🍋 The 1% Club

Why Zillow will let you buy a house with just a 1% down payment, plus RIP Rite Aid, and rising rates here to stay?

Together With

Looking to protect your identity from data breaches? With Cloaked's advanced alias system your identity is bulletproof from bad internet actors.

“Wall Street sells stocks and bonds, but what it really peddles is hope.” — Jason Zweig

Good Morning! Jerome Powell warned inflation's still too high on Friday. And he has bond traders right where he wants them - full of doubt. He says the Fed is ready to hike rates again - but we're not so sure anyone's buying it. Futures traders expect that rising long-term rates are here to stay on Wall Street, signaling the end of easy money. 

Apple will overhaul its iPad Pro tablets next year - sales are falling and the iPad is Apple’s lowest earner among its major products. Rite Aid is planning on filing for bankruptcy. The US has now seen 402 bankruptcies in 2023, more than all of 2022. We're on track to see 700 bankruptcies this year, the most since 2010. And Amazon wants to partner with Disney to stream ESPN.


The 1% Club

Home affordability is the worst it’s been in almost 40 years, and Zillow thinks it has an answer. The company is scrambling to attract customers with an interesting offer - just a mere 1% down payment.

With this move, Zillow is undercutting and beating the industry’s best - Freddie Mac’s 3% down payment.

Zillow is trying to be opportunistic at a time when American consumers feel squeezed. US mortgage rates soared to a 22-year high just last Thursday - at a 7.23% average for a 30-year fixed loan. Zillow thinks the 1% offering could help the company grow its customer base and even level the playing field with larger competitors.

But, with this move, Zillow will pay 2% of the down payment at close. That will probably hurt margins. And Zillow got rekt by its $6 billion home-flipping business, so they don’t have the best track record at swinging for the fences.

Takeaway: The rule of thumb used to be aiming for at least a 20% down payment on a home. Anything less than that, and you need private mortgage insurance. But if home affordability stays this bad, we might see a lower down payment become the norm. And while a 1% down payment used to be unthinkable, fintech innovations like Zillow’s are changing that.


Markets Rundown

Stocks rose following Powell’s inflation speech.

Movers & Shakers

  • (+) Affirm Holdings ($AFRM) +29% after the buy-now, pay-later firm posted better-than-expected results and guidance.

  • (+) Workday ($WDAY) +5% after earnings topped estimates.

  • (–) Nordstrom ($JWN) -8% after warning of slowing consumer spending.

Private Dealmaking

  • Zepto, an Indian grocery delivery company, raised $200 million

  • Modular, an AI software development platform, raised $100 million

  • Korea Credit Data, a financial and accounting platform for businesses, raised $75 million

  • Nomad, a Brazilian fintech startup, raised $61 million

  • Ghost, a B2B marketplace for surplus inventory, raised $30 million

  • Bushel, a platform for connecting farmers and agribusiness, raised $26 million 

    Get access to private deal flow here.


Guard Your Privacy

In a world where data breaches have become common, it is essential to protect your personal information.

Cloaked is your shield against unwanted intrusions.

Easily set up email and phone aliases that Cloak your real info whenever you give out your contact details. That way, even if there's a data breach, your real personal data remains safe.

Cloaked ensures your identity remains uncompromised and your peace of mind is intact.


Top Reads

  • U.S. tackles crypto’s tax mess (WSJ)

  • Equity comp has taken a hit with tech stocks (Axios)

  • David Solomon is not the first to face leadership crisis at Goldman (YF)

  • Court sides with Wall Street on landmark lending case (Axios)

  • At least 2 days in-office is the sweet spot for hybrid workers (CNBC)

  • The US war with Big Tech could have unintended consequences (YF)

  • China’s Evergrande first-half net loss narrows to $4.5B (Reuters)

  • Is LinkedIn finally cool now? (Axios)

  • New Meta return-to-office policy is a clear problem (CNBC)

  • Private equity firm Veritas makes takeover offer to Blackberry (Reuters)


George Soros

The name George Soros is recognized around the world. Universally known for his decades of philanthropy, progressive politics, and investment success, he is equally well known as the nemesis of the far right—the target of sustained attacks from nationalists, populists, authoritarian regimes, and anti-Semites—because of his commitment to open society, freedom of the press, and liberal democracy.

At age 91, Soros still looms large on the global stage, and yet the man himself is surprisingly little understood. Asking people to describe Soros is likely to elicit different and seemingly contradictory answers. Who is George Soros, really? And why does this question matter?

Through this kaleidoscope of viewpoints emerges a vivid and compelling portrait of this remarkable man's unique and consequential impact. It has truly been a life in full.

“A compelling new picture of one of the most important, complex, and misunderstood figures of our time.”


Short Squeez Picks

  • 6 new leadership books you need to read this fall

  • 7 secrets to having a productive day

  • How to power nap your way to maximum productivity

  • How the new science of meditation is changing

  • 7 emotionally intelligent ways to navigate ego


Remote Workers' Connection to Companies' Missions Hits Record Low

Share who strongly agree they connect to their workplace’s mission and purpose

Source: Axios


Remarkable Pronouncements

“The scientific rule of thumb is simple: When you make a bold claim, you need significant research to back it up.

Telling us that eating vegetables is healthy can be justified by a fairly simple high school science paper. But if you want to claim that the moon is made of celery and Elmer’s Glue, we’re going to need more than your back-of-the-envelope calculations.

Lately, we’re seeing two things begin to take the place of good research when making outrageous claims:

Lots of online celebrity.

Particularly bold and noxious claims.

Being angry or a famous podcaster (or both) doesn’t excuse you from the burden of proof.”

Source: Seth Godin


Memes of the Day




Join the conversation

or to participate.