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Personal finance + economics + markets

Together with Danelfin

Good morning, investors! The Nasdaq Composite index is up for eight straight days now, giving investors reasons to rejoice.

Fun fact: This is Nasdaq’s longest daily winning streak since November 2021.

Today we cover:

• Buyers are again buying homes but it might be wiser to wait. 🏡 

• US Steel gets sold to Japan’s Nippon Steel. 💀

• All about life insurance. 👨 

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📊 Economy and News 

US homebuilder sentiment is up 🙅‍♂️

US homebuilder sentiment improved in December for the first time in five months thanks to falling mortgage rates.

What the numbers say: The National Association of Home Builders/Wells Fargo gauge rose 3 points to 37, close to what experts had estimated.

The gauge of prospective buyer traffic also climbed for the first time in five months, while a measure of expected sales reached a three-month high.

What does it mean for investors? If you’re an investor then we suggest that you wait a little more before buying.

Housing prices fell about 6% in December and more cuts are expected next year, which may help stabilize demand.

Houses are still not very affordable and borrowing costs are more than twice as high as they were in 2021.

Despite these changes, about 60% of builders are still using incentives to attract buyers. Moreover, 36% cut prices in December.

Global hits:

• Nikola founder Trevor Milton sentenced to four years in prison for fraud.

• Southwest fined $140 million for last year’s holiday meltdown.

• Bank of Japan sticks to ultra-easy monetary policy in light of ‘extremely high uncertainties’.

📈 Stocks

S&P 500 4,740.56 (+0.45%)
DJIA 37,306.02 (+0.0023%)
NASDAQ 16,729.80 (+0.64%)
BRENT CRUDE 78.07 (-%)(+0.15%)
* Prices as of Dec 19th, 12:20 AM UTC

Japan enters a new US territory

US Steel will now be under the control of Japan's Nippon Steel.

Nippon won the bid beating other big names such as Cleveland-Cliffs and ArcelorMitta to get control of one of the oldest US companies, US Steel.

Experts think the $14.1 billion deal is a big bet and might not be beneficial for Nippon, which is already the forth largest steel maker. The bidding war started when Cleveland Cliffs valued the company $32.53 a share, or 40% less than Nippon’s all cash offer.

Nippon hopes that the Biden Administration’s infrastructure bill will help make the deal more ‘attractive’ thanks to expected spending and tax incentives that could greatly benefit US steel.

Not everyone’s happy: The United Steelworkers union is not happy with the deal as it was in support of Cleveland Cliffs, another unionized American steel company.

Nippon, however, said that all of US Steel’s commitment to its workers will remain in place.

Challenges: There aren’t many challenges and the deal is expected to go through. It’s rare that a foreign company takes control of a large US firm, so eyes will be set on how things roll in the next few months.

Just in: Adobe and Figma call off $20 billion acquisition after regulatory scrutiny.

Reminder: Apple will stop sales of its flagship Apple Watch models in the US from next week after losing a long-running patent dispute with medical technology company Masimo.

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🔐 Crypto

Bitcoin $42,911 (+0.61%)
Ethereum $2,243 (+1.25%)
Total market cap $1.61T (+3.66%)
* Prices as of Dec 19th, 12:20 AM UTC

A look at crypto

Here’s all you need to know about crypto:

• Binance completes audit to demonstrate robust security.

• Spot Bitcoin ETF will be ‘bloodbath’ for crypto exchanges, analyst says.

• BlackRock, the world’s largest asset manager, has updated its S-1 filing with the U.S. Securities and Exchange Commission (SEC), pushing it a step closer to Bitcoin ETF.

• Ark Invest and 21Shares have updated their spot Bitcoin ETF application and now aligns with SEC's Cash Creates proposal.

• Crypto trader turns $1K Into $100K on Solana’s newest memecoin, Dogwifhat.

💵 Personal Finance

Life insurance

Life insurance is a type of insurance that ensures your loved ones are financially protected when you're not there for them. This type of insurance is not for you but for your family.

About 52% of Americans own life insurance and nearly 41% of adults feel they do not have an adequate amount of life insurance. Among the uninsured, the top reason for not purchasing life insurance was being unsure of what type and amount of coverage to buy.

How much? Experts suggest your coverage should be 10 to 15 times your income, but the actual amount will depend on your unique needs — for example, if you have a mortgage to pay or young children to raise.

Check below for different types of life insurance to help you pick the right one:

It’s meant to replace an income stream. For example, you would insure whoever is working in your household so the proceeds could replace the lost income.

In simple words, it’s defined as “a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.”

We must, however, mention that not all life policies have a cash value component. This means that you may not receive any money if your policy expires before you die. (Another reason to stay current on your plan).

Life insurance costs anywhere from $10 to $15 a month based on your location and you can get anywhere from $250,000 to over a million depending on terms and conditions. Also, in some cases, you might get it for free – such as with a bank account – so look at all your options and consider including it in your financial plan.

💰 Be a Better Investor

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