😔 Higher for longer

Good morning investors! Bitcoin is in a great position with new highs everyday but the stock market looks as confused as ever.

Today we cover:

• Inflation report is coming.

• Stocks continue to decline.

• Bitcoin hits a new high.

Remember to register for the “Make money with AI” webinar, held tomorrow night. It won’t be recorded so attend live.
Register here.

📊 Economy and News 

Long-term inflation expectations rise

A recent survey showed that consumers increasingly doubt the Federal Reserve can achieve its inflation goals anytime soon.

The outlook for the next year remains unchanged but expectations rose 0.03 percentage points to 2.7% at the three-year range. Similarly, the five-year outlook jumped even more, up 0.4 percentage point to 2.9%.

These numbers stand ahead of the Fed's target of 2%, which the agency has struggled to achieve.

A survey might not appear of importance but experts believe that expectations are a key factor in viewing the path of inflation.

In January, headline inflation, as measured by personal consumption expenditures prices (the Fed's preferred gauge), increased by 2.4%. Excluding food and energy, core inflation rose to 2.8%.

The new report: The Labor Department’s Bureau of Labor Statistics is set to release its latest reading on the consumer price index on Tuesday at 8:30 a.m. ET.

Excluding food and energy, the increase for core inflation is forecast at a 0.3% gain, also one-tenth of a percentage point above the previous month.

Inflation's persistent strength will likely prevent any Federal Reserve rate cuts at its meeting scheduled for April 30 to May 1, and potentially even throughout the summer.

Global hits:

• OpenAI ridicules Elon Musk’s ‘incoherent’ lawsuit saying that there never was a “founding agreement” over nonprofit status and not keeping source code private.

• India inks ‘watershed’ $100 billion free trade deal with four non-EU nations after negotiating for over 16 years.

• China’s consumer prices rose for the first time in six months. But it’s too soon to say deflation is over.

Also check: McDonald’s and other restaurant chains look to the Sun Belt for growth as the population soars.

📈 Stocks

S&P 500 5,117.94 (-0.11%)
DJIA 38,769.66 (+0.12%)
NASDAQ 17,951.69 (-0.37%)
BRENT CRUDE 82.44 (+0.32)
* Prices as of Mar 12th, 12:20 AM UTC

Stocks continue to decline

The S&P 500 pulled back on Monday as the rally that brought the major averages to record highs cooled off.

Super Micro Computer experienced a decline of over 5%, while chipmaker Nvidia saw a 2% decrease. Both stocks were impacted as investors raised doubts about the future potential of artificial intelligence-related stocks following significant increases.

Other big names suffered as well with Meta tumbling 4.4% and Boeing down 3.01%. Outside of tech, pharmaceutical stock Eli Lilly fell over 3%.

Stocks fell due to a variety of reasons, including pressure due to the upcoming CPI report and controversial remarks by Trump. He said a TikTok ban would empower Meta, slamming Facebook as the ‘enemy of the people’.

Monday’s action follows a losing week for the major averages that pulled the S&P 500 and Nasdaq off all-time highs. Some fear that Friday’s Nvidia reversal could be a sign of the market reversing.

Interesting take: Hong Kong’s Hang Seng index is down more than 14% over the past year, some experts like Shaun Rein, founder and managing director of the China Market Research Group believe that “valuations are way too low.”

🔐 Crypto

Bitcoin $72,362 (+0.32)
Ethereum 4,058 (+0.13)
Total market cap $2.73T (+0.08)
* Prices as of Mar 12th, 12:20 AM UTC

UK helps BTC cross $72,000

The British financial watchdog said it would allow exchanges to list cryptocurrency-linked exchange-traded products for the first time, helping Bitcoin cross the $72,000 mark.

In simple words, The Financial Conduct Authority said that it wouldn’t object to requests from recognized investment exchanges to create crypto-backed exchange-traded notes, or ETNs.

Exchanges must implement robust controls to maintain orderly trading and provide adequate protection to professional investors. They are required to comply with all aspects of the U.K.'s listings regime, including issuing prospectuses and ensuring ongoing disclosures.

The London Stock Exchange responded to the FCA's announcement on Monday by stating in a separate statement that it would start accepting applications for the admission of bitcoin and ether ETNs from the second quarter of this year.

Not the only asset: Bitcoin isn’t the only cryptocurrency to be going up. Ether has crossed the $4,000 barrier and many see it hitting the $6,000 mark by the end of the year. Ripple too is up about +15% to $0.71.

💵 Personal Finance

Introduction to roboadvisors

Robots are now helping people make money. These automated platforms provide financial advice or investment management online with minimal human intervention and have been in existence since 2008. However, they’re now getting more popular due to the AI craze.

Known to be cost effective and accessible with few barriers and low requirements, roboadvisors make things easier by automating different processes and offering additional financial tools.

Said to be suitable for new investors, some are even popular among experienced traders. However, they do come with some cons, such as an increased risk of technical errors and a lack of flexibility.

It’s worth learning about roboadvisors and other AI tools. After all, an investor with $100,000 would pay the typical human $1,000 a year for their services, and $250 to the average robo thanks to robo-advisors offering lower fees.

You can even find hybrid models that give you access to both, humans and robots.

Check this video for more on robo advisors and don’t forget to be a part of our FREE WEBINAR so you can get answers to your questions and learn more about AI.

💰 Be a Better Investor

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

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