🎩 Institutions move into crypto

Fidelity, Charles Schwab, and Citadel

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! Dollars stores are all the rage, Zuck sees blood in the water (Elon’s), more institutions get into crypto, plus stocks just keep going!

📊 Economy 

No one wants to overpay in this economy

Dollar stores have become increasingly popular in recent years, as consumers have become more price-conscious. They’re now attracting a more affluent clientele.

Some interesting stats on dollar stores:

  • The average household income of dollar store shoppers has increased by 20% in the past five years.

  • Dollar stores now attract more than 100 million shoppers per week.

  • Dollar stores are the fastest-growing retail segment in the United States.

  • Dollar stores are expected to account for 10% of all retail sales by 2025.

These stats show that dollar stores are becoming increasingly popular with a wide range of shoppers, including those with higher incomes. This is due to a number of factors, including the expansion of product offerings, improved presentation, and competitive pricing. As incomes stagnate and inflation rises, dollar stores are likely to continue to grow in popularity in the years to come.

Quick facts:

  • In 2022, there were over 15,000 dollar stores in the United States.

  • Dollar stores generate over $100 billion in annual sales.

  • The average dollar store shopper spends about $25 per visit.

  • Dollar stores are most popular in rural areas and lower-income neighborhoods.

📰 News

Zuck tries to take down Twitter

Meta pounces on Twitter weakness

Meta, the parent company of Facebook, is reportedly working on a new social media app called "Threads" that is designed to compete (crush?) with Twitter.

Meta’s CEO, Mark Zuckerberg, smells blood in the water and is moving in!

Threads is expected to be a more intimate and personal app than Twitter, with a focus on sharing photos, videos, and stories with close friends and followers.

  • The app is also expected to have a 500-character limit on posts, which is shorter than Twitter's 280-character limit.

  • Meta is reportedly already courting celebrities and influencers to test the app, and it could be launched as soon as the end of June or beginning of July.

Twitter troubles

Twitter is struggling to attract advertisers and revamp itself under Musk’s new ownership.

  • In the first quarter of 2023, Twitter's ad revenue fell by 11% year-over-year.

  • This is likely due to a number of factors, including the ongoing war in Ukraine, the rising cost of living, and Elon Musk's takeover of the company.

  • The launch of Threads could pose a serious threat to Twitter, as it could attract users who are looking for a more intimate and personal social media experience.

Fidelity Investments, Charles Schwab, and Citadel Securities back new crypto exchange

The launch of EDX Markets is a significant development in the cryptocurrency market. It could help to legitimize the cryptocurrency market and attract more institutional investors.

There’s one big difference from other exchanges that regulators like: the exchange won’t custody anything. Customers will go through intermediaries to buy and sell, similar to how the NYSE and NASDAQ work.

  • Why is it significant? EDX Markets is the first major cryptocurrency exchange to be backed by a group of major financial institutions. This could help to legitimize the cryptocurrency market and attract more institutional investors.

  • What does it offer? EDX Markets will offer a more secure and compliant trading environment for institutional investors. The exchange will initially offer trading in Bitcoin and Ethereum, with plans to add more cryptocurrencies in the future.

EDX Markets is based in the United States and is regulated by the Securities and Exchange Commission (SEC).

  • The exchange will also offer a variety of features designed to appeal to institutional investors, including margin trading, derivatives trading, and clearing services.

  • EDX Markets is hoping to tap into the demand for cryptocurrency trading among institutional investors, who have been hesitant to enter the market due to concerns about security and regulation.

📈 Stocks

S&P 500 4,388.71 (-0.47%)
DJIA 34,053.87 (-0.72%)
NASDAQ 13,667.29 (-0.16%)

They keep going and going and going…

Stocks keep going

Equities are still rallying as cash is flowing out of money market funds and into US equities.

  • We just saw the biggest outflow from money market funds since mid-April ($4.7 billion) and the biggest inflow into equities since March 2022 ($14.1 billion).

  • The buying of call options tied to the S&P 500 hit a record 1.79 million on Thursday, indicating that investors are betting on further gains in the stock market.

Winning! The S&P 500 is currently on its longest weekly winning streak since 2021.

Marathon Digital Holdings, Inc. [MARA +17.43%] is a crypto currency mining company. The company’s stock shot up yesterday on no news, but Bitcoin was up 6.8%. The announcement by Fidelity and Deutsche Bank likely helped.

Virgin Galactic Holdings, Inc. [SPCE +27.06%] was up big after announcing they’ll start operating their first-ever paid space tourism flight.

(Their ticker symbol (SPCE) stands for “space,” but all I see is “spice.”)

What sector do you want more of?

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🔐 Crypto

Bitcoin $28,760 (+6.8%)
Ethereum $1,814.58 (+4.9%)
Total market cap $1.17 Trillion (+5.1%)

Etherscan adds OpenAI-based tool

Etherscan, a popular Ethereum blockchain scanning website, has added a new tool that uses artificial intelligence (AI) to help users interpret the source code of smart contracts.

The tool, called Code Reader, is based on AI technology developed by OpenAI. It allows users to ask for an explanation of the entirety or parts of the source code of a smart contract.

Code Reader can also retrieve the "read" and "write" functions of a smart contract, such that users can make informed decisions on how to interact with them as well as explore possible ways of using them in decentralized applications.

Etherscan said the tool is meant for informational purposes only and encouraged users to verify its answers instead of relying on them solely for evidence or bug bounty submissions.

Binance to integrate Bitcoin Lightning Network

They posted this announcement on Twitter confirming that they’re running Lightning nodes on the Bitcoin network:

What is it? The Bitcoin Lightning Network is a layer-2 solution that allows users to make fast and cheap payments off-chain.

💵 Personal Finance

Investing in tech stocks can be a great way to grow your wealth. However, it's important to do your research and understand the risks before you invest. Here are some tips to help you get started:

  • Do your research. This includes looking at the company's financial statements, reading analyst reports, and following the news about the company. If you don’t want to do all that, invest in an index fund.

  • Consider your investment goals. What are you hoping to achieve by investing in tech stocks? Are you looking for short-term gains or long-term growth? Your investment goals will help you determine which tech stocks or funds are right for you and when you may want to sell.

  • Diversify your portfolio. Don't put all your eggs in one basket. By diversifying your portfolio, you're reducing your risk. This means investing in a variety of tech stocks or funds, not just the biggest and most well-known ones.

  • Invest for the long term. Tech stocks can be volatile, so it's important to invest for the long term. This means not panicking if the stock market takes a downturn. Instead, stay patient and focus on the long-term growth potential of the companies you've invested in.

  • Use a brokerage account. A brokerage account is a type of investment account that allows you to buy and sell stocks. There are many different brokerage accounts available, so you'll need to choose one that's right for you.

I hope these tips help you get started investing in tech stocks. Remember, do your research, understand your goals, and invest for the long term.

💰 Be a Better Investor

"The intelligent investor is a realist who sells to optimists and buys from pessimists."

- Benjamin Graham, founder of value investing

This quote highlights the importance of contrarian thinking in investing. It is often the case that the best time to buy is when everyone else is selling, and the best time to sell is when everyone else is buying.

This is because investors tend to be too emotional and overreact to news and events. As a result, they often buy stocks when they are overpriced and sell them when they are undervalued.

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


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