👍 Everything's higher

and renters need to know this

Good morning investors! Bitcoin hit another all-time high yesterday.

Today we cover:

  • A bit about the housing market

  • Stocks are going higher

  • Tips for investors

📊 Economy and News 

The Wealth Gap Between Homeowners and Renters

A recent Aspen Institute report highlights the vast wealth disparity between homeowners and renters in the U.S. The median homeowner's net worth reached $400,000 in 2022, while renters' median wealth stood at just $10,400—nearly 40 times less. Homeownership remains one of the most reliable ways to build wealth, as property values appreciate and equity grows.

Challenges for First-Time Buyers
Rising home prices and high mortgage rates have made it difficult for renters to step onto the property ladder. In October, the median existing-home sales price was $407,200, marking the 16th consecutive month of year-over-year price gains. Despite recent interest rate cuts, the average 30-year fixed mortgage rate remains elevated at 6.6%. These conditions, coupled with policies favoring existing homeowners, create barriers for first-time buyers.

Renters Face Systemic Disadvantages
Renters are less likely to invest in wealth-building tools like retirement or investment accounts, further widening the gap. Additionally, renters miss out on the tax breaks and equity growth homeowners enjoy, often funneling money into rent with little return.

Signs of Relief in the Rental Market
Not all is bleak for renters. Rent prices dipped in November, and a record 38.6% of listings on Zillow offered concessions. Despite the dip in rents, affordability remains a concern, with minimum wage earners requiring extended working hours to afford a typical rental unit in 44 of the top 50 metros in the United States.

A construction boom is also underway, with one million new multifamily units expected to hit the market by next year, potentially easing rental costs and providing financial relief for stretched budgets.

Global hits:

Something about China: China to boost direct fiscal support to consumers as weak consumption drags on economy. Moreover, China’s November retail sales miss expectations as real estate slump deepens. Also, Moody's Ratings has risen China 2025 GDP forecast to 4.2% from 4.0%.

Sponsored by Mode Mobile

🚨Heads up! It's not the publicly traded tech giant you might expect… Meet $MODE, the disruptor turning phones into potential income generators. Investors are buzzing about the company's pre-IPO offering.1

📲Mode saw 32,481% revenue growth from 2019 to 2022, ranking them the #1 overall software company on Deloitte’s most recent fastest-growing companies list2 by aiming to pioneer "Privatized Universal Basic Income" powered by technology—not government. Their flagship product, EarnPhone, has already helped consumers earn & save $325M+.

🫴 Mode’s Pre-IPO offering1 is live at $0.26/share — 20,000+ shareholders already participated in its previous sold-out offering. There’s still time to get in on Mode’s pre-IPO raise and even lock in 100% bonus shares3… but only until their current raise closes for good. The deadline to invest and receive your shares this year is 12/20.

📈 Stocks

S&P 500 6,074.08 (+0.38%)
DJIA 43,717.48 (-0.25%)
NASDAQ 20,173.89 (+1.24%)
BRENT CRUDE 73.99 (-1.02%)
* Prices as of Dec 17th, 12:20 AM UTC

Nasdaq Hits Record High Amid Fed Speculation

The Nasdaq surged to a record close on Monday, while the S&P 500 also posted gains as investors analyzed economic data and anticipated the Federal Reserve's final policy decision of the year. Markets are heavily pricing in a 25-basis-point rate cut at the Fed's two-day meeting, with CME's FedWatch Tool estimating a 95.4% probability.

Economic indicators painted a mixed picture. S&P Global's flash manufacturing PMI fell to 48.3 in December, missing expectations and marking its lowest level since May 2020. Concerns about rising tariffs next year are adding pressure on factory production.

The S&P 500 recently ended a three-week winning streak, while the Dow's eight-session decline marks its longest losing streak since 2018. In contrast, the Nasdaq extended its rally to four consecutive weeks, buoyed by gains in megacap stocks.

There were several winners, including Alphabet, which jumped nearly +4%, and Broadcom that jumped +11%, extending record run as Goldman expresses ‘higher conviction’.

Tesla: Driving Market Momentum

Tesla's shares surged +6.1% on Monday, leading the consumer discretionary sector to outperform. Wedbush Securities raised its price target for Tesla to a Wall Street high of $515, pushing the company's market cap closer to $1.5 trillion. Analysts expect further growth as relaxed regulations and advancements in autonomous technology bolster Tesla's business.

Mizuho also highlighted Tesla's promising outlook, suggesting that its momentum will continue, supported by favorable policy environments and strong leadership under Elon Musk.

Controversial: Senate report accuses Amazon of ignoring worker safety in productivity push. Also, Super Micro is exiting the Nasdaq 100 after just five months in the index..

Interesting: CNBC thinks Nvidia has fallen into correction territory, down more than 10% from its record close. Elsewhere, TikTok turns to US Supreme Court in last-ditch bid to avert ban.

💵 Personal Finance

Smart Financial Habits for a Secure Future - Part II

Let’s resume yesterday’s topic and talk about some more smart financial habits:

4. Pay Off Debt

High-interest debt, such as credit card balances, can undermine financial goals. Boomers often regret taking on too much debt, which becomes particularly burdensome in retirement. Strategies like the snowball or avalanche method, along with biweekly payments, can accelerate debt repayment. Reducing debt before retirement frees up more funds for savings and reduces financial stress.

5. Plan for Health Care Costs

Health care expenses in retirement can be staggering, with Fidelity estimating an average cost of $165,000 for a 65-year-old retiree. Preparing now can safeguard your savings later. Contribute to an HSA, invest those funds where possible, and consider long-term care insurance to cover nursing home expenses. Maintaining good health through preventive care can also minimize future medical bills.

6. Diversify Your Income Streams
Relying on a single source of income can be risky, especially as you approach retirement. Building multiple income streams not only provides financial security but also accelerates wealth creation. Explore side hustles, rental properties, or freelance work to supplement your earnings. Passive income sources, such as dividends from investments or royalties, can also bolster your finances over time.

For those nearing retirement, consider part-time work or consulting in your area of expertise. Diversifying your income reduces dependence on one paycheck and ensures greater financial resilience in uncertain times.

Bottom Line

Securing your financial future is about taking proactive steps today. Whether it’s cutting expenses, saving early, investing wisely, or planning for health costs, these strategies ensure stability and peace of mind in retirement. It’s never too early—or too late—to make smart financial decisions.

Here’s an interesting video on the topic:

💰 Be a Better Investor

“To acquire money requires valor, to keep money requires prudence, and to spend money well is an art.”

Berthold Auerbach

Resources:

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

Advertiser’s Disclosures

1 Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

2 The rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

3 A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.

4 Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.

Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns.

DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.