Together with Harmonic

Good morning investors! Everyone’s excited about BTC ETFs but you can’t ignore stocks now that the earnings season is on.

Today we cover:

• Inflation is yet to be defeated.

• A little more about Bitcoin ETF.

• The cost of raising kids (part II).

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📊 Economy and News 

Inflation: down but not out

The consumer price index increased 0.3% in December and 3.4% from a year ago. Economists polled by Dow Jones had predicted that the CPI rose 0.2% in December and 3.2% on a year-over-year basis.

Excluding volatile food and energy prices, the so-called core CPI also rose 0.3% for the month and 3.9% from a year ago, compared with respective estimates of 0.3% and 3.8%.

Much of the increase came due to rising shelter costs. The category rose 0.5% for the month and accounted for more than half the core CPI increase.

Wages adjusted for inflation posted a 0.2% gain on the month, while rising a modest 0.8% from a year ago.

What does it mean? This means that we might not see a rate cut anytime soon.

Yet, traders expect a cut in March with the CME Group’s FedWatch showing a 69% probability of a March reduction, slightly higher than where it stood Wednesday.

Global hits:

• U.S. deficit tops half a trillion dollars in the first quarter of fiscal year.

• TSX pulls back from 20-month high as financials slide.

• Indian economy may grow at 6.2% next fiscal due to neutral policy settings, positive credit momentum.

Also check: Mortgage rates inch up for the second week in a row, landing at 6.66%

📈 Stocks

S&P 500 4,780.24 (-0.067%)
DJIA 37,711.02 (+0.041%)
NASDAQ 16,820.90 (+0.17%)
BRENT CRUDE 77.41 (+0.67%)
* Prices as of Jan 12th 12:20 AM UTC

Tech companies are back to firing people

Tech companies are downsizing again. A few days ago, Twitch fired 500 workers, followed by Duolingo firing about 10% of its workforce.

And now, other big organizations are joining the list. Google yesterday cut hundreds of jobs across engineering, hardware teams to improve efficiency and control costs.

Amazon has also joined the list of companies firing workers as its Audible unit has recently laid off about 5% of its staff.

Lastly, in a shocking move, Discord is cutting its workforce by 17%.

Layoffs are happening in other industries too. Earlier this week, Unity Software said it would lay off 25% of its workforce, while security firm Trend Micro said it would cut 2% of its global staff.

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🔐 Crypto

Bitcoin $46,420. (-0.55%)
Ethereum $2,619 (+1.33%)
Total market cap $1.77 (-0.81%)
* Prices as of Jan 12th, 12:20 AM UTC

More about Bitcoin ETF

Bitcoin briefly hit the $49,000 mark earlier Thursday before falling to just above $46,000. The moves follow Wednesday’s ETF approval that will now make it easy to trade Bitcoin.

Investors will be able to buy and sell shares in the new funds via brokerage accounts. A total of 11 ETFs have been approved, including:

• The Grayscale Bitcoin Trust (GBTC), the Bitwise Bitcoin ETF (BITB), and the Hashdex Bitcoin ETF (DEFI) on the NYSE Arca.

• The ARK 21Shares Bitcoin ETF, the Invesco Galaxy Bitcoin ETF, the VanEck Bitcoin Trust, the WisdomTree Bitcoin Fund, the Fidelity Wise Origin Bitcoin Fund, and the Franklin Bitcoin ETF on Cboe BZX.

• The iShares Bitcoin Trust and the Valkyrie Bitcoin Fund on Nasdaq.

There is a fee associated with these trades. Check official sites for the latest costs. Bitwise is among the cheapest with a 0.20% management fee and most are under 0.30%.

💵 Personal Finance

The cost of raising a child

Let’s resume yesterday’s topic and look at more costs associated with bringing up children:

Healthcare

Healthcare includes insurance premiums, drugs, and more. Most families spend about $600 per year on health care. However, the amount can increase drastically if you do not have insurance or if your child requires expensive treatment.

Tip: Get insurance to save money.

Miscellaneous Expenses

In addition to the expenses discussed above, you will spend heavily on the following:

• Clothing: Most families spend about $500 per month on garments. Again, the amount can increase dramatically if you buy branded clothes.

• Entertainment: This includes movies, theme park visits, and more. A great way to save money is to find places that offer discounts to children or are free to visit. Parents in the US spend about $1,300 on entertainment for children.

• Travel: It’s believed that transportation costs — gas, car payments, insurance, airline fares, and public transportation — typically peak when children are between the ages of 15 and 17. The average family in the US spends $747 per month on transportation.

In addition, you will be spending money on necessities and luxuries such as football lessons, haircuts, toothbrushes, and more. These items add up to about $300 per month.

So, should you have kids? How many?

This is a personal decision and we cannot answer it for you. Plus, when you look at the chubby cheek of a baby, money doesn’t seem to matter that much.

One has to look not just at the financial side but also the emotional side of having a baby.

Parenting is a big responsibility. You will not only need more money but time as well. However, since this is a personal finance letter, we’re mainly going to look at it from the perspective of money.

The truth is that having kids can prove to be financially beneficial. Based on your location, you might enjoy certain perks such as discounted prices, access to more government programs, and affordable interest rates.

Check this video for more:

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