The Boring Invstr - Your Simple, Digestible Weekly Investing & Finance Newsletter

Welcome Back to The Sixth Edition of The Boring Invstr!

As you probably already noticed, the structure of this week's edition is different. This format allows you to read and educate yourself on more topics as well as include more visuals. I would love to hear some feedback before next week's edition! My Twitter is linked below or can be found by searching @theboringinvstr and you can reach out on Instagram also by searching @theboringinvstr.

Financial Markets Snapshot:

Investors are keeping record levels of cash outside of markets due to high-interest rates and lower market sentiment. Money market fund assets have risen to a record $5.3 trillion, with inflows increasing by $588 billion in the past ten weeks according to Bank of America. This is a larger increase than the $500 billion that flooded money market funds after the Lehman Brothers collapse in 2008 and almost half of the $1.2 trillion that was seen when the COVID-19 pandemic began. 💸💰

Reasons for the stockpiling include investors getting a risk-free rate of return of 4%, a bearish or negative market sentiment, and the banking crisis. If the banking sector, economy, and stock market all improve, $5.3 trillion of stock-piled cash is likely to fuel the next bull market for the stock market. 📈

Economy Snapshot:

Berkshire Hathaway CEO Warren Buffet and vice chairman Charlie Munger held Berkshire Hathaway's annual meeting this week. During the meeting, they discussed market conditions, the banking crisis, geopolitical tensions, and their skepticism of artificial intelligence.

Fed Chair Jerome Powell believes the US economy can avoid recession despite five percentage points of interest rate hikes in the past year. However, there are risks of recession due to bank failures, and a debt ceiling standoff, causing businesses to cut jobs and wages, leading to a possible stagflation.

AI Snapshot:

Why You Shouldn’t Be Worried About AI-Destroying Jobs?

1. The Evolution of Job Categories

   • Economist David Autor stated in his paper 60% of employment in 2018 is found in job titles that did not exist in 1940.

2. Technology-Driven Employment Growth

   • In March, Goldman Sachs released a new report stating that 85% of employment growth over the last 80 years can be explained by the creation of new positions driven by technology.

3. Despite Job Destruction, Unemployment is at All-Time Lows

   • Job destruction is not inherently bad in the long term according to an old economic principle of creative destruction. Creative destruction is essential to economic growth because it allocates less efficient resources to more efficient use cases.

AI Tool of the Week:

Rose AI

Rose Ai is a cloud data platform that uses natural language processing and open-source Large Language Models to analyze data. It helps users find, engage, visualize, and share data, and leverages generative AI to make the process more efficient.

The best part about Rose AI is that it is completely free to use making it widely accessible. The random graph of the week is from Rose AI.

Personal Finance Tip of the Week:

Identify your own specific financial goals. This should dictate how you invest. If you want to be a bit higher risk higher reward maybe look to invest in real estate or buy cash-flow businesses. If you want something proven, then investing in ETFs is likely the best route for you. All that matters is that you take control of your financial future.

* This is in no way financial advice. You should do your own research and/or consult a professional before investing YOUR own money *

Random Graph of the Week:

The Top 10 Most Affordable States to Live in According to Zillow - Rose AI