📈 Index funds won, what's next?

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Reddit had its IPO yesterday, and things got off to a flying start, shares skyrocketed a cool 48% from open. Meanwhile both Apple and Nike have taken a hit for very different reasons.

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Markets

Reddit pops 48% in NYSE debut (3 minute read)
Reddit had its IPO debut. The veteran of the social media arena - a sprightly 19 years old - saw its shares skyrocket by a whopping 48%. Talk about a grand entrance, the first of its kind since Pinterest IPOd in 2019. This move raked in about $750 million, with Reddit pocketing a neat $519 million.

The stock blasted off at $47, soared to a dizzying $57.80, and then took a modest bow at $50.44, settling with a market cap of around $9.5 billion. Trading under the ticker "RDDT," Reddit's testing the waters in an IPO desert. Since tech's heyday back in late 2021, the IPO scene's been more tumbleweeds than fireworks, with companies like Instacart and Klaviyo not quite hitting the mark last year.

Apple Stock Wipes Out Over $100 Billion in Value After US Files iPhone Monopoly Lawsuit (2 minute read)
Apple's in hot water, and their shares just took a 4% nosedive. Why? The US Justice Department's had enough of their alleged monopoly in the mobile phone arena. Joined by attorneys general from 16 states, they're accusing Apple of playing the tech bully, hogging the playground and not letting others have a turn.

This legal showdown's been a long time coming. Apple's reportedly been running the show, making it tough for other gadgets to get a look in. The 88-page lawsuit claims Apple's been king of the hill, guarding its iPhone empire and stifling competition. This means - you guessed it - higher prices and less innovation department.

Apple's not just rolling over. They're standing their ground. They've currently got a stronghold on over 70% of the US's high end phone market.

Nike warns its revenue will shrink later this year (3 minute read)
Nike's stock also took a nosedive in after-hours trading. They're predicting their revenue's gonna shrink a bit in the first half of fiscal 2025. Investors? They're not exactly amazed by Nike's holiday season show - it seems they're more spooked by the future than impressed by the present. Sure, Nike beat the odds with earnings per share hitting 77 cents, beating the expected 74 cents. And yeah, their revenue ticked up to $12.43 billion, a teeny step up from last year's $12.39 billion and a hop over the anticipated $12.28 billion. But for investors, it looks like it's not just about the now, but also the next.

Investing

FTX customers don't want a refund, they want their crypto back (3 minute read)
Almost 300 pages of heartfelt letters poured in from all corners of the globe, landing on the desk of the federal judge overseeing the FTX crypto exchange debacle. These aren't just any letters; they're the voices of victims, each sharing their unique tale of loss from the FTX collapse.

Here's the thing: While getting their money back is great, these folks are clamoring for something more - they want their coins back. It's not just about the cash; it's about the crypto. These letters, packed with personal stories of emotional, physical, and financial turmoil, are more than just paper. They're victim impact statements, and they're going to play a crucial role in determining the fate of Sam Bankman-Fried, the founder of FTX. With his sentencing right around the corner, these letters are a powerful reminder of the real human cost behind this financial fiasco.

Index Funds Have Officially Won (4 minute read)
The tides have turned in the world of investment funds. For the first time ever, passively managed funds have overtaken their actively managed rivals in terms of assets controlled. This isn't just about mutual funds; we're talking exchange-traded funds too. Rewind to August 1976: Vanguard rolls out the very first index fund for the public (Wells Fargo had already been offering something similar to the big players). These funds were like an obscure indie band that suddenly hits the mainstream – it took a while for them to catch on. Two decades on, most fund shareholders were still giving them the cold shoulder, preferring the allure of actively run equity funds, with no love for passive bond or allocation funds. But, oh, how the tables have turned. Despite retail investors being slow to the indexing party, institutional investors were all over it by the mid-90s. So what’s next?

Rate Expectations (4 minute read)
No rate cuts from the Fed today, and nobody expected any. The real buzz was about what today's meeting, the infamous dot plot, and the post-meeting presser might spill about future rate cuts. The update was subtle, but it's got everyone talking.

The statement tweaked just one line from January's meet-up, ditching the bit about job gains moderating and instead boasting that job gains have stayed strong. There’s signs that the Fed's a tad shaken. Why? The job market's flexing stronger than they thought, making them wonder if inflation will really cozy up to that sweet 2.0% target. Despite the trio of faster growth, spicier inflation, and a beefed-up job market, the Fed's still eyeing three 25 basis point cuts by year's end.

Money

The 6 Deductions Tax Preparers Often Leave on the Table (3 minute read)
Tax season, everyone's favorite headache, right? It's that time of the year where paperwork piles up, and you're left navigating the ever-shifting maze of tax rules, whether you're eyeing a refund or not. Now, you might think hiring a tax pro would ease the burden, assuming they've got the know-how to dig up deductions you'd never find on your own. But, hold your horses! It turns out, a lot of these pros might just work with what you hand them instead of playing detective on your behalf. To give you an edge, here's a list of six lesser-known deductions to toss into the conversation with your tax expert. Just a heads-up though, each of these deductions comes with its own income limits, so keep that in mind.

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