Morning Download 

Personal finance + economics + markets

Good morning investors! Yesterday was an incredible day with good news coming from most sides, including the Fed.

Fun fact: Halloween has become a major commercial holiday with consumers now spending over $12.2 billion on Halloween.

Today we cover:

• No hikes anytime soon but some see a rate cut happening next year.

• Earnings - yesterday, today, and tomorrow.

• Americans don’t know where to put their money.

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📊 Economy and News 

No hikes anytime soon

The Federal Reserve’s rating-setting group on Wednesday unanimously agreed to hold the key federal funds rate in a target range between 5.25%-5.5%, where it has been since July.

Plus, the committee has upgraded the general assessment of the economy, which helps stocks rally. The Fed seems positive about the economy due to impressive labor and GDP numbers.

What about inflation? Core inflation is currently running at 3.7% on an annual basis, and the Fed aims to bring it down to 2%.

Not everyone’s onboard: Some experts, including DoubleLine’s Gundlach believe that interest rates will fall in 2024. He believes the economy will deteriorate next year and we might enter into a recession due to the worsening situation.

Global hits:

• Bank of England set to hold rates again.

• Southeast Asia’s digital economy is set to hit $218 billion in 2023.

• Weak currency pushes Toyota to raise annual profit forecast by 50%.

📈 Stocks

S&P 500 4,237.86 (1.05%)
DJIA 33,274.58 (0.67%)
NASDAQ 14,664.90 (1.77%)
BRENT CRUDE 85.56% (1.07%)
* Prices as of Nov 2nd, 12:20 AM UTC

Earnings everywhere

A lot appears to be happening in the world of stocks, let’s cover all the important happenings.

• Disney is buying the remaining Hulu stake from Comcast. The company expects to pay Comcast’s NBCUniversal about $8.61 billion by Dec. 1. 🐭 

• Airbnb reported its third-quarter earnings results after the bell, beating consensus estimates on revenue but falling short of expected guidance for the upcoming fourth quarter. 🏠

• Qualcomm reported fourth-quarter earnings on Wednesday that beat expectations for sales and earnings, despite big year-over-year declines, and gave a strong forecast for the current quarter. ☎️

Today: Apple is due to report earnings on Thursday after the closing bell. The options market is pricing in a 4.2% move in either direction right now. If you play it right, you might be able to benefit from this bet. 🍎 

For tomorrow: Gartner is expected to announce earnings on Friday. We aren’t very high on this stock, however, it is expected to beat earnings. If you own it then now might be a good time to sell (if not for a loss), otherwise hold. ✋ 

🔐 Crypto

Bitcoin $35,298 (0.40%)
Ethereum $1,835 (0.64%)
Total market cap $1.3T (2.27%)
* Prices as of Nov 2nd, 12:20 AM UTC

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

• Coinbase has launched regulated crypto futures services for US retail traders.

• Turkey aims to shed FATF ‘grey list’ status with new crypto regulations

• Bitcoin to hit $36K in November?

• BitGo has been granted a German crypto custody license by BaFin.

💵 Personal Finance

Most middle-income Americans are making this mistake

About 62% of Americans are still living paycheck to paycheck. There are several reasons why this is happening, including some poor financial choices.

One mistake: Most middle-income Americans still earn less than 3% on saving. Furthermore, about 22% of consumers still don't know how much they are earning on savings.

Why is this a mistake? Because there are better options, including higher paying saving accounts out there. In fact, the top 1% average of high-yield savings accounts offer over 5% in the US. If you go abroad, you will find accounts that offer over 10%.

Most middle-income Americans still aren't leveraging higher interest rates for savings.

But why? There are a variety of reasons such as a lack of information and no savings.

What to do then? It is time to rethink how you invest or save money.

Some people do not consider saving accounts or other such options because they do not have enough money saved.

We suggest these tips:

• Put your money. in a savings account but ensure it pays higher than the rate of inflation, which is currently at 3.7%. This means that people earning 3% are actually losing money.

• Compare different savings accounts and pick one that is the most beneficial. Don’t blindly go for the one with the highest interest rate because it might have some drawback. For example, it might have a high minimum or additional charges such as high withdrawal fees.

• You can go for international savings accounts but, for your ease, remember these tips:

  • Pick an account that can be opened and managed online.

  • Choose a USD account so that you do not lose value due to currency fluctuations, or choose a currency that doesn’t fluctuate a lot. For example, the Saudi Riyal and Emirati Dirham.

  • Choose a reliable bank and ensure you enjoy some kind of safety such as a guarantee.

Tip: You might be able to get a higher rate if you deposit money for a long time. We suggest this option because interest rate, at least in the US, is expected to go down in the future. The rate you get today will not be available tomorrow unless you lock it for a few years. However, there are also some drawbacks of this option, i.e.: the inability to withdraw funds as needed. You may have to pay penalties if you withdraw funds before the expiry of your deposit.

Check this video for more on choosing a bank:

💰 Be a Better Investor

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