US economy grows at 1.6% annual pace in first quarter, falling short of estimates (2 min read) The US economy grew at a slower rate than expected in Q1, with a 1.6% annualized increase compared to the anticipated 2.5%. This deceleration from the previous quarter's 3.4% growth rate reflects the impact of the Fed's significant interest rate hikes, particularly on consumer spending and government expenditures. Despite slower growth, inflation remains unexpectedly high, influencing market reactions with a drop in stocks and a rise in bond yields.
UBS Analyst Who Took On Evergrande Now Bullish on China Property (7 min read) John Lam, a UBS analyst known for his accurate prediction of the downfall of Evergrande, is forecasting a gradual recovery in the Chinese real estate market despite prevailing pessimism among analysts and a significant downturn in the sector. After being bearish for three years, Lam is now optimistic due to government support and a reduction in new housing starts, which he believes will correct the oversupply issue. More on his rationale is available in the article.
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Business & Stocks
Alphabet shares jump 14% on earnings beat, first-ever dividend (1 min read) Alphabet's stock surged in extended trading yesterday after the company reported earnings and revenue exceeding expectations in Q1 and declared its first dividend. The results included better-than-expected YouTube advertising and Google Cloud revenues. Alphabet announced a dividend of 20 cents per share and a new $70 billion share buyback program, signaling strong financial health and commitment to returning value to shareholders.
Microsoft Invests $1.5 Billion in an AI Company: Here's What Investors Should Know (3 min read) Microsoft has been heavily investing in AI, with a $13 billion commitment to OpenAI and hiring top AI talent. Now, it's investing $1.5 billion in G42, an AI company in the UAE. This move aims to expand Microsoft's AI presence in developing markets and boost its cloud computing capabilities globally. While this investment won't significantly impact Microsoft's value, it demonstrates the company's commitment to AI innovation and expanding its reach.
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Funds & ETFs
The Bitwise BITQ ETF: Growth Equity Exposure to Crypto (3 min read) The Bitwise Crypto Industry Innovators ETF (BITQ) offers investors a unique method to participate in the crypto sector without direct exposure. BITQ invests in companies integral to the crypto ecosystem, such as miners and brokerages, providing diversification and reduced risk compared to direct cryptocurrency investments. It gained 247% in 2023, outperforming direct crypto investments and serving as a safer alternative for gaining crypto exposure.
Israel-Focused CHAI ETF Closes After Four Months (1 min read) The Defiance Israel Bond ETF (CHAI), launched in December to offer access to Israeli bonds, is closing after only five months due to a lack of investor interest, holding only $2.43 million in assets. Although ETF closures have generally increased over the past years, CHAI’s shutdown also occurred amid broader financial movements and political protests related to Israel's actions in Gaza.
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Portfolios & Investing
Model Portfolios: Everything You Need to Know (Video) Model portfolios have been one of the fastest-growing segments of the asset management industry over the last decade. This 10-minute video is with the VP of Global Insight at Broadridge Financial Solutions where he breaks down what are model portfolios, the available types, and who is using them.
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