Morning Download 

Personal finance + economics + markets

Together with RYSE

Good morning investors! Bitcoin is still struggling to remain above $38,000.

Today we cover:

• The US is growing faster than expected

• Elon Musk is in trouble.

• How to divide $100,000 in investments.

Follow us on Twitter for more.

📊 Economy and News 

The US is growing faster than expected

The U.S. economy grew at an even stronger pace than previously indicated in the third quarter.

The numbers: Gross domestic product accelerated at a 5.2% annualized pace, the department’s second estimate showed. The acceleration topped the initial 4.9% reading and was better than the 5% forecast from economists polled by Dow Jones.

Why: Stronger government spending coupled with better-than-expected business investment greatly boosted the economy.

We saw an increase in nonresidential fixed investment, which includes structures, equipment and intellectual property. The category showed a rise of 1.3%, which still marked a sharp downward shift from previous quarters.

Government spending also helped boost the Q3 estimate, rising 5.5% for the July-through-September period.

However, one sector surprisingly saw a downward revision, now rising just 3.6%, compared with 4% in the initial estimate.

Global hits:

• China factory activity shrunk for a second month in November.

• Stock trading platform Robinhood to launch in UK after two failed attempts.

• Microsoft secures a non-voting board seat at OpenAI.

📈 Stocks

S&P 500 4,550.58 (-0.095%)
DJIA 35,430.42 (+0.038%)
NASDAQ 15,987.60 (-0.14%)
VIX 83.54 (+0.58%)
* Prices as of Nov 30th, 12:20 AM UTC

More bad news for Elon Musk

Elon Musk has been in trouble for a while. The man was recently in the news due to liking ‘antisemitic’ posts on X, a move he had to apologize for. However, he added that advertisers are trying to ‘blackmail’ him.

The man asked advertises to “'Go f--- yourself’. We must mention that big companies such as Apple and Disney are boycotting Musk’s X. They aren’t only pausing ads they run on the platform but are now moving away from it altogether.

But, this isn’t Musk’s biggest concern. UAW has launched union campaigns at Tesla and 12 other automakers in the US, including BMW, Honda, Hyundai, Mercedes, Nissan, Toyota, Volkswagen and Volvo.

This comes after the union successfully bargained record contracts with the Detroit automakers. According to reports, the drive will cover nearly 150,000 autoworkers. The UAW has previously discussed organizing Tesla’s Fremont plant in California, with little to no traction in those efforts.

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The opportunity to become a shareholder in their company closes this week, but you can still invest at only $1.25/share before their name becomes known nationwide.

Reports indicate that early investors in Nest (Smart Thermostat) earned a 20X return at their $3.2B acquisition. 

What if you had the opportunity to invest before they launched into retail, would you?

💵 Personal Finance

How to invest $100,000

We asked our subscribers a very important question yesterday and here are the results:

As evident, most users seem interested in real estate and stocks. So, in today’s issue, we’ll talk a bit about all these options. In future issues, we’ll provide more information on all these investment options, including the best way to benefit from each.

So let’s get started:

Real estate: Real estate can be an excellent choice as it offers not only passive income in the form of rent but also capital gains. However, real estate profits are taxed and rental income isn’t guaranteed. Still, annualized returns can be as high as 12%.

It might be a good idea to invest about 20% of the amount ($20,000) in real estate. This can be done through crowdfunding or REITs since $15,000 might not be enough to fully own property in most regions.

Stocks: Stocks have proven to be very rewarding. The S&P 500 offers 10% returns on average. But, if you play it smart, and luck is on your side, you can double your money in a few months.

It might be a good idea to invest about 35% of the amount ($35,000) in stocks.

Bonds: With interest rates going high, bonds are back in demand. The United States 10Y Government Bond has a 4.277% yield with commercial bonds offering even more.

It might be a good idea to invest about 3% of the amount ($3,000) in bonds.

Crypto: There’s no investment as risky as digital currencies, yet we cannot neglect them. Most financial advisors do not utilize crypto due to the risks involved. About 45% of advisors say they expect to use cryptocurrencies in the future in response to client requests. Meanwhile, just 7% of advisors say they are currently using these assets based on their own recommendations, and 10% are using it because of client requests.

It might be a good idea to invest about 5% of the amount ($5,000) in crypto. You can increase this based on your risk appetite.

Others: Keep some money in other options such as precious metals and savings accounts. The former will provide a hedge against inflation and the latter can offer guaranteed passive income.

It might be a good idea to invest about 20% of the amount ($20,000) in other investment options. For now, high yield accounts can be very beneficial with some offering over 5% returns.

Spend It: Of course, you must spend the money. After all, what is the point of earning it if you cannot spend it?

It might be a good idea to spend about 10% of the amount ($10,000) on yourself. Book a trip to your favorite destination or buy the TV you have always wanted.

Another option: Consider putting some of the money into an emergency fund (7% or $7,000) so you can have an option in case things go haywire in the future.

Reminder: This breakdown works assuming you have no debt or need for other necessities such as a house or car. If you’re in debt, then use this $100,000 to first get out of debt. Similarly, if you do not have a house then use this money to first make a down payment.

Note: This is just a basic idea, you should divide the amount based on your financial goals and the changing situation. For example, savings accounts might not be as lucrative tomorrow as they are today.

💰 Be a Better Investor

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