Here's Your Fortune: Stocks are Crashing, Alibaba Jumping into AI, IT Service Biz, and Puppy Photo Riches

Tomorrow’s Fortune

Welcome to the action-packed newsletter designed to help you navigate the world of business, investing, and technology. You owe it to yourself to stay informed! If you missed last week’s post, check it out here. 😎 

Today’s post is 2,900 words (~3 minutes). Reading this just might make you rich!

Today’s Digest: 

1. NEW VIDEO 👉🏼 Can You Pass This 3-Question Money Test?

2. Stocks Crash (AGAIN!): The Ripple Effect of Rising Tariffs on Global Markets

3. Alibaba’s Game-Changer: New AI Model Takes Aim at Deepseek’s Dominance

4. Wanna Buy a Business? We found a high-profit IT services company. ($1M of Cash Flow). Click HERE for the listing

5. Searching for a Side Hustle? Try taking IG worthy photographs of dogs

NEW KENNY FINANCE VIDEO ON YOUTUBE!

TOP STORY

Stocks Get Crushed from Trump’s Tariff

The stock market just took a beating—again. The S&P 500 plunged 1.8% to 5,849.72, the Dow Jones dropped 1.5% to 43,191.24, and the Nasdaq got slammed, tumbling 2.6% to 18,350.19. If that wasn’t enough pain, volatility is spiking, and investors are scrambling for cover.

What’s behind the carnage? One word: tariffs.

Trump’s Tariff Tsunami: What’s Happening?

Over the weekend, Donald Trump announced massive new tariffs—25% on all imports from Canada and Mexico, while jacking up tariffs on Chinese goods from 10% to 20%. Sound familiar? That’s because we’ve seen this play before, and investors know how it ends: higher costs, rattled markets, and a whole lot of uncertainty.

Trade wars don’t just make headlines—they hit balance sheets, disrupt supply chains, and crush corporate profits. When that happens, stocks tank.

Why Are Investors Running for the Exits? Markets hate uncertainty, and nothing screams uncertainty like a global trade war. Here’s why investors are panicking:

• Stagflation fears are real – Tariffs drive up costs, squeezing both consumers and businesses. Slower growth + higher prices = nightmare scenario.

• Companies are scrambling – Higher tariffs mean rising expenses for manufacturers, automakers, and retailers. Many will pass those costs to consumers, killing demand.

• The Fed is stuck – If inflation spikes due to higher prices, the Federal Reserve may be forced to keep rates elevated, which would hammer stocks even more.

Translation? A tough road ahead for investors, especially in sectors that rely on global trade.

Who’s Getting Hit the Hardest? Not all sectors are suffering equally. Here’s who’s bleeding and who’s holding up:

Biggest losers:

• Tech & Semiconductors – Supply chains are getting wrecked. Expect Apple, NVIDIA, and AMD to feel the heat.

• Automakers – Companies like Ford and GM rely on international supply chains. Tariffs = higher production costs = smaller margins.

• Retailers & Consumer Goods – Companies like Nike and Walmart import heavily. More tariffs = higher prices = weaker sales.

Who’s benefiting?

• Defense & Domestic Manufacturing – With trade barriers up, U.S. defense stocks and domestic manufacturers could gain market share.

• Gold & Treasuries – Investors are piling into safe-haven assets, pushing gold toward record highs and driving bond yields lower.

Will the Market Keep Falling? Some analysts think we’re just getting started. If Trump escalates the trade war further (which, let’s be honest, is likely), expect even more volatility.

That said, there’s a wildcard: the Federal Reserve. If economic data worsens, the Fed might be forced to cut rates sooner than expected, which could provide relief. But for now? Brace for turbulence.

What Should You Do? If you’re an investor, this isn’t the time to panic—but it is the time to be smart. Here’s how to navigate the chaos:

Stay diversified – Don’t put all your eggs in the high-volatility basket. A mix of equities, bonds, and safe-haven assets is key.
Avoid tariff-sensitive stocks – Companies with heavy international exposure could see more downside.
Look for opportunities – If the sell-off deepens, strong companies will eventually trade at bargain prices. Patience is key.

