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You are studying Investor Junkie’s weekly e-newsletter that will get you caught up on the week’s monetary information in lower than 5 minutes.
October seventeenth, 2022
Final week’s market abstract (October Tenth-14th, 2022):
- S&P 500: -1.77%
- Dow: +0.74%
- Nasdaq: -3.18%
- Bitcoin: -1.30%
Hey Junkies,
Glad Monday! Final week was extra news-heavy than regular, so we’ve lots to cowl as we speak. These are the financial occasions that we’ll be discussing:
Hold studying for the total scoop on every of those tales and to get a sneak peek at what everybody’s prone to be speaking about subsequent week.
Clint, Editor-in-Chief
What Everybody’s Been Buzzing About
1. Mortgage Charges Swell to 20-year excessive
In its newest weekly report which launched on October thirteenth, Freddie Mac introduced that the typical 30-year mortgage price had risen to six.92%. That was a large bounce up from the earlier week’s price of 6.66% and marked the very best stage that we have seen since April 2002.
Much more startling is the truth that mortgages have greater than doubled from the place they have been a 12 months in the past (3.05%). These skyrocketing charges have despatched shockwaves by way of the housing market. Demand has plummeted to a 22-year low and almost 20% of residence sellers diminished their asking costs in September.
Give me some excellent news >>> 3 Advantages of Shopping for a Dwelling When Curiosity Charges Are Excessive
2. GM Is Getting Into the Power Enterprise
Again in January 2021, Basic Motors put Tesla on discover by asserting that it deliberate to be an all-electric automotive producer by 2035. Nevertheless it seems the EV trade is not the one Tesla turf that GM is trying to transfer into.
Subsequent up: power storage and administration
Final week, the corporate launched GM Power which it is describing as “An Electrical Ecosystem, Reimagined.” Along with its present EV charging product, Ultium Cost 360, two new merchandise are on the way in which: Ultium Dwelling and Ultium Industrial.
GM Power has already cast just a few key partnerships. For instance, photo voltaic firm SunPower is working with them to develop a customized residence power system. Amongst different issues, GM says that these properties will have the ability to obtain energy from suitable electrical autos.
3. Inflation Rose Once more, Defying Expectations
The Client Value Index (CPI) rose 0.4% in September. That introduced the annual price of inflation down a smidgen to eight.2%, however the worth progress was nonetheless larger than the consensus estimate.
Main the cost to larger prices are rents. The decrease homebuying demand that we mentioned earlier has elevated the rental market demand and that is led to large hire hikes throughout the U.S. And whereas they’re slowly enhancing, continued international provide chain points are additionally protecting costs stubbornly excessive in lots of industries.
Following the inflation report, the inventory market has skilled historic volatility. On Thursday, the S&P 500 began the day down by 2%, earlier than a seismic a reversal allowed it to shut the day up 2.6%…just for it to swing violently down once more on Friday by 2.37%. These are wild days on Wall Road.
Inflation survival information >>> 8 Greatest Inflation-Proof Investments for 2022
4. Hackers Stole $570 Million from the Binance Good Chain
Binance Good Chain, the crypto trade’s cross-chain bridge, was hacked final week and the thieves have been in a position to snatch about $570 million price of BNB. Importantly, no consumer funds have been affected and, as of writing, all however $100 million of the stolen belongings had been recovered.
Nonetheless, the incident as soon as once more highlights the vulnerabilities of cross-chain bridges. They’ve more and more grow to be the first targets of hackers. Chainanalysis not too long ago reported that $2 billion has already been stolen in 13 cross-chain assaults, accounting for 69% of all stolen crypto funds in 2022.
The adverse information for Binance got here in per week when its rival Coinbase introduced a significant partnership with Google. Beginning subsequent 12 months, the search big will start permitting its Google Cloud prospects to pay for his or her companies in cryptocurrencies by way of Coinbase Commerce.
Security first >>> Tips on how to Spot a Crypto Rip-off
5. Meta Unveiled Its New $1,500 VR Headset
Mark Zuckerberg confirmed off his newest metaverse toy final Wednesday, the Meta Quest Professional. The high-end VR system packs some spectacular new eye and facial monitoring expertise.
The unhealthy information? The $1,500 price ticket is over $1,000 larger than the Quest 2 which sells for $400.
Even when Meta is ready to get the worth of their premium Quest merchandise down over time, extra regarding questions lurk within the background, corresponding to:
- Do sufficient folks even need a tool like this?
- What real-world issues does it remedy?
- Is it practical to anticipate that sometime we’ll all carry VR masks with us all over the place like we do our telephones as we speak? (in any case, they are not precisely pocketable).
Regardless of Zuckerberg’s unwavering insistence, many shareholders stay skeptical that the metaverse would be the “subsequent large factor” in shopper tech. Meta’s share worth has been on a gentle decline ever since…properly, ever because it modified its title to Meta. And shares fell sharply once more on Wednesday after the Meta Quest Professional product reveal.
Extra metaverse content material to take a look at (no headset required) >>>
What To Hold Your Eye on This Week
Listed below are just a few noteworthy financial occasions which are developing this week:
- Tuesday, October 18th: NAHB Dwelling Builders’ Index | October
- Wednesday, October nineteenth: Housing Begins | September
- Thursday, October twentieth: Philadelphia Fed Manufacturing Enterprise Index | October
- Thursday, October twentieth: Present Dwelling Gross sales | September
Employees Favorites
At IJ, we’re properly conscious that many different information groups and web sites are creating nice private finance content material. So every week we prefer to name out just a few current tales from our colleagues that we felt have been fascinating, eye-opening, difficult, inspiring…or simply humorous.
Listed below are our picks for this week:
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