Exciting Times Ahead
Exciting Times Ahead
3.13 | “Don't go where the puck is, go where it's going to be." - Wayne Gretsky
News and Numbers
Markets this Week:
S&P 500 is up 1%.
NASDAQ 100 is up 2%.
Bitcoin-USD is trading flat.
Ethereum-USD is up 1%.
Headlines from this Week:
The U.S. Internal Revenue Service (IRS) aims to go paperless by 2025.
Amazon Clinic announced a nationwide expansion of its virtual health visit service to all 50 states, after an initial launch in select states in November. Customers can get an appointment via video or messaging for 30 common problems and easily get a prescription sent to their local pharmacy or through Amazon Rx, the company's generic pharmacy service.
Manchester United and Adidas are extending their apparel-sponsorship contract in a record-breaking £900 million ($1.2 billion) deal that lasts for another decade.
Finance
By Vlad Estoup, B.Comm. (Finance); working in Ethereum cybersecurity
Dumb Money, a Short-Term Indicator
As we near the end of 2023, the financial markets have been on an incredible journey since the tumultuous times of 2020. The stock market's remarkable recovery since November 2021 has left investors optimistic about the future. However, caution flags are now being raised, as signs indicate that a pullback could be on the horizon. One key factor contributing to this sentiment is the growing popularity of the "dumb money" investment strategy. In this article, we will analyze the reasons behind the market's near-full recovery and the potential consequences of the rising "dumb money" sentiment.
The stock market's rebound from the COVID-19-induced crash in early 2020 has been nothing short of impressive. Supported by unprecedented fiscal and monetary stimulus, along with vaccination efforts, equities have soared to new heights, fueled by investor optimism and a strong economic recovery.
Since November 2021, there has been a bit of volatility. But corporate earnings have exceeded expectations, and economic indicators have largely pointed to a robust recovery. This has given rise to a widespread belief that the worst is behind us, and the stock market's trajectory will continue upward indefinitely.
The "dumb money" sentiment refers to the influx of inexperienced retail investors who flood the market, often driven by fads, social media hype, and a fear of missing out (FOMO). These investors are characterized by their tendency to chase short-term gains without a comprehensive understanding of the companies they invest in. While retail participation in the market can be a positive force, excessive "dumb money" sentiment raises concerns.
Several factors have contributed to the surge in "dumb money" sentiment, including easy access to trading platforms, social media influence, and the proliferation of investment-related content on various online platforms. Additionally, the success stories of certain meme stocks and cryptocurrencies have enticed many retail investors to enter the market, often without considering the underlying fundamentals or risk.
As the stock market has rallied significantly, the "dumb money" sentiment has reached concerning levels. Such sentiment can lead to speculative behavior, inflated asset prices, and disconnect from economic realities. Historically, periods of excessive retail investor participation have preceded market corrections and pullbacks.
While the market's recent gains might be justified by economic recovery, the surge in "dumb money" could exacerbate market volatility and heighten the potential for abrupt reversals. Market corrections are a natural part of the investment cycle, and given the current state of affairs, a pullback in the near-term seems plausible.
As we navigate the current financial landscape, investors should exercise prudence and consider risk management strategies. Diversification, asset allocation, and a long-term investment perspective can help mitigate potential losses during market downturns. Moreover, staying informed and conducting due diligence on investment opportunities are essential practices for both novice and seasoned investors alike.
The stock market's impressive recovery since November 2021 has inspired hope and optimism for investors worldwide. However, the mounting "dumb money" sentiment raises legitimate concerns about the sustainability of this upward trajectory. As retail participation continues to surge, investors should approach the markets with caution, emphasizing risk management and sound investment principles. While a pullback in the near-term is possible, it is essential to remember that the stock market operates in cycles, and periods of volatility can present opportunities as well as challenges. Staying informed, disciplined, and adaptable will be key to navigating the markets successfully in the coming months.
This is not financial advice and you should always do your own research before investing in any securities or cryptocurrencies.
Sci-Tech
By Keyann, Software Engineer in Web3
Exciting Times Ahead
In today's fast-paced world, there's 2 peculiar notion permeating conversations – the quickest and easiest way to exit a startup is to start a simple SAS business, or, arguably worse, the idea that innovation has peaked. From lecture halls to student dorms, corporate meeting rooms, and more, cliches echo: “If only I was around when the first iPhone was unveiled”, “Imagine investing in Facebook at its inception,” or “If I I had capitalized on Apple's early days.” Such sentiment seems to imply that the golden age of invention and opportunity has passed, making way for mere incremental improvements.
