Category: Laptops

• Mohamed El-Erian said the US economy can avoid a recession unless the Fed makes another policy error. 
• The top economist noted recent jobs data shows solid payrolls growth and higher labor-force participation.
• Some analysts fear the Fed could “overtighten” and end up undermining US economic growth.
•  

Mohamed El-Erian says there’s no reason for the US to tip into recession unless the Federal Reserve miscalculates what it needs to do again.

The top economist, a longtime critic of the Fed, sees hope for the US economy in data out last week. Official figures showed the labor market still moving at a brisk pace in March, even as it slowed down somewhat.

“I think we can avoid a recession. We are seeing weakening, but the most interesting sector is services. We’ve had conflicting data,” the chief economic adviser at Allianz told CNBC on Monday.

“There’s no reason why we should fall into a recession other than getting another Fed policy mistake,” he said.

El-Erian has previously slammed the US central bank for mistaking inflation as transitory. That meant the Fed then had to unleash an aggressive campaign of interest-rate hikes on the US economy to try to cool price pressures. 

Moody’s Mark Zandi and other economists fear the central bank could “overtighten” its policy — that is, it could raise rates too far and end up undermining growth.

But according to El-Erian, the latest payrolls report from the Bureau of Labor Statistics offers room to be hopeful about the US economy.

“Solid employment growth, higher labor force participation. That’s good for both the demand and supply side of this economy,” he said.

The US added 236,000 jobs in March, just short of the 239,000 expected, while the unemployment rate moved down from 3.6% to 3.5%. The labor force participation rate ticked up from 62.5% to 62.6%.

Just a few days before that release, the ISM manufacturing index update for March showed a drop in US factory activity to the lowest level since July 2020, with a corresponding fall in employment.

Beyond the economic indicators, investors are watching the fallout from the failures of Silicon Valley Bank and Signature Bank 

El-Erian’s forecast is in stark contrast to what other top market commentators expect for the US economy, given turmoil in the banking sector following the collapse of Silicon Valley Bank. 

Fears are mounting that tighter credit conditions among US lenders alongside the Fed’s rapid interest rate hikes could spark an economic slump. While El-Erian notes that the SVB debacle raises the odds of a recession, it “doesn’t make it a done deal.” 

“It’s going to play out over several quarters, it’s not a sudden stop, it’s not 2008,” El-Erian said. 

REUTERS/Jason Reed

Mohamed El-Erian says there’s no reason for the US to tip into recession unless the Federal Reserve miscalculates what it needs to do again.

The top economist, a longtime critic of the Fed, sees hope for the US economy in data out last week. Official figures showed the labor market still moving at a brisk pace in March, even as it slowed down somewhat.

“I think we can avoid a recession. We are seeing weakening, but the most interesting sector is services. We’ve had conflicting data,” the chief economic adviser at Allianz told CNBC on Monday.

“There’s no reason why we should fall into a recession other than getting another Fed policy mistake,” he said.

El-Erian has previously slammed the US central bank for mistaking inflation as transitory. That meant the Fed then had to unleash an aggressive campaign of interest-rate hikes on the US economy to try to cool price pressures. 

Moody’s Mark Zandi and other economists fear the central bank could “overtighten” its policy — that is, it could raise rates too far and end up undermining growth.

But according to El-Erian, the latest payrolls report from the Bureau of Labor Statistics offers room to be hopeful about the US economy.

“Solid employment growth, higher labor force participation. That’s good for both the demand and supply side of this economy,” he said.

The US added 236,000 jobs in March, just short of the 239,000 expected, while the unemployment rate moved down from 3.6% to 3.5%. The labor force participation rate ticked up from 62.5% to 62.6%.

Just a few days before that release, the ISM manufacturing index update for March showed a drop in US factory activity to the lowest level since July 2020, with a corresponding fall in employment.

Beyond the economic indicators, investors are watching the fallout from the failures of Silicon Valley Bank and Signature Bank for a potential hit to growth.

Concerns are rising that the turmoil in the banking sector will mean lenders toughen up their requirements for making loans. Those tighter credit conditions — a credit crunch — could end up dragging on economic growth alongside Fed rate hikes.

But El-Erian has said that while the SVB-sparked financial sector crisis raises the odds of a recession, it “doesn’t make it a done deal.” 

“It’s going to play out over several quarters. It’s not a sudden stop, it’s not 2008,” he said. 

• Fox News has settled a defamation lawsuit filed by Venezuelan businessman Majed Khalil.
• Khalil was accused on air of rigging the 2020 presidential election by then Fox host Lou Dobbs.
• The network faces a slew of lawsuits, with jury selection imminent in the $1.6 billion Dominion trial.

