Hey Chakkani Fam! Welcome to Your Weekly Financial Briefing! We've got bite sized market moves, big tech bets, and whispers of change from all over the world. Grab a cup of joe (or your preferred drink) and let's dive:

Bears & Bulls: Markets Notes & Numbers

• S&P 500: 5,222.68 +8.60 (+0.16%)

• NASDAQ: 16,340.87 -5.40 (-0.03%)

• Dow Jones: 39,512.84 +125.08 (+0.32%)

• 10-Year Treasury Yield: 4.502 (+0.053%)

• Bitcoin: $60,570.23 -1,780.03 (-2.85%)

  All data as of last trading day's market close time read more…

Market Bites::

1. Fed Officials in Inflation Limbo: Rates High Enough or Just Doing the Cha-Cha?:Federal Reserve officials are caught in a monetary tango, twirling between inflation risks and interest rates. Dallas Fed President Lorie Logan, at a bankers’ conference in New Orleans, hinted that policy might need more flexibility. Meanwhile, Atlanta Fed President Raphael Bostic believes inflation will slow-dance under current policy, but it’s a waiting game. The recent surge in inflation expectations, as revealed by the University of Michigan survey, has everyone wondering if the Fed’s anchor is slipping. As they tiptoe this tightrope, the question remains: Are rates high enough, or are they just practicing their moves? Stay tuned for the next central bank ballroom performance! 💃🕺

2. Grain Tango: Supplies Get Cozy, Prices Do the Cha-Cha: In the world of grains, it’s a dance floor showdown. Global supplies are tightening up, and prices are ready to salsa their way higher. The US Department of Agriculture predicts that wheat stockpiles for the 2024-25 season will be lean, like a dieter’s pantry after New Year’s resolutions. Worries about adverse weather and Russia’s chilly wheat exports add drama to the mix. Meanwhile, corn is doing its own two-step, coming in 2.1% below the average estimate. Wheat futures are shimmying up by 3.7% to $6.6075 a bushel, while corn sways to a 2.6% beat. But watch out for those soybeans—they’ve been through the wringer, with Brazil’s harvest taking a hit due to flooding. Still, the soybean crop might break records, like a superstar on tour. So, grab your partner, spin around, and let’s see who leads in this grainy dance-off! 💃🌾🕺

3. Affirm’s Gen Z Dance: Chatting with AI-Powered Chatbots: Affirm, the buy now/pay later fintech, is hitting the dance floor with Gen Z. CEO Max Levchin reveals that young adults prefer to tango with intelligent chatbots rather than waltz with human agents when resolving customer-service questions. The company aims to use generative AI to “prework” routine inquiries, freeing up human experts for more complex moves. While it’s early days for gen AI, Levchin envisions cost savings as they cha-cha their way to better customer service. Affirm’s star performer? The Affirm Card—a hybrid financial tool for everyday debit purchases, zero-interest loans, and longer-term financing. As they refine their steps, Affirm’s diverse purchases—from fashion to sporting goods—keep the rhythm alive. 🕺💬🤖

4. U.S. Treasury Dances with Surplus: Tax Receipts Outshine Spending: The In a fiscal tango, the U.S. Treasury pirouetted into a $210 billion surplus last month, waltzing ahead of its April 2023 performance. Tax receipts took the lead, shimmying up 22% to $776 billion, thanks to contributions from both individuals and businesses. Meanwhile, outlays cha-cha’d to $567 billion, a 23% rise. For the first half of the fiscal year, the deficit slimmed down by $70 billion (an 8% reduction), while receipts sashayed up to $2.964 trillion. But watch out for the debt mambo—interest costs on the national debt boogied up 36%, second only to Social Security expenses. As the music plays, individual tax refunds waltzed higher, and withheld receipts did a lively jig. Let’s hope this fiscal dance keeps its rhythm! 💃💰🕺

