Morning Download 

Personal finance + economics + markets

Good morning, investors! Earnings season is in full swing and we’re mostly hearing goods from all corners.

Fun fact: About 17% of S&P 500 companies have reported earnings for this quarter with 73% reporting a positive EPS surprise.

Today we cover:

• Experts think there are opportunities ahead.

• GM surprises with some shocks.

• Some great ways to earn passive income

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📊 Economy and News 

‘Incredible alpha opportunities’ in the year ahead

Some of Wall Street’s biggest names got together for the annual Future Investment Initiative in Riyadh, Saudi Arabia.

Bankers appeared skeptical due to the ongoing geopolitical situation. However, Carlyle Group CEO Harvey Schwartz, former president of Goldman Sachs, remained positive advising investors to be cautious but not letting these opportunities slip.

"I think the year ahead will certainly present incredible alpha opportunities. But generally speaking I think we’ll have more of a headwind than a tailwind, and my own personal view is as we adjust to this rate regime, I think there are going to be more challenges in the near term. It doesn’t mean there won’t be great alpha opportunities," he said.

Opportunities: We think they exist in many fields, including crypto, stocks, and precious metals.

Global hits:

• World’s largest sovereign wealth fund lost $34 billion as all asset classes fell in the third quarter.

• Asia markets reverse losses as key data comes out from Japan, Australia and South Korea.

• Global demand for oil, coal and gas set to peak by 2030.

Also check: The climate crisis is costing us $391 million a day.

📈 Stocks

S&P 500 4,247.68 (0.73%)
DJIA 33,141.38 (0.62%)
NASDAQ 14,745.86 (0.97%)
BRENT CRUDE 88.03 (-0.03%)
* Prices as of Oct 25th, 12:20 AM UTC

All about General Motors

General Motors announced earnings on Tuesday coming out a winner:

• Adjusted earnings per share: $2.28 versus $1.88, estimated

• Revenue: $44.13 billion versus $43.68 billion, estimated

However, the future isn’t looking very good as the strike is costing the company about $200 million a week in lost vehicle production.

The impact: As a result, the company has pulled its previously announced earnings guidance for the year from $14 billion to $10.7 billion.

It’s worsening: The United Auto Workers expanded its strikes against General Motors to a highly profitable full-size SUV plant in Texas shortly after the report came out.

Future plans: GM is reviving the Bolt, the best-selling EV it had earlier announced to discontinue. The new version of the EV will come with LFP batteries, a Tesla-style charging port, and new motors and software. However, the company declined to provide a date.

On the other hand, there is more pressure on the company to listen to its workforce.

🔐 Crypto

Bitcoin $33,931 (0.01%)
Ethereum $1,771 (0.77%)
Total market cap $1.25 (-0.88%)
* Prices as of Oct 25th, 12:20 AM UTC

Here’s what’s happening in the world of crypto

• Coinbase is not planning to put withdrawal limits on Bitcoin. The company has refuted rumors that it had imposed a $5,000-per-week limit on Bitcoin down withdrawals after a user’s post claiming as such gained traction on social media.

• FTX is planning to restart the exchange and is said to be in negotiations with three bidders. The company will make a decision about how to proceed by mid-December. Since going bankrupt in 2022, the firm has been trying to raise money to repay creditors. FTX’s administrators have so far recovered about $7 billion in assets, including $3.4 billion of crypto.

• Bitcoin crossed $35,000 momentarily as the mood shifted due to the potential of BTC ETFs. Investors are once again showing faith in the world’s largest currency, which has more than doubled this year and hasn’t been this high since 2022. In fact, some believe that Bitcoin Spot ETFs could see inflows of $14.4B in helping prices jump over 74%.

💵 Personal Finance

Try these 5 ways to earn passive income

If passive income is not yet included in your income sources then it’s time to make some changes. It’s good to work but you should also have a source of income that doesn’t require you to work regularly so you can take breaks, relax when the situation gets tough, and continue to have fun.

Here are some great passive income sources to consider:

Peer-to-peer lending

A peer-to-peer (P2P) loan is a personal loan made between you and a borrower, facilitated through a third-party intermediary such as Prosper and HappyMoney.

You can earn interest on the amount loaned with some borrowers paying up to 10%.

Risk: The loan is unsecured, i.e.: not guaranteed.

Though passive, it can take a while to master the metrics of P2P lending. If you are looking at this as a source then spend some time understanding how it works and what you can do to reduce the risk.

Dividend stocks

Dividend-yielding stocks can offer great returns. The more shares you have, the more money you can make in dividends. But, in order to make a good amount of money, you will have to invest at least $100,000 since the average S&P 500 Dividend Yield is only 1.62%.

Risk: Dividends aren’t guaranteed and not all dividend yielding firms are worth investing in.

Open a high-yield savings account

A high-yield savings account generates passive income by offering a higher interest rate than traditional savings accounts. We are living in a high rate environment and some banks in the US are offering over 5% interest rates with many international banks even offering up to 10%.

This interest is essentially "free money" that accumulates as your savings grow.

Risk: There isn’t much of a risk other than the rate of inflation going higher than the rate of interest, which reduces your buying power. Also, banks can go bankrupt, as seen in recent times, so choose wisely.

Rent our your space

You can rent out everything from your home to your garage to your parking space. In fact, even backyards and pools are being rented out now.

Risk: Renters might cause damage to your property.

Still, we think it is a great option because money this option pays well. Homes can earn you over $3,000 per month, garages pay about $1,000 per month, and parking can make you over $500 per month (based on location, size, etc.).

Let others make you money

Not interested in starting a business? It’s time to bet on others. Platforms like Mainvest make it possible to invest in businesses with as low as $100. It’s the same as buying stocks, i.e.: you’re betting on someone else. However, returns can be exponential – up to 25% in some cases.

Risk: Not all businesses will succeed so you have to do some research.

Some platforms, however, offer greater ease. For example, Mainvest even vets businesses for members.

Check this video for more ideas:

💰 Be a Better Investor

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