One thing’s for sure: as long as Trump’s tariff game is in play, volatility isn’t going anywhere. Stay sharp, stay flexible, and get ready for a wild ride.

BITS OF GOLD

• Trump’s Tariff Move: Will Rising Costs Disrupt Markets? – Trump's recent tariff increase on steel and aluminum imports has raised alarm bells in the business community, with companies warning of rising costs and potential ripple effects across various industries. The tariffs could disrupt global supply chains and contribute to inflationary pressures, making it even harder for businesses to maintain profitability in the current environment. Investors should monitor how these tariffs influence corporate margins and the broader economic outlook, as the ongoing trade tensions could further complicate market conditions in the near term.

• Mortgage Rates Drop Again: A Signal of Slower Economic Growth? – Mortgage rates have fallen for the sixth consecutive week, driven by a slowing economy and lower-than-expected inflation figures. While this provides some relief to homebuyers, especially in the face of persistent affordability challenges, it also signals potential economic weakness. For investors, this drop in mortgage rates presents an opportunity to watch real estate markets more closely, as it may lead to increased housing activity, but also signals a broader softening of economic momentum that could impact other sectors.

• China’s Mixed Trade Data: Resilient Exports, Weak Imports – China's January-February export data shows that despite ongoing global challenges, Chinese exports remain resilient. However, the nation’s imports have dropped, signaling reduced domestic demand, which could indicate slowing economic growth. For investors, this mixed export-import data highlights the delicate balance China faces in maintaining global trade relationships while managing internal economic pressures, which may affect global supply chains and commodity prices.

• Trump’s Bitcoin Reserve Move: A Bold Financial Strategy or Risk? – Trump’s strategy of using Bitcoin as a reserve asset has raised eyebrows in the business and financial communities. The move to allocate part of the U.S. Treasury's reserves into Bitcoin presents a new layer of risk, considering Bitcoin's volatility, but also reflects a broader interest in digital currencies and their potential role in modernizing financial systems. For investors, this development underscores the growing intersection of traditional finance and cryptocurrency, signaling potential shifts in reserve currency dynamics.

🏠💸TASTE OF THE FUTURE WITH AI

Alibaba's Ignites AI Race to the Bottom?

Alibaba just dropped a bombshell in the AI world. The Chinese tech giant unveiled QwQ-32B, a 32-billion-parameter model that matches the prowess of DeepSeek's R1, which boasts a staggering 671 billion parameters. Investors are ecstatic; Alibaba's shares surged over 8% in Hong Kong following the announcement. But beyond the market buzz, this move signals a brewing storm in the AI landscape.

Are We Entering a Race to the Bottom in AI Models?

With tech behemoths like Alibaba and DeepSeek churning out increasingly efficient AI models, we're witnessing a fierce competition to deliver faster and cheaper solutions. While this democratizes access to advanced AI, it also raises concerns about a potential "race to the bottom," where the emphasis shifts to cost-cutting at the expense of innovation and quality. New models are popping up almost daily, saturating the market and making it challenging to distinguish groundbreaking advancements from incremental updates.

Where Could the Alpha Be in This Saturated Market?

As the foundational AI models become commoditized, the real investment opportunities—where the alpha lies—may emerge in specific layers of the AI ecosystem:

• Software Application Layer for AI: Companies that develop intuitive, user-friendly applications leveraging AI capabilities stand to gain significantly. These applications translate complex AI functions into accessible tools for businesses and consumers, adding substantial value.

• Consumer Layer for AI: Brands that seamlessly integrate AI into their products and services, enhancing user experience and personalization, can differentiate themselves in a crowded market. The ability to tailor offerings to individual preferences using AI could be a game-changer.

• Data Storage and Management: With the proliferation of AI models comes an exponential increase in data generation and storage needs. Companies specializing in efficient, secure, and scalable data storage solutions are poised for growth.

Is the AI Hype Sustainable?

