- Morning Download
- Posts
- 😮 Recession again?
😮 Recession again?
and why renting is better
Morning Download
Personal finance + economics + markets
Good morning investors! JPMorgan Chase CEO Jamie Dimon wants to ban crypto yet Bitcoin is still rallying.
Today we cover:
Time to fear a recession?
A look at stocks.
Why renting is better.
Follow us on Twitter for more.
🔈 Audio version: Apple Podcasts | Spotify | YouTube
📊 Economy and News
A recession is coming, warn bank CEOs
Citigroup CEO Jane Fraser thinks a recession is about to hit the US.
She blames “persistent inflation in services, rising debt [levels], a slowdown in global growth and two major conflicts in Europe and the Middle East,” for the increased recession risk.
JPMorgan Chase CEO Jamie Dimon seems to be on the same side. He issued a stark warning to Wall Street last week suggesting “inflation could rise further and recession is not off the table.”
Also check: The sell-off in the oil market accelerated Wednesday, with US crude prices sinking below $70 a barrel for the first time since July. This has pushed experts to make bold predictions, i.e.: gas prices to go below $3 a gallon.
Gas prices bottomed out at $3.10 a gallon in late December last year just before Christmas. The national average hasn’t been below $3 since May 2021.
Reminder: Minimum wage will increase next year in selected states.
Global hits:
Google launches Gemini, its most-advanced AI model yet, as it races to compete with ChatGPT.
The TV bundle is poised to make a big comeback in the streaming era.
Germany’s stock market just hit a new record high.
📈 Stocks
S&P 500 4,549.34 (-0.39%)
DJIA 36,054.43 (-0.19%)
NASDAQ 15,788.05 (-0.56%)
BRENT CRUDE 74.98 (+0.92%)
* Prices as of Dec 7th, 12:20 AM UTC
A look at stocks
A lot is happening in the world of stocks, here’s a roundup:
Tech: Meta, OpenAI, and Microsoft said they will use AMD’s newest AI chip, the Instinct MI300X, ditching Nvidia. This will impact all companies involved and might change the power dynamics. In addition, Meta has big plans. The company will roll out encryption to Messenger making it more secure. On the other hand, there seems to be no end to Elon Musk problems. Tesla’s safety is again a discussion and Norway has joined hands with Swedish workers in boycotting the company. On the plus side, Americans are more interested in EVs than ever and Elon Musk is seeking to raise $1 billion for his xAI firm.
Food and retail: Walmart CEO thinks next year will be challenging for retail. On the other hand, McDonald’s has big plans. The company plans to open nearly 9,000 restaurants, add 100 million loyalty members by 2027. Furthermore, it’s going to introduce bigger burgers in the future and has recently opened its first CosMc’s spinoff restaurant.
Medicine: AbbVie said it will acquire neuroscience drugmaker Cerevel Therapeutics for roughly $8.7 billion. The company will pay $45 per share for Cerevel and expects to complete the acquisition in the middle of 2024.
Sponsored by VantagePoint
3 Stocks You Have to Have and 1 to Avoid
Ready for a market revelation?
I've uncovered three game-changing stocks that are sending shockwaves through the market. These are not your run-of-the-mill picks—they're set to redefine the game. But wait...
I'm also revealing the one stock that savvy traders are steering clear of right now. The inside scoop might just redefine your strategy.
The December market is extremely volatile, and these insights are too potent to keep under wraps.
💵 Personal Finance
When can renting be better than buying

We asked our subscribers what they’d do if they had all the money in the world, and over 70% chose buying over renting. Most people believe that buying builds wealth, whereas renting makes others richer.
This might be true in most cases, but not in today’s scenario when rates are at an all time high and prices are skyrocketing. However, recent reports saw mortgage refinance demand jump 14% due to falling rates.
So, why is renting better than buying? Here are some reasons:
Renting is hassle free as you do not have to worry about maintenance or repair bills.
You get to save money as a renter's insurance policy costs less than a homeowners insurance policy – $179 per year versus $1,249 per year.
Renting makes it easier to budget since you will pay a fixed amount of money per year. Technically speaking, mortgage payments are also fixed. However, a large number of people have adjustable rates, which can result in fluctuations. In addition, property taxes also play a part and can end up costing a lot.
Renters enjoy greater flexibility. They can easily move to a bigger or smaller home based on their requirements. Such ease is not usually available when it comes to owning.
Renting offers peace of mind. You do not constantly have to worry about falling prices. At the same time, renters do not enjoy any perks when prices go up. In fact, the landlord might change prices (with notice) if there is an increase in demand. We must mention that a change in prices also impacts mortgage payments and insurance.
You do not need a lot of money to rent as the security deposit needed is typically several times lower than the amount needed to make a downpayment.
What if I have the money? Even if you have money, it might be a better idea to try other investment options such as stocks. Despite high prices, real estate has not offered the same returns as well as the stock market historically. This means that putting your money into stocks can be more profitable than putting it into a property.
We’re not asking you to NOT invest in property. Investing in property comes with many benefits, which we’ll cover in the next issue. At the end of the day, the choice is yours.
Some pros including Ramit Sethi, self-made millionaire and star of Netflix’s “How to Get Rich,” also believe that home ownership is overrated.
Check this video for more:
💰 Be a Better Investor
The most important thing to do if you find yourself in a hole is to stop digging.”
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.