Morning Download from Invincible Money

Personal finance + economics + markets

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

Good morning investors! China is going big on AI, Americans don’t like paying taxes (duh) and what is the Howey Test anyway?

📊 Economy

👨🏾‍🔧 The job market for white-collar workers is becoming increasingly competitive. 

• The number of white-collar jobs in the United States has grown by 15% since 2000, but the number of people with bachelor's degrees has grown by 50%.

📉 A recession could lead to 1.7 million job losses in the U.S., according to the Federal Reserve of Atlanta. The most vulnerable industries are construction, manufacturing, and transportation and warehousing. The states with the most at-risk jobs are California, Texas, and Florida.

• However, 15 states are still reporting their lowest unemployment numbers since 1976.

📰 News

🌛 A $5 billion real estate project in Dubai is proposed by Canadian entrepreneur Michael Henderson. Featuring a 274-meter (900-foot) replica of the moon atop a 30-meter (100-foot) building.

• The project is still in its early stages, but Henderson hopes to start construction in 2024. The moon would be made of steel and glass and would be illuminated by LED lights. It would have a viewing platform and a restaurant.

• Note: 0% chance it would look as realistic as this mockup, but go for it guys!

🚀 NASA awarded a $3.4 billion contract to Blue Origin to develop a crewed lunar lander (to go to the “real” moon, not Dubai). The contract is part of NASA's Artemis program, which aims to return astronauts to the moon by 2024.

🏛️ A recent Gallup poll found that Americans' views of federal income taxes have worsened in recent years. More Americans now say that the amount of federal income tax they pay is too high, and fewer believe that their income taxes are fair.

✈️ American Airlines and JetBlue have been ordered by a judge to dissolve their partnership at Boston and New York-area airports, saying their cooperation on those routes hurt competition and pushed up prices.

🍪 The U.S. is investing $52 billion in semiconductor manufacturing. However, the industry faces a shortage of 70,000 to 90,000 workers. Manufacturers are working with colleges to address this shortage by raising awareness of semiconductor jobs and building relevant skills into the curriculum.

🤖 Artificial Intelligence

China is going all-in on AI and in a big way.

• China is seeking public input on a new policy to boost its artificial intelligence (AI) sector.

• The policy focuses on three main areas: computing power, training data, and applications.

• China is proposing a state-backed platform to match cloud providers with users.

• The policy also calls for the cleaning and anonymization of Chinese-language data sets.

• It outlines potential AI pilot applications in healthcare, finance, transportation, and urban management.

• The policy emphasizes the importance of hardware and software infrastructure for AI training.

🇨🇳 The policy is a clear sign of China's ambition to become a leader in AI. The policy's focus on computing power, training data, and applications suggests that China is taking a comprehensive approach to AI development. The emphasis on hardware and software infrastructure suggests that China is also investing in the long-term development of AI.

This is likely to have a significant impact on the global AI landscape. China is already a major player in AI, and the new policy is likely to accelerate its progress. The policy could also lead to increased competition between China and the United States in the AI arena. (Source: The Deep View)

📈 Stocks

The S&P 500 had the highest close of the year last Thursday. Investors seem to be assuming the debt ceiling drama will get resolved at the last minute.

❌ Walmart [WMT -1.03%] is the latest to beat earnings with $1.47 EPS (vs. $1.32 expected) and $152.30 B in sales (vs. $148.78 B expected).

• Q1 revenue was up about 8% thanks to grocery and online sales.

• They expect net sales to increase 3.5% this fiscal year.

✅ Netflix [NFLX +9.22%] shot up after announcing their ad-supported tier has about 5 million monthly active users.

✅ Uber [UBER +3.73%] added a feature to allow teens under 18 ride alone.

🔐 Crypto

🧱 Jack Dorsey’s TBD (a division of fintech company Block) announces a Web5 Toolkit at the Bitcoin Miami 2023 Conference.

• The platform aims to introduce “decentralized identity and data storage” to applications, allowing developers to leverage the technology to create “delightful user experiences, while returning ownership of data and identity to individuals.”

• Dorsey's Web5 platform also seeks to introduce several key components to facilitate this decentralized web experience.

🌏 Coinbase to expand "zero-fee” service to 35 more countries.

• Crypto exchange Coinbase officially opened its subscription service, Coinbase One, on May 18, 2023.

• The service offers zero-fee trading on all supported assets and other benefits, such as priority customer support and access to advanced features.

• Coinbase One is now available in the United States, the United Kingdom, Germany, and Ireland.

🏛️ The SEC has warned Grayscale Investments that its Filecoin Trust may be considered a security.

• The SEC's warning comes as Grayscale is seeking to convert the trust into an exchange-traded fund (ETF).

• If the SEC determines that the Filecoin Trust is a security, it would prevent Grayscale from converting it into an ETF.

• This would be a major setback for Grayscale, which has been seeking to launch an ETF for Filecoin for several years.

• The SEC's warning is based on the Howey Test, which is a legal test used to determine whether an investment is a security. (More on that below)

💵 Personal Finance

U.S. Credit card debt has reached an all-time high AND Americans are not paying off their debts, with over 36% of U.S adults owing more than they have saved.

💰 Be a Better Investor

This quote means that you can't get rich by simply working for someone else. You need to create something of value that others are willing to pay for. This could be a product, a service, or even an idea.

There are many different ways to create value. You can start your own business, invest in real estate, or even become a freelancer. The important thing is to find something that you're passionate about and that you're good at.

Once you find something that you're good at, you need to focus on providing value to others. This means providing a product or service that is better than what is currently available. It also means providing excellent customer service and going above and beyond to meet the needs of your customers.

If you can provide value to others, you will be rewarded financially. You will be able to charge more for your products and services, and you will be able to attract more customers. This is how you build personal wealth.

Here are some specific steps you can take to create value:

• Find something that you're passionate about. When you're passionate about something, it shows in your work. You'll be more motivated to succeed and you'll be more likely to provide a great product or service.

• Become an expert in your field. The more you know about your field, the more value you can provide to others. Take courses, read books, and network with other experts in your field.

• Provide excellent customer service. Go above and beyond to meet the needs of your customers. This will make them more likely to do business with you again and to recommend you to others.

• Be patient. Building personal wealth takes time and effort. Don't get discouraged if you don't see results immediately. Keep working hard and providing value, and eventually you will be rewarded.

🧠 Get Smarter

How does the SEC determine if an asset, like crypto currency, is a security?

It’s based on the Howey Test.

The test considers four factors:

• Whether an investment is offered as an investment of money

• Whether the investor expects profits to be derived from the efforts of others

• Whether the investment is in a common enterprise

• Whether investors' profits are derived solely from the efforts of others

If an investment meets all four factors of the Howey Test, it is considered a security.

Securities are subject to regulation by the U.S. Securities and Exchange Commission (SEC).

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