😢 Mortgage rates up again

Good morning investors! Weaker-than-expected producer prices gave the market a new lease of life yesterday.

Today we cover:

• Mortgage rates are up again.

• The S&P 500 is going high.

• Earning passive income

📊 Economy and News 

Mortgage rates are up again

Mortgage rates drifted higher this week, and could increase further, in a sign that America’s affordability crisis isn’t letting up.

The 30-year fixed-rate mortgage averaged 6.88% in the week ending April 11, up from 6.82% the previous week. A year ago, the average 30-year fixed-rate was 6.27%.

Rates have mostly held steady in the past several weeks, but they could rise even higher, potentially crossing the uncomfortable psychological threshold of 7%, if inflation remains stubborn.

The Fed doesn’t directly set rates, but its actions can have an influence on them, and hotter-than-expected inflation readings could keep the central bank from reducing interest rates.

Global hits:

• Europe launches subsidies probe into Chinese wind turbine suppliers.

• China will remain the world’s No. 1 growth driver, says the Asian Development Bank.

• Goldman still expects U.S. inflation to fall significantly as markets alarmed by recent rise.

📈 Stocks

S&P 500 5,199.06 (+0.74%)
DJIA 38,459.08 (-0.0064%)
NASDAQ 18,307.98 (+1.55%)
BRENT CRUDE 90.88 (+0.32%)
* Prices as of Apr 12th, 12:20 AM UTC

S&P 500 closes higher

The S&P 500 jumped and the Nasdaq Composite closed at a record Thursday as tech shares climbed higher, rebounding from an earlier pullback over concerns of persistent inflation.

Technology stocks lifted the S&P 500 and Nasdaq Composite into positive territory midday Thursday as investors bought into the dip from earlier in the week.

A host of “Magnificent Seven” members rallied, including Nvidia, Amazon, Apple, and Alphabet. Apple was in the news after Bloomberg News reported that the company would transition its Mac product line to AI-focused chips, helping the iPhone maker registered its best day since May 2023.

Earning: The early stages of earnings season continued Thursday, with CarMax falling more than -9% after disappointing on both top and bottom lines.

🔐 Crypto

Bitcoin $70,312 (+0.42%)
Ethereum $3,514.54 (+0.32%)
Total market cap $2.6T (+0.022%)
* Prices as of Apr 12th, 12:20 AM UTC

Look at crypto

Here’s all you need to know about crypto now that BTC is once again back above $70K.

• Coinbase to launch perpetual futures for PEPE.

• Bitcoin mining difficulty marks new high before halving.

• The owner of Thai crypto exchange Bitkub Online, which plans to sell shares to the public next year, could be valued as high as $3 billion.

• FTX founder Sam Bankman-Fried appeals fraud conviction.

💵 Personal Finance

Try these 5 ways to earn passive income

If passive income is not yet included in your income sources then it’s time to make some changes. It’s good to work but you should also have a source of income that doesn’t require you to work regularly so you can take breaks, relax when the situation gets tough, and continue to have fun.

Here are some great passive income sources to consider:

Peer-to-peer lending

A peer-to-peer (P2P) loan is a personal loan made between you and a borrower, facilitated through a third-party intermediary such as Prosper and HappyMoney.

You can earn interest on the amount loaned with some borrowers paying up to 10%.

Risk: The loan is unsecured, i.e.: not guaranteed.

Though passive, it can take a while to master the metrics of P2P lending. If you are looking at this as a source then spend some time understanding how it works and what you can do to reduce the risk.

Dividend stocks

Dividend-yielding stocks can offer great returns. The more shares you have, the more money you can make in dividends. But, in order to make a good amount of money, you will have to invest at least $100,000 since the average S&P 500 Dividend Yield is only 1.62%.

Risk: Dividends aren’t guaranteed and not all dividend yielding firms are worth investing in.

Open a high-yield savings account

A high-yield savings account generates passive income by offering a higher interest rate than traditional savings accounts. We are living in a high rate environment and some banks in the US are offering over 5% interest rates with many international banks even offering up to 10%.

This interest is essentially "free money" that accumulates as your savings grow.

Risk: There isn’t much of a risk other than the rate of inflation going higher than the rate of interest, which reduces your buying power. Also, banks can go bankrupt, as seen in recent times, so choose wisely.

Rent out your space

You can rent out everything from your home to your garage to your parking space. In fact, even backyards and pools are being rented out now.

Risk: Renters might cause damage to your property.

Still, we think it is a great option because money this option pays well. Homes can earn you over $3,000 per month, garages pay about $1,000 per month, and parking can make you over $500 per month (based on location, size, etc.).

Let others make you money

Not interested in starting a business? It’s time to bet on others. Platforms like Mainvest make it possible to invest in businesses with as low as $100. It’s the same as buying stocks, i.e.: you’re betting on someone else. However, returns can be exponential – up to 25% in some cases.

Risk: Not all businesses will succeed so you have to do some research.

Some platforms, however, offer greater ease. For example, Mainvest even vets businesses for members.

Check this video for more ideas:

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💰 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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