Good morning investors! Yesterday belongs to Tesla as the overall market remained silent.
Today we cover:
Mortgage rate continues to jump
Tesla’s best day in over a decade
Retirement planning
📊 Economy and News
US 30-year fixed-rate mortgage rises to 6.54%
U.S. mortgage rates increased for the fourth consecutive week, with the average 30-year fixed-rate mortgage rising to 6.54%, up from 6.44% last week.
This is happening despite lower interest rates as potential buyers are hesitant, partly due to seasonal factors and expectations of further rate reductions. Also, economic data, such as stronger-than-expected job growth and solid retail spending, has pushed bond yields higher, influencing mortgage rates.
Moroever, government borrowing and fiscal challenges may also be impacting mortgage rates. With a looming presidential election and growing national debt concerns, experts warn that deficits could hinder rate declines, affecting housing affordability.
Global hits:
Nvidia doubles down on India with Hindi language model and major partnerships.
Bank of Japan cautiously upbeat on US outlook, warns of jittery markets.
Chinese smartphone maker Oppo doubles down on AI, says in regular talks with Google and Microsoft.
Interesting: Microsoft has filed with the SEC, signaling potential interest in investing in Bitcoin. The company proposed an "Assessment of Investing in Bitcoin," which will be voted on at the shareholder meeting on December 10.
Worrisome: Spirit AeroSystems weighs hundreds more furloughs or layoffs if Boeing strike goes beyond Nov. 25.
📈 Stocks
S&P 500 5,809.86 (+0.21%)
DJIA 42,374.36 (-0.33%)
NASDAQ 18,415.49 (+0.76%)
BRENT CRUDE 74.33 (-0.77%)
* Prices as of Oct 25th, 12:20 AM UTC
Tesla’s Best Day in over a Decade
Tesla shares surged +22% to close at $260.48 on Thursday, marking the stock’s strongest day since 2013, driven by better-than-expected earnings.
CEO Elon Musk predicted vehicle growth of 20-30% for 2025, citing lower-cost models and advancements in autonomy. However, analysts remain skeptical. Deutsche Bank projected more conservative growth at 10-15%, assuming a cheaper Model Y variant under $30,000, while Morgan Stanley set their forecast at 14%.
Musk also discussed plans for driverless ridehailing and the launch of the Cybercab by 2026, though analysts doubt the near-term feasibility of Tesla's autonomous tech. Despite the rally, Tesla's stock is only up 3% for the year, trailing the Nasdaq’s 22% gain.
Do you trust Musk's announcement?
Shocking: In a U.S. regulatory filing, Lilium — which is listed on the Nasdaq — said it had not been able to raise sufficient additional funds to continue the operations of Lilium GmbH and Lilium eAircraft GmbH. The German aerospace startup’s shares plunged 45% following the news.
Barclays Bites: British bank Barclays on Thursday reported £1.6 billion ($2 billion) net profit attributable to shareholders for the third quarter, beating expectations. The result compared with the £1.17 billion net profit forecast in an LSEG poll of analysts and was 23% higher than the same period in 2023.
Revenue for the period came in at £6.5 billion, slightly ahead of a forecast of £6.39 billion. This helped the stock reach their highest level at £248.05 since October 2015.
Exciting: Nvidia supplier SK Hynix posts record quarterly profit as AI boom drives demand. Elsewhere, American Airlines has lifted profit view on higher pricing, sales strategy correction.
Sponsored by Gold Rush Patriot
Take advantage of the rising demand for gold and silver, and profit from the "perfect storm" created by the current world economy.
The shiny yellow metal is expected to cross $3,000 next year, making it a rewarding investment. Plus, it can even be a part of your retirement account.
Check this free guide on gold IRA and its many benefits.
💵 Personal Finance
Planning for retirement
It doesn’t matter what stage you are in, it’s important to start retirement planning now. We emphasize this even if you have no plans to retire in the near future.
Even big and successful entrepreneurs, such as Warren Buffett, who do not plan to retire anytime soon indulge in retirement planning.
The image below shows when the average American retires:
The image below shows how much the average American retiree has:
Unfortunately, most people don’t plan well for retirement and won’t have enough money. Don’t be like them. Don’t solely look at this data and try to hit the number by age. That would leave you unprepared.
Instead, answer these questions:
How much do you need to retire? Don’t look at averages or how much others are saving, decide based on the type of life you wish to live once you hang the boots. You can use this formula to decide how much you need to retire. Moreover, you can use our retirement calculator as well.
When do you wish to retire? As seen above, most people start to retire in their 50s but a growing number of people are retiring at a young age and some are working beyond their 60s.
See how much you have to save per month to reach your retirement goal. Remember that something is better than nothing. Merely saving $100 per month can give you $12,000 by the end of the year. Moreover, you can increase this amount by investing smartly.
Decide how and where you intend to save. Consider investing in a 401(k) or similar account if your employer offers that option. Start as high as you can and gradually expand your contributions toward the IRS limit that stands at $22,500, or $30,000 for those 50 or older. Also, be very careful about what you keep in your retirement account. Some good options include index funds and precious metals as they’re safe and less volatile than options like stocks and digital coins.
Spend a good amount of time on the retirement section when creating a financial plan because it impacts how happy you will be in your later years and what you’ll be able to do.
Check this incredible video for more tips:
💰 Be a Better Investor
“Value investing is at its core the marriage of a contrarian streak and a calculator.”
Resources:
What did you think of today's newsletter?
👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.