https://www.alainguillot.com/the-decline-of-iconic-brands/

Big, iconic brands that once seemed untouchable are falling out of favor. These companies prided themselves on having a moat—a barrier that keeps competitors at bay. For example, Coca-Cola is such a powerful brand that any potential competitor must invest millions of dollars in marketing just to capture a small share of the soft drink market.

However, things are changing rapidly; these moats are becoming less effective. Traditional marketing methods are evolving, and newcomer brands are eroding the power of established ones.

1. Failure to Adapt to New Marketing Channels: The era of glossy magazines and TV advertising is over. The new generation consumes media on platforms like TikTok, Instagram Reels, and YouTube Shorts. Young influencers can emerge seemingly out of nowhere, building a following of millions and launching their own brands, challenging well-established brands in both reach and cost.

For example:

• Rihanna, with over 300 million followers, owns the brand Fenty Beauty.
• Kylie Jenner, who has over 500 million followers, owns Kylie Cosmetics.
• Kim Kardashian, with over 400 million followers, owns the brand Skims.

These influencers have gradually taken market share from established cosmetic brands such as Estée Lauder, Revlon, and L’Oréal. However, event the well stablished influencers are facing competition themselves from a new wave of younger influencers.

2. Intensified competition. Well established brands such as Macy’s and Gap are losing the battle to e-commerce giants like Amazon. New Balance and Hoka are taking a bigger and bigger piece of the pie of the sneaker’s market from Nike. Netflix has obliterated all traditional cable TV and other streaming services.

3. Brand stagnation: The attitude of many brands is as follows: “If it isn’t broken why fix it?” But the world keeps on changing and if you don’t change with the world, you are left behind. Several companies, much like Kodak, have experienced significant brand stagnation, often due to technological disruption, resistance to innovation, or a slow response to changing market trends. Other examples are:

• Blackberry, displaced by Apple
• Blockbuster, destroyed by Netflix
• Sears, displaced by Walmart and Amazon.

4. A backlash against WOKE culture. In an attempt to virtual signal, many brands, such as Bud Light, Ben & Jerry’s, Target, and Disney, have embraced “woke” culture and Diversity, Equity, and Inclusion (DEI) initiatives, prompting a backlash from consumers. Many people are frustrated with the ongoing discussions around gender issues and prefer to adhere to traditional definitions of gender, believing that a man is a man and a woman is a woman. This sentiment extends to a reluctance to use non-binary pronouns. Just because the person in from of them has mental health problems, doesn’t mean that they have to play along in their imaginary world.

Additionally, there is considerable opposition to biological men participating in women’s sports and using girls’ bathrooms. Many consumers also express discomfort with the representation of fat people or transgender models in Victoria’s Secret lingerie advertisements, feeling that these changes do not align with their preferences. Furthermore, many advocate for meritocracy in hiring practices, asserting that qualifications should take precedence over considerations of gender, race, or sexual orientation.

Just today Boing announced that they’re scrapping their global diversity, equity, and inclusion (DEI) department as part of an overhaul of operations, in order to compete, not on virtual signaling but on the quality of their products.

To survive, brans have to continuously reinvent themselves. A good example is Microsoft under the leadership of Satya Nadella. Under the leadership of Steve Ballmer Microsoft was stagnant, becoming irrelevant but then when Satya Nadella came into the leadership, Microsoft was revitalized and it’s now one if the most innovative and

https://www.alainguillot.com/hopeless-about-money/

I have a few young friends and family members, and I often try to spark their interest in the stock market, investing, or starting new ventures. Sometimes, I get a few nods and smiles; other times I get an eye roll, but most of the time I get ignored or dismissed.

When I came to Canada, I had one main goal in life: to learn about investments and become a millionaire. Although I’m not a millionaire yet, I’ve learned quite a bit about investing. I am so surprised that my younger friends don’t share the same interest in building wealth.

