✂️ Fed prepares for a cut

and stocks are hitting new highs

Good morning investors! Yesterday’s Fed report did wonders as we prepare for ‘hopefully’ a strong 2024.

Today we cover:

  • One rate cut is coming.

  • Inflation getting beaten.

  • Stocks hitting new highs.

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📊 Economy and News 

Expect one cut this year

The Federal Reserve announced on Wednesday that it will maintain its key interest rate and anticipates only one reduction before year-end.

The Federal Open Market Committee (FOMC) also revised its outlook, suggesting that the long-term interest rate is higher than previously estimated.

“Recent months have shown modest further progress toward the Committee’s 2 percent inflation objective,” the policymakers stated.

Through 2025, the committee now projects a total of five rate cuts amounting to 1.25 percentage points, down from six cuts projected in March. If these projections hold, the federal funds rate would be around 4.1% by the end of next year.

Additionally, the long-term interest rate, which is considered neutral for economic growth, was revised upward to 2.8% from 2.6%, reflecting a growing belief among Fed officials that higher rates may persist longer.

Global hits:

Something about inflation: In the FOMC’s Summary of Economic Projections, participants raised their 2024 outlook on inflation to 2.6%, or 2.8% when excluding food and energy. Both inflation projections were 0.2 percentage point higher than in March.

The Fed’s preferred inflation gauge is the Commerce Department’s personal consumption expenditures price index, which showed respective readings of 2.7% and 2.8% for April. The Fed focuses more on core inflation as a better long-term indicator. The SEP indicates inflation returning to the 2% target, but not until 2026.

Metals: Norway has discovered Europe’s largest deposit of rare earth metals, whereas Singapore is set to lead the global gold market.

📈 Stocks

S&P 500 5,421.03 (+0.85%)
DJIA 38,712.21 (-0.091%)
NASDAQ 17,608.44 (+1.53%)
BRENT CRUDE 82.53 (-0.01%)
* Prices as of Jun 13th, 12:20 AM UTC

S&P 500 closes above 5,400 for the first time

The S&P 500 jumped to a record and closed above 5,400 for the first time Wednesday after the Federal Reserve’s latest policy announcement and May inflation data pointed to easing pricing pressures.

Alongside, Casey’s General Stores surged 17% to reach new all-time highs following earnings and revenue reports that exceeded expectations. ⛽

Interesting: Broadcom beats earnings estimates, announces 10-for-1 stock split. On the other hand, GameStop tanked -16.44% with huge volume in the call options owned by ‘Roaring Kitty’

Court cases: More than 15,000 Amazon contract drivers have filed legal claims asking for compensation for overtime and unpaid wages . On the other hand, some ex-employees have sued Elon Musk and SpaceX, claiming illegal firings after they called out alleged gender bias and harassment.

💵 Personal Finance

Use AI to generate content

AI can be used to generate all kinds of content from written blogs to audio posts to images. Some argue that AI is making people jobless but we argue that it is only offering more opportunities to make money.

Here are some of the best tools to get started:

  • Writing: ChatGPT can be used to write everything from blogs to eBooks to YouTube scripts. The basic version of the tool is free to use but you can also get your hands on the paid version to get access to the latest information and come up with even better content. Those who want something different can try GrowthBar, which is said to be suitable for marketing and SEO content such as product descriptions and sales emails.

  • Graphics: Starting at $20.99 per month, Adobe FireFly comprises a collection of AI design tools capable of generating stunning text effects, transforming text into images, and recoloring vectors to create a wide range of color variations. Those who want a free tool can try MidJourney, which also has a paid version. It works in a similar fashion but isn't as neat as FireFly.

  • Audio: The first AI audio tool, LANDR is an AI-powered audio tool that allows you to create, collaborate, master, distribute, and promote your music. Used by names like Lady Gaga, Gwen Stefani, Snoop Dogg, and Seal, it can automatically create personalized masters based on your music with amazing precision. Those who want to concentrate on podcasts can try Descript. Another of our favorites is Listnr, which can convert text to speech and speech to text. Plus, it even comes with voice cloning capabilities.

  • Video: Pictory is an AI video generator that enables you to easily create and edit high-quality videos. This powerful tool can even turn articles into videos. Those who want something more authentic can try Synthesys with 69 real Humatars and more than 140 languages.

Content created through these tools can be sold on Amazon, uploaded to your website, put up on social media, etc.

Do you use AI to generate content?

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💰 Be a Better Investor

I love money. I love everything about it. I bought some pretty good stuff. Got me a $300 pair of socks. Got a fur sink. An electric dog polisher. A gasoline powered turtleneck sweater. And, of course, I bought some dumb stuff, too.

Steve Martin

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👩🏽‍⚖️ Legal Stuff
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