🎈 AI a bubble?

Together with IntelGenx

Good morning investors! The market took a breather yesterday with BTC falling slightly and stocks looking for direction.

Today we cover:

• The inflation report isn’t positive.

• Is A a bubble?

• A look at stocks.

🤖 If you missed the “How to Make Money with A.I.” webinar, we decided to make the replay available for everyone until Sunday night. After that it’ll only be available to Pro members.

📊 Economy and News 

It’s getting expensive

The producer price index, which measures pipeline costs for raw, intermediate and finished goods, jumped 0.6% on the month, double the expected number.

On a year-over-year basis, the headline index increased 1.6%, the biggest move since September 2023.

Two-thirds of the rise in headline PPI came from a 1.2% surge in goods prices, the biggest increase since August 2023, thanks to a 4.4% jump in energy.

Retail sales at stores, online and in restaurants rose 0.6% in February from the prior month, up from January’s revised 1.1% decline. Retail spending has increased in seven of the past 10 months through February. The decline in January is considered normal and is attributed to the weather.

What jumped: Several categories jumped, led by home improvement stores at 2.2%, cars at 1.8%, and electronics and appliances at 1.5%. Restaurants saw a small jump of 0.4%.

Despite rising prices, gas station sales jumped 0.9% in February from January.

What fell: Furniture sales fell 1.1% from January. In addition, sales at grocery stores, online stores, and clothing retailers also took a hit.

On the other hand, weekly jobless claim filings nudged lower to 209,000. This indicates the labor market is still strong and that America will continue to spend lavishly. However, we must remind that most retailers provided low or disappointing guidance for the year.

Global hits:

• Mega Millions sixth-largest jackpot hits $792 million.

• The U.S. wants ByteDance to sell TikTok, but China doesn’t seem to be ready. Also, Italy has fined the company $11 million for failing to protect minors.

• EU opens probe into Alibaba’s AliExpress over illegal content, pornography on platform.

We had a successful webinar yesterday about using AI to make money, why not join our Discord channel and talk to others about it?

📈 Stocks

S&P 500 5,150.48 (-0.29%)
DJIA 38,905.66 (-0.35%)
NASDAQ 18,014.81 (-0.30%)
BRENT CRUDE 85.33 (+1.30%)
* Prices as of Mar 15th, 12:20 AM UTC

Stocks still seem confused

Hotter-than-expected U.S. inflation data pushed stocks lower yesterday.

Stocks lost momentum due to the report with major names like Nvidia and Meta closing red.

The report, however, sent bond yields higher, with the benchmark 10-year Treasury adding about 10 basis points to 4.29%.

Investors, however, are still putting money into stocks they trust. Both Apple and Microsoft jumped.

Trading platform Robinhood also had a great day jumping +5% after reporting a 16% increase in assets under custody in February from the prior month.

The worst performer was Fisker, the troubled electric vehicle startup that tumbled over -50% after The Wall Street Journal reported the company might go bankrupt.

Also, Under Armour had a bad day falling -12% after the company announced Kevin Plank would return as the CEO. This means that current CEO Stephanie Linnartz would be stepping down after barely a year on the job.

The news resulted in some downgrades and lowered targets.

Warning: Tesla is the worst performing stock in the S&P 500. Analysts say it has further to fall.

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💵 Personal Finance

Why you shouldn’t financially support adult kids

Adult children can put a financial burden on parents, which can impact their retirement plans. Also, living with parents can decrease the chances of becoming a homeowner and can enable children to not go out in the world and stake their own claim.

While every parent wants to help his or her children, continuing to financially support grown children on a regular basis can cripple your own financial situation as you near retirement.

Aging adults say giving money to grown children is a habit they’d like to change. However, most struggle to do it.

About 84% of respondents said they would like to educate their family on ways to be more financially independent, while 70% said they would consider cutting back on support to post-college children.

Americans appear to be giving $6,800 on average to children to support them after college. This substantial amount can help retirees in the future.

There is nothing wrong with helping your children but you should not make them financially dependent on you, especially when they’re older.

So, how to stop it?

Start by being honest.

Tell your adult children that you cannot support them financially and help them find another option, i.e. a better job.

We understand it might sound harsh but it’s important to secure your future and build your child’s life.

If you do not immediately want to cut financial support then start slow by reducing the amount you give to them. Also, teach your child the importance of money and budgeting.

You can highlight how funding their life is impacting yours and why they need to start thinking of their future too.

It’s not the end

You can continue to give occasional cash gifts or open an account to fund your children’s education. The key lies in being there for your child but not ‘funding’ their lifestyle.

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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Disclosure: This is a paid advertisement for IntelGenx’s Regulation A Offering. Please read the offering circular at investintelgenx.com