I think young people are disillusioned with traditional financial goals, especially regarding retirement or buying a house. This attitude is shaped by several factors: housing is expensive, education is expensive and oftentimes it doesn’t get you a good job, and healthcare is difficult to get; wages are not enough to cover the cost of living; and there is a perceived lack of stability in the economy and job market. Additionally, young people are constantly bombarded with advertisements for products and lifestyles that they cannot afford, often leaving them financially hopeless. For all these reasons, the classic vision of “work hard, save, and retire” feels out of reach—and even irrelevant.

While the stock market has become more accessible than ever through apps like Public and Robinhood, these platforms have also created unrealistic expectations. If you aren’t making 100% per year by buying the latest meme stock, or crypto currency, they wonder “why bother?” The typical investment in the stock market that produces a healthy 8% seems to be so inadequate for someone who is struggling to pay this month’s rent.

For young people who are curious about investments, navigating the stock market is often challenging due to an avalanche of information, financial jargon, and unscrupulous advisors who want to sell them financial products with high management fees.

There’s also a persistent myth that real estate is the best way to build wealth. However, with today’s high property prices, maintenance demands, and often modest returns after factoring in all costs, real estate isn’t the wealth-building path it once was. Yet, the myth endures due to cultural conditioning and stories of past successes. This trend means that while the bottom 50% of earners tend to have most of their wealth tied up in real estate, the top 10% are more likely to have their wealth in the stock market or private businesses.

I believe we need to do better in educating our youth on how to become savvy investors, rather than relying on financial advisors or managers who prey on clients’ lack of knowledge. Young people need to understand how the stock market works—and that they can participate in it, even with small amounts of money.

I think financial literacy should be taught in high schools, after all not everyone will need to know calculus, physics, or gender studies, but everyone will need to, at one moment or another, invest the money they earn from their labor.

How would you inspire curiosity in young people about the stock market and investing? What strategies or approaches would you use to make these topics feel exciting and relevant?”

https://www.alainguillot.com/why-elon-musk-turned-to-the-right/ Elon Musk is one of the business leaders I admire most. With the U.S. elections approaching and Elon Musk putting his support behind Donald Trump, I wanted to understand why, especially since he was once more aligned with the Democratic Party. His shift in political alliances is particularly interesting given that only a few years ago, his main concern was to alleviate climate change and that’s one of the reasons why he put most of his energy in creating Tesla. For those who may not know, Elon Musk is the head of Tesla, SpaceX, Starlink, and several other innovative companies. He is also the richest person in the world. There are multiple factors that contributed to this shift to the right, so let’s unpack some of them. It all started during the early days of COVID-19, when Musk became the world’s wealthiest person. Around that time, Senator Elizabeth Warren began attacking him for being a billionaire, labeling him the face of corporate greed. She blamed him for income inequality and accused him of not paying his fair share of taxes. Here is a clip of her criticizing Elon Musk when he bought Twitter. Personally, I believe that if someone contributes enough value to the marketplace to become a billionaire, they should be celebrated. After all, in the process of amassing wealth, they’ve created products and services that people want to buy, they have also created millions of job, and billionaires have made American an economic, global powerhouse. Instead of condemning billionaires, Warren and other politicians should be celebrating the fact that the U.S. allows creative, innovative, and risk-taking individuals to build wealth not only for themselves but for the broader economy. Things escalated further during the Biden administration. Biden, who prides himself on being the “most pro-union president in history,” clashed with Elon Musk over his opposition to unions in Tesla factories. There was a notable incident in Detroit when Biden praised the CEO of General Motors, Mary Barra, for their work on electric vehicles, completely ignoring Tesla—even though Tesla commands 80% of the U.S. EV market. Biden consistently praised GM’s CEO, Mary Barra, as the leader of the EV revolution, despite Tesla’s clear dominance in the sector. Here is a clip of Biden praising Mary Barra. I don’t believe in unions, I believe that unions are harmful for the economy and I think that politicians should not pressure employers to accept unions in their shops. If employees are unhappy with their jobs or think they deserve better, they should seek other opportunities somewhere else or, better yet they should start their own businesses. Another point of contention is the Democratic party’s support for DEI (Diversity, Equity, and Inclusion) initiatives such as affirmative action. The Democratic party believes that blacks and other minorities should get some kind of preferential treatment for the sake of having a more diverse workplace. Elon Musk on the other hand prefers a meritocratic system and insist on doing his hiring based on merit, not on the color, race, or sexual orientation of a person. I also believe it’s problematic to hire people based on their belonging to an underrepresented minority rather than on their merit. The final issue that turned Elon Musk to the right was more personal, Elon Musk has a transgender daughter, a man who dresses as a woman. He claims that California’s liberal policies makes it too easy for a teenager change sex, and interestingly enough transgender people feel more aligned with the Democratic party. This issue turned Elon Musk more to the right. Here is a clip of Elon Musk talking about losing his son to what he calls the “Woke Mind Virus.” Similarly, I tend to believe that a man is a man, a woman is a woman, and that transgender people are people who have mental health problems.

