Together with CaskX

Good morning investors! 2024 is all red so play wisely.

Fun fact: Stocks always go back up, but you may have to give it 20 years to get a real positive return. In other words, stocks have never been negative for a given 20 year period.

Today we cover:

• Cut or no cut? The Fed seems unsure.

• Bitcoin is falling – Spot BTC ETF in danger.

• The cheapest and most expensive metro areas in the US.

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📊 Economy and News 

Is the Fed not serious about cutting rates?

In December, Federal Reserve officials reached the consensus that interest rate cuts are probable in 2024. However, the minutes from the meeting, released on Wednesday, did not offer much clarity on the specific timing of these cuts. The news sent stocks tumbling as investors wait with excitement to know more about cuts.

The committee has decided to maintain its benchmark rate within the range of 5.25% to 5.5%. Members have expressed anticipation for three quarter-percentage point reductions by the conclusion of 2024.

Worryingly, the meeting summary offered little certainty over how, or if, that will happen.

Officials highlighted some positive points, including inflation that has started to come down and a cooling labor market. But, a large number of officials hinted at potential hikes and the need to “keep the funds rate at an elevated level if inflation doesn’t cooperate.”

Will it hit 2%: Yes, but not anytime soon. The “dot plot” of individual members’ expectations released following the meeting showed that participants expect cuts over the coming three years to bring the overnight borrowing rate back down near the long-run range of 2%.

Global hits:

• Turkish inflation climbs to nearly 65%, with more rises expected.

• Saudi Arabia’s sovereign wealth fund overtakes Singapore’s GIC to top spending table.

• Red Sea crisis boosts shipping costs, delays – and inflation worries.

Reminder: U.S. national debt is now at a new high of $34 trillion.

Surprising: Gas prices are now under $3 per gallon at most US stations with some now predicting it to go below $3 despite the global situation.

📈 Stocks

S&P 500 4,704.81 (-0.80%)
DJIA 37,430.19 (-0.70%)
NASDAQ 16,368.49 (-1.06%)
BRENT CRUDE 78.35 (+0.13%)
* Prices as of Jan 4th, 12:20 AM UTC

Another red day for the market

The year remained red as the Nasdaq Composite fell for a second day yesterday, building on its worst daily performance in about three months. Almost all major technology stocks with the likes of Apple and Nvidia losing about 4% in five days.

Expert see this as a short-term correction but some are ringing alarms regarding specific stocks. For example, faith in Apple is dwindling and many are selling Meta.

Good for GM: General Motors’ U.S. vehicle sales jumped 14.1% in 2023 making it the automaker’s best year since 2019. The numbers are in line with expectations for overall industry sales. Buick proved to be the company’s top performing brand, followed by Chevrolet. More importantly, GM expects the robust demand to carry over into 2024 and forecast total industry sales of 16 million units for the year. Despite the news, the stock fell 2.16% during the day.

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🔐 Crypto

Bitcoin $42,688 (-0.39%)
Ethereum $2,208 (-0.07%)
Total market cap $1.63T (-5.44%)
* Prices as of Jan 4th, 12:20 AM UTC

The SEC to reject spot bitcoin ETF?

Crypto investment firm Matrixport said in a report the SEC will reject applications for spot bitcoin ETFs this month.

This lack of certainty sent Bitcoin and other cryptocurrencies falling with the BTC now hovering around $42,000 after briefly crossing the $45,000 mark two days ago.

The firm doesn't anticipate approval until at least the second quarter of 2024. It predicts crypto to crash by about 20% due to the rejection.

💵 Personal Finance

The cheapest and most expensive metro areas in the US for a single family rental

Single-family rentals are expensive and prices are expected to remain high as more and more Americans choose to rent due to high mortgage rates. We expect the rate to go lower but it will be a while before it goes to a decent number.

A report from national real estate brokerage HouseCanary analyzed single-family detached listings and identified the most expensive and most affordable metro areas to rent in.

Most expensive metro areas:

• Los Angeles, Long Beach, and Anaheim, California: $4,984

• San Diego; Carlsbad, California: $4,862

• Naples, Immokalee, and Marco Island, Florida: $4,821

• Bridgeport, Stamford, and Norwalk, Connecticut: $4,750

• San Jose, Sunnyvale, and Santa Clara, California: $4,629

Most affordable metro areas:

• Little Rock, North Little Rock, and Conway, Arkansas: $1,267

• Montgomery, Alabama: $1,394

• Birmingham and Hoover, Alabama: $1,441

• Louisville and Jefferson County: $1,492

• Cleveland and Elyria, Ohio: $1,506

Due to such huge differences, about 40% of Americans are planning to move this year. However, there are some hidden costs that one has to consider.

You will not only have to pay your agent but also to the moving company. Plus, it costs to find a new job. Moving might be more suitable for people who already have a job in the new city or who work remotely.

If you’re planning to move to a new city then do some research and know possible issues you may face when moving to a different city, state, or country.

Check this video for more on top cities people are moving to in the country:

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