Welcome to 10 Things Before the Opening Bell.
Let’s jump in.
1. US stock futures are ticking higher after Wednesday’s tech selloff. Inflation is very acutely on investors’ minds, but bond yields are holding steady. See what the global markets are doing.
2. Sound the alarm: China is facing an energy crunch and debt crisis. The Chinese economy is grappling with the Evergrande fallout while the government is cracking down on big business and cryptocurrencies. Here’s what has investors and analysts worried.
3. A $US31 ($AU43) billion investment firm shared its strategy to beat the current market. Ruffer Investment Company has a stellar track record of beating market crashes, returning over 15% during the dot-com bust and the financial crisis. The firm laid out four ways to play the ‘new regime’ that will bring dramatic changes to top stocks.
4. Earnings on deck: Paychex, CarMax, and Leucadia National, all reporting.
5. Legendary investor Jeremy Grantham says US stocks resemble a crazier bubble than in 1929. While he thinks the ‘vampire’ market is shrugging it off, meme stocks and SPACs are keeping things unpredictable across the market. Here are Grantham’s best comments on the financial landscape.
6. Goldman Sachs says hold onto your high-growth tech stocks. This week’s interest rate-induced sell-off shouldn’t scare investors, says the bank. Instead of looking at the absolute level of interest rates, Goldman says you should look at this indicator.
7. Cathie Wood shed a huge chunk of Tesla holdings. In her recent string of sales, three of the famed stock-picker’s ETFs offloaded a combined $US270 ($AU376) million worth of Tesla stock – but each fund still has the EV company as their top holding.
8. China pledges to let the market set energy prices freely as it increases coal and gas use. As it continues to face energy challenges, China’s economic planning agency will boost imports of coal and natural gas production. Here’s what else the department plans to implement.
9. Buying the latest stock dip is a mistake, warns Morgan Stanley. The bank’s CIO Mike Wilson believes the potential for further losses outweighs the potential upside. Investors could turn instead to these three trades that should weather the storm.
10. The CEO of Compass Mining explains why bitcoin is currently ‘incredibly profitable’ to mine. Retail investors, according to Whit Gibbs, could make $US20 ($AU28) a day in bitcoin if they use one of the newer generation ASIC machines for mining. Here’s how you can mine the largest digital currency from home.
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