https://www.alainguillot.com/dating-apps/

After my divorce, I decided to give dating apps a try. I went on a few dates and, although I met some wonderful women, I found the whole process exhausting and extremely inefficient. For me, the juice wasn’t worth the squeeze. I spent hours scrolling, sending hundreds of messages, dealing with ghosting, waiting hours or even days for responses, and finally, when I met a woman in person, I often realized we weren’t a good match.

Success Stories Amid the Struggles

However, as a dance teacher, I’ve met many couples who met through dating apps. Good for them—many seem happy, and some even got married.

But I believe that most people feel frustrated, as I did, and they are deleting the apps from their phones and computers, or at the very least, they don’t want to pay for the service.

Investors Take Note: They are not seeing the growth

From an investor’s point of view, this is worrisome. Revenues are not growing any more, if people don’t want to pay, then what’s the point of owning the stock. And this lack of paying members growth is being reflected in the stock prices.

As we can see, while the S&P 500 has risen by 33% over the past 12 months, dating stocks are lagging behind.

Match Group, which is the largest and most established player, has a portfolio of over 20 brands. Each brand is targeted towards specific types of online dating or to certain demographic groups (i.e. Tinder for short-term hook-ups, Hinge for long-term relationships, etc.)

is up only 1%.

Bumble, known for its female-first approach, is down 54%.

Grindr, which focuses mostly on gay and bisexual men hooking up, is up 100%.

So, what’s happening here?

The Reality for Men on Dating Apps

What I hear is that if you’re a good-looking man, you have all the options. Most women will want to date you. If you’re in the top 10% of attractive men, you could essentially have your pick. 50% of the women are liking your profile.

If you’re in the top 50%, you have a decent chance of finding a partner. If you’re in the bottom 50%, you’re likely to struggle and may end up alone.

Why Bumble’s Approach May Be Struggling

I suspect Bumble is not succeeding because, despite the emphasis on female empowerment, many women still prefer to be approached rather than to make the first move. Historically, men have always been the ones to initiate, and they’ve learned to handle rejection. For women, this is a relatively new shift, and many are still adjusting to the idea of occasional rejection.

User Fatigue and Conflicts of Interest

In general, except for Grindr, people aren’t finding what they’re looking for, and many users are dissatisfied. According to various industry sources, the number of daily app users is just not growing.

There’s also an inherent conflict of interest between dating apps and their users. Clients want to find love and leave the app, but the apps profit when you don’t find a match, and they keep you as a paying customer for as long as possible.

Gen Z and the Future of Dating

Demographic studies show that generation Z (those aged 12 to 27) is showing less interest in traditional dating compared to previous generations. They are prioritizing mental health, personal goals, and self-development.

From an economic perspective, the cost of housing is also a serious issue. It’s hard to date someone when you’re living in your parents’ basement or juggling two jobs. Many young people finish their regular day job only to start driving for Uber or work another side hustle just to pay the rent. These challenges make dating less of a priority.

