 2023 sales were $804 million, a 20% increase from the previous year, though it reported a $90.8 million loss, an improvement over the prior year's loss.
BIDEN: Budget Talks
President Joe Biden's 2025 budget proposal, set to be released today, will include plans to increase taxes on the wealthiest individuals and large corporations. These ideas are carried over from his previous budget and are currently being discussed in Congress. Biden's budget is largely symbolic, aiming to showcase his economic policies for his reelection campaign, especially as he faces a potential rematch with Donald Trump.
Source: WSJ
The budget seeks to reduce the federal deficit by $3 trillion over ten years by imposing higher taxes on the richest households and revamping corporate taxes. It also plans to strengthen Medicare and Social Security, partly through new rules for negotiating Medicare drug prices.
Headlines You Need To Know: 🎙
Chart of the Day
📊 International Tourism Levels
Source: Statista
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstreetoasis
Do you have feedback to share? Click HERE.
Interested in being featured in our GRIT Newsletters? Click below!
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy, State Disclosure Policy, and Disclaimer Policy
If you have any questions please contact us at help@gritcap.io
Reply