🍋 Pay Floor Rises to $73k

Together With

Good Morning! President Biden is expected to announce his decision on student loan forgiveness tomorrow (considering canceling up to $10k in student loans for borrowers who make up to $125,000 annually). HBO Max also needs forgiveness, as their highly anticipated debut to "Game of Thrones" prequel, "House of Dragons" caused the site to crash for thousands of users. GoT had 9 major houses, while accounting has 4. One of the "Big 4," KPMG, is moving its US headquarters to Manhattan West Tower and reducing office space in NYC.

The Motley Fool is offering their “5 Growth Stocks Under $49” report for FREE for a limited time only. Get it here.

1. Story of the Day: Pay Floor Rises to $73k

Job seekers in America have higher standards now and have raised the bar for salary requirements for a new job. According to the latest labor-market survey from the Fed in New York, the average reservation wage (aka the lowest pay one would accept for a new job) is up 5.7% from last year, to $72,873 in July. It looks like Americans aren't taking increases in prices lightly.

The survey, which is conducted three times a year, showed that the reservation wage rose faster for men and younger workers since the start of the pandemic. The number currently sits just below a series high of $73,283 from March's survey.

This is definitely evidence that inflation is affecting US employees, as many have seen their real incomes fall over the last year. While job openings may have dropped from record highs, there were still 10.7 million availabilities, granting applicants some negotiating leverage.

Tight labor markets, with a record 22 states stating jobless rates at 3% or lower in July, show who's got the bargaining chips here. Even Americans with less than a college degree, and those who are 45 years old or younger, report a reservation wage 23% higher than in March 2020.

Plenty of people are job-searching, with 21.2% of survey respondents saying they received at least one job offer in the last four months.

Not only do Americans want to get paid more, they want to work less as well. The survey showed that only 48.8% of people plan on working beyond the age of 62. That is down from 50.1% last year, continuing a negatively sloping trend that started in 2020.

Short Squeez Takeaway: Now I'm no rocket scientist but if inflation is cutting into your real income, savings, and investments, doesn't that mean you'll likely have to work longer to have enough tucked under your mattress for when you retire? I understand that the pandemic helped people realize that a job and money aren't everything, but being unprepared for retirement doesn't sound all that great either.

2. Markets Rundown

Stocks saw slight decreases after Monday's sell-off which was prompted by rate-hike worries. There was some stability thanks to decent earnings announcements and a better-than-expected manufacturing PMI result in Europe.

Movers & Shakers

• (+) Palo Alto Networks ($PANW) +12% thanks to an earnings beat in the last quarter.

• (+) Pinduoduo ($PDD) +5% on news that it's preparing to launch an international e-commerce platform for North America.

• (–) Twitter ($TWTR) -7% after a whistleblower complained about "extreme, egregious deficiencies by Twitter," regarding privacy, security, and content moderation, to the SEC, FTC, and DOJ.

Private Dealmaking

• Intel, Brookfield to invest up to $30 billion in Arizona chip factories

• Celonis, a German data processing company, raises $1 billion

• Fervo Energy, an advanced geothermal startup, raises $138 million 

• Atom Power, an EV charging solution company, raises $100 million

• Myplanet, a compostable commerce consultancy, raises $11 million

• Mojocare, a digital wellness startup, raises $20 million

3. Top Reads

• There’s no going back for office workers (Axios)

• Meme stock lifelines show signs of fragility (Axios)

• American consumer spending power will be back in 2023 after year-long dip (CNBC)

• The origins of the Federal Reserve’s Wyoming symposium (YF)

• Twitter whistleblower alleges execs misled board and public on spam, security (CNBC)

• Hidden cost of free trading is $34 billion a year (BB)

• Apple employees launch petition to protest return-to-office plans (YF)

• Democratization is coming for private markets (Axios)

• Funds amass record wager on hawkish Fed as Jackson Hole looms (Reuters)

A Message from Motley Fool

2022 has been a year to forget for the stock market. In the midst of this, valuable companies are receiving undeserved slaps on the wrist despite demonstrating concrete value for the long haul.