The recent surge in AI developments has undoubtedly driven stock prices and investor interest. However, the sustainability of this hype depends on tangible applications and real-world problem-solving capabilities. As noted in recent analyses, while innovation is a driving factor, the market's reaction to AI advancements must be tempered with realistic expectations

What Should Investors Do?

In this rapidly evolving AI landscape, investors should:

• Stay Informed: Regularly monitor advancements in AI technologies and their applications across various industries.

• Diversify Investments: Allocate resources across different layers of the AI ecosystem to mitigate risks associated with any single segment.

• Focus on Value Creation: Prioritize investments in companies that not only innovate but also demonstrate clear, practical applications of AI that address real-world challenges.

As the AI arms race intensifies, discerning investors will seek out opportunities that balance cutting-edge technology with sustainable, long-term value.

Other Cool AI News!

• TSMC’s $100B U.S. Investment: A Major Play in Global Tech Manufacturing – TSMC’s announcement to invest $100 billion in U.S. chip plants highlights the ongoing arms race in the semiconductor industry. The investment is aimed at strengthening the U.S. tech supply chain amidst rising geopolitical tensions, especially with China. For investors, TSMC’s move is a key signal of long-term growth in U.S. chip manufacturing, which could have broad implications for technology stocks and supply chain resilience in the coming years.

• The $64 Billion AI Infrastructure Boom: A New Investment Frontier – The AI boom is creating new opportunities in data processing, with Stargate's required investment of $64 billion for AI infrastructure signifying the scale of this demand. As AI models become more powerful and widespread, the need for specialized hardware and data centers continues to grow. Investors should pay attention to companies building AI infrastructure, as the data management and hardware layers of the AI ecosystem present significant opportunities for long-term growth.

• Amazon's AI Devices: Transforming the Consumer Tech Market – Amazon's move into AI-powered devices marks a significant step in expanding its tech ecosystem, offering consumers new ways to interact with products through machine learning. The integration of AI into consumer tech aligns with the broader trend of automation and personalized experiences. For investors, Amazon's AI strategy reinforces its push to remain at the forefront of consumer tech, presenting opportunities in the broader AI-enabled device market.

• Elon Musk vs. OpenAI: Legal Struggles Shape Future AI Development – Elon Musk’s open AI case represents the increasing friction between tech companies, regulation, and the ethical concerns surrounding artificial intelligence. Musk’s push for transparency and regulation in AI development speaks to the growing desire for accountability within the space. Investors should keep an eye on legal and regulatory developments in AI, as they will likely shape the landscape for AI innovation and the companies leading this charge in the years to come.

SO YOU WANT TO BUY A BUSINESS… 🏦

Deal of the Week: IT Solutions Provider (Remote) - Asking $4,150,000

Opportunity Overview:

This IT solutions provider specializes in enterprise resource planning (ERP) systems, offering a well-established client base with long-term contracts and recurring revenue streams. The business supports a variety of industries, helping companies streamline operations, manage inventory, and improve financial management with cutting-edge ERP software solutions. With contracts spanning up to 5 years, the business enjoys high customer retention rates and stable cash flow, making this a promising acquisition for an investor seeking a profitable, recession-resistant business in the rapidly growing IT sector. The owner is looking to exit and transition the business to a new owner, providing a clear opportunity for continued success and scalability.

Cash Flow and Profitability:

This business boasts impressive SDE (Seller's Discretionary Earnings) of $1.03 million, highlighting a strong profit margin despite its competitive industry. Recurring revenue from long-term contracts with a diverse client base provides solid cash flow stability. While the IT services industry can be subject to rapid technological advancements, this company has positioned itself with a portfolio of longstanding clients, ensuring its financial health and consistent profitability. The main financial risks could arise from shifts in technology or customer churn, though the long-term contracts help mitigate this.

What We Like:

• Recurring Revenue Model: Long-term contracts (up to 5 years) create a reliable revenue stream, with minimal customer churn.

• Established Client Relationships: Solid customer base with diverse industries and high retention rates, offering both stability and growth potential.

