Note to Readers: This is a concise email newsletter format sent as part of Larry’s Investment Analyst Team communications to his public audience. To read his personal opinions, please read his separate public letters here. This email is designed to be primarily data-driven and will be sent out on Mondays/Wednesdays/Fridays. More qualitative commentary along with our actionable conclusions is provided inside our Investment Community.
The Congressional Budget Office (CBO) raised its 2024 US budget deficit estimate by 27% to nearly $2 trillion, citing increased spending, including aid for Ukraine and student loan forgiveness, alongside higher growth and inflation projections.
The deficit is expected to widen to 6.7% of GDP, with deficits surpassing 5.5% of GDP annually from 2024 to 2034, an unprecedented trend since 1930.
Contributing factors include Biden's student loan forgiveness, international aid, reduced FDIC recoupment, and increased Medicaid spending, despite higher revenue from economic growth.
China plans to implement new measures to attract venture capital, including from international investors, into its technology sector by allowing the establishment of yuan funds for domestic investments and encouraging qualified institutions to issue corporate bonds.
This initiative is part of China's strategy to achieve technological self-sufficiency, particularly in chip design and manufacturing, amid US policy threats.
Despite this push, venture capital investment in China dropped by over 7% to a four-year low of $69.9 billion across 4,200 deals in 2023.
We want to take a moment to thank Interactive Brokers for being one of our Channel’s trusted Partners and to inform my audience of the special features they have given that our online friends here closely follow Chinese Internet stocks (BABA/Tencent).
Much of Larry’s audience is concerned about the US ADR issue of Chinese Stocks being delisted.
