✋ Avoid these stocks

Together with We Study Markets 

Good morning investors! The market will reopen today after a small gap. We do not expect fireworks but keep an eye on for economy-related news.

Today we cover:

• What Americans expect in 2024. 🇺🇸 

• Get rid of these stocks (likely to go bankrupt). 🏦 

• Rare insurance types to know about. 🚘

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📊 Economy and News 

About 60% of Americans don’t see things improving in 2024

Nearly two thirds of Americans (63%) do not expect their financial situation to improve in 2024, Bankrate reported.

Surprisingly, 25% see the situation worsening next year (mainly due to inflation).

On the plus side, about 37% of households expect improved finances in the new year. They attribute this to higher income, better spending habits, and less debt.

Bankrate called the financial outlook 'bleak' but better than last year.

Global hits:

• Elon Musk’s X, accused of withholding bonuses promised to staff, will have to face a court battle.

• Israel economy to shrink 2% as war sidelines workers.

• Manchester United sells 25% ownership to Jim Ratcliffe.

• GM pauses sales of Chevy Blazer EV over software issues.

📈 Stocks

S&P 500 4,754.63 (+0.17%)
DJIA 37,385.97 (-0.049%)
NASDAQ 16,777.40 (+0.12%)
BRENT CRUDE 79.01 (-0.08%)
* Prices as of Dec 26th, 12:20 AM UTC

These three companies might go bankrupt next year

If you’re preparing for 2024 then take a look at these three ‘failing’ names and ensure they aren’t a part of your portfolio:

Mullen Automotive: This electric vehicle maker is known for a lot of things, including a CEO with a checkered past. Despite big promises, the company has failed to deliver and only reported a revenue of $308,000 in the 12 months that ended in June.

Currently trading at $9.84, it is down 99% YTD and is highly likely to go bankrupt in 2024.

Virgin Galactic: Currently trading at $2.60, Virgin Galactic is a big name but it isn't doing well these days. Founded by Richard Branson and the Virgin Group, this spaceflight company is burning cash at a fast pace and is unlikely to keep investors happy in 2024.

SPCE’s ships have had several crashes and other mishaps, including the failure of an engine on one of its ships in January 2023. Given this situation, we don’t see it surviving 2024.

Sun Power: SunPower is down 74% YTD and has already filed a “going concern” notice with regulators. The company accepting breaching a credit agreement and could potentially default on a big debt payment.

Majorly owned by French energy giant TotalEnergies SE, this rooftop solar company isn’t a good investment in our eyes.

Also check: Tesla recalls over 120,000 cars over door risks.

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🔐 Crypto

Bitcoin $43,519 (-0.19%)
Ethereum $2,271 (-.0,04%)
Total market cap $1.68T (+1.42%)
* Prices as of Dec 25th, 12:20 AM UTC

A look at digital currencies

• Industry leaders see Hong Kong as the next Bitcoin ETF hub amid US approval anticipation.

• Russia mulls cross-border settlements in crypto in H2 2024.

• 7 crypto court cases coming in 2024.

• Solana’s SOL on its way to be the third biggest crypto.

• Nigerian crypto exchanges and P2P merchants brace for battle post-ban lift.

Just in: Bitcoin falls under $43K.

💵 Personal Finance

Least known insurance

When we talk about insurance we usually think of health insurance and life insurance. But, there are several other types to know about.

The purpose of each type of insurance is to protect you in case of a mishap. Remember that insurance does not reduce the risk of an accident, it only ensures you are financially taken care of in case things go wrong.

So, here are a few (less known) insurance types:

Umbrella insurance is a type of liability insurance that provides additional coverage beyond the limits of your other insurance policies, such as auto or homeowners insurance. It's designed to offer extra protection in case you face a large liability claim or lawsuit.

It provides protection in situations such as when you or your business causes bodily injury to others or property damage to others. It covers the legal costs to defend you in lawsuits related to these problems, including defamation, libel, slander and invasion of privacy.

This insurance, however, may not be suitable for everyone.

Renters insurance is only needed when you’re renting. It provides coverage to individuals who are renting or leasing a residential property. While the landlord typically has insurance to cover the structure of the building, renters insurance is designed to protect the personal belongings and liability of the tenant.

Travel insurance is only needed if you travel. Not always mandatory, this type of insurance provides protection against common travel issues, including sickness, missed baggage, and delayed flights.

Homeowners insurance provides financial protection to homeowners in the event of damage to their property or liability for injuries and damages suffered by others while on their property. It's a comprehensive insurance policy that typically includes several types of coverage, including dwelling coverage, personal liability coverage, and loss of use.

Disability insurance protects people if an accident or illness renders them incapable of working and receiving regular income. This insurance is designed to replace a portion of the insured person's income if they become disabled and are unable to perform the duties of their occupation.

Long-term care insurance covers nursing-home care or home-health care for seniors. We think it’s very important in today’s time since it is believed that about 70% of adults aged 65 years and older will require long-term care at some point.

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.