Fox News said on Sunday that it had settled a lawsuit filed by Venezuelan businessman Majed Khalil, who accused the news outlet of defamation after then-Fox News host Lou Dobbs claimed on air that Khalil helped rig the 2020 US presidential election.

Shortly after the election, Dobbs took to Twitter to call it a “cyber Pearl harbor” and said that Khalil was a “liaison with Hezbollah” who had executed an “electoral 9-11.”

The former Fox host also accused Khalil and other Venezuelans of being involved in a scheme to oust former president Donald Trump.

Khalil filed a $250 million lawsuit against Dobbs, Fox News, and former Trump lawyer Sidney Powell in December 2021. 

The case against Fox was settled on confidential terms, and is “amicably” resolved, a Fox News representative said, without giving further details. 

But the network still faces major legal battles related to its coverage of Trump’s election loss.

Dobbs’ show was canceled by Fox in February 2021 after he was named in election company Smartmatic’s $2.7 billion suit against Fox.

The London-based technology firm accused the network of broadcasting more than 100 false claims, including the assertion that Smartmatic shared its technology with rival company Dominion Voting Systems, the Guardian reported. 

Dominion’s mammoth $1.6 billion lawsuit against Fox Corp, which it filed after Fox accused the company of using its voting machines to aid Joe Biden’s victory, has garnered the most attention.

That lawsuit has already significantly damaged the network’s reputation, which has been marred by accusations of electoral misinformation, as well as its role in the January 6 Capitol insurrection.

The trial is set to begin on April 17, with some of Fox’s most controversial personalities — Tucker Carlson, Sean Hannity and Maria Bartiromo — poised to make an appearance. 

The outcome could be disastrous for the network, especially after some individuals working at Fox admitted to “putting lies out in the air,” former federal prosecutor Renato Mariotti said.

• French police have warned about an Irish gang defrauding property owners by posing as builders.
• The gang offers to pave areas with tar at a far lower price than normal but the work is substandard.
• They actually belong to the Rathkeale Rovers, a criminal clan named after a town in Ireland.

Police in France have sounded the alarm about an Irish gang posing as builders to defraud property owners after some 2,000 complaints were filed in the past five years, Le Parisien reported.

The Information, Intelligence and Strategic Analysis Service on Organized Crime (Sirasco) published a confidential note in February about “faux bitumeurs,” or fake tarmackers. 

This tarmacking scam is the main activity of the “Irish Travellers,” according to the report, who are actually members of the Rathkeale Rovers, a criminal clan named after a town in Ireland. 

Arthur, an asparagus grower in the Landes region, said he was approached by “builders” who claimed to have surplus tar. He saw it as an opportunity to pave an area of his farm and paid about 2,000 euros ($2,200). 

“They appeared to be professionals, and had younger builders who were presented as apprentices,” Arthur told Le Parisien. However, just a few days after the work was finished, he said parts of the bitumen started coming off before it all came apart. 

Another man from Maine-et-Loire wanted to redo the path to his home and paid 2,600 euros only to later discover the tarmac was mostly made of gravel.

The workers all had Irish accents, according to the newspaper.

“The tarmackers generally present themselves as road workers and offer tarring services on the pretext of a surplus of tar from another site,” Sirasco, the anti-mafia service said in the note, adding that they usually charged between 7 and 13 euros per square meter rather than the typical 40 euros.

The police believe their targets are often people who are “old and isolated,” the report said.

Some members of the Rathkeale Rovers were now living in France, authorities believe, acting as a “base” for the scammers, per Le Parisien. 

Authorities were also concerned that the clan was also involved in trafficking rhino horn and ivory. 

In 2021, a French court convicted eight men who were members of the clan in relation to smuggling ivory and rhino horns, The Guardian reported. 

The French interior minister didn’t immediately respond to a request for comment from Insider, made outside normal working hours. 

Our experts answer readers’ tax questions and write unbiased product reviews (here’s how we assess tax products). In some cases, we receive a commission from our partners; however, our opinions are our own.

• My taxes have gotten more complicated, and the best way to deal with that is to give them more time.
• It’s nice to have a buffer at the beginning of the year before I have to pay my accountant.
• I’ve never needed to so far, but I know that I can always file an extension if I really need more time.

I usually file taxes in late March or early April, and I know I’m not alone. In fact, last year, around a quarter of Americans filed their taxes in the last two weeks.

I used to feel behind when I’d hear my family and friends talk about filing their taxes in early February. Now I actually prefer to file later for several reasons.

