Oil prices edge lower as Russia eases fuel export ban (2 min read)

Oil prices edged lower in choppy trades on Monday as Russia relaxed its fuel ban by allowing some exceptions. This snapped a three-week rally of more than 10% after Saudi Arabia and Russia announced an extension to their production cut to the end of the year. Also weighing on oil prices are the Fed’s hawkish stance last week and the strong US dollar. A stronger USD makes dollar-priced oil more expensive for holders in other currencies, which lowers demand.

China property: accelerating meltdown threatens other markets (2 min read)

The Chinese property crisis continues and the sector is experiencing significant price declines, prompting fears of contagion within and beyond China. Chinese home sales have fallen nearly 30% from last year amid the property meltdown. The property market’s instability is also affecting various sectors, particularly banks the most. The crisis may spread to commodities as Iron ore prices fell 4% on Monday despite strong historical demand from China. 

Amazon to invest up to $4 billion in Anthropic, a rival to OpenAI (2 min read)

Amazon is investing up to $4 billion in Anthropic, an AI firm that specializes in generative AI technology. Through this partnership, Amazon aims to leverage generative AI similar to ChatGPT and enhance its AI capabilities to compete with rivals like Microsoft and Google. Anthropic will use Amazon Web Services (AWS) as its primary cloud provider, providing AWS customers with early access to unique generative AI features.

Striking Hollywood writers reach tentative deal with studios (4 min read)

Hollywood writers have reached a preliminary labor agreement with major studios, potentially ending one of two strikes that have disrupted film and TV production. The deal covers a three-year contract and addresses issues like compensation, minimum staffing, and AI usage in the industry. While this marks progress for writers, the actor’s union remains on strike. The work stoppage has had significant economic repercussions, costing California's economy billions.

BlackRock Dissolves ESG Funds as Firm Steps Back From Label (2 min read)

Several investment firms, including BlackRock, have closed down ESG (Environmental, Social, and Governance) focused funds in response to conservative backlash in the US. ESG funds surged in popularity in 2020 and 2021, but outflows and poor performance have prompted their closure to accelerate in the past year. Conversely, ESG funds are growing internationally, especially in Europe, where demand is strong.

Long-Treasury ETF Plunges Record 48% as Market Meltdown Worsens (3 min read)

The iShares 20+ Year Treasury Bond ETF (TLT) has experienced its largest drawdown in history, declining 48% from its 2020 peak and trading at its lowest level since 2011. The rising rate and staying high expectation has sent the price of long-term US debt plunging as investors flee to shorter-term alternatives. TLT is down approximately 10% this year, following a 33% decline in 2022 and a 6% drop in 2021. Other long-duration funds have also suffered similar losses.

Mistakes That Compound in the Markets (4 min read)

This article looks at a case where an investor had only seen a 2.61% annual return since 2010 and the financial advisor implemented a risky strategy of holding 60% of the equity exposure in just seven stocks in hopes of boosting returns. It highlights the unnecessary concentration risk and advises against trying to “juice” returns to make up for losses as that can easily compound on the downside as well.

Smart gold investing moves to make this fall (2 min read)

Amid rising inflation and record-high interest rates, investors are turning to gold for its inflation hedge and portfolio diversification benefits. If you are looking to make an allocation to gold, this article suggests limiting it to around 10% of the overall portfolio. It is also important to understand the pros and cons of gold investments as it doesn't generate short-term income and may be beneficial to choose liquid options that you can easily sell.

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Thomas

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