🏛️ Midterm elections: What to expect from markets

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Markets

Midterm elections: How will the midterm elections impact markets? (4 minute read)The midterm elections are tomorrow, and the prospects for Democrats to hold on to their majorities in Congress is slim. The Democrats have a five-seat majority in the House of Representatives and the Senate is split 50/50. Ultimately, it’s policy not politics that has the most impact on the economy and markets.

Runaway prices have central Europe on the ropes (5 minute read)While inflation in western Europe is largely expected to be tamed within a year, there is a growing sense that in central Europe runaway prices will be around for much longer. Central and eastern Europe have for months been at the forefront of the inflation battle, ahead of the curve both in terms of the acceleration of price pressures and the sometimes uneven efforts of its central banks to curb them.

Oil prices slide as hopes for China demand rebound fade (2 minute read)Oil prices fell more than $1 a barrel on Monday after Chinese officials on the weekend reiterated their commitment to a strict Covid containment approach, dashing hopes of an oil demand rebound at the world’s top crude importer.

Meta expected to announce massive layoffs this week (2 minute read)Meta is expected to announce a massive round of layoffs this week, The Wall Street Journal reported Sunday. The layoffs may impact "many thousands" of staffers and could come as soon as Wednesday, sources told the Journal. A spokesperson for Meta declined Insider's request to comment.

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Investing

Decentralized Assets Like Gold And Bitcoin Are Looking More And More Attractive (20 minute read)As I see it, decentralized assets have never looked more attractive than they do now. That includes gold, silver and Bitcoin, and you could also make the case for collectibles like art. By “decentralized,” I mean that these assets are not issued by a central authority. They are no one’s liability. No central banker makes the decision to mint more gold or silver. No finance minister decrees that Bitcoin production be slowed or accelerated.

The Agony & Ecstasy of Stock-Picking (4 minute read)Facebook went public in the spring of 2012. In the year before filing to become a public company, the social network brought in $3.7 billion in revenue. The stock price actually fell 50% from May 2012 through September of that year. From that point on it was one of the best-performing tech stocks in the entire market. From September 2012 through August 2021, Facebook shares were up a cool 2000%.

Valuations And Earnings Growth Rates (8 minute read)The expected rate of growth in future cash flows plays a pivotal role in investment analysis and valuations. It is the faster rate of growth in those cash flows that results in higher valuations (higher P/E ratios) for growth stocks versus value stocks. Not only have growth stocks had higher rates of earnings growth — from July 1963 through June 2022, they have also produced much higher returns on equity and returns on assets.

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Money

2022 Year-End Tax Planning Checklist (14 minute read)Don’t be the person who finds out in 2023 that they paid the IRS too much for 2022! If you haven’t done any tax planning for 2022 yet, now is the time. While many reactively plan for taxes, proper tax planning is not based on year-to-year numbers. Good tax planning looks at your lifetime tax liability and develops strategies to minimize the amount you pay throughout life. Here are 7 ideas to consider before the end of the year to strategically reduce the taxes you pay over your lifetime.

What Makes Life Meaningful? Views From 17 Advanced Economies (12 minute read)What do people value in life? How much of what gives people satisfaction in their lives is fundamental and shared across cultures, and how much is unique to a given society? To understand these and other issues, Pew Research Center posed an open-ended question about the meaning of life to nearly 19,000 adults across 17 advanced economies.

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