We all get several months before taxes are due for a reason. Even so, I’ve spoken with accountants who encourage people to request an extension if they need to, which is also very reassuring. There may be some downsides to filing taxes later or close to the deadline. However, I prefer it for four main reasons.

See Insider’s picks for the best tax software »

1. My tax situation has gotten more complex

My tax situation has gotten way more complex over the years. When I was a young adult, I could file a 1040EZ or just have one or two W2 forms. Now, I’m married with a child, a freelance business, investments, and (until recently) a mortgage.

It takes my husband and me a lot longer to gather our documents and get organized. Sometimes we’re waiting on items to be mailed in or need to follow up on giving statements we need and so on.

Naturally, I’m not interested in rushing at the beginning of the year to do all these things. In January, we are usually recovering from the holidays and setting intentions for the year. I appreciate having the time to shift our focus to taxes later on.

2. I’m less likely to make a mistake

Rushing through the filing process to file earlier also puts my husband and me at risk of making more mistakes. I don’t like the idea of getting audited or having any tax issues.

So I’d much rather slow down and triple-check our situation before filing our tax return. A few years ago, I had to learn this the hard way when we filed taxes too soon and had to submit an amended return.

For some reason, both my husband and I forgot to submit his student loan interest form. By the time we realized we had forgotten to add the document, we had already submitted our tax forms to the IRS. I had to talk to my accountant about filing an amendment.

The amendment process was really easy and straightforward. It just took us a much longer time to receive our small tax refund that year.

Now, my husband and I both try to sit down and discuss specific things we’ll need and create a checklist before we file. We also look at last year’s returns to confirm we have all the necessary documents to file.

3. I get extra time to pay my accountant

Filing later in March or even early April also gives me extra time to gather the money to pay my accountant who files our taxes every year. We usually don’t get a tax refund, and if we do it’s small, so I never count on it.

Since our situation is more complex now, that means we expect to pay more to file our taxes. Early in the year, we like to start setting aside money for tax preparation fees, and again, I don’t feel rushed since we tend to file later.

4. There’s always the option to request an extension

I haven’t needed to yet, but I have peace of mind knowing that I can always request a filing extension if I have to. Regardless of your income, the IRS allows you to request a filing extension giving you an extra six months to file your return.

This option is readily available should I ever need it, and there’s nothing to feel bad about if I fall behind when preparing to file taxes.

If you’re thinking about requesting an extension, you should know that it’s not an extension to pay your taxes — you’re just getting extra time to file a return.

Filing taxes is something you can’t really rush. Knowing that there’s lots of time to file and even an extension if available if needed puts me at ease so I can pace myself during this time of year instead of getting overwhelmed.

• Trump has been prosecuted several times, both while in and out of the White House.
• Each time, Republicans have predicted it would galvanize their base in upcoming general elections.
• But time and time again, the prosecutions failed to energize his voters to turn out.

President Donald Trump has been prosecuted repeatedly in recent years, both while in the White House and outside of it. And each time, experts and those close to Trump have predicted the proceedings could energize his supporters and the Republican base.

Time and time again, however, prosecuting the former president has yet to lead to any notable positive electoral consequences.

On December 18, 2019, the House of Representatives voted to impeach Trump for, in part, trying to pressure Ukrainian President Volodymyr Zelenskyy to investigate Trump’s political rival, Joe Biden, and his son, Hunter.

Following the proceedings, former Trump campaign manager Brad Parscale predicted the impeachment would lead to a high Republican turnout in the 2020 presidential election.

“Any time people try to lessen this legitimate president, in any way, his voters fight back,” Parscale said in December 2019. 

Trump, however, ultimately ended up losing the 2020 presidential election to Biden, and Democrats ultimately won control of the US Senate, giving them control of each branch of the federal government for the first time since 2011.

Several years after Trump left the White House, in August 2022, he found himself embroiled in more prosecutorial drama after the FBI raided his Mar-A-Lago in an investigation over the mishandling of classified documents.

Former adviser to President Bill Clinton, Doug Schoen, noted in an opinion piece for The Hill that the FBI’s search of Mar-A-Lago likely wouldn’t sway voters to switch parties but that it could “further galvanize an already-enthused Republican base to the detriment of the Democratic Party.”

Prior to the 2022 election, Republicans and pollsters repeatedly predicted the election would result in a “Red Wave,” or a GOP landslide victory.

And while Republicans took control of the House of Representatives, they did so in a much narrower manner than predicted. Democrats also, crucially, maintained control of the Senate. Ultimately, GOP voters in the 2022 midterm elections weren’t as energized by the Mar-A-Lago raid as Democratic voters were — the Supreme Court’s overturning of Roe v. Wade’s federal abortion protections in mid-2022 proved to motivate Democrats to turn out in larger droves than expected.

