Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.
This week, we bring you
- Investment Mistakes to Avoid Right Now
- The first meme bond
- “Can’t pay credit card”
- The case for Latam bullishness
- Will AI cause a market crash?
Our most popular story last week was from Daily Airbnb investments from Corey.
Table of Contents
Investment Mistakes to Avoid Right Now
via The AverageJoe
The AverageJoe spotted a timely piece from Bloomberg Thursday.
In it, a panel of experts warns against AI hype, mistaking good business ideas for good business models, and chasing “juicy” yields. They also think a good historical parallel for today is (gulp) the dot-com bubble.
The first meme bond
2023 has seen the US government print the second most Treasuries in history, and that’s likely to go up with two wars to fight.
Everyone’s got an opinion on interest rates, and MoneyFitt reports the first meme bond has emerged.
Assets in TMF, which is a triple-leveraged Treasuries ETF, have increased 600% this year to over $2 billion.
If interest rates come down, this thing will 🚀 That’s what they call “big cocaine bear energy.”
“Can’t pay credit card”
via The Rollup
The Rollup caught this one yesterday — search volume for “can’t pay credit card” is up 35% year over year, and the trend is going to the moon.
This is very bad for the US consumer and companies that rely on them (and credit card companies).
The Case for Latam Bullishness
via Semafor
After a “lost decade” that saw economies stagnate across Latin America and the Caribbean, a new optimism appears to be taking hold in some areas.
But it’s not evenly distributed. Semafor tells us which sectors and geographies are set to boom.
Will AI Cause a Market Crash?
Tyler Cowen from Marginal Revolution explores how AI could cause a market crash, including:
One fear is that a small number of AI base models could lead investors to herd behavior, where many of them sell (or buy) at the same time because their models have told them to.
The full article is behind a paywall at Bloomberg, but you can read the best bits at Marginal Revolution.
Subscribe to Marginal Revolution
Invest Like the Best
CrowdStreet is the leading online real estate investing platform. To date, they’ve launched more than 770 deals, including both individual assets and funds. Since 2014, their investor community has committed more than $4.16 billion in investments.
What I’m Reading
Everyone always asks how I stay up-to-date, so here are a few of my favorite newsletters. Click on the links to subscribe (all free):
Every week, Byrne Hobart (author of The Diff) teaches me everything there is to know about one topic in finance.
Everything in investing is dominated by geopolitics right now, and this is the best daily newsletter if you want to stay on top of what’s going on (and what it means).
New on the scene, this newsletter is full of stories from early stage public companies, crypto, and startups you probably haven’t heard of.
I’m pleased to announce the beginning of our partnership with my favorite brokerage, public.com. I’ve been badgering them for months to work with us here at Finance Wrapped, and they’ve finally agreed.
This is why I ❤️ public.com:
- There’s a wide variety of asset classes available — from equities to themed funds to music royalties to Pokemon cards to Treasuries
- They don’t sell your trades to hedge funds that are going to front run you
- The social element is big — you can see what other top traders are doing
If your broker doesn’t give you everything above, consider switching.
Stock ideas
Taking a slightly different approach today given the increasing number of conflicts globally. These are a few companies that can give you a personal hedge if things get worse.
Remember to always DYOR.
Lockheed Martin ($LMT)
Bull Case:
- Increased Arms Sales: An escalation could lead to increased sales of military equipment like fighter jets and missiles.
- Alliance with Israel: Lockheed Martin has a strong relationship with the Israeli government, which could lead to more contracts.
Bear Case:
- Public Opinion: Increased scrutiny over arms sales to conflict zones could lead to reputational damage.
- Political Risks: Diplomatic resolutions could suddenly reduce the need for military equipment.
Palo Alto Networks, Inc ($PANW)
- Cyber Warfare: Conflicts today often have a cyber component, potentially increasing demand for cybersecurity solutions.
- Israeli Tech Sector: Israel is a hub for cybersecurity innovation, potentially offering collaboration opportunities.
Bear Case:
- Limited Direct Impact: The company’s broader customer base may dilute the impact of the conflict on its overall performance.
- Ethical Concerns: Providing cybersecurity in a conflict zone could attract ethical and legal scrutiny.
Astronics ($ATRO)
- Bull Case: As a provider of unmanned aircraft systems and tactical missile systems, the conflict might spur demand for its products.
- Bear Case: Any global push for peace or restrictions on arms sales could adversely affect Astronics.
That’s it for this week.
If you write amazing content and would like to be featured, please send it through for consideration.
Cheers,
Wyatt
Disclosures
- This issue was sponsored by our friends at WebStreet
- There are affiliate links above; we’ll get a couple of bucks if you take action after you click through.
- I don’t hold positions in any of the investments above.
- Nothing above is financial advice. DYOR, you filthy animal.
