Daily Commentary

MarketMinder’s View: Please note, MarketMinder isn’t for or against specific policies or regulations, and we don’t make individual security recommendations. Our interest is in the broader theme of new rules’ potential economic and market implications only. Today the EU released some new artificial intelligence (AI) guidelines, which seek to improve transparency, copyright protection and public safety. These rules are part of a “code of practice”—a voluntary protocol to help companies comply with the EU’s AI Act. For instance, “Under the guidelines, tech companies will have to provide detailed breakdowns about the content used for training their algorithms, something long sought by media publishers concerned that their intellectual property is being used to train the A.I. systems.” Before getting too deep into the legal weeds and potential effects on companies with general-purpose AI and the Tech sector at large, keep some key details in mind. One, rules take effect August 2, but regulators can’t impose noncompliance penalties until August 2026—giving the industry time to prepare (not to mention the possibility of watered down rules). Two, not all companies are joining the voluntary code of practice. They still must be compliant with the AI Act, but it illustrates how squishy the current environment is. Three, as the back half of the article notes, Thursday’s guidelines “are just one part of a sprawling law that will take full effect in the coming years.” So while developments here merit watching, this is likely going to be a slow-moving process—sapping the type of surprise power that could materially weigh on stocks.

MarketMinder’s View: Please note, this roundup of tariff-affected Brazilian industries mentions several specific companies, and MarketMinder doesn’t make individual security recommendations. The firms cited here are coincident to a broader theme we wish to highlight: Businesses are already adapting to the possible implementation of a 50% US tariff on Brazilian goods. For instance, Brazilian meat producers are planning to supply the US market through their operations in other countries, including Argentina, Paraguay and even Australia. What about oil? Brazil can redirect barrels to other refineries (in Asia and the Middle East) capable of refining its light, low-sulfur crude. Now, making these moves isn’t cheap, and some businesses believe US consumer prices will rise should tariffs take effect (which could make your cup of morning joe more expensive—sad!). That tends to be the case, as tariffs hurt the imposer more than the recipient. But overall, businesses continue finding ways to deal with trade headwinds—one reason the worst-case tariff scenario hasn’t materialized yet this year, in our view.    

MarketMinder’s View: There are some sobering stats here on an important topic: long-term care. According to the US Department of Health and Human Services, about two-thirds of seniors who require care for more than five years rely on family and friends. That responsibility can turn into a significant physical, emotional and social strain on unpaid caregivers, whom we would add may not be qualified to address all their loved ones’ needs. The second half of this article shares some high-level tips on how to protect loved ones, including creating a plan well in advance. As the interviewed financial planner and doctor here suggests, “It’s wise to start discussing long-term care—and not just the financial aspect—when you’re in your 50s and 60s. She recommends first asking where you’ll live if a long-term-care need arises. If your current home is the answer, assess whether it’s aging-friendly or needs modifications. Next assess the extent to which family will participate in your care, including providing or coordinating care, managing home upkeep, managing finances, and participating in healthcare decisions. … If there is a chance that your assets or insurance won’t cover your care, make sure your family understands the resources available in their state and how to qualify so that they’re not scrambling when a care need arises.” An investment-related point we would add: Don’t forget to factor in future care costs when establishing your specific financial goals and objectives. You may require more long-term growth than you realize—which may necessitate more higher-returning assets in your portfolio.