🇺🇸 America's slowing down

Some of the US's biggest projects are stalling, a glimmer of hope in stateside inflation data, and the world's loudest animals | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for August 14th in 3:15 minutes.   💸 Imagine the world's best investor, but with a super-smart digital toolbox. Join us for [How To Invest Like A Modern Warren Buffett]( today at 5pm, and find out how to use AI to spot high-potential value stocks. [Grab your free ticket]( Today's big stories - The multi-billion-dollar US Inflation Reduction Act seems to be shrinking faster than anticipated, with manufacturing companies pausing even the biggest projects - Crash and carry: how a popular trade triggered market mayhem – [Read Now]( - US producer prices suggested that inflation might be moving in the right direction, giving stressed-out investors a moment of calm Burned Out [Burned Out] What’s going on here? The US president designed two acts to bolster America’s manufacturing industry, but nearly 40% of the major projects are stuck on the back burner. What does this mean? Two acts were designed to breathe new life into America’s Rust Belt – once an area of manufacturing might, now plagued by unemployment and a shrinking population. The Chips and Science Act and Inflation Reduction Act dangled a carrot of over $400 billion of tax credits, loans, and grants to incentivize clean technologies and semiconductor supply chains – but they’re stuck on ice. Out of the projects worth more than $100 million, $84 billion worth of them have been delayed or paused indefinitely. Besides delays in funding and unclear rules, companies are blaming lackluster demand and uncertainty in the market, especially with a high-stakes election looming. Why should I care? For markets: The chipmakers are down. The rollout of AI services is also spluttering, slowed down by a shortage of skilled workers. Case in point: the US chip manufacturing workforce has shrunk by 43% since its peak in 2000, according to McKinsey, and the country could be short of 146,000 engineers and technicians by 2029. So while the US is expected to pour $250 billion into the sector over a five-year period, it’ll be stuck with a bottleneck unless companies can reel in top talent from around the world. The bigger picture: We’re living in a catch-22. Areas or countries with shrinking and aging populations are at serious risk of lower economic growth and higher public debt. That’s why one of AI’s biggest selling points is its ability to replace humans in certain roles – ironic, given that companies first need more humans to train systems. And while the prospect might conjure up fears of redundancy and flashbacks of Charlie And The Chocolate Factory, history shows that technology tends to fill existing gaps left by worker shortages. You might also like: [A $3 trillion boom is coming and you might want to get in on it.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Burned Out&utm_campaign=daily-global-14-08-2024&utm_source=email) Analyst Take Carry Trades Torpedoed The Market. They’re Still Everywhere. [Carry Trades Torpedoed The Market. They’re Still Everywhere.]( [Photo of Stéphane Renevier, CFA] Stéphane Renevier, CFA, Analyst The latest market turbulence threw a spotlight on one of the investing world’s most popular tactics: the humble [carry trade](. It uses a strategy that’s beautiful in its simplicity: it thrives on [market stability](. And though these tactics can be impressively [profitable](, in big numbers, they can also be destabilizing for financial markets. That’s today’s Insight: [the ever-popular carry trade, explained](. [Read or listen to the Insight here]( SPONSORED BY BELONG Investors need time and money – so behind a time machine, this could be the next best opportunity Time is money: the longer your investments have to simmer, the bigger they should get. But even though we know that, many of us are waiting until we have more money to invest with, hanging on to the promise of that long overdue promotion and letting precious time slip away. Now, you could start with a tiny pot – many have before. But you could also take out [Belong’s]( competitively-priced* “Boost Loan” to [increase your starting capital]( and, in turn, potential returns. That sort of leverage – designed to [enhance your long-term prospects]( – is usually restricted to already well-off investors. Ironic, if you think about it. But Belong is designed specifically for younger investors with time to spare. After all, the earlier you invest, the more your returns can compound over time and put you in reach of your goals. The loan won’t eat into your investments, either: you’ll repay it separately in small monthly installments. [Belong’s Boost Loan is launching soon: you can register your interest here](. [Find Out More]( *5-6% interest rate Please note, as with all investing, your capital is at risk, and adding a Boost loan to your investment increases both the risk of loss, as well as the opportunity for higher returns. Avione Saving & Investment Ltd (trading as Belong) is a credit broker, not a lender. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Fresh Produce [Fresh Produce] What’s going on here? Tuesday’s fresh press showed that US producer prices rose less than expected in July, a refreshing blast for worn-out investors. What does this mean? The Producer Price Index (PPI) is usually overshadowed by the widely read Consumer Price Index (CPI). While the former just indicates what businesses are paying for supplies, which may or may not be passed onto customers, the latter shows how much folk are actually paying at the till. But unusually, the PPI landed first this week, and curious investors couldn’t help but sneak a peek. And they won’t regret it: producer prices were a mere 0.1% higher in July than June, and only up 2.2% compared to the same time last year – just shy of market estimates. Plus, the report highlighted the first drop in services costs this year, suggesting that inflation is starting to calm down across the board. Why should I care? For markets: Goldilocks could come out to play. Investors are on edge after last week’s sell-off, so any unwelcome statistics could have had them scoping out the exits again. But they won’t fully relax until tomorrow’s CPI data drops. Even slightly higher-than-expected inflation could stop the Federal Reserve (Fed) from cutting interest rates as aggressively as hoped. But if prices stoop too low, traders and analysts might see a recession as more likely. Just right, though, and the current rally may have legs. The bigger picture: Fail to prepare, prepare to fail. It’s been incredibly difficult to read – let alone predict – the economy since the pandemic. So markets have been driven largely by narratives – essentially, stories that try to explain why certain movements are happening and what may happen next. Right now, the consensus narrative seems to be that the Fed will tame inflation without crashing the economy. But if the data diverges from that scenario, investors will scramble to adjust their position – so make sure your portfolio can handle some surprises. You might also like: [How to get ahead of the next major market narrative.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Fresh Produce&utm_campaign=daily-global-14-08-2024&utm_source=email) 💬 Quote of the day "Love is like a virus. It can happen to anyone at any time." – Maya Angelou (an American poet, singer, memoirist, and civil rights activist) [Tweet this]( 🎶 Be our guest You could attend our [Modern Investor Summit]( this December. It would be a ball: you'd be hanging out with like-minded investors, participating in [live-and-direct Q&As]( with industry leaders, and listening to [keynote speeches]( from the likes of last year's speaker Jamie Dimon. Or you could be one of the experts. If you know your stuff and want to help this generation of modern investors develop their skills, [talk to us about speaker slots](. [Drop Us A Line]( 🤷‍♀️ it's not all bad Folks are a bit on edge lately, increasingly worried that a recession is brewing and jittery about how high [US stock]( valuations have become. Well, more than 90% of [the S&P 500’s companies]( have provided their second-quarter updates – and the releases made for interesting reading. Reda has dug through the finer details, and it turns out [Corporate America has given investors plenty of reasons to ditch (at least a little bit of) their pessimism](. [Read The Quicktake]( 🎯 On Our Radar 1. Walk on by. Five tips to help you [get more into hiking](. 2. The more, the merrier. Stéphane walks you though building a portfolio that [goes beyond stocks](.* 3. Causing a ruckus. Here’s a look at some of the [loudest animals in the world](. 4. There’s no shortage of acronyms in crypto. [This guide walks you through two biggies](: DeFi and CeFi.** 5. Reuse, reuse, recycle. How to mend, repurpose or dispose of [11 everyday items](. *See important disclosures [here](. ** Stocks is a derivative product offered by Change Securities B.V. that replicates the performance of your favorite companies’ shares - full or fractional. 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