Good Morning! Yesterday, the Fed hiked rates to the highest level in 22 years. But investors aren’t sweating it. Powell hinted at yet another increase in September, but he didn’t really move the market’s needle, and 2022’s peaks are still well within reach. Congressional Budgeting Office even predicted we’re going to avoid slipping into a recession.

You can now buy beer with just your eyes - some stadiums like Coors Field in Denver and Allegiant Stadium in Vegas are adopting biometric scans to verify buyers’ ages. But some people (interns) aren’t a fan, and are lobbying New York and Washington to make the scans illegal. A group of major automakers will pour up to $1 billion to develop electric vehicle chargers. And even Gap is caught up in Barbie mania - the clothing brand is eyeing a comeback and tapped Richard Dickson, the mastermind behind the Barbie revival, as its new CEO.

If you’re sick of receiving these same spam calls and emails, then check out today’s sponsor Incogni.

_{SQUEEZ OF THE DAY}

Buy Now, Leverage Later

You’ve heard of ‘buy now, pay later’ models. But right now, we’re sort of seeing the opposite on Wall Street. With debt costs soaring and banks shying away from lending, we’re seeing more and more private equity firms buy now and leverage later.

The private equity playbook entails acquiring a company and loading it up with debt. And, if you think as an investor would, it makes sense. Debt amplifies returns (thanks to the leverage effect) and allows firms to go after the bigger deals, all while providing tax benefits.

Leverage of six or more times earnings used to be the rule of thumb. But now? It’s closer to 4 times earnings - at least that was the case for GTCR’s acquisition of Worldpay this month (the largest leveraged buyout in over a year).

And while the interest rate hikes aren’t helping, it turns out investment banks are playing a big part in the leverage holdup. Banks are still reeling from failed deals, and they’re a lot more cautious right now. And expect banks to play it safe for a little while.

Takeaway: The golden age of private equity needed leverage to get investors those juicy returns. Private equity firms say they plan on adding leverage to current deals down the road. But with banks getting stricter and investors using less leverage, could the golden age be behind us for good?

_{CAPITAL PULSE}

Markets Rundown

Stocks were little changed after the Fed hiked rates.

Movers & Shakers

• (+) Boeing ($BA) +9% after posting an earnings beat, narrowing losses.

• (+) Alphabet, Inc. ($GOOG) +6% because of strong Q2 results, online ad boom.

• (–) Snap, Inc. ($SNAP) -14% after the company provided weak guidance.

Private Dealmaking

• Low Carbon, a renewable energy company, raised $517 million

• Competitive Socialising, an operator of the NYC amusement golf course Swingers, raised $52 million

• Ossium Health, a bioengineering company, raised $52 million 

• Kincell Bio, a cell therapy biotech, raised $36 million

• ProShop, a machine shop software provider, raised $32 million

• A-Alpha Bio, a synthetic biology and machine learning company, raised $22.4 million

_{SPONSORED BY INCOGNI}

Stop the Spam Calls

Are you receiving more spam calls than calls from your loved ones? Wonder how these companies got access to your contact details?

It is because data brokers profit from selling your info—phone number, DOB, SSN—to the highest bidder.

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Incogni isn't just another data protection service. It scrubs your personal data from every corner of the web, launching direct confrontations against data brokers—yes, even those sneaky People Search Sites that others miss.

Don't let spam callers, identity thieves, and premium-hiking health insurers misuse your details. Take control with Incogni.

Plus, just for Short Squeez readers: Get 55% off Incogni using code SHORT.

_HEADLINES

Top Reads

• Meta’s Reality Labs has now lost more than $21 billion (CNBC)

• Santander hires about 150 bankers to grow investment banking (Reuters)

• Senate imposes new rules on outbound investments to China (Axios)

• Musk gives the middle finger in Twitter’s X rebrand (YF)

• How the partnership between Apple and Goldman soured (TI)

• What top 4 execs think about inflation (YF)

• Is the world experiencing a soft landing? (Fox)

• Private equity backers of Plan B morning-after pill weigh $4 billion sale (BB)

• Here’s what changed in the new Fed statement (CNBC)

• Wall Street doesn’t believe the Fed’s tough talk (Fox)

_{BOOK OF THE DAY}

How To Work With (Almost) Anyone

The people you manage. How well you work with your boss. The way collaboration happens with colleagues and peers. How you connect with important prospects and key clients.

But the hard truth is this: most of us leave the health and fate of these relationships to chance.

We say “Hi,” exchange pleasantries … and hope for the best.

But every relationship becomes suboptimal at some point, whether it’s a good one that goes off the rails or one that was poor from the start.

Mostly we are resigned to the fact that this is what happens: relationships always get a little broken, or a little stale, or a little worse.

But it doesn’t have to be like this.

Every working relationship can be better.

This book shows you how to build the best possible relationship.

“Your happiness and your success depend on your working relationships.”

_{ENLIGHTENMENT}

Short Squeez Picks

• Gen-Z is rejecting everything they’ve been taught about tipping

• Best business books of all time

• 20 essential time-saving tech tools for entrepreneur

• You need to make the boss look good to get promoted, but not for the reasons you think

• How the Grasshopper rule can help you stop forgetting names

_{DAILY VISUAL}

Game Over

_{WHAT ELSE TO READ}

No Sensationalism, No Outrage. Just News.

Oh, and humor… there’s humor too! But what would you expect from a newsletter with 110,000+ readers called The DONUT?

DONUT delivers quick, nonpartisan, and trustworthy news that’s enjoyable – keeping you informed and entertained in just four minutes every morning.

Sign up for free today.

_{DAILY ACUMEN}

Analysis Paralysis

We make a bajillion decisions every day. Some are no-brainers, like picking chicken or fish for dinner. Others, like starting a business or moving cross-country, can be real nail-biters.

Some folks get real stressed out about this. They suffer from "analysis paralysis." The fear of messing up freezes them in their tracks.

But here's the thing: There's often not a single "right" choice. Life ain't a test with A, B, C or D answers. So how to deal with this? Here are some tips.

One, break down big decisions into smaller steps. Don't think about your entire future career, think about the next step - what major excites you?

Two, get a gut check from a pal. They might see things from a fresh perspective.

And last, understand there are no "perfect" choices in life. Don't be too harsh on yourself.

So, next time you're fretting over choices, remember, it's okay to make mistakes. Life's about living, not about acing some imaginary test. Learn from missteps and keep on rollin’.

_{MEME-A-PALOOZA}

Memes of the Day