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China up, AI bill blocked, NYC mayor on trial
Week ending September 29th
Do you wish you were more creative? Turns out you can hack your brain to make this happen. One of the best ways to stimulate creativity is to take a shower!
The idea of “shower thoughts” isn’t a new one - the relaxation and distraction of showering allows the mind to wander freely. There’s real science behind this: the sensory stimulation from warm water and sounds can activate the brain's Default Mode Network, enhancing creative thinking.
So if you need a burst of creativity, take a break and shower with a (waterproof) notepad.
Markets
PAST WEEK | YEAR-TO-DATE | |
|---|---|---|
Nasdaq | +0.9% | +20.9% |
S&P500 | +0.4% | +21.0% |
MSCI Emerging Markets | +6.1% | +17.3% |
Bitcoin* | +0.5% | +51.0% |
Ethereum* | -1.1% | +14.9 % |
Stock of the week: | +27.6% | +6.9 % |
Crypto of the week: | +39.7% | +1,074.4% |
Source: CoinGecko.com As of 7:49AM September 30, 2024
World news
Top news stories of the past week
1) China soars: Chinese stocks are having their best month in nearly ten years because the government is taking strong actions to help the economy. Recent measures, like lowering mortgage rates, have excited investors, leading to big gains in the stock market.
2) California governor blocks AI bill: Gavin Newson, the governor of California, has blocked a landmark AI safety bill, which a few major tech companies were trying to kill. Newsom’s concern was that the bill could smother US innovation in this increasingly critical technology. Should we sacrifice safety at the cost of innovation? Asking for a human person and definitely not a robot.
Look at that hair.
3) NYC mayor in court: Mayor Eric Adams appeared in court facing five federal charges, including accepting illegal campaign contributions and gifts in exchange for political favors. He is the first sitting NYC mayor to face criminal charges. Adams is accused of accepting over $100K in gifts like luxury travel. What’s next? Netflix special! Maybe.
Top WEIRD stories of the past week
1) For a couple months, earth will have a “mini-moon” - an asteroid measuring about 33 feet. This is pretty common! The last similar mini-moon was just back in 2020.
2) Actor Damian Lewis participated in a centuries-old tradition by herding sheep across the River Thames during the annual London Sheep Drive, celebrating the historic privilege of transporting livestock toll-free. England is the height of modernity.
3) Researchers have discovered cheese dating back 3,600 years in a Chinese tomb. $5 to whoever smells it. $20 to make a grilled cheese with it.
Chart
You like charts? Graphs? Ya you do
Stellantis, the major global auto-manufacturer, has been crushed this year, with a nearly 20% drop in sales.
Investment idea
What are we investing in?
New energy vehicles
New Energy Vehicles (NEVs) refer to a category of vehicles that utilize alternative energy sources instead of traditional gasoline. This includes battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs).
Why invest in them right now? Stimulus from the Chinese government. In recent weeks, the Chinese government announced a stimulus package that includes cutting interest rates and boosting liquidity in the economy. Key measures involve reducing mortgage rates and down payment requirements to support the struggling real estate sector, alongside issuing 2 trillion yuan in sovereign bonds to stimulate consumer spending.
China’s central bank governor spilling the tea.
The Chinese government has been a significant driver of the NEV market since it began promoting these vehicles in 2009. The government offers substantial subsidies and incentives for both manufacturers and consumers, which has led to rapid growth in the sector. In 2022, China sold approximately 6.8 million electric vehicles, dominating the global market
Soooo with massive new stimulus coming into the total Chinese economy, we could see some major positive knock-on effects in the NEV market.
So how can you invest in this theme? Here are a few ETFs that offer decent exposure:
Global X China Electric Vehicle and Battery ETF (focused on the Chinese NEV market)
Global X Lithium ETF (a critical material for car batteries)
KraneShares Electric Vehicles & Future Mobility ETF (broader to the global industry, but still good exposure to the NEV theme)
History
On this day…
…in 1960, The Flintstones premiered on ABC - the first animated series with a prime-time slot. Still culturally relevant!
Music
Banger of the week
Most important thing
Meme? Nah. Art.
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