And on April 4, 2023, the Manhattan District Court indicted the former president for falsifying business records. That same day, two elections were scheduled to occur in Wisconsin and Chicago for a new state supreme court justice and mayor, respectively. 

Following the indictment, Amy Walter, the editor-in-chief of The Cook Political Report, predicted that with “all of the energy among his base, the sense that he’s being wronged, might make things a little more unstable when it comes to understanding turnout.”

That evening, progressive Wisconsin Supreme Court candidate Janet Protasiewicz handily defeated her conservative opponent by more than ten percentage points and the more progressive, Democratic Chicago mayoral candidate, Brandon Johnson, narrowly won as well.

While prosecutorial efforts against Trump have yet to energize his base in general elections, they likely could help him out in the 2024 presidential primary election — the former president has campaigned and marketed extensively off of the recent indictment against him.

Additionally, fellow presidential candidates and prospective ones, such as former South Carolina Gov. Nikki Haley and Florida Gov. Ron DeSantis, have yet to attack Trump for the indictment, instead rallying to his aid.

Despite repeated predictions and warnings that prosecuting the former president would invigorate his base in upcoming elections, investigations against Trump simply haven’t energized his base as expected. Voters, alternatively, appear to care much more about issues that affect them personally, like abortion, inflation, and crime.

Almost Friday! Dan DeFrancesco in NYC. The biggest golf tournament of the year, the Masters, kicks off today. Here’s a guide to the players with the best chance of winning. Even if golf isn’t your thing, the concessions at Augusta National, and their eye-popping prices (in a good way), are worth a peek. 

Reminder that you’ve still got one last chance to get your questions in for Friday’s mailbag. (No personal finance questions, please. You shouldn’t be taking that kind of advice from me anyway.) I’ll do my best to answer as many as I can. 

Today, we’ve got stories on some uber-wealthy families teaming up, eye-popping quotes from Credit Suisse’s final shareholder meeting, and the food you should to eat to give your brain super powers.

But first, can you explain what venture debt is? Asking for a friend.

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Tyler Le, Rebecca Zisser/Insider

1. Debt in doubt.

Of the many knock-on effects from the downfall of Silicon Valley Bank, the role the bank played in lending to startups was one of the biggest. At the time of its collapse, SVB had more than $70 billion in credit lines on its books.

Initially, private credit investors sprung to action to cash in. But a long-term solution presented itself when First Citizens Bank bought the assets of SVB, including its loan book, at the end of last month.

Well, not quite. 

The venture debt community, which has grown considerably as equity funding has dried up, is skeptical that First Citizens is the best firm for the job, Insider’s Darius Rafieyan reports. 

Reporting from the first annual Venture Debt Conference in New York, which First Citizens seemed to be absent from, Darius details how attendees and panelists questioned the family-run regional bank’s ability to take over the complex and nuanced business that is venture debt. 

Darius’ story has lots of colorful quotes and anecdotes, but one of my favorites is a bank executive recalling how a First Citizens’ employee asked for help understanding how to value a venture loan book after the deal was announced. (Not great, Bob!)

I’m all for learning on the job, but that type of knowledge seems like a prerequisite for buying a business with more than $70 billion in venture debt. 

The loss of SVB was always going to create a gap in the industry that would prove tough to fill. But, if First Citizens is as ill-equipped to take over SVB’s venture-debt business as some believe, that only further complicates the matter.

And it’s a problem that will likely only impact the most in need, as is usually the case.

For the biggest players, or those with the biggest backers, there will always be people keen to lend. But for those on the outskirts, it’ll make an already challenging environment even more so. 

Click here to read more about why everyone’s confused about the future of SVB’s loan business.

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In other news:

Business Insider/ Mike Nudelman

2. Two really rich families team up. The Desmarais family, the name behind the ubiquitous Canadian investment group Power Corp., and the Rockefeller family, I think we all recognize that name, both invested in the wealth management firm that bears the latter’s name. More on the investment that pushed Rockefeller Capital Management’s valuation to $3 billion.

3. ‘I didn’t bring my gun, don’t worry.’ That about sums up the thoughts from a wild final shareholder meeting for Credit Suisse. Angry investors had choice words for the Swiss bank’s board. Read the most-colorful quotes from from the meeting here.

4. The luxurious toys of the ultra rich are also helping them save on taxes. The wealthy have figured out how to get tax write-offs on their private planes and massive yachts by using them for a bit of “business,” ProPublica reports. Here’s how it works.

