Morning Market Download from Invincible Money

Personal finance + economics + markets

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

Economy

The Bank of Japan will leave its inverted yield curve policy in place and keep rates low. The yen fell and government bonds went higher.

Consumer spending was up 3.7%, the largest increase in 2 years.

News

The EU has approved a draft of its regulatory AI Act, which divides AI companies into four risk categories, with higher-risk firms facing stricter compliance measures like documentation and risk management. The latest draft includes a requirement for generative AI companies to disclose any copyrighted material used in training their models, benefiting both big publishers and small creators. If the bill passes, it would be a major win for regulation on a global scale, while regulation has remained sluggish in other regions.

Stocks

DOW up 272 points on Friday finishing the best month since January.

First Republic likely headed to FDIC receivership. Stock down another 40%.

Meta announced in its earnings call that it will be integrating AI into all its apps. It was recently revealed by an insider that Zuck is spending nearly ALL his time on AI these days.

Trend in the Q1 earnings call: all the large companies are betting big on AI.

“We’ll continue to incorporate generative AI advances to make search better in a thoughtful and deliberate way,” Alphabet CEO Sundar Pichai

Where is Apple’s Siri in the AI discussion? They’ve fallen behind. Here’s a good read on how and why.

TLDR: Apple's Siri chief, John Giannandrea, is struggling to keep up with the advancements in the AI field, as the tech giant falls behind competitors like Google and Amazon in voice assistant technology. Despite his reputation as a top AI expert, sources suggest that Giannandrea has been slow to integrate the latest AI research into Siri's capabilities, leading to frustration among employees and management. As a result, Apple has reportedly shifted its focus away from Siri and towards other AI projects, such as autonomous driving and machine learning.

Dropbox is laying off 16% of their workforce due to slowing growth and “the era of AI” according to the CEO.

I don’t mean to write so much about AI, but it’s everywhere in the business world and the headlines. It’s upending everything. Once slowly and now all at once.

More layoffs: Lyft (1,000 jobs or 26% of company) and Gap Inc (1,800 more after 500 last September).

Bank of America advising clients to sell when the S&P is above 4,200. It closed 4,169 on Friday.

Crypto

31% of new crypto buyers are influenced by friends. Remember, DYOR (Do Your Own Research).

SEC Chairman Gary Gensler said “the law is clear” for crypto exchanges. Everyone in crypto rolled their eyes.

Hong Kong regulators are suggesting banks work with crypto firms. More firms have been moving aboard, with Switzerland being a favorite.

Smart Investors Say…

Get Smarter

Money is a tool that can be used to achieve your goals and improve your quality of life, but it should not be the sole focus or measure of your worth as a person. It's important to understand how to manage and grow your money effectively, such as through budgeting, saving, investing, and avoiding debt. However, it's equally important to prioritize your values, relationships, and personal well-being over the pursuit of money, as these are the things that ultimately give your life meaning and purpose.

As Sam Zell said, you should not focus too much on money that you don’t enjoy life. Focus on the things that bring you happiness and freedom.

He also said his personal jet brings him both so you should at least try to get one. 😀 

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