🕺 Trump picks Scott Bessent

and Macy's in a mess

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Good morning investors! Greed is ruling the market as BTC takes a break and stocks continue to create history.

Today we cover:

  • Investors love Trump’s new pick

  • Macy finds new issues

  • Tax free incomes – II

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Subscribe today to know more about what to expect from BTC after it hits $100k.

📊 Economy and News 

Business Leaders Applaud Trump's Treasury Pick Amid Market Gains

Business leaders expressed relief as President-elect Donald Trump named Scott Bessent to lead the Department of Treasury, signaling a more conventional choice amid some of his unconventional cabinet picks.

Bessent, a hedge fund executive with a global investment pedigree, has worked alongside legendary money managers and boasts a bipartisan history of political support. His selection has reassured both business leaders and financial markets, which have been eager for stability in this critical role that will face immediate economic challenges.

On Monday, the markets reflected this optimism. The Dow Jones Industrial Average soared to a record high of 44,737, gaining 440 points (just under 1%). Meanwhile, the S&P 500 rose by 0.3%, and the Nasdaq Composite inched up 0.27%. Treasury yields dipped, and the dollar weakened.

Also, The Russell 2000 index tracking small cap companies in the U.S. hit a record high on Monday. The index hit an all-time high of 2,458.9913 and was last up 2.1%, eclipsing the previous high it touched three years ago. The index has gained more than 8% since the Nov. 5 U.S. presidential election.

“This choice brings huge relief,” said Jeffrey Sonnenfeld, founder and president of the Yale Chief Executive Institute. “Bessent is a reasonable and pragmatic leader.”

Support for Bessent extends to top Wall Street figures, including JPMorgan Chase CEO Jamie Dimon, who reportedly regards Bessent as an excellent fit for the role.

Despite this endorsement from the financial sector, questions remain about Bessent's impact beyond Wall Street.

"Wall Street may be breathing a sigh of relief at Scott Bessent’s nomination, but working people see no help coming their way,” stated Senator Elizabeth Warren, soon to lead Democrats on the Senate Banking Committee. “Mr. Bessent’s expertise lies in helping wealthy investors grow their fortunes, not in alleviating the struggles of families squeezed by corporate profiteering.”

While investors cheer the appointment, it remains to be seen if Bessent’s leadership will address the concerns of Main Street alongside those of Wall Street.

Global hits:

WOW: Elon Musk has never been richer. He’s now worth nearly $350 billion. Also, light vehicle sales in the U.S. for the month are expected to rise to about 1.31 million units, from 1.23 million units last year, a jump of 6%.

Good to know: Egg prices at the grocery store were up 30.4% in October from the year prior and are expected to go even higher. Also, Warren Buffett spoke out against creating family wealth dynasties, gave away another $1.1 billion.

What do you do when something (such as egg) becomes expensive?

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📈 Stocks

S&P 500 5,987.37 (+0,30%)
DJIA 44,736.57 (+0,99%)
NASDAQ 19,054.84 (+0.27%)
BRENT CRUDE 72.32 (-2.01%)
* Prices as of Nov 26th, 12:20 AM UTC

Macy’s in a Mess

Macy’s posted preliminary third-quarter results but delayed its full earnings report as it investigates up to $154 million in erroneously reported expenses.

The company said it discovered the issue when it was preparing its earnings, adding the employee who hid the expenses no longer works at the company.

The retailer said third-quarter sales fell, and expects to post full-year guidance by Dec. 11.

Exciting: Deutsche Bank sees the S&P 500 hitting 7,000 in 2025 on the back of rising risk appetite. Elsewhere, Kohl’s CEO Tom Kingsbury to step down in January, to be replaced by Michaels CEO Ashley Buchanan.

Surprising: The auto industry is pulling back on its ‘capital junkie’ tendencies after unprecedented spending on EVs, self-driving.

💵 Personal Finance

Incomes that are tax free - Part II

Here are some more incomes that are not taxed in the US:

Employer-Provided Insurance

"In most cases, the value of accident or health plan coverage provided to you by your employer is not included in your income," according to the IRS.

This includes everything from employer-provided long-term care insurance to health insurance provided by your employer through companies like Blue Cross, and reimbursement and coverage for medical care provided through a health reimbursement arrangement.

Furthermore, there are other exceptions, including no tax on the cost of up to $50,000 of employer-provided group term life insurance.

Complicated? Let’s make it simple. ⬇️

It means that you do not owe any tax on the amount your employer pays to give you a life insurance policy. for as long as the death benefit does not cross $50,000. However, if the benefit crosses this amount (say $70,000), you will pay tax on the cost paid by the employer to cover the extra $20,000.

Life Insurance Payouts

Losing your loved ones can be devastating and the government understands that. This is why life insurance benefits are tax free; however, there are some exceptions.

You will pay taxes in these conditions:

  • You cash in or convert a life insurance policy

  • You receive accelerated benefits because you're terminally ill (with some exceptions)

Retirement Account Income

Income from qualified retirement accounts, including 401(k) plans, IRAs, and 403(b) plans, comes with tax benefits.

In most cases, tax on your investment income is deferred until you withdraw the funds. On the other hand, withdrawals are not taxable when it comes to Roth 401(k)s and Roth 403(b)s, given that you meet all the terms and conditions.

Municipal Bond Interest

Now that bonds are again gaining popularity, it’s time to talk about the tax advantages of municipal bonds.

Bond-related income is usually taxed; however, municipal bonds, issued by states and other government entities, are an exception. You will have to pay no federal or local tax on municipal bonds-related income if you live in the state where the bonds were issued.

This exemption applies to both ETFs and individual bonds but with some limitations. ETF income, however, is subject to federal income tax but no state and local income taxes.

Check this video on the topic:

💰 Be a Better Investor

Wealth consists not in having great possessions, but in having few wants.

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