This Week’s Takeaways:
- AI can hopefully augment human work and increase efficiency, rather than simply replacing workers. This shifts the investment case on AI to companies that can successfully embed AI into real workflows.
- The economy is posting strong numbers, but the labor market is not. This is good for investors until the divergence goes too far or self-corrects.
- Thirteen years into a secular bull market, university endowments are again chasing performance by dumping the alternative investments they bought at the wrong time after the lost decade and loading up on the winners of the last decade plus.
- You might be getting a bigger tax refund this year after last year’s tax cuts. Adjust your withholdings to end up with more money in your pocket during the year.
- If you’ve been reluctant to fund a 529 college savings account because you heard it hurts you in the financial aid formula, here’s the real truth: 529s are a powerhouse when it comes to financial aid.
- Latest book recommendation and Things to Do This Weekend in Boston
Rethinking AI’s future in an augmented workplace by MIT Technology Review Insights
AI is increasingly viewed as a general-purpose technology that, like the personal computer, could significantly boost productivity and reshape entire sectors of the economy by augmenting human work rather than simply replacing it, which suggests broader economic growth potential if integrated effectively. This evolution shifts the investment case away from simply backing AI tool makers toward companies that can successfully embed AI into real workflows—especially in large service-sector areas like health care, education, and finance where productivity has lagged. However, markets remain volatile with capital flowing rapidly amid uncertainty about whether AI will deliver sustained economic returns, meaning investors may need to balance optimism about long-term transformation with caution about hype and uneven productivity outcomes.
It’s too ambiguous to just say ‘the economy’ 🤦🏻♂️ by TKer
If you’re focused on high-level metrics, the economy looks great. If you’re focused on jobs, not so much. The net pace of job creation is near zero. It’s good for investors now, but can this divergence last?
Yale’s Famed Investing Model Falters at a Fraught Time for Colleges by Bloomberg
The endowment model made famous by the Yale Endowment, which incorporates illiquid alternative investments like private equity, venture capital, and hedge funds has underperformed stocks and bonds for a while so now some adherents are throwing in the towel and shifting to a cheap stock and bond portfolio.
Why It Pays to Check Your Tax Withholding This Year by The Wall Street Journal
You might be getting a bigger tax refund this year after last year’s tax cuts. That’s not necessarily a good thing. Adjust your withholdings to end up with more money in your pocket during the year that you can save versus lend to the government tax-free.
The Truth About 529s and Financial Aid by The College Financial Lady
If you’ve been reluctant to fund a 529 college savings account because you heard it hurts you in the financial aid formula, here’s the real truth: 529s are a powerhouse when it comes to financial aid.
Book Recommendation
The Tommyknockers by Stephen King
Master storyteller Stephen King presents the classic, terrifying #1 New York Times bestseller about a terrifying otherworldly discovery and the effects it has a on a small town.