Yet, in my view, nothing could be further from the truth. For one, on the note of easy exist, any startup you take on will take you like 3 years at least to gain traction, so choose something worth pursuing. Secondly, if you pause to take in the current technological landscape, it’s evident that we're living in what will probably be the most defining decade ahead. Some may argue that we are on the precipice of a new golden age of innovation.
Consider the array of revolutionary domains gaining traction:
Artificial Intelligence (A.I.)
Blockchain and Decentralized Assets
Superconductivity
Virtual & Augmented reality
Nuclear Fusion & Sustainable energy
Quantum Computing
Aerospace
Nanotechnology
Autonomous Robotics
Personalized Medicine and Gene Editing.
Each of these sectors promises not just incremental enhancements, but paradigm shifts that could redefine our world.
A.I., in particular, stands out as a catalyst for change. Its exponential growth is set to fuel advancements across sectors. As machine learning algorithms grow more adept, their applications in diverse fields will likely spur accelerated growth, opening doors to possibilities we can scarcely imagine.
For instance, the medical field is on the cusp of personalized treatments, tailored to individual genetic makeups, promising better outcomes and fewer side effects. In energy, the race towards sustainable solutions is gaining momentum, with technologies like fusion offering a tantalizing glimpse of a cleaner, more efficient future. Meanwhile, quantum computing, still in its nascent stage, is poised to revolutionize data processing and problem-solving capacities, potentially dwarfing the capabilities of today's most advanced supercomputers.
Thus, it is an entreaty to the creatives, problem solvers, young minds, and enthusiasts: Do not be disheartened by misplaced notions of missed opportunities. We stand at the brink of a technological renaissance. The future is ripe with potential, and the coming decade promises a whirlwind of innovations. Those with an innate curiosity, passion, and the drive to shape the future should seriously consider diving into these high-tech fields. The age of innovation is far from over; in many ways, it's just getting started.
Don't go where the puck is, go where it's going to be.
Paradigm Shift
By Roman Kuittinen-Dhaoui, BBA, CPHR Candidate; working in Human Resources
Universal Basic Income
An idea that has the potential to shift paradigms is the concept of universal basic income (UBI). UBI is a policy proposal in which every individual in a society receives a regular, unconditional sum of money from the government (e.g., $1000/month), regardless of their employment status or income level. This idea challenges the traditional notion of work and the welfare system.
The concept of UBI has gained significant attention in recent years as automation and technological advancements continue to reshape the job market. Proponents argue that UBI could address issues such as income inequality, poverty, and the potential loss of jobs due to automation. They suggest that by providing a basic income floor for all individuals, UBI could ensure financial security, foster innovation and entrepreneurship, and empower individuals to pursue meaningful work and personal development.
Critics of UBI raise concerns about its potential impact on work incentives, economic sustainability, and the overall cost of implementing such a program. They argue that providing a universal income without requiring work could discourage productivity and create dependency on government support.
Nevertheless, the idea of UBI challenges conventional thinking about work, income distribution, and social welfare systems. It forces us to question the traditional assumptions and structures of our economic and social systems and consider alternative approaches to ensure the well-being of individuals in an evolving world.
(Head)Space
Simple Habits
Happiness is a cherished goal for many. While it's a complex emotion, there are simple habits that can significantly impact our well-being. This piece explores the trio of healthy eating, daily exercise, and quality sleep and their role in leading a more fulfilling life.
Healthy Eating
Proper nutrition fuels both body and mind. A well-balanced diet of whole foods, fruits, vegetables, lean proteins, and healthy fats provides essential nutrients for optimal functioning. It promotes cognitive health, energy, and a positive outlook on life.
Daily Exercise
Regular physical activity triggers the release of "feel-good" hormones, reducing stress and improving mood. Exercises like running, martial arts, or cycling can have profound benefits on well-being. It’s imperative that you push yourself though, versus just going through the motions.
Quality Sleep
Prioritizing good sleep is crucial for mental and physical restoration. A well-rested mind fosters clarity, memory, and emotional balance.
Company of the Week
EnrouteAI
EnrouteAI is a private company founded in 2020 that provides a SaaS solution that simplifies last-mile logistics. Their AI-driven dynamic route optimization engine is used to plan and manage complex delivery routes with constraints like customer time windows and real-time traffic. The routes get even better over time as the AI learns the “fingerprint of the city.” EnrouteAI provides customers with a cloud-based dashboard for route planning and management, real-time tracking, greater visibility, and dispatching. Included in EnrouteAI is a very intuitive iOS and Android app for delivery drivers, automatic and proactive delivery notifications for end customers, and a robust API service for integrations with existing systems.
Written by: Vlad Estoup, Keyann Al-Kheder, and Roman Kuittinen-Dhaoui