Good morning investors! Happy New Year. The market will reopen today after a break but crypto is already making some noise. So, let’s see what the year has for us.

Fun fact: Australia attracted the highest number of millionaires and billionaires in 2023.

Today we cover:

• Why 2024 could be great.

• Bitcoin predictions.

• Top financial podcasts to listen to.

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📊 Economy and News 

Why 2024 could be a year of victories

If you are not yet excited for 2024 then it is time to get excited because the year might bring great news. Here’s why:

• Inflation is expected to cool down, which means an increase in purchasing power. Plus, paychecks are now catching up to inflation. Moreover, the minimum wage is expected to increase this year in a large number of states.

• The Fed might cut rates, thus making it possible for more people to buy big ticket items such as homes. However, the mortgage rate may not go down below 6% this year.

• The unemployment rate is sitting at just 3.7%, near a half-century low, and it is expected to improve even more in 2024.

But, there are some challenges as well. For example, the geo-political situation might worsen and the USD might suffer some more in 2024, which can be bad for the US economy.

On the plus side, the global economy might see new players. For example, Guyana and some African countries are expected to make a mark.

Global hits:

• Baidu’s live streaming plans suffer as it calls off $3.6 billion deal.

• Maersk pauses shipping through the Red Sea after Houthi boats attack vessel, while the US continues to stay in control.

• SPACE SpaceX sets new rocket record with 96 successful launches in 2023.

Reminder: Biden administration’s Medicare drug price negotiations will face major tests in 2024.

📈 Stocks

S&P 500 4,769.83 (-0.28%)
DJIA 37,689.54 (-0.055%)
NASDAQ 16,825.93 (-0.43%)
BRENT CRUDE 71.32 (-0.63%)
* Prices as of Jan 2nd, 12:20 AM UTC

Time to put an end to higher prices?

Back in the day, companies only had to increase prices to make more revenue. In fact, many big businesses, such as Netflix, used a similar strategy in 2023 but looks like it is time to put an end to this policy.

Some industries, such as retail, are facing a tough time due to slipping demand, more price-sensitive consumers, easing inflation and better supply. Raising prices might not result in more revenue. In fact, it might cause a downfall in this situation.

Companies including FedEx, Target and General Mills have cut their sales outlooks, while airlines have slashed off-peak fares. This puts businesses in a unique position as they will either have to continue to perform at a lower level or come up with new ways to increase revenue.

Investors need to be careful, especially when looking at the retail industry that is expected to suffer in 2024.

Top Gainers and Losers of the Week:

🔐 Crypto

Bitcoin $44,871 (-1.51%)
Ethereum $2,381.58 (-1.22%)
Total market cap $1.71 (-3.04%)
* Prices as of Jan 2nd, 12:20 AM UTC

Where’s Bitcoin heading?

Here are some of the most interesting Bitcoin predictions for 2024:

• For 2024, Mobius said that Bitcoin could reach $60,000 by the end of the year.

• Youwei Yang, chief economist of crypto mining firm Bit Mining, believes that Bitcoin could reach a high of $75,000 by 2024.

• James Butterfill, head of research at CoinShares, said the landscape for digital assets is set for “significant change” in 2024. He gave BTC a price target of $80,000.

• Antoni Trenchev, a noted Bitcoin bull and co-founder of Nexo, a cryptocurrency exchange, believes Bitcoin could hit $100,000 in 2024.

• In November, Standard Chartered doubled down on its $100,000 call for Bitcoin made in April. The bank said this will be driven by the approval of numerous ETFs.

• Alexander told CNBC that during the first quarter of 2024, Bitcoin will trade within the $40,000 to $55,000 range, owing to “professional traders creating volatility.” She, however, expected the price to jump to $70,000 after ETF approval, which she sees happening in the third quarter.

• Matrixport, which bills itself as a crypto financial services firm, released a note in November projecting that Bitcoin would reach $63,140 by April 2024 and $125,000 by the end of next year.

• Venture capital CoinFund has one of the highest price calls for Bitcoin for 2024. Seth Ginns, managing partner at CoinFund, sees BTC touching $1 million in the next few years giving it a target of $250,000 and $500,000 for 2024.

Reminder: Our subscribers don’t see the coin breaching the $100,000 mark this year but they’re bullish on the coin.

💵 Personal Finance

Personal finance podcasts worth listening to

We asked our subscribers to list their favorite podcasts, here are the top picks:

My First Million

Hosted by Sam Parr and Shaan Puri, this podcast can be a great option for people interested in new business ideas based on trends & opportunities.

Planet Money

Available on a variety of platforms, Planet Money covers global issues with engaging and inviting content.

All-In with Chamath, Jason, Sacks & Friedberg

A huge number of people picked All-In as their favorite podcast. Known for being fun and informative, this podcast covers a variety of topics and not just personal finance or money. You will hear experts talk about real estate, poker, tech, and many other topics. Moreover, the podcast is long with most episodes going above 90 minutes.

Daily Stock Market News

Many day traders religiously listen to this podcast as the content is light and most episodes are under 20 minutes. It’s more of an overview that covers the market and helps investors take the right call.

Global Macro Update by Mauldin Economics

Hosted by hedge fund manager Erik Townsend, this podcast is fast gaining momentum. Users can listen to the podcast and even download transcripts. Topics vary from very technical to global and political issues. Said to be suitable for sophisticated investors, this podcast involves guest speakers from various industries.

Merryn talks Money

Don't let the name fool you, this isn't a basic podcast as it revolves around not just money but some very niche topics. Hosted by Bloomberg senior columnist Merryn Somerset Web, this podcast helps listeners understand different aspects of the market. All episodes go in depth and feature guests from different walks of life.

Capital Economics The Weekly Briefing

Those who are short on time can listen to this Capital Economics podcast to stay ahead of the crowd. The podcast covers the major happenings of the week and most episodes are about 30 minutes.

Fast Money

Featuring Melissa Lee and a roundtable of top traders, “Fast Money” is a popular podcast that delivers actionable news. It goes live at 5p ET on CNBC and covers the day’s happenings.

Investing Experts

This Seeking Alpha podcast provides deep dive stock analysis and topical takes on the market. It isn’t only about covering the market as the podcast is known for offering actionable suggestions and catering to people looking for the right investment advice.

Cabot Street Check

This podcast offers free-flowing conversations with experts in the field. Consider this if you are interested in knowing what industry experts are up to.

Morningstar Investing Insights

Confused about the right stock or ETF? This podcast could be your answer. It offers top stock and ETF picks, personal finance advice, investing tips, and exclusive fund manager interviews.

Morning Download Podcast

Last but not the least, the Morning Download podcast provides a market overview in about 8 minutes. It’s an audio version of the newsletter that you’ll find on many platforms.

💰 Be a Better Investor

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