Generation Z is supposed to represent the future of dating, but through dating apps some social norms are changing. Many young men are feeling disengaged or left out, with women under 30 often dating men over 30. Around 64% of men under 30 are single. On the other end of the spectrum, older women are also having difficulty finding partners, with 70% of women over 60 being single. Clearly, there

https://www.alainguillot.com/china/

Admiring China’s Economic Growth

For the past 10 years, I admired China’s rapid economic growth with great interest. I was convinced it would be a formidable challenger to the economic superiority of the U.S. However, over the past 12 months, I have changed my mind.

If you follow economic news, you might be impressed by China’s great advancements in artificial intelligence, military expansion, and global resource acquisition. China has also become a major economic partner in regions like Africa, Latin America, and Southeast Asia.

Also China’s military, which once was seen as inferior, is now rapidly catching up with that of the U.S. From the outside, many would feel confident predicting that China will soon catch up with the U.S. economically, politically, and culturally.

However, a closer look reveals significant weaknesses.

China is facing a major demographic crisis. The fertility rate needed to maintain a stable population is about 2.1 children per woman. China’s fertility rate is currently 1.1. The reason is simple: women no longer want to have children. There is insufficient infrastructure to support family growth, and as a result, families are simply not growing.

Without a younger generation to take over, the consequences are dire. An aging population is less productive, has higher healthcare costs, and they will start collecting pensions at the age of 55 for women and age 63 for men. There won’t be enough workers to fund these pensions or sustain the economy.

The U.S. is also experiencing a birth rate decline, with a rate of 1.7 children per woman. However, the U.S. can address this challenge because millions of people want to migrate to the U.S. The U.S. has a serious immigration influx, with people risking their lives to get there, while no one is risking their lives to migrate to China. In fact, many Chinese citizens aspire to move to the U.S.

For investors, this information is crucial. You don’t want to invest your money in China without being aware of these risks. While investing in China might seem attractive in the short term, from a long-term perspective, China is far less appealing.

My tip for you: keep investing in the U.S. It offers a liquid market, is full of creative people, and, for now, maintains a growing population.

https://www.alainguillot.com/utility-industry/ What do artificial intelligence, cryptocurrencies, and electric vehicles have in common? They all consume an enormous amount of electricity. Companies in the AI, crypto, and EV sectors will struggle to secure enough electricity to maintain normal operations. Electricity demand is so high that Microsoft is considering building a nuclear plant to meet its own power needs. Utilities have performed exceptionally well over the past 12 months, and they are poised for another strong year. Utilities uptrend during 2024. +26% It’s been a nice ride. 26% gain during the last 12 months. It’s been a great ride, with a 26% gain over the last 12 months. As AI continues to expand, energy consumption is expected to increase significantly. The energy required to run AI tasks is accelerating at an annual growth rate of 26% to 36%. It’s important to note that neither fossil fuels nor renewable energy sources alone are sufficient to meet the growing energy demands. Therefore, the energy and renewable energy sectors are also likely to see significant gains in 2025 and beyond. Utilities are also well-protected from competition; you can’t simply decide to open a new electricity plant overnight. It typically takes anywhere from four to ten years to establish a new utility company, with enormous costs involved. As a result, utility companies are expected to continue their bullish trend for the foreseeable future.

https://www.alainguillot.com/how-the-u-s-is-losing-ground/

Japanese steelmaker Nippon Steel attempted to acquire U.S. Steel in December 2023. Investors were optimistic, but politicians and union members were less enthusiastic.

Politicians voiced concerns about keeping U.S. Steel under American ownership, while union members expressed unease, fearing that a foreign acquisition might impose stricter labor requirements on them.

There’s a great deal of nostalgia associated with U.S. Steel. Founded by J.P. Morgan in 1898, it was once the largest IPO in history and the first company to reach $1 billion in revenue. At its peak, it employed over 300,000 people.

