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Good morning, investors! The environment is exciting with positive earnings reports.

Fun fact: The term "bull market" and "bear market" in the world of stocks and investing are believed to have originated from the way these animals attack their opponents. bull thrusts its horns up into the air, symbolizing a rising market, while a bear swipes its paws downward, representing a declining market.

Today we cover:

• The impact of Israel-Hamas war. 🚀 

• Where BTC is heading? ⬆️

• Stay away from private student loans. 💵 

Follow us on Twitter for more.

📊 Economy and News 

Israel-Hamas war likely to hit neighboring economies, says IMF

Egypt, Lebanon and Jordan might be victims of the ongoing Israel-Hamas war, according to IMF.

How: Some sectors, such as tourism, are more likely to suffer than others. Plus, there might be supply chain issues and the cost of moving goods might go up. Furthermore, these countries might attract more refugees, which can impact their economies.

Nothing so far: The war hasn’t had much of an impact so far (on the global economy). Oil prices have pulled back after a small hike and remain below September's high.

Also check: The US has joined hands with Gulf nations to target ‘secret’ Hamas investment portfolio that is said to be worth up to $1 billion.

Global hits:

• Qatar doubles down on Europe gas market with Eni deal.

• Sentiment improves as Beijing takes action to support economy.

• Sub-Saharan African economy expected to grow 3.7% next year.

• The Bank of Canada held its benchmark interest rate at 5%.

📈 Stocks

S&P 500 4,186.77 (-1.43%)
DJIA 33,035.93 (-0.32%)
NASDAQ 14,381.64 (-2.47%)
Brent Crude 89.68 (-0.45%)
* Prices as of Oct 26th, 12:20 AM UTC

It looked red

Alphabet posted its worst down day since the start of the pandemic, causing the Nasdaq 100 to finally break through its September lows. Another big company, META, announced earnings yesterday.

Revenues rose 23% YoY, their fastest since 2021, to $34.15 billion. That topped estimates of $33.56 billion, as did earnings per share (EPS) of $4.39 vs. $3.63 expected. 

Meta’s ad business is rebounding better than its competitors after declining for three straight quarters last year. The company expects things to improve even more, forecasting revenue of $36.5 to $40 billion for the fourth quarter, straddling the consensus view of $38.85 billion. The stock fell 4.17% during the day and is further 3.35% after the bell.

Other big companies like Nvidia, Amazon, and Netflix fell as well.

Good to know: Weight loss drugs to surpass $100B. Sales of treatments like Wegovy and Mounjaro are likely to surpass initial estimates.

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🔐 Crypto

Bitcoin $34,577.10 (0.01%)
Ethereum $1,842.45 (0.04%)
Total market cap $1.28 (0.9%)
* Prices as of Oct 26th, 12:20 AM UTC

Is October’s weekend rally a prelude to 2024 bull run?

Bitcoin price threatened the 2023 bull rally in September when it formed a weekly lower low at $25,386 and now the price is over $35,000, for the first time since 2022.

Here are some key events to keep an eye on:

• Core PCE Price Index – October 27.

• Fed Interest Rate Decision/Fed Press conference – November 1.

• Nonfarm Payrolls – November 3.

What about the rate?

The FedWatch Tool from CME Group shows a 98.4% probability of a pause in interest rate hike on November 1.

According to the same tool, there is a 1.6% probability that the Fed will pivot and cut rates.

Bitcoin 2024 Prediction: Different experts have different opinions on BTC. Standard Chartered, one of the largest banks in the United Kingdom, has made ripples in the financial world by predicting that the Bitcoin price could reach $50,000 by the end of the year, and $120,000 by the end of 2024.

We don’t see it hitting $120,000 next year but $50,000 is a possibility.

💵 Personal Finance

Why private student loans may not be suitable for you

Consider private loans only if you have already maxed out your federal aid. Most students can borrow up to $12,5000 in an academic year, which may not be enough to fund their education.

Federal student loans are not only affordable but offer other benefits as well, including attractive forgiveness programs and the ability to pause interest. Sadly, private loans do not come with these features.

Failing to pay a private loan can be risky as it gives lenders the right to sue for recovery through wage garnishment and asset seizure. Also, it’s not only for the borrower but also for the cosigner, making private loans very risky.

Furthermore, you need to look at the interest rate. Consider going for a loan that comes with a fixed rate even if the variable rate looks more attractive as we are in a rising-rate environment and the rate may end up going higher than you expect. Most private lenders offer a rate between 4% and 15%, usually higher than the 5.5% charged by federal agencies.

Consider watching this video to know more about how student loans can impact lives:

How much to borrow?

This question can be hard to answer; however, most experts believe that you should not borrow more than your expected starting income after school.

Bonus: Listen to 4 private equity founders talk about the effects of GLP-1:

💰 Be a Better Investor

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