TL;DR
- A lawsuit against Google could hold the social media giant liable for content posted on its platform, which could have significant implications for investors.
- Core PCE, a key inflation indicator, beat expectations in January, increasing the chances of another big rate hike by the Fed next month
- Inflation-resistant investments may remain attractive for some time as high inflation may take longer than expected to level out
- Weekly and Monthly Top Deals
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Major events that may impact portfolios
There is currently a lawsuit going through the U.S. Supreme Court that could have a major impact on the tech sector.
The Gonzalez v. Google case revolves around Section 230, part of the Communications Decency Act of 1996, which is central to how the entire social media industry operates. Essentially, social media platforms can avoid prosecution for third party comments on the site.
This means Mark Zuckerberg won’t have to worry about Meta being sued due to offensive reviews or comments left on Facebook posts. This is a key differentiator between social media and traditional media, where newspapers and magazines operate under strict defamation laws.
Nohemi Gonzalez, a 23-year-old American exchange student living in France, was tragically murdered along with 129 others by ISIS gunmen in Paris. Gonzalez’s family claims the shooter was inspired by his extremist YouTube video, and Google is violating anti-terrorism laws.
There are similar lawsuits underway against Twitter and Meta, and any outcome in favor of the plaintiffs would be a major blow to Big Tech. It is not difficult to understand the problems that could arise if social media platforms were able to hold themselves legally and financially responsible for the content posted by their users.
For investors, it poses a significant risk to the platform’s future profitability.
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The story of inflation has leveled off a bit in recent weeks. Since January 13th, there has been no reason to address this issue, but today some new data has been released that is worth taking a closer look at.
The Consumer Price Index gets all the glory and headlines, but it’s the Core Personal Consumption Expenditure (PCE) index that Fed members look more closely at when it comes to interest rate decisions.
The reason is that the index specifically measures the level of private consumption. This is one of the key variables the Fed seeks to manipulate through changes in interest rates.
January figures were released today and, excluding the precarious food and energy sector, the figure showed a 0.6% monthly increase and a 4.7% annualized increase. This is higher than analysts had expected his 0.5% and his 4.4%, and members of the Federal Reserve (Fed) are likely not too happy to hear this story. This is the news.
Markets were put on the market on the news, raising the chances of a 0.50 percentage point rise in the benchmark rate next month to about 33%, according to CME Group data.
For investors, too, this is potentially worrying news. The S&P 500 is up more than 3% of his, and the Nasdaq Composite is up more than 9% of his, marking a strong start to the year across markets. But many of those gains could be dwindled if the Fed has to pick up the pace of rate hikes again.
Q.ai’s Top Themes of the Week
So despite the Fed’s best efforts, high inflation could last a little longer than we would have liked. According to JPMorgan Chase CEO Jamie Dimon, the Fed “lost a little control over inflation.”
That said, it’s not all bad news, and some economic data, especially the incredibly strong job market, are encouraging. For investors, the market is difficult to navigate given the uncertainty around them.
If you are concerned about the long-term effects of high inflation, there are steps you can take to protect your portfolio from it. There are a variety of assets that have traditionally worked well as hedges against inflation or are specifically designed to guard against it.
Gold and precious metals have been some of the most well-worn options and have been used as an investment asset class for thousands of years and still hold significant positions today. Agricultural commodities are another, as they are highly resistant to changes in we all have to eat.
Treasury Inflation Protected Securities (TIPS) are US Treasuries designed to pay variable income depending on the rate of inflation. As inflation rises, so do interest rates. This is your golden ticket if the price rises quickly.
All of these assets are packaged in AI-powered inflation kits. The kit will use AI to analyze the projected risk and return of all these assets next week. It then automatically rebalances the kits according to those predictions.
top trade ideas
Here are some of the best ideas our AI system will recommend for the coming weeks and months.
Catalytic Pharmaceuticals (CPRX) – Pharmaceutical companies are our next week’s top buy Received an A rating on our quality value factor. Earnings per share has increased by 49.69% for him over the past 12 months.
Camber Energy (CEI) – Online used car dealer is our next week’s top short Our AI is rated F for Quality Value and D for Momentum Volatility. The company said he lost more than $60 million in 2020 and about $170 million in 2021.
Harmony Bioscience (HRMY) – Pharmaceutical companies are our next month’s top buy A grade for technology, B grade for quality value. In 2022 his revenue increased by 43.4%.
Cytodyne (CYDY) – Biotech companies are our next month’s top short Our AI rates F for growth rate and low momentum volatility. Gross profit for the 12 months ended November 2022 was -$172 million.
our AI Next Month’s Top ETF Trading Invest in fintech, Chinese tech and microchip stocks, short Indian companies and US Momentum stocks. top buy Invesco China Technology ETF, ARK Fintech Innovation ETF and SPDR S&P Semiconductor ETF. top shorts iShares MSCI India ETF and iShares Edge MSCI USA Momentum Factor ETF.
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