5. Don’t touch that 401(k)! That might seem obvious to some, but a growing number of people are cashing out their retirement savings when they switch jobs despite not even being strapped for cash. More on why that’s a terrible idea.

6. Blame it on the boomers. While that is an answer to many questions, this time I’m talking about the difficulty millennials (this one included) are having trying to buy a home. This is why boomers are blowing it for the rest of us. 

7. Cash App’s creator was fatally stabbed in San Francisco. Bob Lee, Square’s first CTO and the brains behind Cash App, was serving as chief product officer of fintech MobileCoin. More here. Meanwhile, Elon Musk, Jack Dorsey, and other tech execs react to the news.

8. A guy who bet big on tech thinks now it’s a good time to bet big on tech. Chase Coleman, the founder of Tiger Global Management, now thinks tech stocks are a good bet, per Bloomberg. Yes, that’s the same Tiger Global that had a horrible 2022 betting on tech stocks. But I am sure that’s just a coincidence. Here’s why Coleman is feeling so bullish.

9. Literal brain food. A new study claims a magnesium-rich diet will make your brain bigger and healthier. Time to break out the leafy green veggies and nuts. More on what you should eat for “brain care.”

10. Catch some Zs on the road with these pillows. Check out our guide to the best travel pillows. I can’t promise you won’t look like a dork wearing these, but that’s a sacrifice you must be willing to make. Check out our reviews.

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Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London. 

 

• Investors have made Toronto-Dominion the most-shorted bank in the world, Bloomberg reports. 
• Short sellers have accumulated a staggering $3.7 billion in wagers against the Canadian lender.
• The short interest suggests increased investor pessimism toward TD and the American banking system. 

Investors appear more bearish on Canada-based lender Toronto-Dominion (TD) than any other bank in the world.

Short sellers have increased their bets against TD to $3.7 billion – the biggest short position against any financial institution, according to Bloomberg. Here’s a closer look at what’s going on.

What is short-selling?

Short selling, also known as shorting, refers to investors borrowing stock to sell with the goal of buying it back later at a lower price and returning it to the lender, pocketing a profit. Traders engage in short selling when they expect a company’s stock price to decline, and want to make money if that happens.

Why are investors shorting TD? 

TD is being targeted because of its planned takeover of US regional bank First Horizon, its exposure to Canada’s weakening housing market, and its ties to troubled US lender Charles Schwab, per Bloomberg. 

The lender first announced its $13.4 billion buyout of First Horizon in February 2022. But sentiment has turned against regional banks following the collapse of Silicon Valley Bank, and TD’s shareholders aren’t so enthusiastic about the deal anymore. 

“Walk away and take the break fee and be able to get other deals cheaper now,” one shareholder told Reuters, suggesting TD may be overpaying for its acquisition. 

First Horizon shares are trading about 30% below TD’s offer price of $25 a share. Since announcing the takeover, shares of Canada’s second-largest lender are down about 11%. 

Meanwhile, TD’s exposure to Canada’s housing slowdown is also eroding investors’ confidence in the bank. That’s because the lender operates in an environment where variable-rate mortgages are popular and consumer insolvencies are growing.

According to the Canadian government, the total number of insolvencies rose by 13.5% in January. If fewer people are repaying their debts, that could pose problems to TD if it has a substantial number of consumer loans on the line. 

“TD sits uniquely in the middle of two broad headwinds,” Daneshvar Rohinton, a portfolio manager at Industrial Alliance, told Bloomberg. “The fears around Canadian housing will be projected onto TD,” he added. 

At the same time, TD’s 10% stake in Charles Schwab – whose stock price tumbled after it revealed $28 billion in unrealized losses on its bond holdings as of December 31 – has contributed to investor bearishness toward TD. 

What does this mean for the banking sector? 

The rising short interest against TD signals there are lingering doubts among investors about the US banking sector.

Three US banks – Signature Bank, Silicon Valley Bank and Signature Bank — folded last month, sending shockwaves across the banking sector and fueling concerns about the entire financial system. 

JPMorgan CEO Jamie Dimon fanned those fears in his annual letter to shareholders, published on Tuesday. He warned the banking turmoil isn’t over and its repercussions will be felt for years to come.

Of course, the short sellers could be wrong about Toronto-Dominion, and might be excessively pessimistic about its First Horizon deal, Charles Schwab stake, and exposure to Canada’s housing market. Yet the huge sums of money being wagered against the lender shouldn’t be ignored.

Hi! Dan DeFrancesco in NYC, but I might be on my way to Virginia soon if these dolphins don’t stop it with the bullying. 