5. Novavax’s Dance with Sanofi: A Shot in the Arm for Struggling Biotech: Novavax stock (NVAX) just pulled off a dazzling pirouette! French drug and vaccine giant Sanofi (SNY) waltzed in with a $1.2 billion investment for Novavax’s COVID-19 vaccine, along with a minority stake. After a pandemic-era stumble, this cash infusion is like hitting the dance floor with a new partner. Novavax’s vaccine, delayed by manufacturing issues, missed out on the Pfizer/BioNTech and Moderna boom. But now, it’s back in the spotlight. Novavax’s CEO, John Jacobs, calls it a “new chapter.” They’ve trimmed liabilities, reduced expenses, and are ready to cha-cha toward growth. Sanofi’s flu portfolio, including Flublok, aligns with Novavax’s platform. Together, they’re tangoing toward a multibillion-dollar future. 💃💉🕺

6. Tesla’s Supercharger Tango: Musk’s Moves Leave EV Industry Spinning: Elon Musk’s recent Supercharger network shuffle has left the industry buzzing like a hypercharged electric vehicle. Let’s break it down:

1. The Layoffs: Last week, Musk pulled a plot twist by firing nearly the entire Supercharger team. These are the folks responsible for building Tesla’s top-notch charging network. Cue the gasps!

2. The Backtrack: But wait, there’s more! In a classic Musk move, he tweeted that Tesla will spend over $500 million to expand the Supercharger network this year. Thousands of new chargers are on the way, folks. 🚗⚡

3. The Drama: Automakers like GM, Ford, and others had signed up to use Tesla’s Supercharger network. They were promised steady growth. Now they’re side-eyeing Musk like, “What gives?”

4. The Blink and EVgo: Competitors are circling like vultures. EVgo and Blink Charging are eyeing the opportunity. BP, the oil and gas heavyweight, is also making moves with its BP Pulse charging network. They’re all ready to cha-cha into the charging game.

5. The Real Estate Tango: BP’s top exec is practically serenading Tesla’s jilted partners. “If you’re stranded, call me,” he says. Real estate matchmaking, anyone? 🏢💔

So, buckle up! The Supercharger saga continues, and the dance floor just got crowded. 🕺⚡🔌

7. Apple’s M4 Chip Joins the AI Battle Royale: Neural Engines, Performance Metrics, and PC Showdowns: 

M4 Chip Overview:

• The M4 chip is Apple’s latest system-on-a-chip (SoC) designed for the new iPad Pro.

• It utilizes second-generation 3-nanometer technology, making it power-efficient and enabling the thin design of the iPad Pro.

• Key components of the M4 include the CPU, GPU, and the neural engine.

• CPU Performance:

  • The M4 features a new 10-core CPU, comprising four high-performance cores and six efficiency cores.

  • These cores offer improved branch prediction, wider decode and execution engines for performance cores, and a deeper execution engine for efficiency cores.

  • The M4’s CPU enhancements contribute to overall system speed and responsiveness.

• GPU Power:

  • The M4’s 10-core GPU builds on the next-generation architecture introduced in the M3 chip.

  • It delivers four times the performance of the previous generation, making graphics-intensive tasks smoother and more efficient.

• Neural Engine:

  • The M4’s neural engine is Apple’s fastest yet, capable of handling up to 38 trillion operations per second (TOPS).

  • This neural processing unit (NPU) outperforms any AI PC available today.

  • It enables advanced artificial intelligence features within iPadOS and third-party applications.

• Display Engine:

  • The M4 includes an entirely new display engine designed for the Ultra Retina XDR display on the iPad Pro.

  • This state-of-the-art display combines the light of two OLED panels, resulting in stunning precision, color accuracy, and brightness uniformity.

• AI Capabilities:

  • With its powerful neural engine, the M4 can handle complex AI tasks directly on the device.

  • Applications leveraging AI, such as Live Captions and Visual Look-Up, will benefit from faster processing.

In summary, the M4 chip represents a significant leap in performance, especially in AI capabilities. As Apple enters the AI chip wars alongside other tech giants, we can expect exciting developments in on-device AI applications and improved user experiences. 🚀🤖

8. Biden’s Tariff Tango: China EVs and Strategic Sectors in the Crosshairs: President Joe Biden’s upcoming tariff decision targeting China’s electric vehicles (EVs) and strategic sectors:

• Tariff Decision Overview:

  • President Biden’s administration is preparing to announce new tariffs on Chinese imports.

