Cash Payments Under Attack

Market Sizzle: Inflation Eases, Active Bonds, Apple AI, Anti-Woke War ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [Cash Payments Under Attack]( Market Sizzle: Inflation Eases, Active Bonds, Apple AI, Anti-Woke War [Josh Belanger](joshbelanger) Jun 12 joshbelanger   [READ IN APP](   Hey there! Ever tried to buy popcorn at a game with cash, only to be sent to a reverse ATM? Your $200 becomes $196.50 after a fee. More places are charging extra for cash payments—so much for cash being king! Inflation Eases: Fed Hope Rises US inflation slowed down for the second month in May. This is good news for the Federal Reserve, which may now lower interest rates. Core consumer prices, which leave out food and energy costs, went up 0.2% from April. Over the year, they rose 3.4%, the slowest pace in more than three years. The stock market responded positively. Traders are now expecting two interest rate cuts this year, with the first in November. The Fed will review these numbers at their meeting. Some Fed officials see this as a sign to ease their policies. Housing prices went up 0.4%, but cheaper gas kept overall inflation down. Services like car insurance and airfare also saw price drops. These trends give hope that inflation will keep decreasing, helping the Fed move closer to lowering rates. Active Bonds Make a Comeback Investors are turning to active bond funds for better returns. This year, $105 billion went into these funds, compared to $74 billion in passive ones. Bonds had their worst year in 2022. In 2023, inflation has kept bond returns low. This has led some to seek help from bond experts. These pros can pick the best bonds and avoid the worst ones. Active bond funds often charge higher fees but can find hidden opportunities. With safe bonds now yielding over 5%, the extra cost seems worth it. In fact, 74% of active bond funds beat their benchmarks this year. Investors also like bond ETFs, which offer tax advantages and are easy to trade. Active bond ETFs have gained $36.2 billion this year. As interest rates remain uncertain, investors hope active managers can maximize their returns. Apple's AI Gambit Apple revealed its AI plans at its annual event. Instead of partnering with big AI names, Apple is focusing on its own "Apple Intelligence." This includes models in iOS 18, iPadOS 18, and macOS Sequoia. Apple’s AI isn't as complex as rivals. For instance, OpenAI’s and Google’s models are much larger. But Apple stresses privacy and control. Their AI keeps data on devices or Apple’s servers, protecting user info. New features include smart photo editing, better Siri, and custom emojis. Apple’s AI will make iPhones and iPads smarter over time. Older devices might struggle, pushing users to upgrade. Despite Elon Musk’s criticism, Apple’s move signals a new era. They aim to boost device sales by embedding AI deeply into their ecosystem. Anti-Woke War Rattles Companies "Anti-woke" activists are shaking up big companies. They oppose environmental and social initiatives, pushing companies to drop diversity, equity, and inclusion (DEI) programs. Shareholders at major firms, like GE and UPS, voted on proposals against these initiatives. Conservative groups are also suing companies like Target for their progressive stances. Supporters of DEI argue it’s crucial for long-term success. But activists want politics out of business, citing potential risks to firm value. Anti-ESG proposals are growing but haven't won much support yet. Only a few have received notable backing, like a proposal at UPS concerning carbon-reduction risks. Despite this, some companies face backlash from employees and customers for scaling back on DEI efforts. The fight over corporate politics is just heating up. Quick Sizzles - GM's $6B Buyback: GM to repurchase $6 billion in shares, boosting shareholder value. Strong vehicle demand and pricing drive Q2 profit expectations past Q1's $3.9 billion. May sees record U.S. sales in three years. - Best Buy Layoffs Hit: Best Buy cuts sales staff and slashes pay, moving designers to in-store roles. Pay drops significantly, affecting employees. That's a wrap for today's Market Sizzle! You're currently a free subscriber to [Josh Belanger](. For the full experience, [upgrade your subscription.]( [Upgrade to paid](   [Like]( [Comment]( [Restack](   © 2024 Josh Belanger 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()