Your Weekly Financial Roundup Issue No. 56

Here’s the latest on the economy, tech, and the world, including incoming interest rate cuts in 2024, Nvidia’s new GPU, the return of PM David Cameron, and more.

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Your Financial News Roundup

November 15, 2023


TL;DR

1. Economy: UBS predicts the Federal Reserve will cut interest rates in early 2024; while U.S. President Biden and China’s leader Xi will cover high-profile issues during a trade summit

2. Tech: Chip maker Nvidia announced a new, powerful GPU designed to run generative AI models; and YouTube released rules to promote transparency and moderate AI usage.

3. World: A man with Parkinson’s can walk again with a spinal implant; meanwhile, UK PM Sunak brought back former PM David Cameron into his Cabinet.

Personal Finance Concept [Part 6/12]: Profitable Side Hustles – Thriftrepreneur


Economy

📉 Interest Rate Cuts Incoming: According to UBS’ economic outlook for 2024, the Federal Reserve will likely start aggressively cutting interest rates in March due to a slowdown in projected economic growth for the coming quarters. U.S. GDP is expected to grow at a modest 0.3% next year, a sharp contrast to the 3% gain observed in the past year. Concurrently, the unemployment rate is expected to increase to 5% by the end of next year. Given the substantial budget deficit, an upcoming presidential election, and a divided Congress, there isn’t much room for a fiscal spending cushion. (Business Insider)

Our Take: By contrast, Goldman Sachs economists expect GDP to grow by 2.1% in 2024, while inflation cuts will begin in Q4. These predictions follow news that month-over-month inflation in October was flat, indicating major progress in stemming rent and energy price increases and that the U.S. economy is in a “peak interest rate” environment.

🌏 Meeting of the Minds: San Francisco is hosting the 21-nation Asian Pacific Economic Cooperation (APEC) group to cover topics of joint economic growth and resilience against climatic and pandemic risks. President Joe Biden and CCP General Secretary Xi Jinping will privately meet to discuss thorny issues between both countries, such as spying, hi-tech chip export controls, the Russia-Ukraine conflict, and relations with Taiwan. Officials from both nations regularly meet behind the scenes to cool tensions, but not much is expected from this encounter. APEC represents half of the global population and has previously helped lower trade barriers. But future collaboration is temporarily limited. (AP)

Our Take: Global forums give heads of state a chance for open, face-to-face conversations that translate into policy, informal action, or mutual understanding. This upcoming meeting can potentially help lessen tensions between the U.S. and China.


Tech

⚡ Nvidia On The Rise: Nvidia recently introduced the H200, a high-end graphics processing unit (GPU) designed to train and deploy AI models powering generative AI capabilities. The H200’s key differentiating feature is its 141GB of “HBM3” memory, an enhancement that will significantly boost the chip’s performance. OpenAI currently uses H100 to train GPT-4, making H200 a major upgrade. Slated for Q2 of 2024, there is a high demand for these chips, with big companies, startups, and government agencies all vying for a limited supply. (CNBC

Our Take: Generative AI models, such as OpenAI’s ChatGPT and Google Bard, use large amounts of computing power. As Nvidia ramps up its release pattern from two years to one, the company is well-positioned to take advantage of the generative AI hype.

🧞‍♂️ Through the Illusion: YouTube is rolling out new rules to promote AI transparency and moderation on its platform. Creators will be required to label AI-generated content, while viewers will be informed about any content made with AI. Users can also request the removal of manipulated video that simulates a person’s likeness, such as their face and voice. However, YouTube will consider several factors before removal, such as if the content is satirical, if the requestor is identifiable, or if the video’s subject is well-known. (NBC)

Our Take: Like other content-based platforms, YouTube should implement thoughtful policies and controls to address AI-created content, promote transparency, and prevent misuse of a person’s likeness. Unfortunately, not all platforms will follow that path, creating a need for laws that protect and give a person ownership of their likeness or “digital twin.”


World

🧬 Medical Miracles: 63-year-old Frenchman Marc is now the first person in the world with advanced-stage Parkinson’s Disease to regain motor control and the ability to walk unassisted for miles at a time. Marc received an experimental spinal implant from a Swiss hospital that required mapping his spinal cord and implanting electrodes at key sites to stimulate his legs under his control. Marc boasts, “I’m not even afraid of the stairs anymore. Every Sunday… I walk around 6 km.” Scientists plan to do more trials and develop the tech before a public release. (GNN

Our Take: Big medical advancements in treating chronically disabled patients, such as those suffering from Parkinson’s, will restore their quality of life and independence. As the biotech is refined and made public, the costs and burden of caring for these individuals will fall over time.

🇬🇧 UK PM David Cameron Bounces Back: In an unorthodox maneuver, UK’s Prime Minister Rishi Sunak sacked the party’s right-winged foreign secretary Suella Braverman, replacing her with former PM David Cameron. Cameron is mired in controversy, most notably surrounding his abrupt resignation in 2016 when Brexit passed after he called a referendum on it. With a looming election, many believe Sunak is finally revealing his true colors by aligning himself with the moderates. (CNN)

Our Take: Sunak is distancing himself from his right-hardline predecessors and government at a time when support for the Conservatives is waning. However, just a week ago, Sunak laid out many right-wing positions in his 2024 policy agenda.


