🧢 Unemployment goes up

and what Buffett said

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Good morning investors! No major Fed activities are expected this week but investors will be waiting for more earnings and probable changes in oil prices.

Today we cover:

  • Unemployment increases in the US.

  • More earnings this week.

  • Solana set for big things?

📊 Economy and News 

Unemployment goes higher to 3.9%

US job growth slowed considerably last month, with just 175,000 positions added in April.

The slower-than-expected gains — April’s tally is the lowest since October of last year — come as the Federal Reserve has sought to cool demand to tame high inflation.

Economists have anticipated the labor market would see a gradual slowdown due to the pressure of high interest rates.

Although April’s jobs numbers are sharply cooler than the upwardly revised 315,000 gains notched in March, they’re in line with what was seen pre-pandemic.

Wage: Wage growth also slowed notably. Average hourly earnings increased 0.2% from March and 3.9% during the past year. Annual wage gains are at their lowest level since May 2021.

Some economists think this is a good sign and indicate of early rate cuts.

Global hits:

Reminder: Warren Buffett says Berkshire Hathaway is looking at an investment in Canada.

📈 Stocks

S&P 500 5,127.79 (+1.26%)
DJIA 38,675.68 (+1.18%)
NASDAQ 17,890.80 (+1.99%)
BRENT CRUDE 83.42 (-0.01%)
* Prices as of May 6th, 12:20 AM UTC

Earnings will continue this week

First quarter earnings season is approaching the final stretch and some of the larger caps due to report in the week ahead include Walt Disney, Wynn Resorts, and Akamai Technologies.

Some of the small cap names reporting include nutrition company Bellring Brands, gambling company Light & Wonder, and oil and natural gas company Permian Resources.

Check this: Amgen stock soars on weight loss injection progress.

What Warren Buffett said

“Obviously, AI has potential for good things too, but ... I do think, as someone who doesn’t understand a damn thing about it, it has enormous potential for good and enormous potential for harm,” said Buffett while talking about AI and how it can be used to scam people.

He called ‘AI scams’ the next ‘big’ industry. Also, he reflected on the passing of his longtime partner Charlie Munger last year and wrestled with the possibility of his own mortality.

However, he reassured investors that a plan was in place and revealed for the first time that Greg Abel, his successor, would be making the call on investing decisions.

Lastly, he added that Berkshire Hathaway sliced its apple stock due to tax reasons and not due to a lack of trust in the company.

Surprising: Rue21, a mall staple, files for bankruptcy and will close all of its stores.

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🔐 Crypto

Bitcoin $64,025 (-0.01%)
Ethereum $3,136 (-0.01%)
Total market cap $2.36T (-0.02%)
* Prices as of May 6th, 12:20 AM UTC

Solana to surge by 300%?

Solana has stood out as a leading performer in this year's bullish market, boasting a record-breaking monthly trading volume of $58.4 billion in March and reaching price peaks of $200.

However, in recent weeks, trading activity has decelerated, causing the coin's price to drop to $135.

Despite this decline, there's widespread anticipation that this is merely a temporary adjustment, likely paving the way for a substantial recovery.

Renowned crypto analyst, Jacob "Crypto" Bury, has even forecasted a potential three to fourfold increase in Solana's value by 2024.

He’s also highlighted the next Solana meme coin he thinks is set to build up momentum, Dogeverse (DOGEVERSE), which is currently in presale.

Also check:

💵 Personal Finance

Plan for retirement

It doesn’t matter what stage you are in, it’s important to start retirement planning now. We emphasize this even if you have no plans to retire in the near future.

Even big and successful entrepreneurs, such as Warren Buffett, who do not plan to retire anytime soon indulge in retirement planning.

The image below shows when the average American retires:

The image below shows how much the average American retiree has:

Unfortunately, most people don’t plan well for retirement and won’t have enough money. Don’t be like them. Don’t solely look at this data and try to hit the number by age. That would leave you unprepared.

Instead, answer these questions:

  • How much do you need to retire? Don’t look at averages or how much others are saving, decide based on the type of life you wish to live once you hang the boots. You can use this formula to decide how much you need to retire.

  • When do you wish to retire? As seen above, most people start to retire in their 50s but a growing number of people are retiring at a young age and some are working beyond their 60s.

  • See how much you have to save per month to reach your retirement goal. Remember that something is better than nothing. Merely saving $100 per month can give you $1.200 by the end of the year. Moreover, you can increase this amount by investing smartly.

  • Decide how and where you intend to save. Consider investing in a 401(k) or similar account if your employer offers that option. Start as high as you can and gradually expand your contributions toward the IRS limit that stands at $22,500, or $30,000 for those 50 or older. Also, be very careful about what you keep in your retirement account. Some good options include index funds and precious metals as they’re safe and less volatile than options like stocks and digital coins.

Spend a good amount of time planning retirement because it impacts how happy you will be in your later years and what you’ll be able to do.

💰 Be a Better Investor

“Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert.”

Peter Lynch

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