Published By Banyan Hill Publishing | | | | Published By Banyan Hill Publishing | | | | The Federal Reserve's Willed Insanity By Charles Sizemore Chief Editor, The Banyan Edge | Banyan Nation, I’ve always been a fan of dystopian books. One of my all-time favorites is George Orwell’s 1984. Orwell introduced an entirely new vocabulary into the English language, going so far as to call it an entirely new language altogether: Newspeak! One of the concepts from Orwell’s nightmare world that really stuck with me was “doublethink,” or a person’s ability to believe in two contradictory ideas at the same time. This isn’t a case of being a hypocrite, saying one thing while doing another. It’s more like a form of willed insanity — where you really do believe two conflicting things at the same time. That’s how I feel about the Federal Reserve. This Fed is charged with simultaneously keeping inflation low and keeping employment high. It was able to do both with varying degrees of success for most of the past 40 years. But this is mostly because it had technology and free trade with China, along with other developing countries doing the heavy lifting of keeping inflation in check. Well … that’s not happening today. Globalization is going into reverse, and much of today’s tech actually hurts productivity rather than helps it (yes, I’m talking to you Apple and Meta). This is changing though. Artificial intelligence really does have the potential to boost productivity by a greater degree than even the internet itself did in the 1990s. And this is one of the trends Ian King has been following this year. (Learn more about it here!) | | | Market Update: Interest Rate Hikes Will Likely Pause The market has been buoyant this week due to a couple of factors now looking “less bad” than before. Congress and the White House will likely make a deal on the debt ceiling and avoid default. And economic signals hint that the Fed will pause in raising rates. The Chicago Mercantile Exchange (CME) calculates the probabilities of the Fed’s moves based on the trading action in 30-day Fed funds futures. And the CME is currently putting the odds at 61% that the Fed does not raise rates in June. (Click here to view larger image.) Those odds can change quickly though. And I’m not convinced that the Fed is done raising rates. But just the hope of it has been enough to make Mr. Market happy. On that note, let’s see how the team has been navigating the past week. | | | It has a code name within the walls of Apple’s Cupertino headquarters — “Project Titan.” Supposedly one of Steve Jobs’ final projects … a new electric vehicle (EV) that would do for the automotive world what the iPhone did for personal devices. The next generation of EVs, including Project Titan, will get their power from a battery the size of your iPhone. Click HERE for the full story. | | | Weekly Recap - How to Invest in AI’s $52 Billion Future
The power of artificial intelligence is only growing. ChatGPT can create art and chart-topping music. It can deepfake and learn how to write entire essays in your voice. It can even take your order in the drive-thru at Wendy’s. This industry is projected to grow to a whopping $51.8 billion by 2028, and this is how you can get a piece of the action. - 1 Chart = Biggest Trend of the Year
Large-cap tech stocks, as measured by the Nasdaq 100, are already up over 28% this year. That’s fantastic. And if history is any guide, those gains are just getting started. The driving force here is the “arms race” in artificial intelligence, robotics and the high-end semiconductors that power them. - Building a $570 Billion Empire (1 Penny at a Time)
What’s your mental image of a corporate CEO? A hotshot in a fancy suit globe-trotting in a private jet? Well, stereotypes are stereotypes for a reason. But Walmart founder Sam Walton famously drove a beaten-up Ford F-150 … and he was the richest man in the world at the time of his death in 1992. These are the kinds of CEOs you want to partner with — leaders that treat their shareholders’ money like their own. And this new investment opportunity can make every dollar count. - This Will Trigger the Next Round of Bank Failures
Banks have lousy business models. As a result, they face an existential crisis. Technology has made banks more fragile than ever. Meanwhile, a major refinancing wave in commercial real estate may be setting the sector up for its biggest losses since 2008. Just as America’s banks were stuck with inventory of houses they couldn’t sell in 2008, they’re about to have hundreds of billions of dollars in office properties (that they also can’t sell). - These 5 Big Ideas Will Define the 2020s
Investors today are chasing the same old stocks from the last bull market. But this is a monumental mistake. The conditions that favored these stocks in the bull market that preceded 2022 — low interest rates, low inflation and strong economic growth — are no longer in place. But that doesn’t mean we can’t make a fortune if we know the trends that will dominate the rest of this decade. On Next Week’s Pod Be sure to tune in to The Banyan Edge Podcast on Monday. I’ll be joined by international real estate investor Ronan McMahon to chat about some of the fantastic opportunities he’s seeing in sunny Latin America. If you like the idea of investing in overseas real estate but don’t have the foggiest idea of how to get started, Ronan is your man! Do you have questions for Ronan about real estate, or investing in this space? Let us know here! Until then, Charles Sizemore Chief Editor, The Banyan Edge P.S. Are you enjoying The Banyan Edge? We’d love to get your take on our research, and we love answering questions. So if you have any questions, insights or just want to leave us a note, please send an email to BanyanEdge@BanyanHill.com. | | | Gas prices are hitting us all where it hurts — our wallets. But there’s still hesitation to buy electric vehicles. One tiny company’s breakthrough battery tech will knock out all those hesitations. A 15-minute charge could soon take you 1,000 miles. We call it the “Forever Battery” — getting in early could mean huge profits. Click here to see how you could take advantage. | | | Get The Banyan Hill App And start experiencing that "total wealth" freedom for yourself. | | | (c) 2023 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096) Legal Notice
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