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  Hi! Welcome back to the MSI weekly newsletter! I couldn't send the newsletter for the past several weeks due to school and family issues. The newsletter will go out each week going forward.

The financial year ends on December 31st. People need to pay taxes on the money they make each year. The amount of tax you pay depends on the money you make. The more money you make, the more taxes you need to pay. When filing taxes, people can claim losses related to stocks, and depending on their loss, their tax can decrease. To lower their taxes, investors often sell stocks at a loss at the end of the fiscal year, and then buy the stock back in January. That way, they can reduce their taxes and continue to own the stock afterwards. This is called tax-loss selling.

2022 was a big bad bear market. Lots of people suffered losses in stocks. So there was a huge amount of tax-loss selling. This led to a dip in the market in December. But people started buying back the same stocks in January. Because of that, the market got a boost in January. Since the market went up in January, some investors believed that the market had bottomed. The Fed said that they will not have to raise interest rates by too much if inflation starts to improve. However, the job market is doing very well as employment rates are very low. Inflation is still there and the Fed will have to continue interest rate hikes for at least some more time.

Since the past year, the market has been going down because of high interest rates and inflation. There is not any new news that will cause the market to crash. All the bad news is known. Since October, the market has been trending with higher highs and higher lows. If the market continues this trend, the market may have already bottomed. However, there is always the possibility that the market will go below the previous bottom.

AI has been a hot trend lately. Google has been facing competition from Microsoft's ChatGPT. Google makes most profits from advertisements based on their search engine. Microsoft has a search engine called Bing but it is not successful. They make profits from their enterprise products. ChatGPT is a product by OpenAI. Microsoft recently invested a lot of money in OpenAI and has integrated ChatGPT with Bing. ChatGPT is very popular and trendy because it is the latest and very advanced form of artificial intelligence(AI). Because of competition from ChatGPT, Google was under pressure so they quickly launched their own AI product. However, when advertising it, they included some wrong information. Because of all this, the stock price of Google has been taking a hit recently.

However, ChatGPT is actually based on code that Google wrote. I am not too worried about Google because they have a much better track record than Microsoft with search engines, AI, and other innovations. The main problem with Google is that they are not good at marketing their products, while Microsoft is great at marketing their products. Google is a blue chip, innovative company that will handle such challenges like these. If you don't own Google stock, this is a good time to start a position.

Thanks for reading my newsletter! See you next week!