Morning Download from Invincible Money

Personal finance + economics + markets

Finance in 5 minute a day to help you make better money decisions.

Good morning investors! I hope you all had a great weekend and took time to recharge and go outside and not think about the AI apocalypse. 🦾

📊 Economy

Initial jobless claims for the week ending May 6th were up 22,000 to 264,000.

Debt Ceiling Standoff. The meeting that was scheduled for last Friday was postponed until this week.

• Sec. Yellen said raising the debt ceiling is the only option. “What global markets and American households and businesses need to see is that we have a Congress that is committed to paying the bills. If Congress fails to do that, it really impairs our credit rating.”

• JP Morgan CEO Jamie Dimon warns that markets will be gripped by panic as the U.S. approaches a possible default on its sovereign debt. He says that an actual default would be “potentially catastrophic” for the country, but expects that worst-case scenario will be avoided because lawmakers will be forced to respond to growing concern. He said that the markets are already pricing in the possibility of a default, and that if Congress fails to act, the panic could spread.

📰 News

🇪🇺 The EU is getting closer to passing new laws regulating AI such as ChatGPT. The AI Act will be the first such legislation in the world, which will include rules around facial recognition, biometric surveillance and other applications including safety checks and governance measures for companies making foundational models.

🤖 Meanwhile, Microsoft’s Chief Economist said we shouldn’t regulate AI until meaningful harm has actually happened and not imaginary scenarios. Yikes!

Bessemer, the global VC firm, has committed $1B to fund AI products.

Venture debt fell to $3.5B in Q1, the lowest since 2017 and about half the volume of Q4, 2022. Rising interest rates and the failure of Silicon Valley Bank have made startup funding more difficult.

After some difficult down years, SoftBank is investing aggressively in AI.

The Washington Commanders (NFL) sell for $6.05 B to a private equity investor, Philadelphia 76ers owner Josh Harris and NBA legend Magic Johnson.

📈 Stocks

🆙 AI investing accounts for all the gains in the S&P 500 this year, according to an analyst at Societe Generale. He says, “The AI boom and hype is strong. So strong that without the AI-popular stocks, S&P 500 would be down 2% this year.”

Elon chooses a new CEO for Twitter and no one is happy.

🔐 Crypto

BlockGPT unveils a new project that blends AI with blockchain technology to create a human-like chatbot governed by its community through BGPT tokens. It can use real-time data, unlike ChatGPT. (The Deep View)

Binance pulls out of Canada citing new rules from regulators stating that the guidance around stable coins and investor limits makes the market “no longer tenable.”

• The guidance defined stables as a security and prohibits companies from “permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative.”

Gov. (and soon to be U.S. Presidential candidate) Ron DeSantis signed a bill banning CBDC (Central Bank Digital Currencies) issued by either the U.S. or a foreign government and called out other states to do the same.

• He called it “Big Brother’s Digital Dollar”!

• DeSantis said "Anyone with their eyes open could see the danger this type of an arrangement would mean for Americans who want to exercise their financial independence and would like to be able to conduct business without having the government know every single transaction they're making in real time."

💵 Personal Finance

Last week I posted this video about the “5 Things I Wish I Knew Before Retirement” where I talk about things to think about before you retire and as you’re saving for retirement.

People seemed to really like it as it had 25,000 views and nearly 1,000 likes in a few days.

💰 Be a Better Investor

One of my favorite quotes because so many people confuse price and value, especially those who spend $3,000 on a handbag.

This quote highlights the difference between price and value in investing. While the price of a stock or other asset may fluctuate, the underlying value of the asset may remain the same or even increase over time.

Therefore, it's important for investors to focus on the long-term value of their investments rather than getting caught up in short-term price fluctuations. By identifying undervalued assets and investing in them for the long-term, investors can potentially earn higher returns and build a stronger portfolio.

🧠 Get Smarter

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