Morning Download 

Personal finance + economics + markets

Together with Fundrise

Good morning, investors! Good news is coming from all corners, so prepare for an exciting 2024.

Fun fact: Ever heard of "shoe-leather cost?" This term refers to the increased costs and inconveniences that individuals experience as they try to minimize the impact of inflation on their purchasing power. In times of high inflation, people may make more frequent trips to the bank to withdraw smaller amounts of money, essentially increasing the wear and tear on their shoes (hence the term "shoe-leather"). This concept highlights how inflation not only erodes the real value of money but also introduces additional costs and behaviors in everyday life.

Today we cover:

• Looks like inflation is about to fall even more. 😃 

• Target hits the target but misses the bull’s eye. 🙊 

• Benefit from AI with tips to invest in AI. 🤖 

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📊 Economy and News 

Retail sales in the US fell in October for the first time in seven months

Americans cut their retail spending in October for the first time since March, with interest rates at a 22-year high.

This is a sign of a slowing economy and an indication that consumers are in debt. This, however, might be a good sign for the Fed, which has been struggling to keep people from spending. This change indicates that inflation might come down next year.

What’s getting affected: Big ticket items were hit the most:

• Car sales fell 1.1% in October from September

• Furniture sales declined 2%

But, some areas saw a jump. For example, restaurants and supermarkets jumped by 0.3% and 0.7% in October, respectively.

Global hits:

• UK inflation has halved this year but economic growth remains elusive.

• Google, Meta, Snap, and TikTok must face teen addiction claims.

• Warren Buffett’s Berkshire Hathaway sold all of its GM stock.

📈 Stocks

S&P 500 4,502.88 (+0.16%)
DJIA 34,991.21 (+0.47%)
NASDAQ 15,817.18 (+0.030%)
BRENT CRUDE 80.43 (-0.92%)
* Prices as of Nov 16th, 12:20 AM UTC

Target exceeds expectation but might not hit the bull’s eye

Target has been dealing with issues like poor inventory management and poorly managed expectations. This has caused the stock to face its largest drawdown since the great financial crisis. 

Its third-quarter results brought a sigh of relief thanks to an EPS of $2.10 versus $1.48 estimated and a revenue of $25.4 billion versus $25.24 billion. However, the company doesn’t seem excited about the future. Nonetheless, the stock had its best day in a long time yesterday growing over 17% despite a fall in sales.

We’d suggest investors be careful when it comes to retail stocks. Retailers have been facing a variety of challenges over the past few months and the outlook isn’t looking great.

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🔐 Crypto

Bitcoin $37,536 (-0.92%)
Ethereum $2,057 (-.011%)
Total market cap $1.43T (+4.96%)
* Prices as of Nov 16th, 12:20 AM UTC

Check out the crypto market

A lot seems to be happening in the crypto world. Here are a few news items worth checking out:

• The New York State Department of Financial Services (NYDFS) has strengthened its guidelines for listing or de-listing cryptocurrencies in a move to beef up protections for crypto investors throughout the state.

• The U.S. Securities and Exchange Commission (SEC) is delaying a decision on an application by Hashdex to convert its existing bitcoin futures exchange-traded fund (ETF) into a spot vehicle. The agency has also delayed action on Grayscale's attempt to launch a new futures-based ether ETF.

• Solana has reached new yearly highs, gaining more than 17% the day after ARK Invest CEO Cathie Wood lauded the network for its efficiency and cost-effectiveness.

• Despite the crash, crypto was the best performing asset of 2023 with some digital coins gaining over 300% this year so far.

💵 Personal Finance

How to Invest in AI

AI is the future and, fortunately, it isn’t too late to benefit from it. There are many ways to invest in this new trend. You will come across dozens of AI companies but not all are poised for success and not all are publicly traded.

Here’s how you can have a share of the pie:

Invest in AI Stocks

Buying individual stocks can prove to be very beneficial but only when the company succeeds. Here are some of the top names invested in AI:

• Microsoft (MSFT): Satya Nadella, the CEO of Microsoft, is very passionate about AI. He doesn’t shy away from investing in AI and has entered into a partnership with OpenAI to integrate ChatGPT with its Bing search engine. In addition, the company is integrating AI with other tools, including Microsoft 365, the cloud-based version of its popular suite of office productivity applications. The company has been on a roll and has gained about 54.30% since the beginning of the year and is currently trading at $369.32. There is still some scope as 42 analysts offering 12-month price forecasts for Microsoft have a median target of $400, with a high estimate of $440 and a low estimate of $298.10.

• Nvidia (NVDA): This semiconductor company has had a wild year and it hasn’t stopped performing. Currently trading at $488, the company has gained 241% since the beginning of the year. No other major company has performed this well in 2023. The brand has thrived on making computer chips that power 3D graphics, cryptocurrency mining, and other applications from robotics to medical imaging. The company has suffered some blows due to the China-US tension but analysts are still very high on it and the average price target for Nvidia is $645.53.

Choose AI ETFs

Another way to invest in AI is to opt for an AI ETF. This method reduces the risk and allows you to benefit from the unpredictable market. There are 17 AI-based ETFs in the US, including:

• Direxion Robotics, Artificial Intelligence & Automation with a 1-year return of 99.73%,

• Global X Robotics & Artificial Intelligence with a 1-year return of 47.37%,

• Franklin Intelligent Machines with a 1-year return of 45.43%.

In comparison, the S&P 500 index has a 1-year return of only 16.70%.

Tip: If you are interested in benefiting from the AI phenomenon then consider investing in some less popular names as well. Some of our top picks include RELX PLC, Arista Networks Inc., and SAP SE.

Note: prices quoted above may have changed.

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