👟 Nike slips again

Good morning investors! Stocks are soaring high but it’s time for the stock market to take a break. We’ll also be going on a (short) break and come back with a fresh newsletter on 12/26. Merry Christmas and Happy Holidays!

Today we cover:

• What’s happening in big economies. 🌎

• Nike falls. 👟 

• Where to park your money. 💰

Follow us on Twitter for more.

📊 Economy and News 

A look at different economies

The US is growing at a fast pace and some industries are expected to receive a major boost next year, including housing and cars. New car sales are expected to rise slightly next year in the country, making it a good time to invest in vehicle manufacturers. However, one has to be careful because names like Nio, Tesla, and Toyota are still facing challenges.

On the other hand, the UK is getting closer to recession. Revised figures showed the economy shrank in the previous quarter. The country's GDP fell by 0.1% between July and September, in a downward revision from the earlier estimate of flat growth.

Moreover, the situation in China is still messy. Alibaba is making internal changes and the country is struggling to come out of the crisis, yet regulations are taking a toll. Tencent has now lost over $43 billion in market value after China’s decision to introduce new online gaming rules.

Global hits:

• Angola leaves OPEC in blow to oil producer group.

• The US is considering adding tariffs on some Chinese goods, including electric vehicles.

• Elon Musk’s X set to launch payment services by mid-2024.

📈 Stocks

S&P 500 4,746.75 (+1.05%)
DJIA 37,404.35 (+0.87%)
NASDAQ 13, (%)(+1.05%)
BRENT CRUDEIX 79.64 (+0.23\%)
* Prices as of Dec 22nd, 12:20 AM UTC

Nike slips again

Nike is down -12.15% premarket after reporting disappointing earnings.

The numbers: Sales fell short of expectations for the second straight quarter. Revenue of $13.39 billion missed the expected figure of $13.43 billion, while earnings per share of $1.03 topped the expected $0.85.

What’s next? The company has reduced its annual revenue forecast and introduced a $2 billion cost-saving plan, signaling a strategy shift in favor of growing profit over sales as consumer spending remained weak.

But why? Nike blamed several reasons for the fall and weak outlook, including reduced consumer spending, weakening online business, and discounted prices. The company has plans to cut supplies of key product lines to manage costs. Furthermore, it was recently in the news for laying off workers for the same reason. In addition, more layoffs might be coming in 2024.

Other retailers such as Target and Walmart share the same consensus and many have lowered guidance.

Reminder: We had correctly predicted the result in our previous Pro issue as seen below:

Being a Pro member will give you access to such great tips and insights so you can trade wisely. Sign up today. New users enjoy the first month for FREE.

🔐 Crypto

Bitcoin $43,580 (+0.001%)
Ethereum $2,307 (+3.13%)
Total market cap $1.66T(+0.94%)
* Prices as of Dec 22nd, 12:20 AM UTC

All about crypto

Here’s what’s happening in the world of digital currencies:

• Ethereum price rallied by over 85% in 2023 and experts now see it having another great run in 2024 with a price target of $4,000.

• Only a day after flipping XRP, Solana has beat BNB in market cap following an 18% surge over the past 24 hours.

• Spain sees a 56% surge in registered crypto firms in 2023 with 30 companies receiving virtual asset service provider licenses in the country during 2023.

• Crypto users to reach almost $1B in 2024 with the number of users jumping to between 850 and 950 million.

💵 Personal Finance

Where to put your money

Worried about where to park your funds? Here’s your answer:

For short-term: We recommend high-yield savings accounts for people interested in short-term gains. Some US banks are offering up to 5% returns, which is better than the inflation rate of 3.14%. Check with your local bank. If they don’t have any, here are some of the best options:

For mid-term: Index funds and ETFs can be great for mid-term gains. Here’s the average stock market return for 5, 10, 20, and 30 years.

For long-term: Stocks, index funds and real estate are among the best options for long-term growth.

Here’s what U.S. real estate is projected to do this decade:

The housing market offers great returns with the ability to make even more money if you invest in the right property and perform suitable upgrades. Plus, it offers passive income in the form of interest. Not to mention the tax benefits.

The situation, however, is changing and cities that used to be the hub are not that attractive anymore. Here are some of the best US cities to invest in:

• Detroit, Michigan, with a home appreciation rate of 15.92%.

• St. Louis, Missouri, with a home appreciation rate of 14.94%.

• Fort Wayne, Indiana, with a home appreciation rate of 14.62%.

• Toledo, Ohio, with a home appreciation rate of 13.53%.

• Wichita, Kansas, with a home appreciation rate of 12.97%.

Not only are prices increasing in these cities, the home price index is also good with a decent rent-to-income ratio and low property taxes.

💰 Be a Better Investor

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