🇺🇸 US stocks' next decade

Microsoft overtook Apple as the world's most valuable company | China took a stubborn stance | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for January 16th in 3:15 minutes.   🚗 Car sickness has nothing on the regret of rushing an investment. So join us for [Your 2024 Crypto Investing Roadmap]( today, and find out how to reach your destination with minimal roadblocks. [Grab your free ticket]( Today's big stories - Microsoft stole the title of the world’s most valuable company from Apple, a testament to the money-making power of artificial intelligence - US stocks had a killer decade, but the next one may have less life – [Read Now]( - China decided against adjusting a key interest rate, while Taiwan celebrated a strong show of defiance Sign Of The Times [Sign Of The Times] What’s going on here? Microsoft [overtook]( Apple as the world’s most valuable company, showing just how fast the night changes when artificial intelligence is involved. What does this mean? Apple has nailed steel laptops and headphones that perfectly compliment a workout outfit. Microsoft, though, has pulled ahead when it comes to the new shiny thing in tech: AI. On top of its stake into OpenAI, the firm’s funneled cash into research and development, industry partnerships, and strategic acquisitions of firms like LinkedIn and GitHub, all in the pursuit of data and AI expertise. That’s paid off: Microsoft has successfully rolled out AI solutions across its own business and turned its Azure division into the go-to cloud service for AI-curious companies. So by notching a market value of $2.89 trillion, Microsoft has tipped Apple off its long-held throne. Why should I care? For markets: AI’s in for a makeover. Last year was one for the “enablers”, the creators of AI tech like OpenAI. But this one could be a showcase for adopters, the companies that use the tech in innovative ways. Microsoft has a foot in both camps, sure, but Apple’s expertise in blending hardware and software could lead to more user-friendly AI interfaces. Plus, Apple has a legion of loyal customers likely willing to try the firm’s most digitally savvy solutions. Keep an eye on any developments: any forays into AI might not be fully factored into Apple’s stock yet. The bigger picture: Proaction is better than reaction. The International Monetary Fund (IMF) has predicted that AI will affect nearly 40% of all jobs. And despite the promises of a fairer society, it’s higher-income and younger workers who are expected to see their wages rise most in the future job market. But you can see this as an opportunity to join the upper ranks: next time you’re twiddling your thumbs on a weekday evening, consider practicing with a new-age system like ChatGPT. You might also like: [Microsoft could become a $5 trillion firm](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Sign Of The Times&utm_campaign=daily-global-16-01-2024&utm_source=email) Analyst Take US Stocks Have Had A Stellar Run, But They May Be Ready To Pass The Baton [US Stocks Have Had A Stellar Run, But They May Be Ready To Pass The Baton]( [Photo of Reda Farran, CFA] Reda Farran, CFA, Analyst A [good, strong stock run]( can turn a lot of heads. Thing is, they tend not to carry on forever. And that’s true even for [US stocks](. So now that the S&P 500 has wrangled a [remarkable ten years](, but [AQR Capital Management]( has pulled out the calculator. The maths showed that however impressive the next decade turns out to be, a repeat of the last ten years' performance isn’t likely. So that’s today’s Insight: [why it may be time to look further afield for stocks](. [Read or listen to the Insight here]( SPONSORED BY IG The AI-focused ETFs that deserve your attention The Magnificent Seven and Nvidia ruled markets in 2023, no contest. But the thing about artificial intelligence is that it moves fast. Really fast. So while the big players will likely hold the fort this year, too, a few [smaller, lesser-known names]( are likely to join them. Thing is, picking single stocks is not only risky: it’s plain hard. So for your best chance to [sweep up the success of currently under-the-radar companies](, you might want to look toward ETFs. [Exchange-traded funds (ETFs)]( are bundles of assets that let you invest in a theme with less risk and more diversification than if you picked out individual opportunities. And you’re in luck: right now, [IG is sharing the best AI ETFs to watch at the start of 2024](. DisclaimerYour capital is at risk. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Rate Of Noughts [Rate Of Noughts] What’s going on here? China bucked expectations by doing [nothing]( about interest rates on Monday. What does this mean? China’s economy has been the poster child for the ox zodiac over the last year, proving stubborn even in the face of the central bank’s escalating stimulus. So in the pursuit of transforming the economy into the lucky dragon instead, economists expected the bank to trim a key interest rate again. But instead, the rate was held steady at 2.5%. Now, that could be because there are already signs of building momentum. But the bank may also have decided that there’s essentially no point in cutting rates further: if folk and businesses have no interest in borrowing cash and loading up with debt, then a mildly lower interest rate would probably make little difference. Why should I care? Zooming out: Let’s get political. Taiwan's recent election cemented an unprecedented third term for the country’s Democratic Progressive Party. The outcome was a bolster for the country’s stocks, sending the main index within inches of an all-time high. Thing is, the party stands for a democratic Taiwanese identity that’s separate from China, so despite Taiwan’s new president vowing to improve fraying relationships between the pair, the Chinese government has made it clear that this outcome doesn’t have its vote. For markets: Taiwan’s harboring a not-so-secret weapon. Taiwan has an ace up its sleeve: TSMC, the world’s biggest chipmaker, makes up a third of the country’s stock market. Nvidia might have stolen investors’ attention last year thanks to ties to the artificial intelligence theme, but the American stock market darling doesn’t actually make its own superpowered chips – the likes of TSMC do. But while the chipmaker does have one plant in the US and a couple of factories in China, the bulk of TSMC’s production takes place in Taiwan. So investors may have a touch of the jitters: China’s frustrations could well escalate and interfere with the world’s chip supply. You might also like: [What the Red Sea attacks mean for investors](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Rate Of Noughts&utm_campaign=daily-global-16-01-2024&utm_source=email) 💬 Quote of the day "Let us permit nature to have her way. She understands her business better than we do." – Michel de Montaigne (a French Renaissance philosopher) [Tweet this]( SPONSORED BY CFA Turn your career resolution into reality Let us guess: you have a resolution to [make a career change this year](. We all know how easy it is to let those ambitions slip away when life gets busy again, especially in a competitive job market, but [CFA Institute]( has courses that make it easy to follow through. With over 70 years of expertise in professional learning, [CFA Institute]( has developed a range of courses and certificates designed to help you progress, no matter where you are in your career. So whether you want to bag that promotion, take on new challenges, or start a career in finance, you can [sharpen your skills and make sure your CV stands out against the rest](. Let’s start this year off on the right foot: [find the right certificate for you with the CFA Institute brochure](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Talk about D-I-Y. One woman [built a tunnel under her house](. 2. AI-enhanced investing is here. Unlock the [control of a brokerage, smarts of AI, and guidance of an advisor]( with Magnifi.* 3. Swap the piña coladas for a daiquiri tonight. Pineapples have [a pesticide problem](. 4. Only investing in stocks is like only ever eating tomato pasta for dinner. [Multi-asset investing]( can help you craft a portfolio that truly suits your tastes.** 5. Five species are on the brink of extinction. Their demise would have [dire consequences](. **See important disclosures [here](. When you support our sponsors, you support us. Thanks for that. SPONSORED BY HEALTHWORDS.AI [HEALTHWORDS.AI]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming Up Soon... All events in UK time. 💸 [Your 2024 Crypto Investing Roadmap](: 5pm, January 16th ✨ [Finimize Ladies Investing Club](: 6.30pm, January 18th 📈 [Investing Beyond Stocks And Bonds](: 5pm, February 1st ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. 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