Good Morning! Apple wants to launch a self-driving Apple Car EV - it just probably won’t be ready until 2028. Netflix announced a 13 million subscriber surge, and it looks like its password crackdown is working. The IPO window in America is opening again, but some retail investors worry Bitcoin could plunge to $20k in 2024. Plus, why it could take years for Nvidia’s rivals to catch up, 3 tips to beat the winter blues, and why cautious optimism might be the key to happiness.

And if you are looking to get exposure to the EV sector? Then check out Zero Labs, the company converting old gas cars into powerful electric ones.

_{SQUEEZ OF THE DAY}

From Margaritas to Mergers

Once a wallflower of investment banking, Mexico is now catching the eye of the big players. In the Latin American space, Wall Street banks were all about Brazil, but now, Wall Street's starting to whisper about Mexico.  

Investment banking heavyweights like Bank of America, Morgan Stanley, JPMorgan, and Goldman Sachs are betting big on Mexico, predicting a revenue jump. 

Thanks to the Covid-era trend of nearshoring (think opposite of offshoring), Mexico's turning into a manufacturing hub for everything from gadgets to cars. Wages and jobs are both up, and the peso was one of 2023's top-performing currencies - even Mexico's government debt looks like a lightweight compared to other emerging markets. 

But Mexico has a history of watching prosperity pass by. Since NAFTA's kick-off in 1994, its economic growth has averaged a modest 2% annually. The country's capital markets are still playing catch-up, and all eyes are on the next president to champion investor-friendly policies.

For now, though, it's a fiesta in the Mexican markets. Bank of America is leading the investment banking revenue league tables in Latin America. M&A and equity issuances tripled in 2023 to $1.2 billion and expected to do even better this year.

Mexico investment banking's slice of the Latin American pie? Up from 13% in 2022 to 20% in 2023 (see chart below). Projections even show Mexico outpacing Brazil's growth for the next few years. 

Takeaway: You can say that investment banks are gambling on Mexico - which might be a different type of gambling than your college spring break trip to Cabo. But when Jamie Dimon says JPMorgan has “doubled or tripled” capital in the Mexico over the past six years, and sees a “great” future outlook, it may be time to start taking the country seriously.

Mexico may no longer be about finding the best margarita anymore, but maybe also the best market opportunities.

_{SPONSORED BY ZEROLABS}

Electrify Your Investments

ZERO LABS is changing the car game worldwide. They're turning old gas cars into powerful electric ones.

They've electrified classic cars since 2021, and now they're taking it up a notch with their ZLABS modular platform, which can turn almost any vehicle into an electric powerhouse.

The market response has been overwhelmingly positive, and Zero Labs has amassed an impressive backlog of over 75,000 orders.

Investors, looking to get exposure to the EV sector, Zero Labs is now offering its first public funding round and inviting Short Squeez readers to become shareholders.

Learn how you can become a Zero Labs shareholder here.

_HEADLINES

Top Reads

• Apple Car EV set to debut in 2028 with autonomous driving (BB)

• SoftBank leads $104 million investment betting on AI revolutionizing travel (CNBC)

• Netflix subscribers surged as revenue beat estimates (YF)

• Hedge funds posted big profits in 2023 (CNBC)

• America’s IPO window is reopening (Axios)

• Woman arrested for allegedly stealing $2,500 of Stanley drinking cups (WSJ)

• Retail investors worry Bitcoin will plunge below $20k (CNBC)

• Why Nvidia’s rivals are still years from catching up (YF)

• Wall Street opposition to Trump collapses as ‘pipe dream’ of primary defeat ends (CNBC)

• One of Wall Street’s favorite trades is getting left behind in rally (YF)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed higher and the S&P 500 notched its 3rd straight record.

Movers & Shakers

• (+) Rumble ($RUM) +33% after the company announced a partnership with Barstool Sports.

• (+) Verizon ($VZ) +7% because of a Q4 earnings beat.

• (–) 3M ($MMM) -11% after the company lowered its full-year guidance.

Private Dealmaking

• Sanofi bought Inhibrx, a rare disease drug maker, for $1.7 billion 

• Silverfort, an identity protection company, raised $116 million

• TravelPerk, a business travel management platform, raised $105 million 

• Captain Fresh, a B2B seafood marketplace, in talks to raise up to $50 million

• Pomelo, a payments infrastructure provider, raised $40 million

• 10X Banking, a digital banking platform, raised $38 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

The Art of Game Theory

The games you play for entertainment happen within a defined space. They come with a rulebook you can consult. And in the end, somebody wins and somebody loses.

If you think real life isn’t as tidy, you’d be right to some extent. But you’d also be wrong. Sure, reality is chaotic and people are unpredictable. Rules can be circumvented and even broken without consequence. But beneath all of this, the truth is we are all playing games with each other… all of the time.

Think of the argument you’ve been having for years with your spouse about who washes the dishes after dinner. As with any game you play for sport, these also have stakes, as well as winners and losers. What if your spouse could do the dishes more often? How about avoiding the argument altogether?

Those are just some of the outcomes you could achieve by adjusting your perspective. Even better, you’ll finally be able to join that secret club of people who seem to know what all of Life’s unwritten rules are. How?

Through a better understanding of game theory. Game theory is the art of making the best choices, particularly when outcomes are dependent on the involvement of others.

Von Neumann applied game theory to provide invaluable help during WWII, but his initial theories were the result of him trying to improve at poker. That’s hardly a scholarly endeavor.

Whether you’re bargaining your way to a higher pay grade, or less housework, this book distills game theory’s basic principles into easy-to-understand, actionable advice and gives you the power to optimize your daily decision-making.

“Life is a game. Learn the rules.”

_{DAILY VISUAL}

Apple Ramps Up R&D Intensity to Pre-iPhone Levels

Apple’s research and development spending in total and as a percentage of revenue

_{DAILY ACUMEN}

Illusion of Knowledge

Recognizing and embracing one's ignorance is a fundamental step toward intellectual growth. In the pursuit of knowledge, it is crucial to understand that everyone starts from a point of ignorance. The danger lies not in being ignorant but in convincing oneself that one knows everything—an illusion of knowledge that hinders progress.

Wisdom is built by challenging existing knowledge and being open to continuous learning. Even as individuals become experts in their fields, they should remain willing to refine what they know. The quest for wisdom involves making time to think about one's thinking and deconstructing ambiguities to lead a simpler life. 

In a world abundant with distractions, the reluctance to learn or improve existing knowledge is identified as a major obstacle to personal growth. Successful individuals, like Warren Buffet, dedicate a significant portion of their time to learning.

The essence of wisdom is not just acquiring knowledge but also applying it to practical problems and continuously striving to become less wrong in decision-making. The ultimate goal is to avoid the illusion of knowledge and cultivate a mindset of perpetual learning and improvement.

_{ENLIGHTENMENT}

Short Squeez Picks

• 3 ways to stay motivated in the dead of winter

• How cautious optimism can lead to a happier life

• 8 steps happy people are taking to protect their vibe

• 10 little habits that drain 90% of our joy

• Ranking the most walkable cities in the U.S.

_{MEME-A-PALOOZA}

Memes of the Day