The Crypto Implosion, Nuclear Power Investing, and How to Limit Overspending

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what you missed

This week: FTX cryptocurrency exchange crashed; semiconductor stocks shone; Newly sustainable nuclear energy investing starts in the EU, and our investment specialists tell you how to hedge your portfolio against inflation.

Chart of the week

4 Lessons From The Crypto Implosion

What potential buyers should know next.

“What a difference a year makes. Twelve months ago, cryptocurrencies were all the rage. The Miami Heat had recently announced that its basketball stadium would be renamed FTX Arena, Fidelity was preparing to offer digital assets to the 401(k) plans it administers, and a silly internet columnist wondered what could possibly “reverse the current price of bitcoin”. Read John Rekenthaler’s full article.

Glossary Term of the week

Inflation is the increase in the price of goods and services over time, which reduces the purchasing power of a currency. See Morningstar’s Investment Definitions and Financial Terms for the full definition.

What to watch

Key points to remember

  • For people nearing retirement or in retirement, they should be more concerned about preserving purchasing power.
  • I Bonds can help hedge inflation but have built-in purchase constraints.
  • Treasury inflation-protected securities are related to I bonds. They are issued by the US Treasury and can help hedge inflation.
  • If you want to maintain exposure to commodities, pour in some cash and plan to be a long-term holder rather than trying to get the timing right.

Items We Like

Do you want to splurge? 4 Steps to Overcoming Your Overspending Habit

Changing behavior takes time and repetition.

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“Over time, education, self-awareness and experimentation, I have replaced financial self-sabotage with habits of mind and behavior that improve me financially and psychologically. If you are struggling with overspending, either habitually or occasionally, I hope the process outlined here can help you make more solid choices that will satisfy your desires without sabotaging your financial security.

The best index funds

These mutual funds and ETFs have the highest rating from Morningstar.

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Index funds are passive investments. They track an index with the aim of replicating the performance of that index, minus the expense. Active funds, on the other hand, are run by managers who choose particular stocks with the goal of outperforming an index.

The advantages of investing in index funds

Any historical performance benefit aside, there are several advantages to investing in index funds.

  • Index funds generally cost less than similar actively managed funds.
  • Index funds work like the market they track; as such, there aren’t many performance surprises.
  • Index funds don’t face so-called key person risk, which means manager changes aren’t a big deal, since there’s no active stock selection involved.
  • Index funds are often more tax efficient than similar active funds.

How to invest in nuclear energy

An overview of companies, funds and ETFs that could benefit from switching to nuclear power, which produces no direct carbon emissions.

Table showing four major funds potentially exposed to European nuclear power and to what extent.

Stocks, funds and exchange-traded funds

Best articles

5 Undervalued Stocks That Crush Third Quarter 2022 Earnings

Upgrade to a Vanguard fund that offers inflation protection

Is there a right way to weight stocks?

We missed you ?

Check out our investment specialists on Twitter:

“At some point, it will probably be a wonderful time to buy crypto and some people will make a lot of money, but there is almost no way of knowing when it will be. And that’s the problem with crypto as an investment asset. The end.” – @Christine_Benz



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