Here’s how this works…

Each week, we will introduce you to one new investing term that you’ll need to know if you want to start investing.

Then we’ll provide a summary of the past week’s financial news and explain why it’s relevant to you as a beginner investor and, more importantly, how you can use this knowledge to your advantage.

So, let’s get cracking!

TERM TO LEARN

A FINANCIAL METRIC IN INVESTING IS AN INDICATOR USED TO EVALUATE AND ASSESS THE FINANCIAL PERFORMANCE, HEALTH, AND STABILITY OF A COMPANY OR INVESTMENT.

THESE METRICS ARE DERIVED FROM A COMPANY’S FINANCIAL STATEMENTS, SUCH AS THE BALANCE SHEET, INCOME STATEMENT, AND CASH FLOW STATEMENT.

Learn to calculate and interpret these important ratios:

  • Price-to-Earnings (P/E) Ratio: Compares a company's stock price to its earnings per share.

  • Earnings Per Share (EPS): Indicates a company's profitability on a per-share basis.

  • Return on Equity (ROE): Measures a company's profitability relative to shareholders' equity.

  • Debt-to-Equity (D/E) Ratio: Assesses a company's financial leverage.

INVESTMENT NEWS FOR BEGINNERS

Wall Street banks’ 4th quarter earnings in 5 charts.

The largest U.S. banks ended 2025 in good shape, with profits generally rising and bosses feeling reasonably positive about 2026. They are benefitting from higher interest income from loans (they are earning more from lending than they pay on deposits), a pick-up in investment banking activity (more IPOs and big deals), and strong trading revenues thanks to market volatility (lots of buying, selling, and hedging by clients). Overall, analysts still have a broadly positive view on big banks because the U.S. economy is stable enough, unemployment is not too bad, and consumers are still spending.

Why this matters to you…

  • Banks are often seen as the ‘heart’ of the economy. When they make a lot of money, it usually means businesses are growing, and people are spending, which is a good sign for the overall stock market.

  • Strong bank earnings often ignite the rest of the market. If the big banks do well, it gives other investors the confidence to buy stocks in other industries (like tech or retail).

  • Many beginner investors start with bank stocks because they are "Blue Chip" stocks - large, stable companies that often pay dividends (regular cash payments to shareholders).

What you need to do…

  • Watch the ‘big names’ first. You don't need to track every company. Keeping an eye on 1 or 2 big banks (like JPMorgan or Goldman Sachs) can give you a quick ‘temperature check’ on how the whole US economy is doing.

  • Understand ‘expectations’. Sometimes a bank makes billions in profit, but its stock price goes down. This happens if they didn't make as much as experts expected. Learning that ‘beating expectations’ is more important than the raw dollar amount is a key lesson for beginner investors.

Jeffries’ analyst dumps Bitcoin over quantum computing fears, buys gold.

Christopher Wood, a highly influential investment strategist at the global firm Jefferies, has decided to completely remove Bitcoin from his primary investment portfolio (called ‘Greed & Fear’). He previously held a 10% stake in Bitcoin but has now swapped that for gold and gold-mining stocks. The reason for this ‘dump’ is a long-term technological concern around quantum computing. Currently, Bitcoin is secured by complex math (cryptography) that today’s computers cannot crack. However, quantum computers are a new type of super-powerful technology being developed. Wood believes that once quantum computers become advanced enough, they could theoretically break Bitcoin’s security, allowing hackers to steal funds or shut down the network.

Why this matters to you…

  • This highlights that even "digital gold" (Bitcoin) has unique risks that traditional assets (like stocks or physical gold) do not. As a beginner investor, it reminds you that technological shifts can change the value of an investment.

  • Investors often buy Bitcoin to protect against inflation (the rising cost of goods). If the market begins to doubt Bitcoin’s long-term safety, they may move their money back into gold or government bonds.

  • Wood didn’t move his money into cash; he moved it into Gold. This is a classic ‘flight to safety’ strategy. It shows beginners how professional investors react to uncertainty by moving into ‘proven’ assets.

What you need to do…

  • Don’t panic, but pay attention. Quantum computers capable of breaking Bitcoin don't exist yet and might be years or decades away. However, as a beginner, you should be aware that ‘secure’ technology is only secure until a better technology comes along.

  • If you want to protect your money from inflation, don't put everything in one basket. Just as Wood split his 10% into Bitcoin and Gold, a beginner investor might consider having a mix of different types of ‘safe’ investments.

Copper to become the global economy’s most critical asset in 2026.

Copper is shifting from being just a basic building material to becoming a ‘strategic asset’ as vital as oil once was. In 2026, the world is expected to face a massive shortage of copper. This is happening because of a "perfect storm" of surging demand and struggling supply. The rapid growth of Artificial Intelligence (AI) requires massive data centers, and the shift to Green Energy (electric vehicles and solar power) needs huge amounts of copper wiring. For years, companies haven't invested enough in opening new mines, and the copper currently being mined is becoming harder and more expensive to dig up. Essentially, the world needs more copper than it can produce, which is driving prices to record highs.

Why this matters to you…

  • Mining takes years. You cannot simply turn on a new copper mine. This suggests that the copper shortage isn't a one-week fad. It is a multi-year trend that rewards patient, long-term investors rather than day-traders.

  • Companies that own copper mines (producers) are likely to see their profits soar as the price of what they sell goes up.

  • Historically, copper was ‘cyclical’, meaning its price went up and down with the general economy. Now, it is becoming ‘structural’, meaning its value is driven by long-term technology trends (AI and Green Energy) that are likely to stay strong regardless of short-term economic dips.

What you need to do…

  • Look beyond tech stocks. Many beginner investors only focus on ‘big tech’ companies. This news shows that the physical side of tech (the copper in the data centers) is just as important. Diversifying into Commodity ETFs or Mining Stocks could be a way to benefit from the AI boom without just buying software companies.

  • This is a classic lesson in economics. When supply is low and demand is high, prices usually rise. As a beginner investor, identifying these bottlenecks (where the world can't get enough of something it desperately needs) is a key way to find growth opportunities.

Thanks for reading this 17th edition.

What’s up next, well…

The financial outlook for late January 2026 is defined by extreme volatility as the ‘Greenland dispute’ escalates from a diplomatic row into a major transatlantic trade war.

Following the deployment of European Arctic Endurance forces, President Trump’s threat to impose 25% tariffs on key allies (including the UK, France, and Germany) has triggered a massive flight to safety, driving the price of gold to a historic peak.

This geopolitical friction coincides with a high-stakes earnings season for heavy hitters like Netflix and Intel, where investors are hyper-focused on how global trade instability and potential EU retaliation (the ‘trade bazooka’) will impact corporate margins and the broader 2026 growth forecast.

It’s going to be interesting!

See you next week…

DISCLAIMER: This newsletter and the information contained within it is for educational purposes only and does not constitute financial advice. Trading any asset involves risk and could result in significant capital losses. Always do your own research before making any investment decision and speak to a qualified financial adviser if you’re unsure. We can’t accept responsibility for any losses that may arise from the following information shared here.

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