😁 It's Meta's world

Together with Savvy Trader 

Good morning investors! It’s going great as 80% of S&P 500 earnings results have beat estimates and some more are expected to announce this week.

Today we cover:

• Strong earnings, weak guidance

• Meta hits a new high

• Using stocks to make money

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📊 Economy and News 

Great earnings but sad guidance

So far, this is turning out to be one of the best earnings seasons. Some very important S&P 500 companies, including Amazon, Meta, Apple, Chevron, ExxonMobil, Merck and Bristol Myers Squibb have reported smashing earnings.

Particularly notable are these sectors:

• Energy – About 90% of the companies have beat earnings estimates, with profits coming in almost 14% higher.

• Health care – About 85% have beat on the bottom line, with earnings coming in nearly 11% higher.

• Tech – About 84% have posted earnings beats, with earnings more than 5% higher.

But, as an investor, you should pay more attention to the future than the president, and the year may not end on such a bright note as both first-quarter and full-year 2024 earnings estimates have come down since Jan. 1.

A large number of companies have issued cautious guidance this earnings season.

Also, some not all players are equal. For example, Nvidia has been soaring but another chip provider, Intel, appears to be in trouble. It has plans to delay its $20 billion Ohio factory project, citing a slow chip market.

Global hits:

• Demand for new housing in China is set to drop by around 50% over the next decade.

• Finance worker pays out $25 million after video call with deepfake ‘chief financial officer’.

📈 Stocks

S&P 500 4, (+%)
DJIA 34, (+%)
NASDAQ 13, (+%)
BRENT CRUDE 13 (-%)
* Prices as of Jan 3rd, 12:20 AM UTC

Meta had an incredible day

Meta now stands at $474.99 after gaining 20.32% on Friday. This is not only its new 52-week high but also it's all time high.

The company gained more market cap in a single day than any other in history. The record-breaking day helped push Meta’s value to $197 billion. Mark Zuckerberg’s is now richer by $28 billion.

This helped the S&P 500 close at a record, rising for a fourth-straight week.

Last week’s biggest movers: sponsored by The Yellowbrick Road

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🔐 Crypto

Bitcoin $30, (-%)
Ethereum $1, (-%)
Total market cap $1. (-%)
* Prices as of Jan 3rd, 12:20 AM UTC

A look at crypto

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

• Bankrupt crypto lender Genesis seeks approval to sell $1.6B of trust assets.

• FTX’s missing $400 million were stolen in SIM-swapping hack, DOJ says.

• Crypto teacher loses student’s $1.2M investment in fake hedge fund.

• Coinbase officially ends Bitcoin SV support.

• European Union unveils global benchmark for AI regulation.

• Ethereum futures premium drops to 3-month low — Is ETH undervalued?

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Reminder: You can use Bitcoin to Buy anything on Amazon with Zellix.com.

💵 Personal Finance

Ways to make money with stocks - I

Buying and selling stocks is not the only way to make money with stocks. You can earn $$$ by using these tricks too.

Note that these all involve various degrees of risk and is not financial advice. Even if you don’t do any of these, it’s good to know how they work.

• Invest money in stocks that pay dividends to enjoy a regular flow of income. Companies usually pay about 4% dividends but some can go up to 20%. However, this income is not guaranteed and not all companies pay dividends so be careful.

• Bet where the price is going to move to earn money every time you’re right. The best thing about this option is that money is earned instantly. However, there’s a downside because it’s the same as betting, i.e. you’ll lose money if the price doesn’t move in your desired direction. Called spread betting, this technique doesn’t offer guaranteed results and isn’t popular among serious investors but it can still help you make money. Look at platforms like FxPro and Vantage to get started.

• Margin trading is essentially stock trading but it does not involve ownership. It involves borrowing money and using it to enter into trades. You deposit cash into your account, which is less than the amount you can use to trade. Popular among day traders, this technique can make or break you as rewards are exponential but you may lose a large sum of your investment if you don’t play well. Platforms like AvaTrade and XM offer margin trading;

   However, we suggest that you start with a demo account before investing real money and never use margin unless you know what you’re doing and never invest more than you’re willing to lose.

Watch this video for more on stock markets and corrections:

💰 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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