How to play higher rates with failing commercial real estate

Plus Google pushes to integrate more AI [Image]( Thursday, June 15, 2023 Dow Jones | 33,979 | -0.68% S&P 500 | 4,372 | +0.08% Nasdaq | 13,626 | +0.39%   MARKET MINUTE   The Fed Median Rate Surprises at 5.6% Almost everyone was expected a Fed pause as Jerome Powell announced the decision after two days of meetings. What was not expected, which sent the markets down was the median rate forecast was lifted to 5.6% in 2023, compared with 5.1% from previous projections, signally at least two more rate hikes this year. The Fed may have paused today, but the hawkish undertone of the Fed commentary was anything but dovish. Inflation is still much too high with no Fed Presidents discussing a rate cut this year. While this likely means a stock rally is out of the question, it doesn’t mean that certain sectors won’t remain investible. AI stocks are still strong and sections like commercial real estate are good candidates for finding short positions. Google pushing to integrate AI It was only a matter of time before Google’s parent company Alphabet Inc. (GOOGL) started integrating its AI into its many platforms and yesterday they announced they were bringing generative AI technology to shopping, aiming to get a jump on e-commerce sits like Amazon. They announced features that would help customers with apparel fitment and new capabilities for finding products using search and image-recognition technology. Some of these features include trying on clothing virtually and a refined search that can help you find outfits by searching for color, style and pattern. The best part about this feature is it will be across retailers given Google’s reach. Looking to learn more about AI. [Nick Black recently posted his AI Crash Course to get you up to speed fast.]( Commercial real estate is hitting every big city Just as we’ve talk about how hard hit San Francisco and New York have been hit by the commercial real estate downturn, Chicago also joins the list. Current economic conditions have put a pause on commercial property sales with the first three months of this year down by more than half from the same period in 2022, according to the latest estimates by MSCI inc. Sales were down from $5.9 billion to $2.7 billion. The office and industrial sectors were the hardest hit with sales volume down 70% Shah Gilani has been watching this market all year and with interest rates staying higher for longer CRE is going to sink banks. [Read here for how he sees this playing out.](   Get More Money Morning Our experts offer special actionable investing and trading research to their subscribers every week [Subscribe Now]( [Image]( You are receiving this e-mail at {EMAIL}, as part of your subscription to Money Morning. To remove your email from this list: [unsubscribe here](. To cancel, or for any other questions or requests, please contact our Customer Service team: Online: [Customer Service Form]( Phone: 888-384-8339 (North America) 443-353-4519 (International) Mail: Money Morning | Attn: Member Services | 1125 N Charles Street | Baltimore, MD 21201 Fax: 410-622-3050 Our Customer Service team is available Monday ­ Friday between 9:00 AM and 5:00 PM ET. © 2023 Money Morning LIVE. All Rights Reserved. Nothing in this email should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: Money Map Press. 1125 N Charles Street, Baltimore, MD 21201. [Website]( | [Privacy Policy]( | [Terms & Conditions]( [Twitter]( [Youtube]( [Discord]( [Instagram]( [Tiktok](