- GRIT
- Posts
- Vanguard Sends Warning
Good Morning!
Happy Thursday! It is almost Friday:
👉 Vanguard sends warning
👉 Taiwan Semiconductor earnings are in
👉Google makes cuts
🚨 Announcement! 🚨
Did you hear? We are dropping a NEW email course!
Discover the keys to diversified investing with our dynamic email course designed for all investors seeking to broaden their portfolio horizons. While the tech sector continues to thrive (up 114% in the last five years as of April 10, 2024), our course offers a refreshing shift in focus, guiding you through the intricacies of investing across various stock market sectors.
📥 Get ready to enroll!
VANGUARD: Warns of Danger Zone
The Treasury market is nearing a point that could trigger a significant sell-off, with 10-year bond yields potentially reaching 5%, according to Vanguard. Originally, investors had moved into Treasuries expecting the Federal Reserve to lower interest rates quickly, but persistent strength in the U.S. economy has undermined these bets. Ales Koutny, Vanguard's head of international rates, highlighted the risk, stating, "We are in a danger zone right now." He explained that if yields rise just above 4.75%, it could prompt a wave of selling that might push yields to levels not seen since 2007.
Source: Bloomberg
Recent data indicating stubbornly high inflation caused the 10-year yield to spike to nearly 4.7%, though it later settled back to 4.57%. Market expectations have adjusted, now foreseeing a Federal Reserve rate cut in September rather than the earlier predicted June.
🎯 GRIT TAKE: If this upward trend …upgrade to VIP now to read the full GRIT Take!
EARNINGS: Taiwan Semiconductor
On Thursday, Taiwan Semiconductor Manufacturing Company (TSMC) reported better-than-expected revenue and profits for the first quarter due to strong demand for advanced AI chips. The company’s revenue rose 16.5% from last year to NT$592.64 billion, and net income increased by 8.9% to NT$225.49 billion. TSMC forecasts revenues between $18 billion and $18.8 billion for the first quarter.
Source: Reuters
As the world’s top maker of advanced processors, TSMC counts major tech companies like Nvidia and Apple among its clients. It expects second-quarter revenues to be between $19.6 billion and $20.4 billion. It dominates the global market, holding 61% of the foundry revenue in the last quarter of the previous year. TSMC's shares have jumped 56% in the past year, driven by high demand for AI chips used in technologies like ChatGPT.
GOOGLE: Job Cuts
Alphabet's Chief Financial Officer Ruth Porat announced on Wednesday that Google is reorganizing its finance department, which will include job cuts and relocations to focus more on artificial intelligence investments.
Source: ABC
This move is part of Google's larger strategy to realign its workforce and resources toward emerging technologies like AI as advertising revenues decline. CEO Sundar Pichai had already indicated in January that more layoffs were expected in 2024, although he didn't specify which departments would be affected.
Headlines You Need To Know: 🎙
Chart of the Day
📊 Tesla Supercharger Profits
Source: Bloomberg, Unusual Whales
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: @gavinuf7
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, however 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 info@gritcap.io
Join the conversation