🇺🇸 The US has money issues

An American debt issue, a warning about AI and a crucial metal, and Elon Musk's "fire" supercomputer | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for September 17th in 3:14 minutes.   🍷 You could rely on wine to comfort you after a long day of losses, or you could use vintage bottles to potentially diversify your portfolio – and save yourself the headache. So join iCapital CEO Lawrence Calcano at our [Modern Investor Summit](, and get the scoop on alternative assets. [Grab your free ticket]( Today's big stories - Americans have fallen behind on car and credit payments, scaring investors away from consumer lending stocks - Why this might be a good time to think about global diversification – [Read Now]( - The world’s biggest mining firm predicted that the AI sector’s exponential expansion could aggravate an expected copper shortage Default Setting [Default Setting] What’s going on here? According to an August report from the Federal Reserve Bank of New York, Americans have been [falling]( behind on their debts – so investors wiped certain stocks from their portfolios. What does this mean? More Americans have fallen behind on their credit card payments over the past year than at any other time in the last decade, with 9.1% of accounts hitting “delinquency” status. Car loan delinquencies hit a 10-year high, too, landing at around 8%. In fact, Ally – a major car loan provider – warned of a spike in late payments and bad debts in July and August. That’s serious: car payments are usually one of the last bills to slip, as wheels are more than a nice-to-have for many Americans. Investors heeded the warning, ditching consumer lending stocks Synchrony Financial, Bread Financial, and Ally Financial after the news. Why should I care? For markets: There’s nothing like a fresh trim. Investors have been searching for signs of a recession, anxious that two years of rising interest rates could have been too much for the US to handle. Unemployment now sits at 4.2%, after all – up from 3.8% at the same time last year. Plus, hiring slowed down in June and July – although it did pick up in August. Now, the Federal Reserve is expected to cut rates at its next meeting, which could help borrowers catch up with their dues. But if the economic damage has been done, the decision could be too little, too late. The bigger picture: Big Tech’s old news. Investors have switched their attention to stocks related to consumer staples – that’s products that still sell, regardless of the state of the economy – like Coca-Cola and Colgate-Palmolive. And in their droves, too: the consumer staples sector has outperformed the S&P 500 in six of the last eight weeks, calming some of the concerns that the index’s rally was being driven purely by Big Tech. You might also like: [How to recession-proof your portfolio.]( 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=Default Setting&utm_campaign=daily-global-17-09-2024&utm_source=email) Analyst Take For Some US Investors, There’s No Place Like Home Bias [For Some US Investors, There’s No Place Like Home Bias]( [Photo of Reda Farran, CFA] Reda Farran, CFA, Analyst Plenty of folks tell you to overcome your “home bias” and seek some further-flung investment [opportunities](. The rationale is simple: by investing abroad, you can tap into great businesses worldwide and potentially achieve [better returns](. But, recently, that [sage advice]( has been tested like never before, particularly among US investors. And that makes this a good time to check out the virtues of global diversification. That’s today’s Insight: [why it may be time for US investors to rethink their home bias](. [Read or listen to the Insight here]( SPONSORED BY WEALTH CLUB Free guide: Tax-efficient investing for high earners “We’ll have to increase taxes” at the October Budget, Chancellor Rachel Reeves has warned. The heaviest tax burden in 70 years is about to get heavier still. Higher earners will likely have to bear the brunt – and more people will now be caught. If you are concerned, where could you turn? How could you make the most of [current tax-saving allowances]( while they’re still around? This [free guide from Wealth Club]( explains where you could invest if you want to reduce the tax you pay. The investments described involve backing [young, ambitious, high-risk companies](. You could lose your capital. In recognition of the significant risks, the government offers [generous tax reliefs](, including up to 50% income and capital gains tax relief. Tax rules can change and benefits depend on your circumstances. The [16-page guide]( is not advice nor personal recommendation – it [explains the main facts, so you can decide for yourself](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Copper Flag [Copper Flag] What’s going on here? BHP, the world’s biggest mining firm, [warned]( that the rise of AI will exacerbate a looming copper shortage. What does this mean? Copper’s a must-have metal for many of the industries tasked with helping the world achieve net-zero emissions targets. Think renewable energy, power cables, and EVs. Problem is, producers are getting less copper out of existing mines, and firms aren’t investing enough in new sites to keep production steady – let alone ramp it up. That has many analysts predicting a shortage in the future – and according to BHP, AI will only aggravate the issue. See, the sector uses copper to build, power, and cool the data centers that AI applications rely on. In fact, BHP expects data centers to account for up to 7% of total copper demand by 2050, up from less than 1% today. Why should I care? Zooming in: We’re still flush – for now. That drought is forecast for further down the line, though. Demand for copper actually looks weak right now, mainly because China – responsible for half of the world’s consumption of the metal – is contending with stuttering economic growth and a long-lasting property slump. So while BHP expects companies to be fighting over copper in the future, the mining giant expects supply to dwarf demand not just this year, but next year too. For markets: Investors love a sale. That weak short-term outlook has already pushed the price of copper down 15% since its peak in May. So now, Goldman Sachs expects the metal to fetch an average price of $10,100 per metric ton next year – when only four months ago, the investment bank had predicted an all-time high of $15,000. Of course, for investors who believe the longer-term forecasts, the low point could be an opportunity to buy the metal – key in both the AI and decarbonization megatrends – for a relative bargain. You might also like: [Copper could be the next big AI play.]( 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=Copper Flag&utm_campaign=daily-global-17-09-2024&utm_source=email) 💬 Quote of the day "If you are lucky enough to find a way of life you love, you have to find the courage to live it." – John Irving (an American novelist and short story writer) [Tweet this]( Meet the experts in alternative assets You can’t call the markets in the best of times, let alone this year and next. So if you want your portfolio to pay for your next blow-out vacation, your family’s college education, or to look after you in old age, you should prepare it for as many outcomes as possible. That’s where [alternative assets]( come in: plenty of untraditional sectors have a low correlation with stocks and bonds, so they can reduce the risk and volatility in your portfolio. Of course, you need to know [how to make that strategy work for you](: how to split your portfolio, which assets suit your risk tolerance, how often you should trade, and the rest. So join our [Modern Investor Summit]( to tune into [iCapital CEO Lawrence Calcano](’s exclusive interview with [Michael Sidgmore, the host of Alt Goes Mainstream](. You’ll get your answers about all things alternative assets, as well as gaining access to the rest of the Summit’s all-star lineup. [Grab your free Summit ticket here](. [Grab Your Free Ticket]( 🎯 On Our Radar 1. The math ain’t mathing. It’s not in your head: [restaurants are ridiculously expensive]( these days. 2. Long, short, put, call. Options might sound complicated, but [our guide breaks them down to their bones for beginners](.* 3. Where there’s smoke… Elon Musk’s [supercomputer is fire](, seriously. 4. Today’s top companies won't necessarily rule the roost tomorrow. [Brush up your investing skills]( with this rundown.** 5. Apple’s latest AirPods look the same as the last ones. Let’s see [if their insides are any different](. **See important disclosures [here](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... ♟️ [Game-Changing Strategies For Options Traders](: 5pm, October 15th 🚀 [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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