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- 🇨🇳 China, UK, and Germany are down
🇨🇳 China, UK, and Germany are down
and Bitcoin back near $40,000
Morning Download
Personal finance + economics + markets
Good morning investors! Oil prices are still falling and so are cryptocurrencies and stocks.
Today we cover:
Countries are broken.
Bitcoin down 6%.
How to invest in crypto.
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🔈 Audio version: Apple Podcasts | Spotify | YouTube
📊 Economy and News
Germany, England, and China are broken, is America next?
China is grappling with a lot of problems, including falling prices. The Consumer Price Index dropped 0.5% in November on an annual basis, the biggest fall since the depths of the pandemic three years ago. This shows deflation is increasing, forcing calls for urgent action to boost demand and prevent further declines.
The country’s labor force is shrinking. By 2030, it is expected to decline about 1 percent a year. Plus, big names such as Apple are leaving the nation. Even growth is expected to slow in 2024 to 4.6 percent due to the falling property market and reduced external demand.
Another country facing similar issues is England, which is said to be in a recession. The labor market is losing steam and political issues are also worsening the situation.
A little far from England is Germany, which has been facing financial issues. The country’s economic growth stands at zero and it is on the brink of a housebuilding crisis. Germany's unemployment reach is now at its highest in two years – 5.9% in November, up from October's 5.8%. In fact, the IMF thinks it is going to be in a recession soon.
But, what about the US? Experts seem to be divided when it comes to the US. Some say America is next to bear bad news, but most agree that a recession fear is uncalled for. Still, we suggest that you be cautious.
Global hits:
Now might be the right time to buy property in the UK, say experts.
‘Somebody has it wrong’ on U.S. recession risks as oil, gold and Treasurys diverge, fund manager says.
Occidental Petroleum to buy Permian producer CrownRock for $12 billion, raise dividend.
Also check: Regulators caught Wells Fargo, other banks in probe over mortgage pricing discrimination.
📈 Stocks
S&P 500 4,622.44 (+0.39%)
DJIA 36,404.93 (+0.43%)
NASDAQ 16,221.73 (+0.85%)
BRENT CRUDE 76.10 (+0.34%)
* Prices as of Dec 12th, 12:20 AM UTC
Stocks are moving
Big tech lost billions yesterday as most major names, including Amazon, Meta, and Nvidia closed lower, -1.04%, 2.24%, and 1.85% respectively. Money seems to be flowing from big companies to smaller firms.
Investors are keeping an eye on today’s consumer-price index report and tomorrow’s interest-rate decision. Chair Jerome Powell is expected to hold interest rates steady, reflecting cooling inflation.
Overall, it was a good day though as all three major U.S. indexes rose, led by the Dow. Macy’s shares soared 19.44% on report of buyout offer. Moreover, TikTok is investing $1.5 billion to get back into online shopping in Indonesia.
However, trouble seems to be ahead for some businesses; UAW has filed unfair labor practice charges against Hyundai, Honda and VW, accusing them of union busting.
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🔐 Crypto
Bitcoin $41,268 (-5.77%)
Ethereum $2,222 (-5.52%)
Total market cap $1.56T (-5.16%)
* Prices as of Dec 12th, 12:20 AM UTC
Bitcoin and other currencies fall
Bitcoin, Ether, and other major crypto coins are in red with most down over 5%.
This sudden fall sent Bitcoin below $42,300, surprising investors, and causing about 120,000 crypto traders to lose over $400 million on Monday.
Coinglass data indicates that about $356 million of these liquidations were attributed to long positions, making Monday the costliest single-day loss driven by long speculation in the last four months. But, short traders weren’t immune either. They lost $54.79 million.
This has been BTC’s steepest intraday drop since mid-August. The coin, however, is still up over 150% this year. Investors are still high on the coin, predicting it to hit the $50,000 mark before the year ends.
💵 Personal Finance
Investing $100K in Crypto

Serious investors do not invest in crypto, but if you have $100,000 to invest then here are a few options to consider:
Buy cryptocurrency
The easiest way to invest in cryptocurrency is to buy it. You can use an exchange like Binance or Coinbase and keep your crypto safely in a wallet. Some exchanges even pay interest on the amount you own, which can provide a decent amount of income.
If you have $100,000 then we’d suggest that you spend $35,000 in buying crypto directly.
Invest in companies that own currency
Those who do not wish to buy crypto can invest in companies that own crypto, such as Tesla and Marathon Digital Holdings. You can do so by owning stocks of these companies but remember that share prices may go up or down based on not just crypto prices but other factors as well.
If you have $100,000 then we’d suggest that you spend $30,000 buying stocks of companies that own crypto.
Try crypto-focused funds
Exchange-traded funds (ETFs) offer a convenient and regulated way to gain exposure to digital coins. In addition, you can choose cryptocurrency investment trusts.
If you have $100,000 then we’d suggest that you spend $20,000 buying ETFs. The top-performing crypto ETFs of 2023 have offered gains between 51% and 108%, but this option is risky.
Become a miner
It's still not too late to be a miner. Miners earn rewards in crypto for verifying blocks of transactions by solving an encryption problem on the blockchain. However, this option can be expensive because you will need a good system, which can cost up to $10,000, to invest digital coins. Another option is to crowdfund a mining project.
If you have $100,000 then we’d suggest that you spend $10,000 in being a miner. But, only if you have the time and resources to manage this business. This is a profitable option and the 30-day average of revenue earned by miners has improved steadily this year to hit a 18-month high at $32.46 million last month.
Invest in a cryptocurrency Roth IRA
A Crypto Roth IRA is a unique investment vehicle that allows individuals to hold crypto within their Roth Individual Retirement Account. This option offers additional benefits such as increased security and tax advantages. However, you might not be able to include all digital coins in your account.
You can't contribute crypto directly to your Roth IRA, but you can hold it there if you have a provider who allows that. There are limits of up to $6,000 a year. If you are 50 or older, you can contribute $7,000 a year. We suggest you meet these limits if you have $100,000 to invest.
Try margin trading
The riskiest but also often the most rewarding option is to try margin trading. You can invest only a few hundred and buy a Bitcoin, which you will never own but you will make money if the prices move in your predicted direction. The downside? You can lose all or a large chunk of your money if prices move in the opposite direction. We do not suggest this option.
But, if you wish to try, you can start with a demo account then with as low as $100 on platforms like xm.com and markets.com.
Check this video for more:
💰 Be a Better Investor
“We need to intentionally invest in health, in home ownership, in entrepreneurship, in access to democracy, in economic empowerment.”
Pete Buttigieg
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.