Y2K 2.0: Today's Crash, Tomorrow’s Cash!

Plus: Electricity price hikes, hedge funds betting on bonds, and Intel's dual investments. ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [Y2K 2.0: Today's Crash, Tomorrow’s Cash!]( Plus: Electricity price hikes, hedge funds betting on bonds, and Intel's dual investments. [Josh Belanger](joshbelanger) Jul 19 joshbelanger   [READ IN APP](   If you're reading this, congratulations—you've made it to the other side of the 'blue screen of death' apocalypse. The world came to a halt today with the dreaded 'blue screen of death,' an error message on Windows that can trap users in an endless reboot loop. This global outage didn't just stop personal computers—it brought hospitals, airlines, emergency services, and everything in between to a standstill. Even Starbucks mobile ordering went dark! Who’s responsible? The cybersecurity firm CrowdStrike. A faulty update from the company couldn't be patched quickly enough, causing cascading disruptions worldwide. Although the issue is now resolved, CrowdStrike's shares took a nosedive, dropping as much as 15% before closing down 11%. Despite the hiccup, the company remains a giant worth $80 billion. If CrowdStrike was on your buy list before, today’s dip might be a prime buying opportunity. For our paid subscribers, I'll be sending a short write-up with tips on how to trade this opportunity. Expect Higher Electricity Bills Soon Generated by AI. Electricity costs are rising, and power outages are becoming more frequent. Old infrastructure and extreme weather mean utility companies need to spend heavily on upgrades, passing these costs to consumers. The Details: - Rising Costs: Americans now face higher electricity bills and more frequent outages. - Utility Investments: Utilities like DTE Energy are spending heavily to modernize outdated systems. For example, DTE replaced an old tile map board with a digital display to improve grid management. Zoom In: - Major Outages: After Hurricane Beryl, CenterPoint Energy had its largest-ever outage in Houston, affecting 2.2 million customers. The company is now seeking regulatory approval to raise rates. - Rate Hikes: Many utilities are planning to raise rates above the rate of inflation between 2022 and 2027. Big Picture: - Increasing Outages: From 2013 to 2022, outage frequency increased by 20% and duration by 46% due to severe weather. - Massive Spending: Utilities will spend over $165 billion a year in 2024 and 2025 on grid upgrades, the highest ever. Bottom Line: Electricity prices are rising faster than overall inflation. Consumers should prepare for higher bills and may need to invest in backup generators for reliability. Utility stocks could benefit with interest rates expected to be cut. The Utilities Select Sector SPDR Fund (XLU) is one option. Green renewable energy stocks may also present opportunities as grid modernization continues. Hedge Funds Revive the 'Trump Trade' Generated by AI. Hedge funds are betting that Trump’s potential election win will drive market changes, similar to 2016. The Details: - Trump Effect: Investors think Trump's tax cuts and tariffs could cause higher inflation and more long-term government bonds. - Debate Fallout: Biden's weak debate performance boosted expectations of a Trump win, driving this trade. - Yield Curve Bet: Known as a "steepener," this strategy expects short-term yields to fall more than long-term yields with expected Fed rate cuts. Zoom In: - Market Moves: Since the debate, two-year yields have dropped more than ten-year yields. - Popular Trade: This steepener trade is now hedge funds' top position. Big Picture: - Economic Policies: Trump’s policies could raise inflation, affecting long-term yields. - Rate Cuts: Investors anticipate Fed rate cuts due to slowing inflation and rising unemployment. Bottom Line: Hedge funds are betting on short-term debt as Trump’s potential victory looms. This reflects 2016 market trends. Average investors can get involved through short-term bond ETFs like iShares 1-3 Year Treasury Bond ETF (SHY) and long-term bond ETFs like iShares 20+ Year Treasury Bond ETF (TLT). Intel Invests in China with US Taxpayer Money Intel is investing in Chinese tech start-ups while receiving billions from the US government, raising concerns about the use of taxpayer money amid the US-China tech rivalry. The Details: - Investment Focus: Intel Capital, Intel’s venture arm, has stakes in 43 Chinese start-ups, including AI and semiconductor firms. - Recent Deals: $20M in AI-Link and $91M in North Ocean Photonics. - Political Tensions: New US rules aim to limit investments in Chinese tech with military potential, expected this year. Zoom In: - Regulatory Impact: Intel may need to divest from some Chinese firms once regulations are in place. - Investment Slowdown: Intel has cut back on Chinese deals over the past 18 months. Big Picture: - US Funding: Intel received $20B from the US government to expand domestic semiconductor production, part of a $100B investment plan. - Global Reach: Despite tensions, Intel employs 12,000 in China and made 27% of its 2023 revenue there. Bottom Line: Intel’s investments in Chinese tech while using US taxpayer money highlights the complex dynamics of the global tech race. Balancing national interests with business strategies is increasingly challenging. Quick Sizzles - Netflix Keeps Crown in Strong Quarter: Netflix added 8.05 million subscribers in Q2, raising its revenue forecast. Hits like "Bridgerton" and live events are driving growth. Shares are up 30% this year. - Bud Light Falls to No. 3 After Boycott: Bud Light drops to third in U.S. beer sales, behind Modelo Especial and Michelob Ultra. The 2023 boycott and reduced shelf space continue to hurt sales. - Blackstone Bets Big on Rate Cuts: Blackstone’s investment pace hit a two-year high in Q2, deploying $33.7 billion as it anticipates Fed rate cuts. The firm sees cooling inflation and job market as signs rates will drop soon. - ECB Holds Rates Amid Uncertainty: The ECB kept its main rate at 3.75%, with a potential cut in September still undecided. Christine Lagarde emphasized the need for more data before making any further moves. Note: This is not financial advice. Consult a financial advisor before making any investment decisions. You’re currently a free subscriber. Upgrade for the full experience and receive exclusive special reports like "How to Get Rich in The Stock Market" and "Congress' Secret Stock Playbook: The Top 5 Power Picks Revealed”. [Upgrade to paid](   [Like]( [Comment]( [Restack](   © 2024 Josh Belanger 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()