✋ AI, meet the law

Europe laid down some serious laws for AI agents | The art market didn't look so fine last year | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for March 15th in 3:15 minutes.   👀 Not to brag, but this newsletter is read by hundreds of thousands of modern investors every morning. So here's the deal: you [check out promotional slots and introduce your brand to our million-strong community](, and we'll take some lessons in the art of humility. Today's big stories - The European Parliament approved a milestone blueprint designed to limit the risks of AI - Here are the five simple things that keep the Magnificent Seven out in front – [Read Now]( - The global art market shrunk last year, suggesting that the rising cost of living is even making billionaires watch their millions Skynet’s The Limit [Skynet’s The Limit] What’s going on here? The European Parliament [approved]( a legal framework limiting AI's role in society, presumably after spending an evening working through a dystopian film library. What does this mean? Decades of literature have told us that AI agents aren’t exactly driven by a desire to protect humanity. And according to today’s scientists and tech wizards, that concern isn’t reserved for the world of fiction. So now, members of the European Parliament are pushing for specialized laws that would prevent certain actions, like detecting emotions in workplaces and schools, making decisions in high-stakes situations like job applications, and scraping CCTV to build facial recognition databases. Any companies that go against the grain could be landed with fines up to €35 million ($37.7 million) or – oddly specifically – 7% of their worldwide sales. Why should I care? Zooming out: Pandora’s box. The European Parliament is mainly concerned about AI’s ability to replace humans in important decision-making roles, which could lead to misinformation, bias, and privacy breaches. But lawmakers want to find the sweet spot, where AI could enhance human life and companies’ productivity by automating certain tasks without, you know, violating basic rights. Plus, come down too hard and Europe could fall behind economically – not least because foreign companies, bound by less stringent rules, might avoid the region if they’d be more restricted there. The bigger picture: High standards cost. The US is drafting its own set of regulations, too – trailing behind China, where AI product approvals are already in place. But Europe has a history of sticking to the stricter side, no matter whether the matter is privacy, the environment, food safety, or consumer rights. And because regulations come with a cost that businesses need to foot, that partly explains why Europe’s stock markets tend to be valued lower than stateside equivalents. So unless European AI rules turn uncharacteristically lax, don’t count on that gap closing up anytime soon. You might also like: [Seven’s nice, but Europe’s got a “magnificent” eleven.]( 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=Skynet’s The Limit&utm_campaign=daily-global-15-03-2024&utm_source=email) Analyst Take The Magnificent Seven Seem Invincible: These Are Their Secrets [The Magnificent Seven Seem Invincible: These Are Their Secrets]( [Photo of Stéphane Renevier, CFA] Stéphane Renevier, CFA, Analyst Behemoth firms like the [Magnificent Seven]( don't just tolerate intense competition, they actually thrive when it rears its head. That's a special skill – one that the “increasing returns” theory can explain. It’s how these leading firms become stronger and more [dominant](, even when it seems like they should be threatened. So here’s what you [need to know]( about the theory and the seeming invincibility that cloaks these giants. That’s today’s Insight: [the Magnificent Seven and their five simple secrets](. [Read or listen to the Insight here]( SPONSORED BY GRAYSCALE Welcome to crypto’s new era Bitcoin’s probably more accessible than you expect. After all, most new technologies tend to get a tricky rep early on. Boiling-water taps, video doorbells, the first smartphone to come with a tiny pen. Investors use [cryptocurrencies to diversify their portfolios]( and invest in emerging technologies. And now, you could do the same from your brokerage account, where your stocks and bonds sit. That’s all thanks to [Bitcoin spot ETFs](. And if you’re interested in exploring crypto in a familiar way, you’ll want to check out [GBTC: the world’s biggest* Bitcoin ETFs](. It’s got the reputation to back it up: [GBTC is sponsored by the world’s biggest* crypto asset manager, Grayscale](. [Find Out More]( Important Disclosures *Based on AUM as of 1.31.24. Grayscale Bitcoin Trust (BTC) (the “Trust”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at [www.sec.gov.]