📉 Intel's big bet failed

Intel's plan to take on the likes of Nvidia, (nearly) trillion-dollar active ETFs, and ChatGPT's church skills | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for September 6th in 3:13 minutes.   🔨 Put your Allen key and Ikea manual down for one second. Join us for [Five Portfolio Hacks For Busy Investors]( next Thursday, and discover how to spruce up your portfolio without losing hours (and your sanity) in the process. [Grab your free ticket]( Today's big stories - Intel flunked a crucial test, and now the tech firm’s $20 billion funding award is hanging in the balance - How to stay vigilant and keep momentum on your side – [Read Now]( - Investors have funneled nearly $1 trillion into active ETFs Bad Intel [Bad Intel] What’s going on here? Intel’s next-generation manufacturing process [failed]( its test, calling the tech firm’s know-how into question. What does this mean? Intel’s “18A” manufacturing process was supposed to show that old dogs can, in fact, learn new tricks. But despite spending years developing the tech, the American firm is yet to prove the old adage wrong. After checking out semiconductor parts produced by Intel’s machines, chip designer Broadcom has said the process isn’t fit for mass production yet. This is just the latest knock for the legacy tech firm’s confidence. Intel announced a $1.6 billion loss last quarter, stopped its dividend, and predicted 15,000 job cuts – so the stock has been laying low. Plus, the firm had to ditch plans to partner with Softbank on a Nvidia-esque chip, unable to meet the Japanese company’s production demands. Why should I care? For markets: Intel’s shooting for Nvidia, but the stars would do. Good news: the US government approved funding for the Chips Act in March, which would hand Intel almost $20 billion in grants and loans. Bad news: it’ll only be paid out if the firm lives up to lenders’ lofty expectations. So Intel could be left empty-handed if it falls behind, potentially derailing the company’s plans to throw money into infrastructure and development in a bid to catch up to Nvidia. The bigger picture: You can’t win ‘em all. Intel’s bigwigs will need to formulate their next steps wisely at this month’s board meeting. See, if the firm cuts costs by scaling back US factories, the Chips Act award would almost certainly be pared back, too. But do nothing, and Intel might not see a cent anyway. This one will be a risky call for investors, not least because it can be years until a recovery strategy is deemed a success or failure. So assessing Intel’s chances may be best left to the industry experts. You might also like: [Doubts are starting to creep up about AI’s $600 billion bet](. 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=Bad Intel&utm_campaign=daily-global-06-09-2024&utm_source=email) 📈 trending chart [The Bank Of Canada Cut Rates A Third Time]( The Bank Of Canada actioned its third – yup, count 'em – rate cut, even hinting at a fourth and fifth, too. After all, inflation is headed to where the central bank wants it. [Problem is, the job market isn’t](. [Reveal The Chart]( Analyst Take This Momentum-Based Strategy Aims To Boost Your Returns And Lower Your Risk [This Momentum-Based Strategy Aims To Boost Your Returns And Lower Your Risk]( When the going gets [tough](, the tough prefer to take their portfolios into their own hands. And that’s what [vigilant asset allocation]( (VAA) is all about – it’s designed to help you actively take advantage of changing market trends or economic conditions. It’s got a strong track record and is easy to implement with ETFs, but this market approach is [not for the fainthearted]( or the set-it-and-forget-it investor. That’s today’s Insight: [how to stay vigilant and keep momentum on your side](. [Read or listen to the Insight here]( SPONSORED BY IG The A to Z of options trading, for beginners through to the initiated When it comes to perfecting your investment strategy, you can never have too many options. So make sure you’re not neglecting options, which give you [the choice to buy or sell]( a specific asset on a specific day at a specific price. See what we did with the “options” thing? They’re trickier to deal with, especially if you’re just used to ETFs and single stocks. But used correctly, and options can help you [diversify your portfolio and hedge to help you manage risk](. So take a look at [IG Academy’s free resources](: the guides cover everything from the basics of options to specific popular trades, like covered calls and short iron condors. Fancy, indeed. [Discover your options with IG Academy.]( [Get Started]( Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. You could lose more than your original investment. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Active Lifestyle [Active Lifestyle] What’s going on here? Investors have put nearly $1 trillion into actively managed exchange-traded funds (ETFs), with the potential of market-beating returns spiking their heart rates. What does this mean? Active ETFs are like the regular ones, which track an underlying asset or index, but they’re actively adjusted by fund managers who aim to beat the market’s returns. That’s attracting a ton of time-poor but ambitious investors. As of the end of July, they’d stuffed $974 billion into active ETFs – a somewhat sudden frenzy, given that the funds have been around since 2006 but only hit the $100 billion mark in 2018. It likely helped that investors are flush with options. According to BlackRock, 41% of all new ETF launches in the first half of this year were active ones. And in that time, investors put a record proportion of cash into active ETFs instead of their passive counterparts – just over 22% of the total pie. Why should I care? For markets: Don’t kick ‘em while they’re down. Active ETF managers are getting creative. Just look at the recently launched Deletions ETF, which invests in companies that are cut from major indexes like the S&P 500 and Russell 1000. Yup, cut. The idea is that these companies tend to climb back up the ranks – often even beating their old indexes. So by buying them after they’ve been booted, investors can theoretically bag a bargain. The bigger picture: Bye, Big Tech. Swooping up stock market rejects could be a savvy tactic right now. Investors are backing out of ultra-expensive tech stocks, wary of the risk of a serious economic unraveling in the US. Plus, companies that break into major indexes often struggle to live up to their newfound hype – and Big Tech is hardly short of hype. That’s why investors are spreading their bets across a wider range of stocks and sectors, putting some of their money in cheaper stocks instead of heavyweights. You might also like: [The five active ETF strategies you need to know now](. 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=Active Lifestyle&utm_campaign=daily-global-06-09-2024&utm_source=email) 💬 Quote of the day "Knowledge is power. Information is liberating. Education is the premise of progress, in every society, in every family." – Kofi Annan (a Ghanian former Secretary-General of the United Nations) [Tweet this]( 🚀 Get the inside scoop from the biggest leaders in finance Are you in financial services or fintech? We've got something for you. Introducing our [new monthly newsletter]( featuring top insights from leaders at UBS, Citi, BlackRock, Revolut, and more. Get actionable advice on marketing, product building, and leadership in financial services. This week: [Finimize VP Max Rothery interviews Alex Craddock](, Global CMO at Citi and former CMO at BlackRock and Hewlett-Packard. Under his leadership, iShares' assets grew by nearly two trillion dollars, and Hewlett-Packard became the number-one PC brand globally. [Get the full interview and subscribe to the monthly newsletter](. [Subscribe To The Retail Investor Insider]( 🎯 On Our Radar 1. ChatGPT was converted. Artificial intelligence can [take you to church](. 2. There’s more to ETFs than index tracking. Read our free guide to using [Leveraged and Inverse ETFs for three real-world examples.](* 3. Your doctor won't see you now. A [pig has just had surgery]( from a team working 9000km away. 4. The selling is arguably more important than the buying. Here’s how to [nail your options strategy](. 5. Absolutely smashing it. One [burger]( is winning over mouths everywhere 🌍 Finimize Live 🤩 Grab your tickets... 5️⃣ [Five Top Tips Every Options Trader Should Know:]( 5pm, September 11th 🔨 [Five Portfolio Hacks For Busy Investors:]( 5pm, September 12th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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