Finance

The Extra Return for Stocks Over Bonds No Longer Exists

Stocks have not appeared this unattractive, based on at least one key measure, since the aftermath of the dot-com crash. Yet, many investors continue to buy in.

The equity risk premium, which is typically defined as the difference between the earnings yield of the S&P 500 and the yield on 10-year Treasurys, turned negative in late December for the first time since 2002. As of last week, it stood at a negative 0.15 percentage points.

TECH

AI to Replace Mid-Level Engineers, Zuckerberg Says

In a recent Joe Rogan interview, Meta CEO Mark Zuckerberg predicted that AI will replace mid-level engineers by 2025, taking over coding tasks and allowing humans to focus on higher-level problem-solving and creativity. Companies like Google are already integrating AI into their coding processes, and while this shift may be costly at first, it’s expected to become more efficient over time. As a result, demand for mid-level engineers may decline, with developers focusing on more strategic roles.

Why It Matters for Your Business: AI won’t fully replace all mid-level developers, but it will handle many tasks currently done by humans, particularly for business platforms that need customization. While some human oversight will still be needed, AI-driven development will offer faster, more efficient results. Businesses that embrace these tools can gain a competitive edge.

CRYPTO

Exploring Trump’s Crypto Connections and Their Potential for Corruption

With Donald Trump appointing top regulators with ties to cryptocurrency and vowing to make the U.S. the “crypto capital of the planet,” the controversial and scandal-ridden industry is set for more lenient oversight and rapid growth. However, ethics watchdogs and former prosecutors are concerned that this could put investors at risk and potentially lead to criminal abuses.

Trump’s pro-crypto stance coincides with his efforts to attract crypto companies to increase campaign contributions in support of his bid for the White House. While he once called Bitcoin a “scam” in 2021, he later revealed that he and his sons were involved in launching a new crypto venture, World Liberty Financial, which they stand to profit from.

Trump’s ties to the speculative crypto market deepened further just days before his inauguration, when he unveiled $Trump, a personal meme coin. The move drew heavy criticism from ethics experts, economists, and even some within the crypto industry itself, highlighting concerns over self-enrichment.