Today, U.S. Steel is a shadow of its former self. The workforce has shrunk from 300,000 employees to 20,000, and its relevance within the corporate world has diminished. Once the seventh-largest company in the U.S., it now ranks 648th and is no longer part of the S&P 500.

After World War II, the U.S. was the largest steel producer in the world. Now, China leads the industry with a 54% market share, followed by India (6-7%) and Japan (5-6%). The U.S., meanwhile, accounts for just 4-5% of global steel production.

It’s safe to say that the U.S. is no longer the global leader in steel.

Last week, I wrote about how the U.S. has taken a dominant role in global communications and technology. However, it’s also losing ground in various other industries, and that’s okay.

Consider this analogy: Imagine you’re good at both accounting and cleaning floors. Despite being competent in both, you would likely focus on the one that offers greater rewards.

While the technology and communication sector continues to grow, several industries are declining due to technological advancements, shifts in consumer behavior, and globalization. But this is a natural progression. According to the principles of David Ricardo’s comparative advantage, the U.S. should focus on sectors where it excels and allow other nations to expand in areas where they hold a competitive edge.

Here are some industries in the U.S. that are either “dying” or facing long-term decline:

https://www.alainguillot.com/why-passive-investing-feels-wrong-but-is-actually-right-for-your-portfolio/ At one point in my life, I worked as a financial advisor. Supposedly my job was to help people manage their finances, offer advice on investments, and guide them toward financial security. However, it didn’t take long for me to realize that the financial industry was heavily tilted in favor of institutions and advisors—leaving the clients, the very people we were supposed to help, at a disadvantage. I saw how complex financial products were often pushed, not because they were in the client’s best interest, but because they generated the most fees for the advisor or the firm. It was disheartening, and it wasn’t the kind of impact I wanted to have. So, I made the decision to leave the industry and became a personal finance blogger, where I could share my ideas and insights without any conflict of interest. My Simple Approach to Investing: The S&P 500 Index I have been blogging now for fifteen years and since then, many friends and acquaintances have come to me with questions about investing. They’re eager to know where they should put their money, and they were often expecting some intricate advice or a secret strategy. My answer, however has always been simple and straightforward: “Just buy the S&P 500 index, don’t trade, don’t watch the news, don’t try to outsmart the market. Just let your money grow over time.” Why This Approach Works The S&P 500 index represents the 500 largest companies in the U.S. It’s diversified, has a strong track record of long-term performance, and, most importantly, it’s passive, which keeps expenses low and avoids triggering taxable events. You’re not trying to beat the market, time it, or chase the latest trends. Instead, you’re simply investing in the long-term growth of the economy. This strategy avoids unnecessary fees, emotional decision-making, and the high risks that come with attempting to outguess the market. History has shown that passive investing in an index like the S&P 500 consistently outperforms most active strategies over time. The Reality: Few People Follow This Advice Unfortunately, very few of the people who come to me for advice have followed through with this simple strategy. Some ignore it entirely, convinced they can pick the next winning stock or sector. Others believe they are smarter than the market and dive into stock trading. Many have been drawn into the excitement of cryptocurrencies, where some have won big, but many have also lost significant amounts of money. The idea of “doing nothing” when it comes to investing seems too counterintuitive. As humans, we’re often wired to act, to make changes, and to react to every piece of news we hear. It’s difficult for many to accept that, sometimes, the best course of action is no action at all. The Long-Term Results Over time, I am almost certain that those who have taken my advice—putting their money into a simple, passive fund like the S&P 500—have done much better than those who thought they could outsmart the market. Those who stuck to a straightforward strategy have avoided costly mistakes, high fees, and the stress of constantly managing their investments. Investing doesn’t need to be complicated. Sometimes, the simplest strategies are the most effective. If there’s one lesson I hope more people take from my experience, it’s this: In the long run, the market rewards patience and consistency far more than it rewards excitement and risk-taking.