But what can you actually DO about the proclaimed ‘AI bubble’? Billionaires know an alternative…
Sure, if you held your stocks since the dotcom bubble, you would’ve been up—eventually. But three years after the dot-com bust the S&P 500 was still far down from its peak. So, how else can you invest when almost every market is tied to stocks?
Lo and behold, billionaires have an alternative way to diversify: allocate to a physical asset class that outpaced the S&P by 15% from 1995 to 2025, with almost no correlation to equities. It’s part of a massive global market, long leveraged by the ultra-wealthy (Bezos, Gates, Rockefellers etc).
Contemporary and post-war art.
Masterworks lets you invest in multimillion-dollar artworks featuring legends like Banksy, Basquiat, and Picasso—without needing millions. Over 70,000 members have together invested more than $1.2 billion across over 500 artworks. So far, 25 sales have delivered net annualized returns like 14.6%, 17.6%, and 17.8%.*
Want access?
Investing involves risk. Past performance not indicative of future returns. Reg A disclosures at masterworks.com/cd
UK Inflation Signals Rate Cut
UK inflation significantly fell to 3.2% in November, a sharper decline than anticipated from October's 3.6%. This development has intensified expectations for the Bank of England's Monetary Policy Committee to implement an interest rate cut. A 0.25 percentage point reduction from the current 4% base rate is now widely expected this Thursday, aiming to ease borrowing costs.
While overall inflation eased, food prices presented a mixed picture, with notable increases in items like beef and chocolate, contrasted by decreases in olive oil and pasta. Despite the slowdown, consumer food costs remain elevated compared to the previous year. The Food and Drink Federation has urged government and industry collaboration to address persistent cost pressures, particularly energy, to foster further price reductions across the supply chain.
Ford's EV Strategy Recalibration
Ford is significantly adjusting its electric vehicle (EV) strategy, pivoting away from an aggressive pure-EV push towards a greater emphasis on hybrid and more affordable electric models. This strategic realignment involves a substantial pre-tax asset write-down of $19.5 billion and an anticipated $5.5 billion cash loss, reflecting challenges with current EV profitability and high manufacturing costs. The company's EV division, Model e, has faced considerable losses, prompting a reevaluation of its product roadmap and investment priorities.
As part of this shift, Ford plans to reduce production of the electric F-150 Lightning, converting future versions to extended-range hybrids, and will repurpose an EV battery plant for energy storage. The company aims for hybrids, EREVs, and EVs to constitute 50% of its global volume by 2030, with a focus on developing smaller, more accessible EVs priced under $30,000. Analyst ratings for Ford shares have varied, with some maintaining 'Overweight' while others have an 'Underweight' stance, reflecting mixed market sentiment on this strategic pivot outlined in Ford's official announcement. This change responds to cooling demand for high-end EVs and increasing consumer interest in hybrid alternatives.
PayPal is seeking regulatory approval to launch PayPal Bank, an industrial loan company designed to offer lending solutions and FDIC-insured savings accounts to small businesses.
Warner Bros. Discovery's board unanimously rejected Paramount Skydance's $108 billion bid, citing "illusory" financing and reaffirming its preference for a Netflix merger with superior shareholder value.
The quantum computing market, currently around $1 billion, is projected by analysts to reach up to $198 billion by 2040, driven by its unique problem-solving capabilities.
Italian PM Giorgia Meloni deems the EU-Mercosur trade deal premature, insisting on further agricultural safeguards, which could delay its approval alongside French opposition.
Robinhood announced it will allow users to trade on NFL games and player performances, expanding its platform into sports-related financial products.
Underlying weakness in US employment data, including rising involuntary part-time work, suggests the Federal Reserve may implement "insurance" rate cuts in early 2026.
Bitcoin Faces Further Declines Amidst Persistent Selling Pressure
Bitcoin's price has recently fallen below the critical $90,000 support level, signaling a sustained downtrend amid significant selling pressure. This decline, observed in mid-December, highlights a challenging period for the cryptocurrency, as it struggles to maintain higher valuations and faces a prevailing bearish sentiment.
Analysts point to repeated rejections at resistance levels between $92,500 and $93,500 as key indicators of a short-term bearish outlook. For instance, an analysis by Lingrid suggests that if Bitcoin faces rejection at $92,500, a further decline towards $82,000 could occur, indicating a propensity for lower highs.
To invalidate this bearish thesis and initiate a recovery, Bitcoin would need to break out and sustain a move above the $92,500 channel. Without such a decisive upward shift, the current negative sentiment suggests limited chances for a bullish reversal, reinforcing concerns about a massive Bitcoin price crash.
Crypto's Transformative Outlook by 2026
A16z crypto leaders anticipate a pivotal year for mainstream adoption by 2026, forecasting a significant reshaping of finance, artificial intelligence, and personal privacy. This transformation is driven by key technological advancements poised to integrate cryptocurrency more deeply into daily economic activities and establish novel digital economies. The projected impact highlights a new chapter for the crypto ecosystem.
Central to this evolution are stablecoin payments, expected to become a more common method for financial transactions, enhancing efficiency and accessibility. Concurrently, the integration of AI-driven agents is poised to unlock new functionalities and efficiencies within the crypto landscape, fostering innovative applications and services that leverage both AI and blockchain capabilities.
Furthermore, the emergence of privacy-first blockchains is critical for addressing increasing concerns about data security and user anonymity. These advancements, detailed by A16z crypto, are set to redefine digital economies, creating a more robust, secure, and accessible digital financial future.
Bhutan commits up to 10,000 BTC, valued at $1 billion, to develop its Gelephu Mindfulness City with a focus on blockchain and renewable energy.
Smardex's native token, SDEX, soared over 160% following the platform's announcement of a unified DeFi protocol integrating DEX, lending, and perpetual trading.
Top Chainlink whales have accumulated $263 million in LINK since November, reversing an October distribution, despite the cryptocurrency breaking a key multi-year support line.
The SEC has significantly eased crypto enforcement actions in over 60% of ongoing cases under the new administration, a shift highlighted by a New York Times investigation.
Exodus and MoonPay are partnering to launch a new US dollar-backed stablecoin in early 2026 for everyday payments, enabling global self-custody transactions via Exodus Pay.
