Investor's Playbook

📖Today’s Agenda

• Stock Market : S&P 500, Nasdaq Tumble As Google Dives.

• Entrepreneurship : TOP 3 AI TOOLS OF THE WEEK

• Personal Finance : 3 Times When Spending Money Actually Saves You Money

📈Stock Market

S&P 500, Nasdaq Tumble As Google Dives; Meta Reverses Lower

The stock market suffered sharp losses Wednesday, with the S&P 500 and Nasdaq undercutting recent lows, ending their rally attempts. The small-cap Russell 2000 set a fresh 52-week low. The 10-year Treasury yield rose several basis points, while earnings reactions were generally poor.

Microsoft (MSFT) rose modestly on its results and guidance. But Google parent Alphabet (GOOGL) plunged on cloud weakness. Most techs followed Google, dragging down Meta stock, a bunch of software plays and Amazon.com (AMZN), which reports Thursday night.

The Nasdaq and S&P 500 undercut their recent lows, which means their short-lived rally attempts are over. The S&P 500 is now noticeably below its 200-day line. The Nasdaq is closing in on the long-term support level.

Nasdaq futures suggest the composite will soon break below the 200-day.

The Dow Jones has not undercut Monday's lows, so technically its rally attempt continues. But the overall trend is bleak.

That includes market breadth.

Meta Earnings

Meta earnings surged 168% vs. a year earlier. Revenue rose 23% vs. a year earlier, slightly beating, while costs fell 7% vs. a year earlier. The Facebook and Instagram parent slightly trimmed the high end of its capital spending forecast for 2023. It sees a capex bump in 2024, but not as much as the Street expected. That's potential bad news for suppliers such as Arista Networks (ANET).

Meta stock initially rose after hours, but reversed lower, trading down over 3% after the CFO warned of weaker advertising trends in Q4.

Shares fell 4.2% to 299.53 in Wednesday's trading, knifing through their 50-day line. Investors could still use 326.50 as a buy point. Aggressive traders could use Tuesday's high of 318.35 as an early entry, but market conditions significantly raise the risks.

🎯Entrepreneurship

TOP 3 AI TOOLS OF THE WEEK

1. Moonvalley

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Moonvalley is an AI-powered video creation tool that helps users create breathtaking cinematic and animated videos from simple text prompts. It is the perfect choice for marketers and developers looking for an easy-to-use solution to create stunning videos in an efficient manner.

2.Visual Sitemaps

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This AI tool can be used for many different purposes, from getting a clear visual map of a website’s structure to running SEO and marketing campaigns to generate leads. With Visual Sitemaps, you can easily analyze any website and get insights in order to make better decisions when it comes to website optimization, usability, and improving the overall user experience.

3. GPTPLUS

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GPTPLUS is an AI tool designed to provide you with the perfect answer to your copywriting, translation, code analysis, and Q&A needs. It is a Chrome extension for ChatGPT and is powered by GPT-4 & GPT-3.5, giving it an edge in accuracy and speed when compared to other AI tools.

💸Personal Finance

3 Times When Spending Money Actually Saves You Money

If you are trying to be frugal so you can keep more money in your checking account, it may seem like your goal should be to spend the least amount possible on purchases you make.

In reality, though, this is not always the case. In fact, here are three situations where it may make sense to run up a little higher credit card bill or to take a little more money out of savings to pay a higher price. Why? Because doing so could save you money in the end.

1. When you pay for high-quality professional help

If you need the services of a professional, it often doesn't pay to find the cheapest professional out there. Quality service providers often charge a premium price, but this cost can be worth it.

Think about it: If you pay a cheap mechanic to fix your car's brakes and they scam you by putting in used parts or even the wrong parts, or if you pay a substandard lawyer and you lose your case, you may have saved money upfront on their service fees, but you'll be out a lot more in the end.

To make sure you find the best quality help, ask for referrals from friends and loved ones and read online reviews carefully. Choose your service provider based not on who is offering the absolute lowest price out there, but who is the most competent, trusted person whose expertise you can afford.

2. When you buy quality products for items you must interact with regularly

There are some items that you have to use every single day and that can make a big impact on your quality of life. It can pay to spend more for these things and not buy the cheapest version. There are a few reasons for that.

First, the items are less likely to wear out or need costly repairs if you buy quality versions that cost more than cheap ones. If you can buy a $50 pair of shoes and they last five years or a $10 pair of shoes and they last six months, you're better off with the more expensive pair.

Second, buying a better quality product can help you avoid a lot of aggravation. If every time you use an item, you're frustrated because it doesn't work as expected, you're likely to replace it sooner than if you had bought a better product in the first place.

3. When you buy comprehensive insurance

Finally, buying more than the minimum required insurance coverage could end up saving you a lot. See, most states only require liability auto insurance. This pays for damages you cause to others, but that doesn't pay for your own losses. And if you're buying a home, mortgage lenders generally require only homeowners insurance coverage for the dwelling, but not for personal possessions.

Getting too little insurance coverage could leave a person with huge bills when a disaster happens, though. A driver without collision coverage who hits a deer or who gets into a single car accident could have to pay all costs of repairing or replacing their car out of pocket, while a person who has only dwelling coverage could have to pay to replace all their personal items after a fire. It's better to have coverage for all these costs in case something goes wrong.

The bottom line is, cheaper isn't always better. Consider the circumstances carefully to decide whether spending more upfront is going to save your personal finances from potentially much bigger costs over the long run.

In summary, this article emphasizes a crucial financial principle: prudent spending transcends mere frugality. Opting for quality professional services, durable everyday items, and comprehensive insurance, albeit at a higher initial cost, is a strategic investment. This approach shields individuals from substantial unforeseen expenses in the future. Financial wisdom lies not in mere cost-cutting but in discerning investments that secure long-term financial stability.