I still need questions for the upcoming reader mailbag. Drop any finance-related (or non-finance) questions you have for me here. (No email needed!) I’ll answer them in Friday’s newsletter.

Today, we’ve got stories on crypto getting in on the AI bandwagon, the consultants still vying for the UBS-Credit Suisse mandate, and some more workout advice.

But first, iiiiiiiiiiiiiiiiiiiiit’s TIME!

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Photo by Getty Images

1. M&A from the top rope.

Wait, what’s that? Do you hear that? Is that…

M&A! M&A! For God’s sake, M&A is back!!

After nearly 12 months of a dealmaking drought, the bankers finally have something to cheer about.

Monday was quite the start to Q2 with not one, but two massive deals announced. First up was Extra Space Storage’s $12.7 billion acquisition of fellow real estate investment trust Life Storage. Citigroup, JPMorgan, Wells Fargo, and Bank of America were among the banks advising on the deal.

Not to be outdone, 20 minutes later the World Wrestling Entertainment and UFC announced plans to merge to form a new public company valued at more than $21 billion, per the deal. For this one, Morgan Stanley, Goldman Sachs, The Raine Group, JPMorgan, and Moelis all served as advisors. 

Earlier this year, some pegged the merger market getting back into the swing of things by mid-year. But the bank crisis of the past few weeks led some to question whether that was still a reality.

Leave it to a bunch of professional wrestlers and cage fighters to throw caution to the wind and dive in head first. 

When you think about it, the WWE-UFC deal might be the best way to get the market going again. It’s the type of transaction that has a little bit of everything, meaning companies could use it as a litmus test for their own potential deals.

For example:

Two public companies: Endeavor Group (UFC’s parent company) and WWE are publicly traded. (The new company will trade under the ticker “TKO.” Love that.) 

Massive interest: The UFC is arguably the third-most popular professional sport in the US. WWE, meanwhile, has a rabid, wide-ranging fan base and one of the biggest social-media presences in the world.

Fight for media rights: Both UFC and WWE have streaming deals with ESPN and NBCUniversal’s Peacock, respectively. When those deals expire in the coming years, they could look to negotiate a joint deal, per Axios. 

Outside-the-ring/cage issues: Earlier this year a video of UFC president Dana White slapping his wife made the rounds. Meanwhile, WWE executive vice chairman Vince McMahon returned to the company less than 6 months after retiring amid sexual misconduct allegations.  

So are the floodgates going to open? Should analysts brush up on Excel?

There is a real case to be made for the market starting to pick up. And just like a pool party, nobody seems to want to be the first one in, but once things get going everyone’s putting their swim suit on. 

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In other news:

Courtesy of Holly Baxter

2. More people want out of Blackstone’s REIT…again. The giant investment firm once again stopped people from pulling money from the Blackstone real estate income trust (BREIT), Reuters reports. Here’s more on why the firm limiting redemptions from BREIT is bad news for its strategy of attracting smaller investors.

3. Crypto gets on the AI bandwagon. It was only a matter of time. The crypto community is now pitching itself as playing a key role in AI development thanks to its decentralized nature. Check out these 12 crypto projects touting their ability to make AI cheaper to develop.

4. What’s going on with Charles Schwab? Shares in the brokerage dropped 33% in March, its worst month since 1987. More on the company’s difficult March.

5. Nobody wants the bad bonds the banks are looking to sell. Banks hold as much as $30 billion of so-called hung debt on their balance sheets that is proving difficult to move in the wake of the fall of SVB, The Wall Street Journal reports. Speaking of SVB, The Washington Post has a report on how executives tweaked with the bank’s risk model until it showed them what they wanted. (Is that what they mean when they say they need to “recalibrate” the model?)

6. The next Joe Rogan? Lex Fridman has grown a massive following thanks to his popular show, “The Lex Fridman Podcast,” whose guests have ranged from Mark Zuckerberg to MrBeast. But his decision to interview controversial figures — such as Ye, the rapper formerly known as Kanye West — has drawn criticism from some, who suggest he’s contributing to the spread of misinformation. More on Fridman’s rise here.

7. One of the biggest prizes in consulting has almost been decided. Four consulting firms remain for the honor — and millions of dollars in fees — of advising UBS on how to fit Credit Suisse into its firm, the Financial Times reports. Here’s who remains in the latest “Hunger Games” of consulting.

8. Beats by AI. Even music is set to be disrupted by artificial intelligence. From mastering a track to writing lyrics to even creating music videos — they still make those? — everything is on the table for the tech. Check out these 13 startups primed to shake up the industry. 