The Motley Fool gives members insight on who those companies are with its Stock Advisor service.

How good is it? In short, Stock Advisor’s average stock pick has returned 387% since inception [returns as of 8/22//2022]. That means their average pick has more than tripled the stock market’s return for over a decade.

The Motley Fool is offering their “5 Growth Stocks Under $49” report for FREE for a limited time only.

Get the picks here.

4. Book of the Day: The Art of Strategy

Game theory means rigorous strategic thinking. It’s the art of anticipating your opponent’s next moves, knowing full well that your rival is trying to do the same thing to you.

Though parts of game theory involve simple common sense, much is counterintuitive, and it can only be mastered by developing a new way of seeing the world.

Using a diverse array of rich case studies―from pop culture, TV, movies, sports, politics, and history―the authors show how nearly every business and personal interaction has a game-theory component to it.

Mastering game theory will make you more successful in business and life, and this lively book is the key to that mastery.

“It may not be enough to play a game well—you must also be sure you are playing the right game.”

5. Short Squeez Picks

• How to tell if you’re depressed or just burned out

• How much should new hires focus on building peer relationships?

• Why frustrated men are now catfishing women on dating apps

• An inside look at yacht cruising

• Meme stock’s big bet on Bed Bath & Beyond

What Else To Read

If you love getting Short Squeez (which we'll assume you do), you must value getting crisp insights and actionable intel without all the BS.

The Daily Upside, founded by a team of bankers and journalists, is another great newsletter for big-brained readers.

Built with investors in mind, The Daily Upside is packed with heavy-hitting analysis and stories you simply won’t find elsewhere.

It’s the perfect addition to your media diet, striking that elusive balance of gravitas and wit. There’s a reason 700,000+ readers start their days with The Daily Upside.

 Sign up for free here.

6. Daily Visual: Boise Becomes a Buyer's Market

Share of homes in cities that saw price cuts

Source: Axios

7. Daily Acumen: Sphere of Silence

"We live in a world full of noise and chatter, and it can be hard to find a break from it all.

If you’re feeling overwhelmed, give this mindfulness exercise a shot.

It's called the Sphere of Silence, and it’s a 60-minute routine to help you collect your thoughts, stay grounded, and decide how you want to enter your day.

There’s one important ground rule: Complete the steps below in silence.

The first half hour is broken down in three 10-minute segments. Spend the first segment writing your short-term, medium-term, and long-term goals.

Then, dedicate the next 10 minutes to assessing your progress on your goals from the previous day.

Use the final 10 minutes to take note of unmet goals and assess why you haven’t achieved them.

This will motivate you to focus on moving forward.

Spend the next 10 minutes reading something — an article, a book, maybe even a poem — that teaches you something new or enriches your mind.

Then, spend 10 minutes writing. Maybe you’ll jot down a reaction to what you just read, or a poem of your own.

Use the final 10 minutes for self-reflection. This part of the practice allows you to harness your calm during stressful situations and mindfully choose to stay out of negativity."

Source: Eric Irwin

8. Crypto Corner

• Mark Cuban slams SEC chair Gensler’s stance on crypto

• Why many Argentinians bet on cryptocurrency

• Morgan Stanley says tightening in the crypto market has paused

• These apps pay you in crypto for working out

• Coinbase CEO says crypto exchange has ongoing plans to cut costs, is actively engaged with regulators

• Scammers are big losers from crypto crash

9. Memes of the Day

*****

*****

Want to reach an audience of 150,000+ business leaders, young professionals, and policy influencers? Advertise in Short Squeez.

*Stock Advisor returns of 387% as compared to S&P 500 returns of 125% as of 8/22/2022. Not all picks have performed as well. Past performance is not an indicator of future results. All investing involves a risk of loss.