Happy holidays,
I hope you had a great Christmas / holiday time! I love this time of year when everything is a lot βslowerβ - most people are out of town, enjoying time with their families and friends, and work takes a little bit of a backseat to just living.
I personally bought myself a Dyson heater for Christmas because I always run cold, so Iβll report back after I get it this week on if itβs doing its job on keeping me warm. Hopefully you all got some time to rest and some fun presents.
Today on the YouTube channel I revealed my data-backed Investing Plan for 2024. I hope you check that video out! It will be linked at the end of this newsletter, or you can just go take a visit to the YouTube channel :)
Have a great rest of your week,
β Humphrey, Tim & Rickie
π Eye-Catching Headlines
βοΈ Apple to fight watch ban in court after White House declines to Act (WSJ)
π U.S. holiday retail sales grow 3.1%, down from prior year, Mastercard says (Reuters)
π³ Credit card spending piles up as savings dwindle (WSJ)
πΉ Kids prefer YouTube to Netflix. A problem for streamers (WSJ)
π‘ Home prices continued to climb in October, surveys show (Reuters)
π Expect EVs to get cheaper in 2024, experts say (CNBC)
The Weekly Brief
Escalating Red Sea Crisis: Houthi Attacks Disrupt Global Trade
What Houthi Red Sea Attacks Mean for Global Trade (Bloomberg)
Yemenβs Houthis Vow More Attacks on Ships in Red Sea Despite US Naval Force (Bloomberg)
Houthi Missiles Are the Worldβs Problem (Bloomberg)
The situation in the Red Sea has escalated significantly over the past week as Houthi terrorists continue their missile attacks.
The Houthis, an Iranian proxy, have successfully hijacked ships and attempted to board others.
The Houthis assert that their actions are in support of the Palestinians, striking out against Israeli-linked vessels. However, recent attacks have also targeted ships without clear connections to Israel, raising concerns that all maritime traffic in the region might be at risk.
The situation has forced major shipping companies to reroute their vessels around Africa, leading to longer journey times and increased costs.
Companies have ceased using the Red Sea route, causing a surge in natural gas prices in Europe and a general rise in shipping fees and insurance costs.
The rerouting of ships is also contributing to increased oil prices, especially as the Red Sea is a critical trade route for crude and fuel trades, particularly in the context of Western sanctions on Russia.
The Red Sea's importance as a trade route is underscored by the fact that it is the only access point to the Suez Canal, a major artery for global trade.
About 12% of global trade, including a significant portion of container traffic and petroleum products, passes through this region.
The Houthi attacks pose a threat not only to regional stability but also to the global economy, highlighting the fragility of international supply chains.
In response, there's been an international effort to secure maritime navigation in the area, including the deployment of armed security on some ships and the formation of a maritime-protection coalition involving countries like the US, UK, and Saudi Arabia.
Bank of America Instituteβs Year at a Glance
Throughout 2023, consumer spending in the U.S. remained resilient despite various economic challenges.
Bank of America's data showed a year-over-year increase in credit and debit card spending, with higher spending levels maintained in both total and services sectors.
There was a disparity in spending growth between generations, with older generations, like Baby Boomers, outspending younger ones.
Younger generations faced hurdles like resumed student loan repayments and rising childcare costs, impacting their spending capability.
Regional migration influenced the housing market, with the Sun Belt cities experiencing a more pronounced housing boom.
Additionally, labor market shifts were observed, with higher-paid industries experiencing wage contractions and pay disruptions, especially in tech and financial services.
Despite these challenges, deposit balances remained higher than pre-pandemic levels, providing a cushion for consumer spending heading into 2024.
Youβll Find This Interesting
Tech Hubs Are Losing the Talent War to Everywhere Else (WSJ)
Silicon Valley and other traditional tech hubs like San Francisco, New York, and Boston are experiencing a decline in their share of the nation's tech workforce.
This shift is driven by the rise of local tech ecosystems across the U.S., including cities like Denver, Miami, and particularly in Texas with Dallas, Austin, and Houston, which are attracting more tech talent and investment.
The trend, accelerated by the pandemic and the shift to remote work, is further boosted by non-tech companies increasingly employing tech workers, reducing their need to relocate to traditional tech hubs.
Big Number: The Year of AI
ChatGPT gained 1 million users in just 5 days and hit the 100 million user mark just 2 months after its launch.
For context, Instagram took 15 times as long to reach that benchmark, and Spotify took around 4.5 years.
Get an electric radiator instead of a Dyson heater. I had a Dyson and I find the (less expensive) radiator to work better in keeping small to medium sized rooms warm.