9. Peek inside a $7.5 million Manhattan brownstone. The three-story building is currently owned by an architect and includes an indoor waterfall and an open-aired rooftop. Check out pics from the 6,500-square-foot property.

10. More workout advice. We’ve got a personal trainer sharing “cheat codes” he wishes he knew when he started. And we’ve also go a bodybuilder who shares some advice on how to get better gains at the gym. Most important, get your mornings in order.

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Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London. 

 

Welcome back! Dan DeFrancesco in NYC.

I’m still taking questions for the reader mailbag. Drop any finance-related questions you have for me here. (Don’t worry, it’s anonymous.) I’ll answer them in Friday’s newsletter.

Today, we’ve got stories on why the world’s richest people aren’t spending enough on cybersecurity, a job in AI that pays six figures but doesn’t require a tech background, and what not to do at the gym.

But first, remind me where you went to school.

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Universal Pictures

1. Non-target? Not a problem.

Who doesn’t love an underdog story?

Insider’s Emmalyse Brownstein has one about an investor’s unique path to Wall Street. Matthew Alfieri nabbed a job straight out of college within Goldman Sachs’ investment bank despite coming from a very non-Goldman school: SUNY Albany.

Alfieri, who spent nearly a decade at Goldman before moving to investment firm Centana Growth Partners, where he is a partner, shared some tips with Emmalyse for aspiring Wall Streeters who aren’t at so-called target schools. 

I like this story a lot, but I’m completely biased. I’m a product of the SUNY system (Plattsburgh!). And while I’m not comparing myself to Alfieri — he was a rising star, after all — I can relate to going from a lesser-known school into an industry known for its elitism. So if the rest of this newsletter reads like a giant projection of my insecurities, you’ve been warned. 

I hope Alfieri’s story isn’t just valuable to students trying to break into Wall Street. Stories like these should be a wake-up call to finance firms. The only acceptable junior talent doesn’t have to just come from the handful of schools with 11-figure endowments. 

Let’s set aside the obvious fact there are intelligent, hard-working people who don’t end up at elite universities. Wall Street could also benefit from casting a wider net among universities to get some diversity of thought. If you hire a ton of people from the New-England-prep-school-to-Ivy pipeline, you’re bound to get some groupthink.

A state schooler might not be able to debate the finer points of Hume or Kant, but their perspective could be differentiated from a group of people who operated in certain bubbles most life.

And at the very least, they’ll probably be a fun time at happy hour. 

Click here to read some tips for how to nab a job on Wall Street despite not coming from an elite school.

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In other news:

HBO

2. The world’s wealthiest people are cheaping out on cybersecurity, and it’s costing them. Family offices aren’t willing to spend a ton on cybersecurity, and it’s making them a target for criminals. Here’s why the uber wealthy are so susceptible to attacks. 

3. This fintech helps Wall Street keep tabs on employees’ messengers. Apps like WhatsApp and Signal have become popular communication tools across the Street. But they can also be thorn in a firm’s side from a regulatory perspective. LeapXpert helps finance firms secure these messaging apps for professional use. Check out the pitch deck it used to raise $22 million.

4. This VC is giving its backers early access to the startups it invests in. Base10 Partners has a new program that enables its LPs to co-invest with the VC in growth-stage companies. Here’s why it could help the firm compete with bigger VCs.

5. This is what the top minds in AI are focused on these days. The Cerebral Valley AI Summit was a chance for dozens of AI experts to discuss the future of the space. From the recent advancements to the risks, there was lots to discuss. These are the 3 biggest takeaways from the event. 

6. An annual salary of $335,000 and no background in tech required. So you want to get in on the AI craze but you’re not a STEM expert? Your best bet might be a role as a “prompt engineer,” which entails writing questions and prose for AI chatbots to learn from. Read more here.

7. US banks have lots of unrealized losses on their books. About $620 billion from investments in bonds as of the end of 2022, according to Bloomberg. And while it’s not a death sentence for most banks, it’s still a problem they’ll need to consider going forward. Here are some cool graphics illustrating the data.

8. The kids want a seat at the grown-ups table. So-called “shadow boards,” which enable employees to work with senior execs on initiatives, are rising in popularity. Often it’s a way for younger employees to share their input. More on how Gen Z wants a seat at the table. 

9. Before you get started on the weight-loss drug everyone is talking about. Here are 5 things you should know about Ozempic, the wonder drug that’s sweeping the nation. From the side effects you can expect to the different forms of the medication, here’s the advice from doctors.

10. If you want to take an old-school approach to weight loss… A gym owner shares some common mistakes people make when they are hitting the weights. Read them all here.

