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! Here’s a story that blew my mind. Using AI scientists believe they can crack animal languages so eventually we’ll be able to understand and communicate. Chimpanzees, for example, have a structured language that AI can help us decode. (The Deep View)

📊 Economy

🇪🇺 The European Commission raised its forecast for 2023 economic growth in the euro zone to 2.7% from 2.3%, but slashed its inflation forecast to 6.1% from 3.5%.

The revision was driven by the war in Ukraine, which has pushed up energy and food prices. The Commission also warned that the economic outlook is "highly uncertain" and that growth could be even lower if the war drags on.

🏢 Two trends continue to collide, the downturn in commercial real estate driven by Work from Home trends. People returning to the office has peaked and experts say it’s because employers haven’t done a good job enticing them back in this labor market.

😫 U.S. consumer sentiment worsened in May as Americans are stressed about a potential government default.

• “While current incoming macroeconomic data show no sign of recession, consumers’ worries about the economy escalated in May alongside the proliferation of negative news about the economy, including the debt crisis standoff,” the survey director said.

• Sec. Yellen said if an agreement isn’t reached the gov’t may default on Treasuries or Social Security payments.

• U.S. consumers expect inflation to be 3.2% in 5 years.

• Investors have hope there won’t be a default as indicated by the VIX (CBOE Volatility Index) remaining unchanged.

📰 News

🏛️ The G7 meet this week in Japan and are expected to issue a statement rejecting China’s use of economic retaliation in disputes.

👀 A startup in Melbourne, Australia called Eyetelligence raised $12M for AI eye disease screening. (The Deep View)

🤖 ChatGPT fights back after Google announced a whole list of AI features by giving Plus users early access to web browsing and plugins.

🍪 U.S. snack revenue rose to $181B last year as Americans are snacking more, driven by working from home and higher inflation.

• Totally unrelated, 2/3 of Americans are fat or obese.

• However, companies are coming up with more snacks that are healthy based on salad or pastas.

📈 Stocks

Chipotle and Papa John's are among a growing number of companies that are linking executive bonus pay to environmental, social, and governance (ESG) goals.

• Chipotle ties up to 15% of executive bonuses to ESG, focusing on efforts like composting at restaurants and buying produce locally.

• Some companies, including Mastercard and Papa John's, are tying ESG efforts to pay of employees well below the C-suite.

Stock pessimism reached an high point as fund managers reduced exposure to equities to the lowest point since 2009.

• Individual investors have moved $28B from equities and institutions $333.9 B.

• Money markets have risen to $5.3 T as people have pulled money from 🪙savings accounts at regional banks and stocks.

🔐 Crypto

🇿🇼 Zimbabwe's central bank sold $10 million worth of gold-backed cryptocurrency tokens in its first sale, despite warnings from the International Monetary Fund. The tokens, called "Mosi-oa-Tunya" (the local name for Victoria Falls), are backed by gold held by the central bank. The IMF has warned that the tokens could pose a risk to financial stability and could be used to evade sanctions.

A Bitcoin wallet that was created in October 2010 and has not been used since then moved 400 Bitcoin, worth nearly $11 million, on Monday. The wallet is believed to be owned by a Bitcoin "whale," or a large investor who holds a significant amount of Bitcoin. The movement of the Bitcoin has sparked speculation that the whale may be selling their coins, or that they may be moving them to a different wallet for security reasons.

👩🏽‍⚖️ A lawsuit was filed against Jump Trading and its CEO, alleging that they made $1.3 billion in profit from the collapse of TerraUSD.

The number of Bitcoin addresses holding one whole Bitcoin or more has surpassed the one million mark.

💵 Personal Finance

What’s the best way to save $1,000?

Here are a few tips:

• Set a goal. The first step is to decide how much money you want to save and by when. Having a specific goal will help you stay motivated.

• Create a budget. Once you know how much money you want to save, you need to create a budget that will help you reach your goal. This means tracking your income and expenses so you can see where your money is going.

• Cut back on unnecessary expenses. Once you have a budget, you can start to cut back on unnecessary expenses. This could mean eating out less, canceling unused subscriptions, or finding cheaper alternatives to your current products and services.

• Automate your savings. One of the best ways to save money is to automate your savings. This means setting up a direct deposit from your paycheck into your savings account. This way, you won't even see the money and you'll be less likely to spend it.

• Make saving a priority. Saving money should be a priority in your life. This means making sacrifices and cutting back on unnecessary expenses so you can reach your goal.

Here are some additional tips that may help you save $1000:

• Get a part-time job. If you have extra time, you can get a part-time job to earn extra money. This can help you reach your savings goal faster.

• Sell unwanted items. Do you have any unwanted items that you can sell? This could be anything from clothes to furniture to electronics. Selling unwanted items can help you raise some extra money for your savings account.

• Ask for help. If you're struggling to save money, don't be afraid to ask for help from friends or family. They may be able to offer you some tips or advice that can help you reach your goal.

Saving $1000 can be a challenge, but it's definitely possible with a little bit of effort. By following these tips, you can reach your goal and start building your financial security.

💰 Be a Better Investor

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