• Scalability: The business is well-positioned to expand with the right buyer, who could leverage its current systems to attract more clients or offer new services.

• Technological Expertise: Specializes in ERP solutions, an essential business tool for modern enterprises, ensuring continued demand for its services.

• Profitability: Strong SDE of $1.03 million, indicating healthy margins and the ability to generate substantial cash flow from operations.

What We Don't Like:

• Competitive IT Sector: The IT solutions industry is highly competitive, and staying ahead of technological trends requires continuous investment in R&D and talent.

• Dependence on Key Personnel: The business's success may rely heavily on experienced technical staff and relationships with major clients, which could create operational risks post-acquisition.

• Customer Concentration Risk: While the business serves multiple industries, over-reliance on a small number of large contracts could present risks if any of these clients decide to transition to a competitor.

• Technological Changes: Rapid advancements in ERP software and potential shifts in industry demand could require significant adaptation and additional investment.

Key Questions:

• How sticky are the five-year contracts with current clients, and what is the historical renewal rate for these contracts?

• How diversified is the client base in terms of industry and size? Is the business overly reliant on any single client or sector?

• What is the competitive landscape for ERP solutions in this niche market, and how does this company differentiate itself from its competitors?

• How scalable are the company’s ERP solutions, and are there opportunities to upsell or cross-sell additional services to existing clients?

• What are the risks associated with the technology stack being used, and how easily can it be updated or expanded to meet changing client needs or industry trends?

WHAT ABOUT TODAY’S FORTUNE? SIDE HUSTLE OF THE WEEK 💸

IG Worthy Pet Photography

How to Start: Pet owners are eager to pay for high-quality, Instagram-worthy photos of their beloved pets. Start by building a simple portfolio, either by offering free shoots to friends or running promotions for local pet owners. Set up a mobile studio in your home or offer outdoor shoots in natural settings, like parks, to appeal to customers who want a more candid, lifestyle feel. Social media platforms, particularly Instagram and Facebook, are great for showcasing your work, while partnerships with local pet stores, groomers, and veterinarians can help build your clientele.

Startup Cost: Moderate. You’ll need to invest in a decent camera, lighting equipment, and potentially a backdrop if you’re working from home. A simple setup could run around $500–$1,000, depending on the quality of equipment you choose. Website development and social media marketing may be your other key expenses, but you can start small with organic promotion. Once you’ve built a reputation, you may invest in higher-end gear and professional editing software.

Capital Intensity: Low to moderate. Initial investment is minimal, especially if you already own a camera or smartphone with good photography capabilities. The biggest cost will be marketing your service to pet owners, which can be done inexpensively through social media or word-of-mouth. As you scale, you can consider expanding your offerings to include printed photos, photo albums, or custom pet merchandise to increase revenue.

Growth Opportunities: Pet photography has room for creativity and growth. You can diversify by offering themed shoots (e.g., seasonal photos, birthday shoots, or family pet portraits) or bundle packages that include multiple prints. Targeting local pet events, partnering with pet-related businesses, or launching a mobile pet photography service can expand your reach. With enough demand, you could grow your business into a full-time venture or hire additional photographers to scale operations.

Earning Potential: Pet photographers typically charge anywhere from $150 to $500 per session, depending on location, experience, and package offerings. If you book just 10 sessions a month at an average of $300 each, that’s $3,000 a month. With premium packages, upselling prints, or offering event coverage, your earnings can grow even more. As your reputation grows and you expand your client base, six-figure earnings are certainly possible in this niche, especially if you specialize in high-demand areas like weddings, pet portraits, or celebrity pets.

If you have a passion for animals and photography, this side hustle is an excellent opportunity. Start by offering affordable sessions to build a portfolio and gradually increase your rates as you gain recognition. With the right marketing and customer service, you can turn your love for pets and photography into a profitable business. Plus, who wouldn't love capturing adorable moments of furry friends while getting paid?

This newsletter is for informational purposes only and does not constitute investment advice. The content is based on publicly available information, and the author makes no representations about its accuracy or completeness. Readers should conduct their own research before making any investment decisions.