🧟 Chat GPT is Alive!!

Market Update

Hang on folks

In 5 days we are likely going to have a government shutdown because House Speaker Kevin McCarthy is in a bit of a Catch 22. If he tries to push through a hard-right bill then the democratic controlled Senate will shut it down. But if he tries to pass a bipartisan bill, he’ll upset his own republican camp and get ousted as the Speaker…so it’s looking like nothing will get done in time.

So what does this mean for your wallet?

Things might just get worse before they get better. But hey, that’s something to look forward to. (The better part, of course) Research shows that in the time leading up to the previous seven government shutdowns, the S&P 500 fell 10% on average.

Ready for some good news? Historically, in the 12 months after a shutdown, the S&P 500 is up 19%. Wanna get really crazy? Over the course of the past 20 shutdowns, stocks have been up 50% during the shutdown. If history repeats, brace yourselves for a short-term choppy market but hang on for that bull run. 🐂

Wait a sec can, you give me a refresher on the S&P 500? 

Sure thing! Generally speaking, this index gives investors a good indication of the health of the overall market and the U.S. economy. The index tracks the top 500 companies by size. This size is calculated as the total number of shares multiplied by the price per share.

For example, there are 15.63B shares of Apple and it’s trading at $176.08. So when you multiply those two numbers together, you arrive at $2.73T, making Apple the most valuable company in the world. Do that same calculation for all the biggest 500 companies, add those numbers together to get the S&P 500.

ChatGPT can talk?

Yup, you read that right. ChatGPT can now “see, hear and speak”. Subscribers will be able to hold voice conversations on the mobile app, with five different voices to choose from. Additionally, ChatGPT can “see” pictures uploaded and users can ask questions or have the bot analyze certain parts of the images.

Gear up for the AI arms race. Tech giants are pushing for the adoption of AI into daily life, and money is the proof in the pudding. Microsoft invested $10 billion in OpenAI, good enough for the biggest investment in AI to date. Former employees of OpenAI took their talents to start ChatGPT’s rival Anthropic. And guess which big tech company just invested? The big boys are heavily interested in AI, and we all should be too as intelligent investors.

Quick Hits

Writers Strike

More AI you say? Well yes! The writers’ strike is over, for now. Writers went on strike a few months ago in protest for better pay and protection from artificial intelligence. The Writers Guild of America and Alliance of Motion Picture agreed on a tentative deal while the final contract is drafted out. It’ll be interesting how the entertainment business adapts to the influence of AI.

Macro Corner

Crying at your grocery bills? Me too. But why? Factors around the globe influence the price of groceries, that’s simple economics.

• Oranges juice is up due to a global citrus supply shortage thanks to hurricanes in Florida.

• Meat prices continue to rise as herds shrink and demand continues to grow.

• A midwest drought led to damaged crops, and in turn farmers had to….uhhh….”reduce their herds” if you know what I mean.

So, next time you’re at the store, think about all the factors at play to get that avocado into your basket. Macro matters.

Nissan All-in on EVs

“There’s no turning back now”, said Makoto Uchida, CEO and president of Nissan. Nissan announced yesterday that all new models released in Europe will be fully electric, with the goal to be selling only EVs by 2030. Tesla is still the front-runner in EVs, so watch for the rest of the automobile industry to play catch up as we enter the world of renewable energy.

Personal Finance

Struggling with your money? Make sure you have a budget in place. There are endless budgeting methods, worksheets, excel sheets, and more. It can be overwhelming, especially if you’re new to it. However, find a method that works for you and stick with it. Keeping on top of your finances is the first step towards making your money work for you. You'll be surprised at how much stress budgeting relieves. Remember, always pay yourself first!

Quote of the Day

“I don’t play in a game where the other people are wise and I’m stupid. I look for a place where I’m wise and they’re stupid.” - Charlie Munger on his investor self-awareness

Spread the Word

Hey guys, send this to some of your friends so we can all get smarter together! Oh, and you will earn some cool prizes… 🎁🫡

Psst…the next stock report is an in depth look into Apple. 🍎

Meme of the Day