  • The decision will focus on key strategic sectors, including electric vehicles (EVs), semiconductors, and solar equipment.

  • These tariffs are part of the ongoing economic race with China and aim to address unfair practices.

• Specific Tariff Measures:

  • The tariff rate on EVs is expected to increase significantly, quadrupling from approximately 25% to 100%.

  • Additionally, a 2.5% duty will apply to all automobiles imported into the US.

  • The full scope of the incoming tariffs, including rates and the list of impacted sectors, is not entirely clear yet.

• Biden’s Approach:

  • Unlike the across-the-board hikes pursued by Donald Trump, Biden’s approach is more targeted.

  • The tariffs will focus on industries critical to both countries’ economic competitiveness.

  • Biden aims for fair competition rather than an all-out trade war.

• Impact and Reactions:

  • Investors are cautious, especially regarding stocks exposed to these sectors.

  • Green-tech brands, such as battery giant Contemporary Amperex Technology Co. Ltd., already have limited US exposure.

  • China’s Foreign Ministry has criticized the previous US administration’s tariffs, calling for their cancellation.

In summary, Biden’s tariff tango with China is a strategic move to address economic imbalances and promote fair competition, but it also carries risks and implications for global trade relations. 🕺🚗💥

9. Apple’s Oopsie Tango: iPad Pro Ad Crushes Creativity, Sparks Backlash: Apple’s latest iPad Pro ad turned into a tech tango disaster. The ad, titled “Crush!,” depicted symbols of human creativity—musical instruments, paint cans, an '80s arcade game, and even a sculpted bust—being mercilessly crushed by a giant hydraulic press. The internet erupted in criticism, calling it a “dystopian future” and “ghoulish.” Apple’s VP of marketing communications, Tor Myhren, issued a rare apology, admitting they “missed the mark.” The ad won’t hit TV screens, but the damage was done. Lesson learned: even tech giants can step on their own toes! 🕺📱💔

10. Investment Tango: When Trends Turn from Fad to Fortune (or Flop): Investing is like dancing the tango with trends. Let’s break it down:

1. Roblox’s Rollercoaster:

   • Roblox’s stock plunged, but my kids are still gaming away.

   • For most people, Roblox is a Google search away—flash in the pan or lasting trend?

   • The jury’s still out, but investors often buy what they know.

2. Peloton’s Plunge:

   • Peloton, once a pandemic darling, now faces a tumble.

   • From $162.72 to just above $4—a 97% slump.

   • A good business somewhere, but magnitude misunderstood.

3. Beyond Meat’s Faux Meat Fizzle:

   • Beyond Meat’s shares fell similarly since its 2019 peak.

   • Eighth straight quarter of declining sales.

   • The plant-based meat dream sizzles out.

4. Trend vs. Fixture:

   • AirPods, Uber, Airbnb—initially questionable propositions.

   • Apple forced adoption with ultimatums and smart design.

   • Discerning fads from fixtures is a zero-sum game.

5. Investors’ Tango:

   • Will you trip over your own toes or dance to fortune?

   • Trends can be intoxicating, but beware the fad trap.

   • Whether Roblox or Peloton, the music keeps playing! 🕺📈💃

Phew, that's a lot to unpack! Remember, this is just a snapshot of the complex and ever-evolving financial landscape. So, stay informed, diversify your investments, and don't forget to have a little fun along the way!

Bonus Tip: Want to dig deeper into any of these stories? Let me know in the comments below, and I'll be happy to share some additional resources!

And there you have it, folks! Remember, folks, the financial world is like a game of Monopoly—sometimes you’re the banker, sometimes you’re stuck in jail, and occasionally you land on Boardwalk and buy a hotel. Happy investing! 📈💰

 P.S. Did we miss anything major? Hit us up via an email with your hot takes and financial insights!

