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Hi Reader, here's what you need to know for December 15th in 3:11 minutes.

👜 The booming world of luxury made Bernard Arnault the world’s richest person this week. Join financial expert Jan Rogers Kniffen for The Best Luxury Stocks To Buy In 2023 on Thursday, and discover how you can set yourself up for a life of luxe too. Get your free ticket here

Today's big stories

Musk is no longer the richest person on earth
Goldman sees these sluggish stocks gaining some ground – Read Now
Clothing giant Inditex reported slowing quarterly sales growth

Poor As A Church Musk

What’s Going On Here?

Data out this week showed Elon Musk has been dethroned as the world’s richest person.

What Does This Mean?

Once upon a time, Elon Musk was worth a cool $340 billion, but it's been a rough year for the love-him-or-hate-him tycoon. Central banks around the world have hiked interest rates like there's no tomorrow, which hit high-flying companies like Tesla particularly hard. After all, the value of any stock is the value of its future earnings discounted back to today, and those earnings – which Musk's companies are all about – drop when interest rates rise. That’s helped topple Musk's fortune by over $100 billion since January, leaving him with a measly net worth of $164 billion – poor guy. And now that Musk’s poor as a church mouse, French magnate Bernard Arnault has claimed the title of “World’s Richest Person”. Arnault owns about half of the luxury fashion house LVMH, and his empire's surfed a wave of strong post-pandemic demand for highfalutin goods, bringing the Lord of Luxury’s fortune to a staggering $171 billion.

Why Should I Care?

Zooming in: Home is where the Hermès is.
You might assume that it's jet-owning, penthouse-dwelling socialites driving the luxury boom, but that’s not the whole story. According to Morgan Stanley, record numbers of young adults are living at home with Mom and Pops these days, and they’re snapping up premium goods left, right, and center. Not paying rent means they’ve got cash to burn on tempting, big-label treats – but that’s got to feel like a poor tradeoff when bedtime rolls around.

The bigger picture: Decreasing increases.
Tech billionaires will probably buy themselves some high-end treats this week too, as they celebrate the news that pesky rate hikes are finally easing up. Sure, the Federal Reserve increased rates to their highest level since 2007 on Wednesday, but that 0.5-percentage-point increase was a slowdown from the last four hikes of 0.75.

You might also like: Three investment ideas that Elon Musk and Warren Buffett actually agree on.

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Analyst Take

Here Are The Stock Stragglers That Look Poised To Start Sprinting

By Luke Suddards, Analyst

Maybe some of the stocks that have been sluggish all year have actually been conserving their energy for a new year sprint.

That’s the idea, anyway, behind what Goldman Sachs calls the “laggards” trade, where a prior year’s stock slowpokes tend to become leaders in the first quarter of the following year.

It’s a pattern that’s held up in 13 of the past 20 years, even in the market’s down years.

And that’s today’s Insight: here are the stock stragglers that Goldman sees gaining ground.

Read or listen to the Insight here

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Get the exclusive EV scoop

The timing of this one’s a good ‘un.

Unless you’ve been living under a rock, you’ll have noticed the spectacular collapse of FTX, and the subsequent arrest of the crypto exchange’s founder.

So the scene was set for us to have a dynamic sit-down conversation with one of the biggest faces in crypto, Anthony “Pomp” Pompliano.

At our Modern Investor Summit, Pomp told us whether he sees this as the end for bitcoin, or a turning point for crypto.

Watch the video to discover his projections.

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