👓 Meta introduces new AI tools

and changing mortgage rates and falling prices

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Good morning investors! The Dow Jones Industrial Average and S&P 500 slid on Wednesday, retreating from their latest records, but the sentiment remains positive.

Today we cover:

  • Changing mortgage rates and falling prices

  • Meta’s AI race

  • Crowdfunding

📊 Economy and News 

Update on the Housing Situation - Mortgage, Demand, and Prices

The average interest rate for the most common type of U.S. home loan reached 6.13% last week, marking its lowest level in nearly two years. This decline in rates has led to a surge in refinancing activity, which now accounts for more than 57% of all mortgage applications, a sharp increase from the historical average of 48%.

Decline in New Home Sales

New home sales fell by 4.7% in August, down to a seasonally adjusted annual rate of 716,000 units. Despite the decrease, July’s sales numbers were revised upward to 751,000 units. Economists had predicted a drop to 700,000 units for August, but sales still managed a 9.8% increase compared to the same period last year.

The median price of new homes dropped 4.6% year-over-year, with most homes sold falling in the $300,000 to $499,999 range.

Global hits:

Good to know: US election risk hitting corporate investment plans, survey says.

📈 Stocks

S&P 500 5,722.26 (-0.19%)
DJIA 41,914.75 (-0.70%)
NASDAQ 18,082.20 (+0.043%) (-%)
BRENT CRUDE 73.88 (-1.43%)
* Prices as of Sep 26th, 12:20 AM UTC

Meta unveils $299 Quest 3S VR headset and the Orion AR glasses prototype

Meta Expands VR Horizons with the Quest 3S and Advances in Smart Glasses and AI

Meta yesterday introduced the Quest 3S, the latest VR headset scheduled for release on October 15, starting at $299 giving competition to Apple’s Vision Pro, which goes for $3,499.

Alongside, Meta announced a price cut for last year’s Quest 3, with the 512GB model dropping from $649 to $499. Meanwhile, Meta will discontinue its Quest Pro and Quest 2 models.

Meta’s AR Vision: Orion and Ray-Ban Smart Glasses

Meta introduced Orion, a prototype for AR glasses that is not yet available to consumers. It showcases Meta’s vision of lightweight, transparent AR glasses that could one day overlay computer graphics onto the real world.

Meta has already made strides in AR through its partnership with EssilorLuxottica on the Ray-Ban Meta smart glasses, starting at $299. Set for upgrades, these will soon incorporate voice-enabled interactions with Meta AI.

Meta’s AI Advancements: Llama 3.2 and Meta AI Chatbot

Meta also revealed upgrades to its Meta AI chatbot, enabling users to interact with the AI through voice in addition to written prompts. This feature mirrors advancements made by OpenAI with ChatGPT’s premium voice services.

The event helped the stock hit a new 52-week high of $576.88.

Surprising: Google files EU antitrust complaint accusing Microsoft of stifling cloud competition. Elsewhere, Boeing workers pressured to put speed over quality, FAA says.

Good to know: Novo Nordisk’s diabetes drug Ozempic may lower the risk of opioid overdoses, study says.

Chip shortage? A surge in demand for artificial intelligence-focused semiconductors and AI-enabled smartphones and laptops could lead to the next global chip shortage, according to Bain & Company. This will be the first shortage since the pandemic.

Yet, companies continue to do well. Micron forecasts upbeat first-quarter revenue on strong demand for memory chips sending the stock up +12% after the bell.

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💵 Personal Finance

How investors can make money through crowdfunding

When we talk about crowdfunding, we usually think of it as a tool to gather money. However, it can also be used as an investment vehicle. Here’s how:

Equity Crowdfunding

Equity crowdfunding involves purchasing equity or ownership in a company. 

The first step is to find people looking for investment in the form of crowdfunding with a share of ownership in return. You make money when you bet on the right company, e.g., when it grows in the future or gets acquired by a larger company.

In most cases, you will then have the option to sell your shares or receive dividends. 

Debt Crowdfunding

Debt crowdfunding involves providing loans to individuals or businesses. These loans typically come with a fixed interest rate, and investors make money through the interest paid on the loans.

However, from an investment perspective, it can be very risky because you might not get your money back. Still, people use this option because the interest rate is usually higher than what traditional banks offer.

Note: Some debt crowdfunding platforms also offer the option to sell loans to other investors on a secondary market.

Real Estate Crowdfunding

Real estate crowdfunding allows investors to pool their money with others to invest in real estate properties. It is similar to an ETF where several people come together to buy a property and make money in a variety of ways, including retail income, appreciation, and loan interest.

Rewards Crowdfunding

Investors in rewards crowdfunding typically receive a product or service in exchange for their investment. These rewards can be in a variety of forms. For example, a chance to attend a special event. Though not always of monetary value, these rewards can end up being beneficial.

How to start: The first step is to look for a platform where you can find opportunities. Some of the top websites include KickStarter, SeedInvest, RocketHub, StartEngine, and GoFundMe.

You will have to sign up for an account (usually free) and go through available projects.

💰 Be a Better Investor

"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas."

Paul Samuelson

Resources:

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