🏡 Homes getting expensive

Good morning investors! Joy spread throughout the market yesterday as a number of companies hit new highs and Nvidia’s CEO got richer.

Today we cover:

• A look at the housing market.

• S&P 500 hits a new high

• What is a bad credit score?

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📊 Economy and News 

Renting is getting cheaper but owning a home is now more expensive than ever

Sales of existing homes in the US climbed, rising 3.1% in January from the prior month to a seasonally adjusted annualized rate of 4 million units.

Reduced rates attracted buyers but this might be temporary now that prices are going up again.

The median cost for a home jumped 5.1% from a year ago to $379,100, the seventh straight month of annualized price gains.

On the other hand, rents dropped for the sixth month in a row nationwide. Prices fell 0.3% YOY in January, a difference of $46 from the high in August 2022.

But, prices are nowhere near the pre-pandemic levels with rents still 18% higher.

The national median rent for a two-bedroom apartment was $1,892 in January, down 0.6%, while rent for a one-bedroom was essentially flat at $1,591. Rent for a studio dropped the most, falling 1% from a year ago to $1,434.

Experts see prices falling even more this year due as more multi-family homes crop up. Plus, a fall in rates will push renters to purchase a home, which will also reduce competition and demand.

Rents fell massively in Memphis, Tennessee (5.5% to $1,247), Atlanta (3.8% to $1,619), Austin, Texas (3.6% to $1,547), and St. Louis, Missouri (3.6% to $1,295). However, prices did increase in some regions, i.e.: Chicago up 4.2% compared to 12 months ago.

Global hits:

• European Central Bank posts first annual loss in two decades.

• Tax evasion by millionaires and billionaires tops $150 billion a year, says IRS chief.

• China is one of the world’s most expensive places to raise children.

More layoffs: Rivian is laying off 10% of its salaried workers amid challenges.

📈 Stocks

S&P 500 5,087.03 (+2.11%)
DJIA 39,069.11 (+1.18%)
NASDAQ 18,004.70 (+3.01%)
BRENT CRUDE 82.63 (-1.18%)
* Prices as of Feb 23rd, 12:20 AM UTC

S&P 500 hits a new high

Yesterday was the S&P 500's best day since January 2023.

The S&P 500 reached new highs yesterday, thanks to Nvidia, which jumped +16.40%, touching a new all-time high of $785.75. The stock gained $277 billion in market cap, the largest one-day increase of any stock in history. It is now among the top five largest stocks in the world.

Other tech companies also jumped, led by Meta that climbed +3.9%. Amazon gained about +3.55%, and Microsoft and Netflix each advanced above +2%.

Another sector that had a great day was pharma. Moderna rose +14% after beating fourth-quarter revenue expectations.

Novavax also made an impact jumping +23% after settling a canceled COVID-19-vaccine related dispute with Gavi, a nongovernmental global vaccine organization.

🔐 Crypto

Bitcoin $51,044 (-0.40%)
Ethereum $2,936 (-1.08%)
Total market cap $1.96T (0.88-%)
* Prices as of Feb 23rd, 12:20 AM UTC

A look at crypto

Crypto prices jumped a little yesterday mainly due to the positivity surrounding Nvidia.

Here’s more to know:

• Reddit discloses Bitcoin and Ether holdings in IPO filing.

• Nigeria blocks access to crypto exchanges in effort to curb currency slide.

• Bitcoin has reached an all-time high in 14 countries thanks to currency changes.

• Ethereum price hits resistance at $3K, but data currently favors ETH bulls.

• Bitcoin's market cap holds strong at 7.4% against gold, marking its status in the ETF market.

💵 Personal Finance

What's a bad credit score

In order to understand 'bad credit score' you have to first understand the concept of a 'credit score'.

Investopedia defines it as "a three-digit number that rates your creditworthiness."

FICO scores are in the range of 300 to 850 with higher scores depicting better financial conditions.

In other words, those with a higher score are more likely to get approved for loans and for better interest rates.

Your credit score depends on your credit history, which takes into consideration your repayment history, debt levels, and total accounts.

There are three main U.S. credit bureaus, Equifax, Experian, and TransUnion, each using different a unique technique to calculate credit scores.

For a score to be considered good, it should be above 680. Anything between 300 and 579 is considered poor.

Here’s a breakdown:

• Poor: 300-579

• Fair: 580-669

• Good: 670-739

• Very Good: 740-799

• Exceptional: 800-850

The average credit score in the country is 715 (FICO). Gen Z (18-25) has the lowest average credit score at 680, while the Silent Generation (77+) has the highest at 760.

Your aim should be to improve your score and push it above 800. We’ll talk about some great ways to do it in the future issues, so stay glued.

💰 Be a Better Investor

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

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