( Alternatively, the Trust or any authorized participant will arrange to send you the prospectus (when available) if you request it by calling (833) 903 - 2211 or by contacting Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101. Foreside Fund Services, LLC is the Marketing Agent for the Trust.An investment in the Trust involves a high degree of risk, including partial or total loss of invested funds. The Trust holds Bitcoins; however, an investment in the Trust is not a direct investment in Bitcoin. As a non-diversified and single industry fund, the value of the shares may fluctuate more than shares invested in a broader range of industries. Extreme volatility, regulatory changes, and exposure to digital asset exchanges may impact the value of Bitcoin, and consequently the value of the Trust. Digital assets are not suitable for an investor that cannot afford loss of the entire investment. There is no guarantee that a market for the shares will be available which will adversely impact the liquidity of the Trust. The value of the Trust relates directly to the value of the underlying digital asset, the value of which may be highly volatile and subject to fluctuations due to a number of factors. We use the generic term “ETF” to refer to exchange-traded investment vehicles, including those that are required to register under the Investment Company Act of 1940, as amended (the “40 Act”), as well as other exchange-traded products which are not subject to the registration of the ‘40 Act. The Fund is not registered under the 1940 Act and is not subject to regulation under the 1940 Act, unlike most exchange traded products or ETFs. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( A Dying Art [A Dying Art] What’s going on here? The value of the global [art]( market fell by 4% last year, suggesting that even the very wealthiest have dropped their champagne budgets to, uh, slightly less expensive champagne budgets. What does this mean? The world’s art market picked up dust last year, falling to a three-year low of $65 billion. Now, the market does dip every few years, often by more than 4%. Strangely, though, the most expensive works took the brunt this time. Usually, the very richest investors – the only ones that can pick up a Monet like it’s a print at a Sunday market – aren’t financially impacted by the problems of the everyday masses. So unless world-renowned art has suddenly fallen out of favor, this bout of high interest rates, inflation, and political instability has even the ultra-wealthy watching their wallets. Why should I care? For you: Master the art. Tensions are heating up between major countries, China’s deep in an economic hole, and with 40% of the world headed to the voting polls, the political landscape is far from locked in. So if the risky climate is why one-percenters are abstaining from fine art, the rest of the year could be quiet too. That could give budding art investors time to browse while prices are easier on the eye – a prospect only beaten by free prosecco at a private viewing. The bigger picture: Maybe luxury loyalists don’t need more watches than wrists. It’s not just the walls of mansions – or more likely, pitch-black private cellars – that are looking a little emptier recently. Big-buck shoppers have been spending less on luxury wares to fill their bespoke closets, forcing high-end brands to take a breather from the intense price hikes they’ve been rolling out since 2019. Even Rolex, as famous for its constantly inflating prices as it is for mother-of-stone watch faces, kept the same price tags out at the start of the year. You might also like: [Here's how to invest in art](. 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=A Dying Art&utm_campaign=daily-global-15-03-2024&utm_source=email) 💬 Quote of the day "Ask five economists and you'll get five different answers - six if one went to Harvard." – Edgar Fiedler (an American economist) [Tweet this]( SPONSORED BY STASHAWAY The industries that could take Big Tech’s baton Big Tech has pulled in returns of 68% since the start of 2023, trumping the S&P 500’s 32%. Stock investors need to know one thing, then: whether to invest in US tech stocks while they’re at their heights or to focus on [finding the next big industry](. Bank of America’s latest Global Fund Manager Survey showed that investors haven’t gone this hard into US tech stocks since 2020 – and usually, the more crowded a trade is, the riskier it is. [Healthcare]( could be a worthy alternative: [StashAway’s analysis]( showed that the industry has strong earnings potential, decent valuations, and investors haven’t completely swamped it yet, and you could back it with StashAway’s [Healthcare innovation thematic portfolio](. [Energy]( is another, though its cyclical nature means it’s more of a wildcard. Despite drab earnings forecasts, the sector should bring in more money when the world demands fuel, and its low valuations mean that it's going cheap. But forget single stock-picking. If you want to go beyond Big Tech, you could [check out StashAway’s precision-made, expertly-crafted batch of portfolios](. [Discover The Next Big Thing]( When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( 🎯 On Our Radar 1. Being John Malkovich. The legendary actor just revealed [everything you want to know about him](. 2. Remember to pack the painkillers. If you get headaches, [don’t go to space](. 3. My oh my, you're sweet as pi. Enough with the flattery: here’s how a mathematical formula earned a dedicated [day of celebration](. SPONSORED BY HEALTHWORDS.AI [HEALTHWORDS.AI]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming Up Soon... All events are in UK time. 🏦 [How To Build Your ISA Portfolio:]( 5pm, March 26th 💸 [How To Become An ISA Millionaire:]( 5pm, March 27th 💪 [Building Wealthy Women: Investing in Your Future:]( 5pm, April 11th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd ❤️ 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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