You deserve a cup of coffee
Today, I spent time with a cup of coffee and read a shareholder letter from Larry Fink, CEO of BlackRock. Given any day, some investors are worried about the high level of spending on artificial intelligence (AI). In the past, new technological changes sometimes caused market downturns. But we may not be at that point yet. One important thing is that the United States has the highest stock market participation in the world. About 60% of the population owns stocks, either directly or indirectly. This includes investments through mutual funds or retirement accounts like a 401(k) or IRA. Around the world, fewer people invest in stocks. They keep their money in bank accounts that earn little interest. They watch the economy grow but do not benefit from it as owners. In financial markets, short-term activity has a purpose. It helps markets process new information, understand risks, and decide where money should go. However, much of today’s economic anxiety comes from a deeper issue: capital...