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Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London. 

 

Our experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

• For Love & Money is a biweekly column from Insider answering your relationship and money questions.
• This week, a reader’s husband doesn’t think the cost of a gym membership is a good use of money.
• Our columnist gives a path the couple can take toward meeting both of their priorities.
• Got a question for our columnist? Write to For Love & Money using this Google form.

Dear For Love & Money,

My husband is really controlling with money. He sees anything I spend outside of the bare essentials as frivolous. We aren’t wealthy, and we do have a lot of credit card debt, but we have a decent income, and we should be able to afford some extras. The main extra we are fighting about right now is a gym membership. I am “allowed” my $10 a month membership to a cheap fitness club, but I would really like us both to go to one of the nice ones with a smoothie bar, sauna, and a pool. In a perfect world, I would also have a personal trainer.

I see it as an investment in our health, which is the most important thing. My husband doesn’t want a membership at all, and if I’m being honest, it shows. I get that our finances are important to him, and our credit card debt stresses him out, but I care about both of us looking and feeling our best. He is out of shape and always complaining about aches and pains. How do I get him to understand the importance of putting our health first?

Sincerely,

Gym Rat

Dear Gym Rat,

Couples who share a life also share financial responsibilities. Even couples who divide their bills equally and don’t use a joint bank account are investing their time and money into the same life. This shared responsibility often means shared debt, shared costs, shared sacrifice, and shared indulgences. But what shared finances don’t necessitate are shared financial priorities — even if it might be easier when they align. I say this because the root of your dilemma is a stark difference in priorities.

You say your husband is controlling with finances, but later in your letter, you ask me how to get him to put both of your health needs first. And I wonder: Is he controlling? Or does he simply prioritize financial fitness while you prioritize physical fitness?

What I find interesting about your difference in priorities is that, taken separately, both of your financial priorities would usually serve as trump cards. There is a mindset around health that you espoused in your letter yourself when you say that health “is the most important thing.” But people hold the same mentality around financial health — after all, If you don’t have money, you can’t afford security of any kind. And what’s more important than that?

I think you are both right. Both physical health and financial health are worthy priorities. If you can’t get around due to aches and pains, what is the point of having money? If you spend all your money on expensive gyms, luxury meal plans, and personal trainers, then how do you plan to pay for all of those years you’ve tacked onto your life?

In situations like yours, where two people hold different but equally important money values, the solution isn’t for one of you to persuade the other into your way of thinking. It’s to find a solution that asks each of you to sacrifice a little so that both of you can prioritize your values.

But compromise is difficult, because it requires us to analyze our motivations with brutal honesty. In your case, that might mean asking yourself if a membership to a luxe gym is actually necessary for your health, or if it’s just something that sounds really nice. For his part, your husband may need to ask himself if his aversion to spending money on his physical fitness is really about saving a buck or if he’s actually disinterested in being physically active.

Being honest with ourselves about why we have our priorities isn’t only an exercise in self-denial, however. Your husband doesn’t have to go to the gym if he doesn’t want to. And you don’t have to stay at a budget gym if your desire for saunas and smoothies is solely self-indulgent. But an honest analysis is the first step towards the hard business of differentiating between our wants and our needs and ultimately coming to a mutually acceptable compromise.

Beyond analyzing your own priorities, however, you will also need to stop analyzing your husband’s. He isn’t wrong. Financial fitness is important, and if he is stressed out by credit card debt, helping him eliminate it isn’t something you ought to be arguing anymore than he ought to be calling your desire to get in shape “frivolous.” You both need to respect each other’s priorities. Remember, our priorities are based on our ingrained values, and I can’t think of anything more futile than trying to reason someone out of theirs.

But the good news is that you don’t have to change one another’s mind. Because ultimately, you both want the same thing. He wants to stress less about money, and you want to pursue physical health in a way that is going to require some expendable income. The best way for both of you two get your way is for you to get rid of your credit card debt.

Reaching a compromise will mean making a plan together for paying it off, and in the meantime, you should probably continue working out at the affordable gym you’ve been going to. Your husband’s part of this compromise will mean making the commitment now to celebrate your last credit card payment by purchasing a gym membership for you at a nicer gym. And if he is feeling so inspired, he may even join you.

You asked me how to get him to understand the importance of putting health first, and I’m afraid I didn’t give you the answer you wanted. But I guess what I’m trying to say is that while health and finances rank high on the list of important considerations in life, in a marriage, at the very top sits you and your spouse’s relationship. Because when you share a life, you share outcomes. You share happiness. And that’s something you both want.

Rooting for you both,

For Love & Money