Finance Concept of the Week

Lucrative Size Hustles [Part 6/12]: Thriftrepreneur

Earn extra income on the side and live on your own terms

More than a decade ago, American hip-hop duo Macklemore and Ryan Lewis debuted their hit single, Thrift Shop, which quickly climbed to No. 1 on the Billboard Hot 100. Today, pre-loved fashion is becoming increasingly popular, especially with the rise of marketplace resale sites like Depop and Poshmark. If you have unwanted clothes or a keen eye for trending styles, you can make a decent amount of money reselling secondhand fashion. 

How to Get Started

Comb through your closet to find old clothing you no longer wear. If you are serious about this business, consider visiting thrift stores, garage sales, Goodwill bins, and flea markets to find quality secondhand clothing at affordable prices. Before taking any clothes home, inspect each item thoroughly for rips, tears, stains, or other defects. Ideally, you should only sell items in good condition to build trust with future customers.

Next, research which platform you want to sell on. Popular sites include eBay, Depop, and Poshmark. Prior to listing any items, wash the clothes to ensure they are clean and free of strong odors. For each item you want to sell, take clear, well-lit photos and showcase any important details or potential flaws. You can use an app like PhotoRoom to change the background of your pictures and give your profile a more professional look. Write accurate and appealing descriptions for your listings, highlighting the brand, size, color, material, and other key features.

Look on other platforms to understand the asking prices for similar items and set competitive rates. Some of these online resale marketplaces have shipping options available for you to choose from. But others allow you to set your own shipping prices. In those cases, determine shipping costs beforehand and clearly state that in your listings. When you make a sale, ensure the items get packaged securely to prevent damage, and consider adding a personal touch, such as a thank you note or small freebie.

If your sales are quickly increasing, consider establishing an online presence and brand identity to showcase your inventory, such as creating your own website or using Instagram or TikTok.

Top Platforms to Use

  • Depop: Depop is a UK-based social shopping app and online marketplace. Catered towards Gen Z, the platform has an Instagram-like interface, allowing you to like listings and save them to your profile. To sell on Depop, you need to create a profile, take your own pictures, and make listings. Depop takes 10% of sales, including shipping (if you use your own).
  • Poshmark: Poshmark is a marketplace platform that encourages a social shopping experience. Users can follow each other, share listings, and participate in themed virtual “Posh Parties” to enhance discoverability. To sell on Poshmark, you create a profile, list your items with clear photos and descriptions, set prices, and interact with potential buyers through comments and offers. Poshmark takes a flat $2.95 fee for items under $15 and 20% for all other items.
  • EBay: eBay is an online auction and shopping platform where users can buy and sell various goods, including new and used clothing, electronics, and more. To sell on eBay, you create a seller account, list your items, and set auction or fixed prices. eBay operates on a bidding system for auctions and offers a “Buy It Now” option for immediate purchases. The platform takes up to 12.35% of sales.
  • In-Store Consignment: If you want to avoid the hassle of listing items and shipping them out, you can sell your clothing directly at physical consignment stores. To get cash upfront, visit a store like Buffalo Exchange for a consultation. They will give you a percentage of the retail value of your clothes (typically 35% or less), though they may only accept certain styles or brands. Another option is to rent a rack for a few weeks or months at a local consignment store, where you will pay a base rack fee and/or a percentage of sales to the store.

Pros

  • Treasure Hunting Excitement: The thrill of finding unique and valuable pieces in thrift stores or online auctions can be personally rewarding and enjoyable.
  • Personal Style Expression: Curating a collection based on your taste and style allows for self-expression and a chance to share your fashion sense with others.
  • Niche Specialization: Focusing on a specific niche, such as vintage or designer items, can attract a dedicated customer base and set you apart from more general sellers.
  • Networking Opportunities: Building relationships with other sellers and customers can lead to collaborative opportunities, advice sharing, and a sense of belonging within the resale community.
  • Promoting Sustainability: Reselling secondhand clothing reduces the demand for new production and minimizes the environmental impact associated with manufacturing, transportation, and disposal of clothing.

Cons

  • Inventory Overload: Sourcing and storing inventory can become overwhelming, especially if you struggle with finding a balance between having enough items to sell and avoiding clutter.
  • Quality Disputes: Dealing with customer complaints about the condition or authenticity of items can be time-consuming and potentially harm your reputation if not handled carefully.
  • Platform Fees: Many online resale platforms charge fees for listing, selling, and payment processing. These fees can eat into your profits, impacting the overall financial viability of your side hustle.
  • Time-Intensive Photography and Listings: Creating compelling listings with high-quality photos takes time, and regularly updating your inventory can be time-consuming.

What Else Is New?


#Oof


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We are not financial advisors. The content on this website and our YouTube videos are for educational purposes only and merely cite our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!

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