Morning Download 

Personal finance + economics + markets

Together with behindthemarkets

Good morning investors! Businesses are growing with Berkshire Hathaway posting a 40% jump in operating earnings, GM investing $13 billion in US facilities, DraftKings making new records, and Walmart reaching a new all-time high.

Earnings season will continue this week with big names like Uber, eBay, and Disney expected to announce earnings this week.

Fun fact: The iconic startup sound that you hear when you boot up a Windows computer is called the "Microsoft Sound." It was composed by Brian Eno, an English musician and record producer who is known for his work in ambient music. The sound is only 3.25 seconds long and is officially titled "Microsoft Sound" or "The Microsoft Sound." It has become one of the most recognizable startup sounds in the world, and Brian Eno was reportedly paid $35,000 for his work on it.

Today we cover:

• Homes to get 5% more expensive in 2024? 🏠

• The UAW is preparing to attack Tesla and Toyota. 🚘

• Get ready to add more to your 401(k)s. 🖊

Follow us on Twitter for more.

📊 Economy and News 

Home prices could spike nearly 5% in 2024

Some experts predict home prices would increase by 4.9% from August 2023 through August 2024. However, this marks a downward revision from last month’s projection of a 6.5% increase from July 2023 to July 2024.

Why? Due to high mortgage rates and reduced supply.

The total number of available homes for sale dropped 16% as many home sellers remain reluctant to jump into the market and risk losing the low mortgage rates they secured before recent increases.

Falling sales: Increasing prices and high rates are making it harder for people to purchase homes. As a result, home sales have been dwindling for months now.

Total home sales are expected to reach 4.1 million in 2023, marking an 18% decline from last year. Furthermore, researchers expect sales volumes to remain sluggish amid tight inventory conditions and the resilience of high mortgage rates. 

Global hits:

• Saudi Arabia’s oil production cuts have tipped its economy into reverse. 🪘 

• Astra defaults on debt agreement, warns it may not be able to raise needed cash. 🚀 

• After a $1.8 billion verdict, the clock is ticking on the 6% real estate commission. ⏰ 

📈 Stocks

S&P 500 4,358.34 (+0.94%)
DJIA 34,061.32 (+0.66%)
NASDAQ 15,099.49 (+1.21%)
BRENT CRUDE 84.89 (-2.26%)
* Prices as of Nov 6th, 12:20 AM UTC

Tesla and Toyota next?

UAW has reasons to rejoice thanks to a tentative deal that the union considers the win. However, President Shawn Fain wants to expand the union’s battle from the Detroit automakers to Tesla, Toyota and other non-unionized automakers.

The UAW has previously failed in organizing foreign-based automakers in the U.S., most recently at Volkswagen and Nissan Motor.

Not that easy: For starters, Tesla isn’t unionized. The company has beaten back previous efforts by workers to unionize – but the UAW hopes that it will succeed.

Tesla workers earn on average about $55 an hour in wages and benefits, lower than what other makers in the country offer. If successful, it could be a major blow to the company.

On the other hand, Toyota recently raised its worker wages and cut workers’ time needed to reach the top wage. Fain thinks this change is due to the efforts of UAW.

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🔐 Crypto

Bitcoin $35,132 (-0.10%)
Ethereum $1,894 (+1.91%)
Total market cap $1.32T (+1.96%)
* Prices as of Nov 6th, 12:20 AM UTC

Sam Bankman-Fried found guilty

Sam Bankman-Fried was found guilty on all seven counts Thursday after a massive fraud and money laundering trial involving now-collapsed crypto exchange FTX and trading firm Alameda Research.

Experts say that he could be sentenced to 110 years in prison; however, the exact duration will be determined at the hearing on March 28, 2024.

More to come? Bloomberg recently published an article titled ‘Sam Bankman-Fried Won't Be the Last Crypto Mogul Behind Bars’ that called the culture surrounding Bitcoin and other forms of digital money ‘toxic’ and predicted that there might be similar sentences in the future.

💵 Personal Finance

Americans will be able to put more cash in their 401(k)s next year

The IRS has just announced the new limits. Beginning 2024, most workers will be able to put up to $23,000 into their 401(k)s and similar workplace retirement plans, up $500 from this year.

The maximum allowable contributions to an individual retirement account (IRA) will see a $500 boost, reaching $7,000 in 2024. For individuals aged 50 and older, the opportunity for supplementary contributions, known as "catch-up contributions," is available for IRAs and 401(k)-type plans, with the limits remaining at $1,000 and $7,500, respectively.

There is no difference between contribution limits for Roth and pretax 401(k) and for individual retirement accounts.

Does it matter? Technically speaking, it does. However, the expanded limit on 401(k) contributions will only favor people who consistently contribute the maximum allowed. Unfortunately, that number is very low.

In 2022, only about 15% of participants in 401(k) plans managed by Vanguard Group reached the legal contribution limit. With higher threshold now, even fewer might reach the max.

Any other benefits: Certain elderly Americans may experience increased tax advantages when employing a charitable giving strategy.

All about inflation: The IRS look at a variety of factors, including changes in the cost-of-living (inflation) and adjusts the contribution limits accordingly based on a formula.

The US has been battling high inflation for a while with the figure standing at 3.7% for the 12-month period ending in September, which is the basis of the adjustment.

A number of tax provisions outside of the retirement system are tied to inflation, including the income breakpoints for tax brackets, exclusions for estate and gift taxes, and the standard deduction. The IRS, however, is yet to announce those 2024 changes.

We must mention that this was the first time that the IRS made an inflation adjustment under a law enacted last year that will increase the benefits of a popular tax-planning technique.

What else? Starting in 2024, IRA holders will be able to send $105,000 to a charity and have it count toward their minimum required distributions from those retirement accounts. That is up from the $100,000 limit that had been unchanged for many years.

Check this video for tips on how to max out your retirement:

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