🪔 What to expect this week

and big earnings coming

Good morning investors! This is going to be a very busy week so buckle up.

Today we cover:

  • What to expect this week

  • Big tech earnings

  • Why renting is better

Remember: Construction enjoys a 5% CAGR, which makes construction-related stocks more valuable. We covered one such stock (Home Depot) in this week's PRO issue, which you can access here. Find out our rating by upgrading to the PRO membership, which comes with additional perks at just $3.99 per month (discounted).

📊 Economy and News 

What to Look Forward to This Week

Markets face a turbulent week with key U.S. economic data, tech earnings, and pre-election uncertainty. With the Federal Reserve’s upcoming meeting, investors await signals on interest rate moves amid recent payroll and GDP figures.

U.S. Economic Data and Fed Watch

Friday’s jobs report, impacted by strikes and weather, is expected to show modest growth with unemployment steady at 4.1%. Fed officials may look past temporary factors, but upcoming JOLTS and jobless claims data will be critical for insights into labor market health. Meanwhile, GDP is expected to show 3% growth for Q3, and core PCE inflation data will be closely monitored as the Fed decision looms.

Pre-Election Market Sensitivity

With the November 5 election and the November 7 Fed meeting approaching, volatility is expected. The tight race between Trump and Harris keeps market sentiment fragile, as UBS notes, and investors remain wary of potential swings.

Oil Market Response to Middle Eastern Tensions

Oil prices may dip on Monday as Israel’s recent strikes on Iran avoided energy infrastructure, despite past volatility over regional conflict. Traders also await any impact from China’s stimulus efforts on oil demand, though a significant boost is unlikely.

This high-stakes week will test economic resilience and market nerves, with major implications for Fed policy and investor outlook as the election draws near.

Global hits:

Good to know: Sentiment rose in October for the third consecutive month, reaching its highest level since April. Americans’ expectations for inflation rates in the long run also edged lower this month.

Worth checking: Iceland’s economy is outperforming most European peers after the nationwide introduction of a shorter working week with no loss in pay.

Do you support a 4 day work week?

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📈 Stocks

S&P 500 5,808.12 (-0.030%)
DJIA 42,114.40 (-0.61%)
NASDAQ 18,518.60 (+0.56%)
BRENT CRUDE 76.03 (+2.24%)
* Prices as of Oct 28th, 12:20 AM UTC

Big Week for Tech

The market’s largest players, Alphabet, Microsoft, Meta Platforms, Apple, and Amazon, are all set to report earnings this week.

These five companies represent a significant 23% of the S&P 500’s total weight, and their performance could sway broader indexes.

Tesla, which reported last week, saw a boost in its stock as CEO Elon Musk projected 20%-30% vehicle sales growth for next year.

While tech companies have consistently outperformed the broader S&P 500, this earnings season may see that gap narrowing.

Exciting: Prime members can now add “fuel discounts” to their ever-growing list of benefits.

Reminder: Boeing and other strikes will take at least a 44,000-job bite out of the October jobs report.

Sponsored by BreakingPoint

An urgent warning from Porter Stansberry, the man who predicted the Great Financial Crisis, the fall of General Motors and the inflation engulfing America:

“Buy this stock before November 5 – or risk losing 50% of your wealth, even more.”

  • The colliding forces that could be about to cleave the markets in two and decimate the wealth of millions

  • How the next President – whether it’s Harris or Trump – will unwittingly ignite the coming crisis

  • The three stocks to sell BEFORE Election Day

  • Porter’s #1 investment to make now, to help you grow your wealth

💵 Personal Finance

When can renting be better than buying

Most people believe that buying builds wealth, whereas renting makes others richer.

This might be true in most cases, but not in today’s scenario when rates are at an all time high and prices are skyrocketing. However, recent reports saw mortgage refinance demand jump due to falling rates.

So, why is renting better than buying? Here are some reasons:

  • Renting is hassle free as you do not have to worry about maintenance or repair bills.

  • You get to save money as a renter's insurance policy costs less than a homeowners insurance policy – $179 per year versus $1,249 per year.

  • Renting makes it easier to budget since you will pay a fixed amount of money per year. Technically speaking, mortgage payments are also fixed. However, a large number of people have adjustable rates, which can result in fluctuations. In addition, property taxes also play a part and can end up costing a lot.

  • Renters enjoy greater flexibility. They can easily move to a bigger or smaller home based on their requirements. Such ease is not usually available when it comes to owning.

  • Renting offers peace of mind. You do not constantly have to worry about falling prices. At the same time, renters do not enjoy any perks when prices go up. In fact, the landlord might change prices (with notice) if there is an increase in demand. We must mention that a change in prices also impacts mortgage payments and insurance.

  • You do not need a lot of money to rent as the security deposit needed is typically several times lower than the amount needed to make a downpayment.

What if I have the money? Even if you have money, it might be a better idea to try other investment options such as stocks. Despite high prices, real estate has not offered the same returns as well as the stock market historically. This means that putting your money into stocks can be more profitable than putting it into a property.

We’re not asking you to NOT invest in property. Investing in property comes with many benefits, which we’ll cover in the next issue. At the end of the day, the choice is yours.

Some pros including Ramit Sethi, self-made millionaire and star of Netflix’s “How to Get Rich,” also believe that home ownership is overrated.

Check this video for more:

💰 Be a Better Investor

“If you would be wealthy, think of saving as well as getting.”

Benjamin Franklin

Resources:

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