Cracking the Credit Score Code

Unlocking the Secrets Behind Your Three-Digit Number

Introduction

Welcome to the fourth chapter of our credit odyssey! Today, we’re diving deep into the heart of credit scoring. Buckle up as we decode the mysterious digits that wield immense power over your financial destiny. 🔍

1. FICO vs. VantageScore: The Duel

FICO Scores and VantageScore credit scores are both used by lenders to evaluate your creditworthiness. Here are the key differences between them:

1. Credit Score Range:

   • FICO Scores range from 300 to 850.

   • Initially, VantageScore credit scores had a different scale (from 501 to 990). However, VantageScore 3.0 and 4.0 adopted the same 300 to 850 scale as FICO uses.

2. Calculation Methods:

   • While both scores serve the same purpose, they use different methods to calculate scores.

   • FICO considers factors such as payment history, credit utilization, length of credit history, types of credit, and recent credit inquiries.

   • VantageScore also considers similar factors but may weigh them differently.

3. Lender Preferences:

   • Some lenders may prefer one score over the other, depending on their policies and risk assessment.

   • It’s essential to monitor both scores and understand which one a specific lender uses when evaluating your credit application.

Remember that maintaining a good credit score is crucial for qualifying for financing and receiving competitive offers from lenders. Higher scores can save you significant amounts of money over time

2. The Magic Ingredients

Payment History (35%)

• Golden Rule: Pay on time, every time.

• Late Payments: They haunt your score like friendly ghosts.

Credit Utilization (30%)

• Sweet Spot: Keep balances below 30% of your credit limit.

• High Utilization: Red flag for lenders.

Length of Credit History (15%)

• Older Is Wiser: Longer credit history = higher score.

• Don’t Close Old Cards: They’re your credit elders.

New Credit (10%)

• Hard Inquiries: Applying for new credit? Brace for a temporary dip.

• Soft Inquiries: Checking your own credit? No worries.

Credit Mix (10%)

• Variety Is Key: Blend of credit cards, loans, and mortgages.

• Monoculture Alert: Too much of one type isn’t ideal.

  

3. The Score Dance: Boosting Your Numbers

Pay Bills Early: Be the eager beaver.

Diversify Credit: Mix it up like a financial DJ.

Fix Errors: Dispute inaccuracies on your report.

Avoid Closing Accounts: Let 'em age gracefully.

Conclusion

Congratulations! You’ve just cracked the credit score code. Remember, your score isn’t set in stone—it’s a dynamic dance. Stay tuned for our next episode: “The Dark Side: Credit Repair Myths Busted.” 🌘

—

So, there you have it! With a little guidance and the right tools, you'll be a master in understanding (and hopefully master it) financial concepts in no time. Go forth, plant your seeds, and watch your wealth garden flourish!

This is the next part in this comprehensive series on “Credit Alchemy: Transforming Your Worth into Wealth” ( we want to get you ready for the next step in your life, whatever it may be).

If you liked this, check out other series including, a 9 part extensive series on “All Things Tax Related” and 5 Part series on Investing and all our previous articles here.

So, whether you are crawling and sprinting, let's do this together!

Until next time, wishing you happy wealthness (you see what we did there:)) to you!

📚 Bonus Resources:

1. Investopedia: Investopedia provides comprehensive information on creditworthiness, including factors that impact it, how to check your credit report, and steps to enhance your creditworthiness. Remember that your creditworthiness affects loan approvals, interest rates, and more.

2. The Balance: The Balance explains creditworthiness and emphasizes the importance of monitoring your credit score. You can access your credit score for free through services like Credit Karma, Credit Sesame, or WalletHub.

3. SuperMoney: SuperMoney offers practical steps for managing creditworthiness. You can obtain a free annual credit report from AnnualCreditReport.com or use free credit monitoring services like Credit Karma or Credit Sesame.

Remember to stay informed, check your credit score regularly, and make timely payments to maintain a strong credit profile. 🌟📊💳

Your Wealth Journey Awaits!

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