Morning Download 

Personal finance + economics + markets

Good morning, investors! Yesterday was a great day for the market but the situation in Israel is worsening and some are afraid that it will impact markets.

Fun fact: Day traders make up a very small percentage of investors, 80% quit within the first 2 years, and 95% lose money.

Today we cover:

• The US to grow even more. 💪 

• Are AI stocks safe? 🛑 

• Benefitting from IPOs. 💜 

Follow us on Twitter for more.

📊 Economy and News 

IMF hikes U.S. growth forecast for 2023

The US seems to be doing great and is now expected to grow at a rate of 2.1%, according to the International Monetary Fund, which raised its U.S. growth projection for this year by 0.3 percentage points.

On the other hand, the fund lowered its euro zone forecast by 0.2 percentage points, to 0.7%.

Europe has been suffering with major economies like the UK and Germany facing challenges.

Some countries are expected to do better than the US with a global growth forecast of 3% for the year. India is among the top with an expected rate of 6.3%. China, however, has been downgraded.

Global hits:

• Pakistan rupee outperforms Asian peers against the US dollar.

• “More rate hikes still possible”, warns European Central Bank member.

• Singapore’s digital economy nearly doubled in five years.

📈 Stocks

S&P 500 4,358.24 (+0.52%)
DJIA 33,739.30 (+0.40%)
NASDAQ 13,562.84 (+0.58%)
VIX 17.03 (-3.97%)
* Prices as of Aug 4th, 12:20 AM UTC

Analysts call generative AI 'overhyped'

The buzzy generative artificial intelligence space is fast growing and big companies are already enjoying the perks of it. However, the industry is expected to suffer in 2024, according to a CCS Insight report. Many other experts have also shared similar thoughts in the past, including Gartner.

But why? Due to the “reality of the cost, risk and complexity involved replacing the hype surrounding the technology,” says the report.

“The hype around generative AI in 2023 has just been so immense, that we think it’s overhyped, and there’s lots of obstacles that need to get through to bring it to market,” said Ben Wood, chief analyst at CCS Insight.

More and more companies are making their own chips instead of buying from other companies like Nvidia. This is pushing costs. Though beneficial in the long-run, this added cost can make stocks suffer next year.

Who does it impact? If true, it will impact both big and small firms like Meta, Amazon, Google, and Qualcomm, as they are heavily invested in generative AI.

What is generative AI? It refers to artificial intelligence capable of generating text, images, or other media such as ChatGPT and Bard AI.

Shall I stay away from AI? No, not because one report says so as some experts are still very high on AI-related stocks such as Supermicro, Nvidia, and Broadcom. In fact, it has the potential to be a $15.7 trillion global economic enhancer by 2030.

Also check: Microsoft announces new AI tools to help doctors deliver better care. Furthermore, AMD has acquired Nod.AI to go against Nvidia.

Warning: Samsung expected to report a major fall in profits.

🔐 Crypto

Bitcoin $27,448 (-0.5%)
Ethereum $1,566 (-0.7%)
Total market cap $1.1 T (-0.7%)
* Prices as of Aug 4th, 12:20 AM UTC

These are the 10 biggest fintech companies

Fintech is a growing field and knowing about the top players can prove to be helpful, especially for investors looking for a good opportunity.

CNBC recently partnered with Statista to study the top fintech companies. The study consisted of 1,500 names across different marketing segments. It evaluated a variety of factors, including user numbers, funding raised, and revenue.

What does this have to do with crypto? More and more of these have been adding crypto rails and we expect them to continue to add crypto offerings.

Check out the list of 200 here for some possible good buys.

A total of five companies from the US made it to the top 10.

💵 Personal Finance

How to benefit from IPOs

IPOs allow investors to enjoy great perks. In recent times, companies such as Airbnb and CureVac BV offered great results. The former soared 114.7% above the IPO price and the latter offered up to 596% return from the offer price.

An IPO can be an easy way to improve your financial situation. Here are some of the benefits of investing in an IPO:

• You get a chance to make quick money in the form of listing gains.

• Prices are usually low at the time of an IPO, thus offering easy entry.

• Companies offer a lot of information at the IPO stage, thus making the decision easier.

However, not all IPOs are successful. Robinhood, for example, failed despite being a big name. Its shares fell 10% within minutes of the bell ringing. Some other companies to have faced a similar fate include Uber, Etsy, and Omeros.

So, how to choose the right IPO to invest in? Here are a few pointers to remember:

• Understand the business model and look at the company's long-term prospects. Ensure the model is sustainable and don't blindly follow big names.

• Choose a company that has proven itself and has strong supporters and brokers.

• Do not look solely at the past when gauging a company, rather look at its growth potential.

• Ensure the price is right as not all IPOs are justified and some companies are known for starting ‘expensive’.

Despite all this, you may still face some challenges. Remember to be cautious because the stock market is unpredictable.

Are you ready to invest in an IPO? Here are some upcoming IPOs😀 

• Birkenstock Holding this week on NYSE expected to have a starting price of $44 to $49.

• BioLingus on Nasdaq between $15 and $16 per share (date not announced)

• Healthy Green Group Holding on NYSE between $6 and $7 per share (date not announced)

For more, check this amazing video covering how to invest in an IPO:

💰 Be a Better Investor

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