☔️ Meme stocks rise

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Good morning investors! The meme stock mania is back and some are expecting another frenzy.

Today we cover:

• Inflation outlook rises.

• GME and other meme stocks go up.

• Saving tax money

📊 Economy and News 

Inflation outlook rises

According to a survey conducted by the New York Federal Reserve, there has been an increase in inflation expectations over both the one-year and five-year periods. Respondents are not very confident that the Federal Reserve will meet its 2% inflation target in the near future.

Over the one-year horizon, the inflation expectation has risen to 3.3%, marking a 0.3 percentage point increase since March and the highest level since November 2023.

For the five-year outlook, the expectation has increased to 2.8%, up by 0.2 percentage points. However, over the three-year horizon, the outlook has decreased to 2.8%, down by 0.1 percentage point.

Survey participants also anticipate a median home price growth of 3.3% in the coming year, which is the highest reading since July 2022.

Additionally, they expect rents to increase by 9.1%, showing a 0.4 percentage point increase from the previous month.

Consumers see medical care rising 8.7% over the next year, up 0.6 percentage point from the March survey.

They expect food prices to increase 5.3% (up 0.2 percentage point from a month ago), gasoline to rise 4.8% (up 0.3 percentage point) and college education to climb by 9%, a 2.5 percentage point surge.

The survey revealed mixed employment expectations, with an anticipated rise in unemployment despite a decrease in the perceived likelihood of job loss. However, the outlook for job mobility decreased, with only 50.9% of respondents expecting to find a new job quickly after losing their current one, marking the lowest figure since April 2021.

Global hits:

• Airlines ask court to block Biden administration’s new fee disclosure rule.

• Cocoa prices tumble 19%, giving up a chunk of their record-setting gains.

• OpenAI launches new AI model and desktop version of ChatGPT.

Exciting: Uber to acquire Foodpanda’s Taiwan business for $950 million, creating a potential monopoly

📈 Stocks

S&P 500 5,221.42 (-0.024%)
DJIA 39,431.51 (-0.21%)
NASDAQ 18,198.61 (+0.21%)
BRENT CRUDE 83.30 (-0.01%)
* Prices as of May 14th, 12:20 AM UTC

Roaring Kitty is roaring again

Keith Patrick Gill, more popularly known as Roaring Kitty, is an American financial analyst and investor who posts on social media and has played a vital role in turning GameStop into a meme stock.

He turned his $53,000 investment into $50 million and is now back in the news after disappearing for three years.

What did he do? After disappearing in 2021, he became active on Monday posting an image of a video gamer leaning forward on their chair as if to indicate he’s taking the game seriously. The post garnered 63,000 likes in 13 hours and helped several stocks jump higher:

• GameStop last traded up 77% after soaring as much as 110%. Trading in GameStop was halted multiple times due to volatility.

• AMC, another meme stock, jumped 75%.

• Reddit traded 9% higher.

Experts, however, remain pessimistic and don’t look at GameStop as a good investment.

GameStop became one of the most talked about stock on Reddit on Monday after soaring higher. However, short sellers had a bad day losing over $1 billion in a day.

Up and down: Novavax stock jumped 50% as Sanofi deal kicks off turning point for struggling vaccine maker.

On the other hand, Sony’s annual 2023 operating profit for the full year came in at 1.2 trillion yen, down 7% year-over-year. The company missed its revised-down target for PlayStation 5 sales, with shipments totaling 20.8 million in the fiscal year 2023.

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💵 Personal Finance

Save tax money

We pay a lot of taxes. For the previous year, the federal income tax brackets in the US, for example, ranged from 10% to 37%. In some European countries, the amount goes even higher than 37%. There, however, are ways to save income tax money.

These include contributing max to your retirement account and starting a business. But, these are not your only options.

Firstly, tax planning needs to be a part of your financial plan. Most people think of taxes only when it’s time to file. This is a mistake because tax planning goes beyond the Form 1040.

Take control of your life by learning about available tax rebates that depend on factors such as your age, location, and nature of business. Some common options include:

• Child tax credit

• Lifetime learning credit

• Child and dependent care credit

• Student loan interest deduction

• Medical expenses deduction, etc.

In addition, you should know the right time to review your W-4. Adjusting your withholdings can help you keep more of your money and save income tax.

Look into deductions and tax credits ahead of time and make sure to keep a keen eye on available incentives as they change every year. There are great incentives for individuals who have children, who invest in green technologies, or who pursue higher education.

Be smart and evaluate your income sources, retirement accounts, and investment choices so you can save more tax money.

Here’s an interesting video on the topic:

💰 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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