Gold celebrated a new all-time high | Monzo felt the love from investors |
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Hi John, here's what you need to know for March 7th in 3:13 minutes.

🥜 Finimized over a nut butter fudge smoothie at JuiceBaby in London, UK (☁️ 11°C/52°F)

Today's big stories

  1. Gold prices hit a record high, proving the metal’s position as investors’ safe haven of choice
  2. A simple checkup can help you see how your stocks might handle a market plunge – Read Now
  3. British fintech darling Monzo secured a round of funding that pulled its valuation up to $5 billion

Gold-Plated

Gold-Plated

What’s going on here?

Gold touched an all-time high on Tuesday, after investors decided to protect their portfolios with a long-lasting, resilient, good-lookin’ coating.

What does this mean?

The word on the street is that central banks will start bringing down interest rates later this year, so long as inflation stays at bay. That might explain gold’s latest feat: the precious metal’s contract price for April tipped over $2,100 per ounce for the first time ever. See, lower interest rates tend to indicate that an economy needs a leg up, so investors often flock toward “safe-haven” assets that can hold their value during periods of volatility to cover their backs. That’s been compounded by last Friday’s weak manufacturing data from the US, which set an ominous tone for stocks, encouraging investors to swap them for more stable investments.

Why should I care?

Zooming out: We could learn a lot from the ‘80s.

World news is a bleak read these days, with rising political tensions and wars spreading across the globe. That uncertainty is practically an advert for gold, which has helped investors steady their finances for centuries. There’s no limit for the metal, after all. Sure, the latest price is its highest ever, following a 600% increase since the start of the millennium. But its inflation-adjusted peak from 1980 would land over $3,000 today, putting that $2,100 price tag to shame.

The bigger picture: The gold of the interwebs.

Bitcoin’s been bringing in safe-haven-seeking investors, too. Despite being notoriously volatile, the OG crypto’s limited supply is said to keep a floor under its price, even in trickier times. That, plus the recently approved bitcoin spot ETFs and the upcoming halving effect that’ll strangle its supply further, has pushed the crypto’s price up 52% this year. Bear in mind, though, that bitcoin’s climb won’t be as smooth as gold’s: Tuesday’s 7% drop made that clear.

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Analyst Take

To Take The Fear Out Of A Possible Market Selloff, You Need A Stress Test

To Take The Fear Out Of A Possible Market Selloff, You Need A Stress Test

By Paul Allison, CFA, Analyst

If you start worrying about a crash the minute you find out your stocks or crypto have hit an all-time high, that doesn’t make you a pessimist.

The fact is, a little wobble in the market can pretty quickly turn into something uglier.

So if you’re worried that might happen, but you still feel pretty confident about the long-term prospects of your investments, there’s only one thing to do.

That’s today’s Insight: a well-timed reminder about this simple two-step stress test.

Read or listen to the Insight here

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Full Flush

Full Flush

What’s going on here?

Monzo announced this week that it secured fresh funding, at a valuation hot enough to turn established banks’ cheeks coral pink.

What does this mean?

Monzo was one of the first online banks to challenge British legacy lenders back in 2015. Before long, customers all over the country had swapped finicky card readers for promises to “Monzo” each other. The fintech firm now wants to decorate wallets the world over, specifically eyeing up the US, Germany, and France. And that suddenly looks a lot more achievable, with Monzo raising $430 million from new and existing investors. What’s more, the fundraising round – led by Alphabet’s growth fund CapitalG – valued the fintech at $5 billion, a tidy upgrade from the $4.5 billion price tag it earned in 2021 from investors including Chinese tech giant Tencent.

Why should I care?

The bigger picture: Monzo is the exception, not the norm.

Interest rates are high while investor confidence is low, a combination that’s weighed down the valuations of fellow high-profile startups over the last few years. In fact, European startup funding fell to $45 billion last year, compared to $82 billion in 2022 and $100 billion in 2021. And even when investors are feeling generous, a valuation jolt like Monzo’s tends to be reserved for AI-focused companies these days. But with Monzo drumming up some excitement in the region’s venture capital offices, those checks could soon start getting bigger.

Zooming out: A tale of two fintechs.

Monzo’s valuation pales in comparison to the $33 billion that British rival Revolut earned in 2021. That might be because around half of Monzo’s revenue comes from interest, both from its own cash and the money it loans to customers. And when central banks cut interest rates this year, that revenue stream will likely be trimmed. Revolut, meanwhile, makes the bulk of its money from transaction fees when customers swap currencies or withdraw cash, subscriptions, and crypto trading commissions within its platform.

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🎯 On Our Radar

1. Meet the Ambanis. Few families could bring Rihanna out of retirement, but this one can.

2. Active ETFs are evolving fast. Find out how the right ones could help you beat the market.**

3. Life might be older than Earth. The more we learn, the less we’re sure about.

4. Time to take your first steps. Here's how to get started on your investment journey.**

5. Miley Cyrus and Pharrell’s new song isn’t exactly new. No wonder it brought back memories of 2014.

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