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- 😯 European stocks to outperform US stocks?
😯 European stocks to outperform US stocks?
and stocks grow higher
Good morning investors! Bitcoin is once again battling with $44,000 while we prepare for another great months for stocks.
Today we cover:
European stocks to outperform US stocks next year? 😁
Stocks break records. 👊
PayPal and taxes. 💵
Follow us on Twitter for more.
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📊 Economy and News
Time to invest in European stocks?
European equities are set to outperform the US in the first half of 2024, according to some experts. 🚂
“We are generally quite positive on next year,” Maximilian Uleer, head of European equity and cross-asset strategy at Deutsche Bank, told “Squawk Box Europe”.
“Three weeks ago we called for an overweight in Europe. It’s more of a tactical view, we think that’s going to work out better in the first half of the year than in the second one.”
Uleer thinks this despite stronger growth in the US. 💡
Ankit Gheedia, head of equity strategy at BNP Paribas, has similar expectations.
“We do feel that things are getting less bad, and that will continue... next year. In the U.S., probably things are getting less good. Q3 was fantastic, but we don’t expect that performance to continue into 2024,” he said.
The US market has been on a dream run lately but the European market isn’t far behind. The pan-European Stoxx 600 index is up almost 13% YTD, having hit a new 52-week high last month, off the back of a 12.9% fall in 2022. The S&P 500, meanwhile, is up 22.6%, a reversal from 2022′s 19.4% decline.
Global hits:
Bank of England leaves policy unchanged, says rates to stay high for ‘extended period.
European Central Bank holds rates at 4% and trims its inflation forecast.
IEA expects oil demand slowdown to persist in 2024 as prices fall on oversupply concerns.
What are you more interested in? |
📈 Stocks
S&P 500 4,719.55 (+0.26%)
DJIA 37,248.35 (+0.43%)
NASDAQ 16,537.83 (-0.15%)
BRENT CRUDE 76.98 (+0.55%)
* Prices as of Dec 15th, 12:20 AM UTC
Dow creates another record
The Dow Jones Industrial Average hit a new high yesterday as the 10-year Treasury fell below 4% for the first time since August and a gain in retail sales boosted confidence.
The S&P is on the verge of entering record territory, potentially following the Dow's lead, as the index is less than 1.6% away from its all-time close in January 2022. Meanwhile, the Nasdaq is approximately 8% from its closing record and about 9% from reaching its intraday record.
Energy was the biggest winner yesterday with major names such as SunRun and Enphase gaining 20% and 12%, respectively. Moderna experienced a 9.3% jump after trial data revealed that its experimental cancer vaccine, when used in conjunction with Merck’s Keytruda, demonstrated a reduction in the risk of death or recurrence.
Rivian surged by 14% following AT&T's commitment to acquiring electric vehicles starting early next year as a part of its initiative to decrease fleet emissions. In contrast, General Motors’ shares rose by 7% after the company implemented a 24% workforce reduction in its robotaxi startup Cruise.
Also check: Intel unveils new AI chip to compete with Nvidia and AMD.
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💵 Personal Finance
PayPal and taxes
If you use PayPal like 75% of adult Americans then this piece is for you.
Things are changing at PayPal, the most famous payment processor in the country.
According to PayPal, it is “required to provide information to the US Internal Revenue Service (IRS) about customers who receive payments for the sale of goods and services above the reporting threshold in a calendar year.”
This is not new. PayPal has been doing this for years. However, most people did not have to worry about paying PayPal-related taxes due to the high threshold, which will now change.
Starting this year, the IRS has implemented revised reporting guidelines for payments received for goods and services. This adjustment lowers the reporting threshold to $600 for the 2023 tax season, marking a notable reduction from the 2022 threshold of $20,000 USD and 200 transactions.
There, however, are some exceptions:
This change applies solely to payments received for goods and services transactions. It excludes personal transactions, such as repaying friends or family for dinner, gifts, or shared trips.
You will now receive a 1099-K form if you meet this new limit.
PayPal tax reporting becomes mandatory when the sender designates the payment as goods and services to the IRS, even if it was unintentional. While PayPal reports the transaction, it may not necessarily be taxable, and consulting a tax professional for specific concerns is advisable.
What to do?
Get ready to provide tax information like an Employer Identification Number (EIN), Individual Tax ID Number (ITIN), or Social Security Number (SSN), when you approach the reporting threshold. 🚎
You may be required to complete form W-9 if you cannot submit these details. Additionally, any disparities between the information reported to the IRS for your TIN and name and the details PayPal has on file for Form 1099-K may result in the issuance of an IRS B-Notice.
Warning: PayPal may report losses
PayPal is required to report the total gross amount of payments received for goods and services which can include:
Amounts from selling personal items at a loss 🐱
Refunded amounts 🐩
Processing fees 🙉
To save tax money, we suggest you talk to an expert.
💰 Be a Better Investor
“Go for a business that any idiot can run – because sooner or later, any idiot probably is going to run it.”
👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.