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- ⛅️ Cloudy April
Good morning investors! April will be another exciting month for investors, especially crypto fanatics as the BTC halving event is just around the corner.
Today we cover:
Income you need to buy a home.
Gold is the future.
April to be slow for stocks?
🔈 Audio version: Apple Podcasts | Spotify
📊 Economy and News
How much you need to buy a home
Home buyers need a higher income to afford a typical home in Western and Northeastern states.
The chart above highlights the top five estates with California leading where you need nearly $200K to be able to afford a home.
You need a six figure income to be able to afford a home in other states as well, including Arizona ($110,271); Colorado ($152,229); Connecticut ($119,614); Florida ($114,771); Idaho ($114,386); Maine ($102,557); Maryland ($108,257); Montana ($131,357); Nevada ($111,557); New Hampshire ($130,329); New Jersey ($152,186); New York ($148,286); Oregon ($129,129); Rhode Island ($132,343); Texas ($100,629); Utah ($133,886); Vermont ($114,471); and Virginia ($106,971).
In comparison, you don't have to make a lot of money to be able to afford a house in Kentucky, Indiana, and even Ohio where about $65K per year is enough.
Global hits:
Turkey’s opposition stuns in sweeping local elections victory over Erdogan’s party.
Oil prices rise amid reports Iranian consulate hit by missile strike in Damascus.
China stocks rise after factory activity data; Japan’s Nikkei 225 closes below 40,000.
We’re gold: Yesterday, gold prices surged to yet another all-time high, driven by expectations of a U.S. interest rate cut and the enduring appeal of the metal as a safe haven asset.
Spot gold added 0.3% to trade at $2,240.04 per ounce. U.S. gold futures rose 0.8% to settle at $2,257.10 per ounce. The metal hit a high of $2,286.4.
We had recommended our members to invest in gold as the shiny metal was our Asset of the Week. Here’s what we said:
We see it going even higher, so consider investing in this to protect your money but remember that it’s a long-term investment.
Also, don’t forget to upgrade to the Pro Membership plan (new members can start with a free trial, $19 after that) so you never miss out on opportunities. The Pro version comes with exclusive perks such as top stock picks and a FREE course worth $497.
Worrisome: AT&T says personal data from 73 million current and former account holders leaked onto the dark web. Also, Tesla is in trouble as would-be Tesla buyers are now snubbing the company due to Musk’s falling reputation.
📈 Stocks
S&P 500 5.243,77 (-0.20%)
DJIA 39.566,85 (-0.60%)
NASDAQ 18.293,20 (+0.21%)
BRENT CRUDE 87.42 (+0.42%)
* Prices as of Apr 2nd, 12:20 AM UTC
April starts slow
The Dow Jones Industrial Average started the second quarter by sliding, as traders assessed new U.S. inflation figures amidst concerns over a potential slowdown in the market rally.
Investors are staying wary of the Federal Reserve's timetable for rate cuts this year and the timeline for achieving their 2% inflation objective. A June cut is expected but the recent speech from the Fed chairman suggests the Fed could delay cuts.
On the other hand, Monday saw an increase in Treasury yields, influenced by Powell's previous statements and a significant inflation indicator. The 10-year Treasury yield surged by nearly 13 basis points to reach 4.319%.
Some strategists perceive this as the initial sign of a correction.
“The market is overbought by any measure,” said Quincy Krosby, chief global strategist at LPL Financial. “At some point, we will see a pullback, and then at that point, you’ll start to hear the bears come out again suggesting that it’s deeper than just a healthy correction.”
Surprising: United asks pilots to take unpaid time off, citing Boeing’s delayed aircraft. Also, OpenAI says it’s working on AI that mimics human voices.
Interestingly, Microsoft will now let customers worldwide buy Office without Teams, following EU antitrust concerns.
Also check: Trump Media plunges more than 25% after company reports net loss of $58 million in 2023. This has sent Trump’s net worth tumbling by $1 billion.
💵 Personal Finance
How to invest in precious metals - Part I
Precious metals such as gold and silver are very attractive and can be a great investment option.
But why?
Because precious metals are considered a reliable hedge against inflation. Their value tends to rise as currencies like the dollar lose purchasing power due to inflation.
Not just individuals, but even central banks invest in gold due to its ability to retain value during times of economic uncertainty.
In fact, the global situation with the ongoing Russia-Ukraine war and Israel conflict is pushing gold prices while impacting other currencies.
Introducing gold to your portfolio can help reduce the risk and diversify your investment.
But how?
The traditional way of investing in gold or other precious metals is to own physical gold or silver. This, however, doesn’t mean going to a jewelry store and buying your favorite gold set. You have to be careful when purchasing gold with the intention to invest.
Gold jewelry isn’t a bad option (always) but appraising it can be complicated, and there are no guarantees you’ll be able to sell a piece for more than you bought it for. This is why you should opt for gold bullion, including coins and bars. This will give you the satisfaction of looking at it and touching it.
You can buy physical gold through an online dealer like APMEX or JM Bullion, turn to a collector, or try a pawn shop. In most cases, you will have several qualities and sizes to choose from.
Tip: Pick bars over coins because you’ll likely pay a price for a coin’s collector value rather than just its gold content. However, some coins can appreciate very quickly such as these valuable gold coins here.
Risks: Investing in physical gold can be risky as it can get stolen. You will need a safe place to keep it.
Check this video for more on investing in gold:
💰 Be a Better Investor
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.