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! The secretive Bilderberg group will soon meet to discuss AI, the EU’s regulations are bringing in more crypto investment and Target loses $500 million to theft.

📊 Economy

🇨🇳 China's loans to developing countries have pushed some of the world's poorest nations to the brink of collapse. Two countries, Zambia and Sri Lanka, have already defaulted on their loans, and others are struggling to make payments.

• The loans have been used to finance infrastructure projects, but many of these projects have been poorly planned or executed, and they have not generated enough revenue to repay the loans. As a result, these countries are now facing a debt crisis that could have serious economic and political consequences.

• Years ago when China’s Belt and Road initiative was getting a lot of press, economists warned this would happen and countries would get in debt to China.

👀The idea that corporate greed is driving up inflation is gaining more traction. This theory, known as "greedflation," was once dismissed by mainstream economists, but it is now being taken more seriously as inflation continues to rise. Some economists argue that corporations are raising prices more than necessary in order to boost profits, while others say that inflation is being driven by a number of factors, including supply chain disruptions and the war in Ukraine.

📰 News

🌎 Worldcoin, the crypto project led by the Sam Altman, CEO of OpenAI (maker of ChatGPT), is expected to raise $100 million. The project scans people’s eyeballs to give them access to the current, but says it doesn’t store the biometric data.

🦾 The Bilderberg Group, a secretive annual conference of the world's elite, will discuss artificial intelligence (AI) this year. The conference will be held in Lisbon, Portugal, from May 29 to June 1. OpenAI CEO Sam Altman, Microsoft, and Google will be among the participants. The discussions will likely focus on the potential risks and benefits of AI, as well as how to ensure that the technology is used for good.

👨🏾‍🎓 President Biden has said that he will not accept work requirements of any consequence in debt talks. Some Democrats have proposed tying student loan forgiveness to certain public service requirements. Biden has said that he believes that student loan forgiveness should be universal.

• The issue of student loan forgiveness is a complex one, and there are a variety of opinions on the matter. Some people believe that student loan forgiveness would be a major economic stimulus and would help to boost the economy. Others believe that it would be unfair to those who have already paid off their loans or who have chosen not to go to college.

• Meanwhile, down the street from the White House, The Supreme Court is considering whether President Biden has the authority to forgive up to $20,000 in student-loan debt for eligible borrowers The outcome of the cases could have a significant impact on the federal government's ability to regulate student loans and other forms of debt.

🇪🇺 The MiCA legislation has led to a surge in VC funding for European crypto startups because it provides regulatory clarity. In Q2 2023, Europe accounted for 48% of all VC funding for crypto startups. This is a significant increase from Q1 2022, when Europe only accounted for 5.9% of all VC funding for crypto startups.

Meanwhile in the U.S…

📈 Stocks

🎯 Target [TGT -4.21%] says organized retail crime is worsening and will cost the company $500 million more in lost and stolen merchandise this year than last year. The company has taken measures to prevent theft, but CEO Brian Cornell says it is a "significant challenge."

• Nevertheless, Target beat earnings with $2.05 EPS (vs. $1.76 expected) and revenue of $25.32 B (vs. $25.29 B expected). The company expects sales to remain flat for the current quarter due to consumers cutting back on non-essentials.

🍪 Nvidia’s stock [NVDA +4.97%] is up 106% this year, driven by AI (of course). CEO Jensen Huang’s net worth went up 98% to $27.3 B in 5 months.

💶 Executive Comp: In 2022, CEOs of major companies made hundreds of millions of dollars. Bob Iger, the former CEO of Disney, earned $419.2 million, while Tim Cook, the CEO of Apple, earned $98.7 million. David Zaslav, the CEO of Warner Bros. Discovery, earned $39.3 million. These salaries have drawn criticism from some who argue that they are too high, especially in light of the rising cost of living.

🏧 Western Alliance [WAL +1.06%] announced an increase of deposits of $2 billion over last quarter and said deposits have continued to stabilize. The stock shot up 12% on the news, which let to a rally in regional bank stocks.

🔐 Crypto

Ledger getting heat!

🔐 Ledger has released a new product called Ledger Recover, a key recovery service that aims to help users recover their funds if they lose their seed phrase or their actual Ledger hardware device. However, users began to surface concerns after the update about how Ledger was able to do this.

• Ledger Recover is an optional subscription service included in the latest Ledger Nano X firmware update. It allows users to back up their Secret Recovery Phrase and restore their wallet wherever and whenever, even if their original Ledger device is lost, damaged, or stolen.

🪙 Bitcoin bounces off worst week of the year and worst week since the FTX collapse last November. BTC also held above it’s 200-week moving average of $26,101 and is bouncing around the $27,000 price level.

• The 200 week moving average is a key indicator of long-term trends and staying above it could indicate positive direction.

💴 The Stablecoin Supply Ratio has declined by 11% the past 2 weeks. This is the ratio of BTC’s market cap to the market cap of stablecoins and a decrease indicates cash is entering the market, reversing the recent trend.

🥩 Demand for liquid staking is strong, even as Ethereum price is down 14% the past month. Lido and Rocket Pool saw their prices increase 23% and 13% on demand for liquid staking.

👏🏼 The DOJ has told U.S. lawmakers to give back all donations received from defunct exchange FTX.

💰 Be a Better Investor

This quote highlights the importance of investing in real estate. Real estate is a tangible asset that can appreciate in value over time. It can also provide a steady stream of income through rent payments. As a result, real estate can be a great way to build wealth and financial security.

💵 Personal Finance

Real estate investing 101

Location, location, location.

This is one of the most important principles of real estate investing. The location of a property can have a big impact on its value and its ability to generate income. When you are looking to invest in real estate, it is important to consider the location carefully. You want to invest in a property that is in a desirable location that is likely to appreciate in value over time.

Here are some factors to consider when evaluating the location of a property:

• The neighborhood: Is the neighborhood safe and well-maintained?

• The schools: Are the schools in the area good?

• The amenities: Are there grocery stores, restaurants, and other amenities nearby?

• The transportation: Is the property easily accessible by public transportation or highways?

• The employment: Are there jobs available in the area?

By considering these factors, you can increase your chances of investing in a property that is in a desirable location.

Here are some additional tips for real estate investing:

• Do your research: Before you invest in any property, it is important to do your research. This includes understanding the market, the property, and the risks involved.

• Get professional advice: If you are not sure about something, it is always a good idea to get professional advice from a real estate agent or a financial advisor.

• Start small: If you are new to real estate investing, it is a good idea to start small. This will help you learn the ropes and minimize your risk.

• Be patient: Real estate investing is a long-term investment. It takes time to build wealth through real estate. Don't expect to get rich quick.

By following these tips, you can increase your chances of success in real estate investing.

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