Here’s what you need to know today

• Former US President Donald Trump is safe after an assassination attempt at a rally in Pennsylvania on Sunday. Trump was released from hospital and travelled to New Jersey on Sunday night. We’re following the latest on the New York Times live updates. 
  
  

• A study using water meter data found that up to 100,000 homes in Melbourne were empty for all or a large part of 2023. That is equivalent of 1-in-20 homes across the city.
  
  

• The US economy is showing more signs of struggling. Recent data has inflation falling and unemployment ticking up. Now a survey from the University of Michigan shows consumer sentiment has hit its lowest level in 8 months. Rate cuts get more likely as more of this data comes in.
  
  

• These economic struggles are showing up in the results of America’s largest banks. JPMorgan Chase, Wells Fargo and Citi Group all reported soft results and warned that customers were struggling with account balances dipping (as Americans ate into savings to keep up with rising cost of living).
  
  

• It’s not just the US economy struggling. China’s latest trade figures show a growing trade surplus (exporting more than importing). Exports have been boosted by big subsidies to manufacturers (part of the reason that China and EU have got into a trade spat) and imports have slowed, another sign of weak domestic demand from Chinese consumers.
  
  

• In a move straight out of the authoritarian handbook, paper over a struggling economy with military moves. China sent 56 military aircraft over the unofficial line dividing China and Taiwan in just one 24-hour period. The move comes as the US and 28 of its allies hold the world’s largest maritime exercises around Hawaii.
  
  

• A SpaceX Falcon 9 rocket has had its first malfunction in 8 years. US regulators are investigating after the rocket’s second stage boosters failed to ignite and broke up in orbit. This may impact upcoming missions, including one scheduled for August to take 4 astronauts to the International Space Station.
  

What the…?

Last week the 32 countries that make up NATO met in Washington DC. The Cold War era alliance is trying to redefine itself for the modern age, and it turning to some unlikely allies to do it. The alliance invited and paid for 26 TikTok and Instagram influencers to attend the conference and make content to help it connect with Gen Z.

Investing is a lifelong journey

Here’s what you can learn today.

Warren Buffett, age 44, explains the futility of playing the market

They say that the best advice in investing and personal finance is timeless, so we went back 50 years for this one. In 1975, a 44 year old Warren Buffett joined the board of the Washington Post Company and shared some advice about investing the company’s pension fund to chairman and CEO, Katherine Graham.

The advice Buffett shared in 1975 echoes the advice he shares today in his letters and at his annual general meeting in Omaha. It is a reminder that as much as things change, the true fundamentals of investing remain the same.

While the headline of this article mentions the futility of playing the market, what Buffett’s quote in the article best illustrates is the challenge of picking the right active manager. Sure there are better returns to be had with the best active managers. But with 85% of Australian active managers underperforming the ASX 200 in the past 15 years (and 88% in the US underperforming the S&P 500) the challenge is accurately identifying those top managers. Because, as Buffett explains here, its not as simple as just looking at past performance.

This email is thanks to Vanguard Super

You all know Vanguard’s award-winning ETFs, but did you know their super fund is winning awards too?

With Vanguard Super you get the same 45 years of global investment expertise, plus, it’s low-cost and designed to fit your needs. Whether you're just starting your career or planning your retirement, Vanguard has you covered.

Explore Vanguard Super.

_{Terms and conditions apply. Scroll to the end of this email for full disclaimer.}

Want more Equity Mates?