Japan’s GDP Surprise, Crypto Scams, and How Robo-Advisors Are Changing Investing

In partnership with

👆 Please support us by clicking on our partners' ads. 🙏

Dear Money Master,

This week kicks off with Japan’s economic expansion beating expectations, Intel facing a possible split, and crypto scams hitting new highs with AI involvement. Meanwhile, Tesla’s robot rival Apptronik just secured a major funding round, signaling the growing competition in humanoid robotics.

🚨 In addition, Trump’s federal layoffs are pushing up D.C.’s unemployment rate, retail sales took a hit in January, and restaurant giants like McDonald’s and Chipotle are warning of a weak first quarter. On the tech side, Roku shares surged after slashing quarterly losses.

📰 Your Daily Financial Digest - February 17th, 2025

🌍 Economics & Finance:

1. Restaurant earnings show a weak start to 2025 🍔

   McDonald’s, Chipotle, and other restaurant giants warned of slowing sales in Q1 due to inflation, extreme weather, and cautious consumer spending. Read more

2. Japan’s GDP growth beats expectations 📈

   Japan’s economy expanded 0.7% in Q4, surpassing forecasts. Strong exports drove the growth, but domestic demand remained weak, raising concerns about sustainability. Read more

3. D.C. unemployment spikes as Trump slashes federal jobs 🏛️

   Over 7,000 workers have filed for unemployment in Washington, D.C., as the administration pushes mass layoffs and buyouts to reduce government size. Read more

4. Retail sales fell 0.9% in January—far worse than expected 🛒

   Consumers sharply cut back on spending, raising concerns about economic growth. Online sales dropped 1.9%, while auto purchases plunged 2.8%. Read more

💻 Technology:

1. Apptronik secures $350M to challenge Tesla’s humanoid robots 🤖

   The robotics startup, backed by Google, is scaling production of its Apollo humanoid robot to compete with Tesla’s Optimus. Read more

2. AI-powered advertising drives AppLovin stock past $500 🚀

   The ad tech company smashed Q4 earnings, sending its stock soaring 20% as analysts raised price targets on its AI-driven expansion. Read more

3. Intel could be split as Broadcom and TSMC show interest 🤯

   Broadcom is considering acquiring Intel’s chip design unit, while TSMC eyes its factories. U.S. officials worry about national security risks if the deals proceed. Read more

4. Crypto scams hit record $12.4B in 2024 💰

   AI-powered scams like "pig butchering" surged last year, with fraudsters using deepfakes and social engineering to deceive investors. Read more

💹Earnings:

1. Trump Media reports $400M net loss as revenue declines 📉

   Truth Social’s parent company saw revenue drop 12%, while merger-related costs and legal fees widened losses. Read more

2. Roku shares surge 14% after slashing quarterly losses 📺

   Roku’s losses shrank significantly as the company added 4 million new streaming households and focused on ad revenue growth. Read more

🔍 Deep Dive: Robo-Advisors & AI in Finance – The Future of Investing?🤖💹

The financial world is being transformed by AI-driven investing tools, with robo-advisors leading the charge. These automated platforms use artificial intelligence and algorithms to manage investments with little to no human intervention—offering lower costs, data-driven decisions, and accessibility for everyday investors.

How Do Robo-Advisors Work?

Robo-advisors use AI and machine learning to create and manage personalized investment portfolios based on an investor’s risk tolerance, goals, and financial situation. Here’s how they function:

1️⃣ Onboarding & Risk Assessment – Investors answer a questionnaire about their income, goals, and risk appetite.
2️⃣ Algorithm-Driven Portfolio Allocation – The robo-advisor assigns assets (stocks, bonds, ETFs) based on modern portfolio theory (MPT) to balance risk and reward.
3️⃣ Automated Rebalancing – If market fluctuations shift asset allocations, the AI automatically adjusts the portfolio to maintain the target balance.
4️⃣ Tax Optimization – Some platforms use tax-loss harvesting to minimize tax liabilities by selling losing assets to offset gains.

Why Are Robo-Advisors Gaining Popularity?

✔ Lower Fees – Typically charge 0.25% to 0.50% annually, compared to 1%+ for human advisors.
✔ 24/7 Monitoring – AI continuously tracks investments, making adjustments based on market trends.
✔ No Emotional Bias – AI-driven strategies remove human emotions, such as fear and greed, leading to data-driven decisions.
✔ Accessibility – Many robo-advisors have low minimum investment requirements, making them ideal for new investors.

Big Players in the Robo-Advisory Space

United States

• Betterment – One of the first robo-advisors, offering automated ETF portfolios and tax-loss harvesting.

• Wealthfront – Provides AI-driven investing and high-interest cash management accounts.

• Schwab Intelligent Portfolios – No advisory fees and a mix of stocks, bonds, and commodities.

Europe

• Nutmeg (UK) – A top UK robo-advisor with diversified portfolios and ESG investing options.

• Scalable Capital (Germany) – Uses AI-driven risk management to adapt portfolios in real-time.

 Asia

• StashAway (Singapore/Malaysia) – AI-driven investing with a focus on emerging markets.

• Endowus (Singapore) – The first robo-advisor allowing CPF (pension) investments in Singapore.

The Future of AI in Investing

Robo-advisors are expected to manage over $2 trillion in assets by 2027, but AI in finance is expanding beyond automated investing. AI is now used in fraud detection, risk analysis, and high-frequency trading—revolutionizing how financial markets operate.

There’s a reason 400,000 professionals read this daily.

Join The AI Report, trusted by 400,000+ professionals at Google, Microsoft, and OpenAI. Get daily insights, tools, and strategies to master practical AI skills that drive results.

Sign up now for free and work smarter, not harder.

To your financial empowerment, The Money Masters Team

P.S. Stay connected! Don't forget to follow us on social media! 📱🌐

Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.