Morning Download 

Personal finance + economics + markets

Together with Danelfin

Good morning investors! Stocks remained silent yesterday after a stellar performance in November.

Today we cover:

• New home sales are down. 🏡 

• Shein will soon be listed on US exchanges. 👗 

• Save capital gains tax. 💵 

Follow us on Twitter for more.

📊 Economy and News 

New home sales took a hit last month

New home sales in the United States fell in October as typical mortgage rates reached their highest levels this year.

The numbers: Sales of newly constructed homes fell 5.6% in October to a seasonally adjusted annual rate of 679,000, from a revised rate of 719,000 in September. Despite a fall, sales were still up 17.7% from a year ago.

This was below analysts’ expectations of an annualized sales pace of 723,000.

While sales of existing homes have been trending down since February and are on pace to be the worst in 30 years, new construction homes have been a welcome alternative for buyers.

Global hits:

• Jack Ma is betting on a new food business in China.

• Apple iPhone maker Foxconn to invest $1.5 billion in India as it looks to build beyond China.

• Coinbase CEO says the crypto industry can turn the page after the historic Binance settlement.

📈 Stocks

S&P 500 4,550.43 (-0.20%)
DJIA 35,333.47 (-0.16%)
NASDAQ 15,961.98 (-0.13%)
BRENT OIL 79.94 (-0.05%)
* Prices as of Nov 28th, 12:20 AM UTC

Shein is coming to the US

Shein has confidentially filed to go public and is moving forward with its long-rumored IPO. The company has tapped Goldman Sachs, JPMorgan and Morgan Stanley to be the lead underwriters on the offering.

A confidential filing means the company will not make its communication with the U.S. Securities and Exchange Commission public until it is ready to move forward with its IPO.

What’s Shein? Shein is a fast-fashion retailer that produces thousands of garments and accessories at a rapid pace. The retailer was last valued at $66 billion, more than big names like Zara and H&M.

Founded by Chinese entrepreneur Chris Xu in 2012, the company serves customers in more than 150 countries and employs over 11,000 people.

Is it good news? It could be. Shein is a popular name with the potential to go big in the US. The IPO market is fast growing and the company could provide great returns.

But there are challenges: Shein has work to do before it can win the trust of U.S. regulators. The company has been in the news for using forced labor in its supply chain, violating labor laws, harming the environment and stealing designs from independent artists.

It is currently under investigation by the newly formed House Select Committee on the Chinese Communist Party and has faced scrutiny over its ties to Beijing. Numerous lawmakers, including 16 Republican attorneys general, have called on the SEC to ensure Shein isn’t using forced labor in its supply chain before it’s allowed to start trading in the U.S.

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🔐 Crypto

Bitcoin $37,046 (-0.53%)
Ethereum $2,009 (-0.87%)
Total market cap $1.4T (-1.54%)
* Prices as of Nov 28th, 12:20 AM UTC

A look at the crypto world

• ARK Invest sells more Grayscale Bitcoin Trust holdings as the discount narrows.

• Ripple excites the XRP army as the Metaco acquisition brings banks closer. Metaco, the Swiss digital assets custody firm acquired by Ripple earlier this year, is working with HSBC, one of the world's largest banks, which could help the coin attract more attention.

• Crypto exchange HTX reinstates Bitcoin services after $30M hack. The company expects functionality for other cryptocurrencies to gradually be reinstated, with full services returning by next week.

• Bitcoin (BTC) and Ethereum (ETH) moved sideways early in the weekend. US regulatory scrutiny remains a headwind as investors await spot ETF decisions. The world’s most popular coin has been struggling to stay above $38,000. However, analysts are still bullish.

• Inferno Drainer, one of the most popular crypto wallet-draining kits for hire, says it is shutting down for good after helping phishing scammers steal nearly $70 million worth of crypto this year.

💵 Personal Finance 

Save capital gains tax

Capital gains tax is a tax imposed on the profit realized from the sale of an asset, such as stocks, bonds, real estate, or other investments. The capital gain is the difference between the sale price of the asset and its original purchase price. If the selling price is higher than the purchase price, a capital gain is generated.

It can take out a large chunk of your profit, but there are ways to enjoy tax rates as low as 0% if you meet certain income requirements. The chart below explains it:

Here are the figures for 2024:

If you own assets such as cryptocurrency for more than one year, you qualify for long-term capital gains tax rates of 0%, 15% or 20%.

In 2023, single filers can earn up to $44,625 in taxable income — $89,250 for married couples filing jointly — and still pay 0% for long-term capital gains.

The 0% long-term capital gains brackets are even higher for 2024, with taxable income of $47,025 or less for single filers and $94,050 or less for married couples filing jointly.

Tip: This strategy needs to be used intelligently because tax gains harvesting may often be more beneficial than tax loss harvesting. Tax-loss harvesting is when you sell some of your investments at a loss to help offset capital gains. On the other hand, tax gains harvesting is when you recognize a gain on the sale of securities to incur a smaller amount of tax on that sale.

You need to know which strategy to use when. For example, tax-loss harvesting can be good for crypto investors because of a wash sale loophole. This makes the tax gain strategy more effective as it allows investors to sell at a gain and pay no tax, whereas tax loss harvesting only defers future tax.

Check this video for more on 0% capital gains tax:

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

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