Morning Download 

Personal finance + economics + markets

Together with InvestorPlace

Good morning, investors! Attention is shifting to crypto but investors aren’t neglecting stocks either.

Fun fact: The first real-world Bitcoin transaction was for pizza. On May 22, 2010, a programmer named Laszlo Hanyecz made the first known purchase using Bitcoin. He paid 10,000 Bitcoins for two pizzas, which, at the time, were worth about $41. Today, they’d be worth three hundred forty-nine million six hundred ninety-four thousand dollars.

Today we cover:

• Europe appears to be slipping into recession.

• Companies are finding new leaders.

• Is it a good idea to max out your 401(k)?

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📊 Economy and News 

Europe in recession?

There is a 52% chance of a mild recession in the second half of this year.

The economy has contractor consequently in the last two quarters. New data is due Friday; however, things are not looking positive.

Not just the UK: It isn’t just the UK that has been suffering. The euro area economy risks falling into recession later this year after official data showed that output shrank slightly in the third quarter (down 0.1%).

It might worsen: Europe, in addition to the Middle East, might be the worst hit region due to the ongoing Hamas-Israel war. Europe has already been suffering due to the Russia-Ukraine war. European companies have lost 100 billion euros ($110 billion) in direct losses from operations in Russia since Moscow launched its invasion of Ukraine

The Israel-Hamas situation could affect European economies via lower regional trade, tighter financial conditions, higher energy prices and lower consumer confidence, warned Goldman Sachs.

What about the US: The US might fall into a recession, warned Wall Street experts in a recent article. The Israel-Hamas war could worsen inflation in the country. Plus, the jobs report is also close to a recession warning. Unemployment has been on the rise and hit 3.9%, according to the last report. If not controlled quickly, it could damage the economy.

Global hits:

• For the first time in 40 years, Ryanair to offer regular payouts to shareholders.

• LVMH buys eyewear brand Barton Perreira for $80 million.

• Bulls are back in emerging markets as growth stocks outperform.

📈 Stocks

S&P 500 4,365.98 (+0.18%)
DJIA 34,095.86 (+0.10%)
NASDAQ 15,154.93 (+0.37%)
BRENT CRUDE 85.20 (+0.27%)
* Prices as of Nov 7th, 12:20 AM UTC

Companies welcome new CEOs

Businesses are changing with new CEOs taking over major companies. Here’s a summary:

• Bumble founder and CEO Whitney Wolfe Herd will step down early next year. She will be succeeded by Lidiane Jones, the CEO of Salesforce’s cloud-based messaging platform Slack. Wolfe Herd will transition to a new role as Executive Chair when Jones takes over as CEO.

• The new Bed Bath & Beyond announced it was parting ways with its CEO Jonathan Johnson in a sudden and surprising move. Two weeks ago, the company had been soliciting meetings with Johnson for Monday. Johnson had been with the company, previously known as Overstock.com, for more than 20 years and led its acquisition of Bed Bath & Beyond out of bankruptcy.

• Hugh Johnston, PepsiCo’s longtime CFO, will become Disney’s next finance chief. Disney’s previous CFO, Christine McCarthy, stepped down earlier this year. The company is scheduled to report quarterly earnings Wednesday.

Why does it matter? A new CEO or management means major changes, which may impact stocks negatively or positively. A change in CEO typically carries more downside than upside risk. Investors worry that the newcomer will shift corporate strategy for the worse. Some shareholders may have a particular regard for the leader who just left. According to data from investment research platform YCharts, stocks lost an average of 4.19% in the 30 days following a CEO departure. However, in some rare cases, especially when investors are not happy with a CEO, this change may result in a positive response.

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🔐 Crypto

Bitcoin $34,974 (-0.18%)
Ethereum $1,888 (-0.24%)
Total market cap $1.33 (+0.98%)
* Prices as of Nov 7th, 12:20 AM UTC

Ripple is back in the game

Ripple has gained 16% in the last five days and is currently trading at $0.71.

Prices rose over 11% before slightly retreating on Monday, with trading volumes spiking to $2 billion from Sunday’s $1 billion, making it the best performing crypto of the day.

Data suggests the gains were largely spot-driven as liquidations on XRP-tracked futures breached just over $4.4 million.

There were no major catalysts but investors seem to be still enjoying the perks of two major announcements from last week, including the Dubai Financial Services Authority’s approval of XRP under its virtual assets regime.

Technical analysis indicators are pointing toward further XRP price gains this week and some experts see the coin hitting the $0.74 mark next week as there is resistance at $0.75.

The target for 2024 is $1.3, lower than the all-time high of $3.84, but higher than the 52-week high of $0.92.

💵 Personal Finance

Should you contribute the max?

Now that we know that the IRS has increased contribution limits, it’s time to think if we should max out our retirement accounts.

There is no one word answer.

Maxing out is good in most cases, but not always. We suggest that you decide ‘how much to contribute’ based on these factors:

Non-retirement goals

Don’t just consider retirement goals, look at non-retirement goals as well. Here’s a checklist to look at:

• Get rid of debt.

• Build an emergency fund.

• Get insurance, including health insurance, long-term care insurance, disability insurance, and life insurance, and ensure it is adequate.

• Establish a will or trust.

We suggest that you complete these goals before considering to maxing out a retirement plan. Also, a lot depends on your personal goals. For example, some individuals might prefer to own a house than to max out 401(k) contributions.

Look at alternatives

There might be some more interesting investment options out there, so consider those too. Fees and taxes play a vital role in this aspect.

If the fees in your employer-sponsored plan are high, consider directing any additional funds to a traditional or Roth IRA. However, if you find yourself with extra money after maxing out your IRA accounts, it may be beneficial to reinvest it in your 401(k).

When choosing between the traditional and Roth variety of an IRA or 401(k), the difference comes down to when you’ll be taxed. For example, with Roth accounts, contributions are made after taxes but retirement distributions are tax-free.

You will enjoy even more benefits such as a broader assortment of investments, including ETFs.

Summary: Max out your retirement accounts if you can do it without being in debt and giving up on other (important) goals.

Some people even consider cryptocurrencies an alternative. In fact, about 44% of Americans with retirement savings have invested in cryptocurrency.

Bitcoin has ben one of the best performing assets this year, so it might be a good idea to consider it but we suggest that you first understand the economy and where the price is heading.

We talked about Bitcoin in last week’s Pro newsletter and called it a ‘buy’, you can still read the issue by subscribing for FREE. Don’t miss out on great investment opportunities.

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