Wall Street Whispers: Your Weekly Financial Briefing & Part 2 of "Taxing It Easy" Series

Hey Chakkani Fam! Welcome to Your Weekly Financial Briefing! We've got bite sized market moves, big tech bets, and whispers of change from all over the world. Grab a cup of joe (or your preferred drink) and let's dive:

Bears & Bulls: Markets Notes & Numbers

• S&P 500: 5,088.80 +1.77 (+0.03%)

• NASDAQ: 15,996.82 -44.80 (-0.28%)

• Dow Jones: 39,131.53 +62.42 (+0.16%)

• 10-Year Treasury Yield: 4.248% (-0.079)

• Bitcoin: $51,056.18 -815.29 (-1.57%)

  All data as of last trading day's market close time read more…

Market Bites::

1. AT&T reveals likely cause of outage that affected customers nationwide😀 

   Oopsie! AT&T's network hiccupped, leaving many phoneless for a while. Turns out, it wasn't hackers, but a wrong button pushed during an upgrade. Service is back, apologies made, and lessons (hopefully) learned. Don't worry, T-Mobile and Verizon weren't really affected, just caught in the collateral confusion. Phew!

2. Nvidia: From Pixels to Powerhouse🔥 

   Forget the red carpet, roll out the green checkmarks! Nvidia's financials are making analysts do a double take.

   Here's the lowdown:

   • AI takeover: Their new "Hopper" chips are fueling the AI revolution, with data center revenue skyrocketing 409% . Cloud giants are lining up for a slice.

   • Adaptability ninja: US export restrictions threw a wrench, but Nvidia just tweaked their products and kept rolling .

   • More than just gaming: Gaming's still hot (56% YoY growth!), but Nvidia's got a diversified portfolio, from pro graphics to self-driving cars ️.

   • Numbers that speak volumes: $60.9 billion in revenue, 126% YoY increase? That's some serious green .

   The takeaway? Nvidia's a tech titan on the rise, riding the AI wave and showing everyone how it's done. Stay tuned, the future looks bright (and powered by Nvidia!) ✨

3. Husband 'made over a million' by eavesdropping on BP wife🤣 

   Husband eavesdrops on wife's work calls, plays stock market like a Bond villain, rakes in millions... but loses wife, job, and faces jail time. Turns out insider trading isn't a love story. (Spoiler alert: wife wasn't impressed.) #WFHgonewrong #eavesdroppingfail #divorcecourtloading

4. Dow Jones Futures Rise😤 

   Wall Street's on a rollercoaster! Nvidia's earnings sent stocks soaring, but things are getting a bit frothy. Carvana's up 25% after missing, but don't get caught holding the bag. Watch out for extended valuations and have your watchlist ready for the next opportunity. Remember, sometimes the best move is to sit tight and enjoy the ride.

5. Japan's Nikkei shakes "lost decade" funk, setting new record:📈 

   Forget the "lost decade," Japan's stock market just hit a new high, like a phoenix rising from the ashes (with some serious tech muscles)! This is all thanks to AI and chip-making giants like Tokyo Electron and Advantest soaring, making the Nikkei dance.

   But hold your horses, this isn't a total economic boom – Japan is still in recession mode. So, it's more like a victory lap for specific sectors, not a nationwide party.

6. Fed's Williams says rate cuts likely to happen 'later this year'🙃 

   Fed's Williams hints at rate cuts later this year, but don't get too excited yet!

   Key points:

   a. Fed might ease up on interest rates later in 2024, but inflation needs to chill first.

   b. Williams, a bigwig at the Fed, says recent strong inflation data isn't changing their plans.

   c. He wants to see inflation consistently moving down to their 2% target before cutting rates.

   d. Nobody knows exactly when cuts will happen, but they're not rushing into it.

   Bottom line: Hold your horses on celebrating lower rates just yet. The Fed wants to be sure inflation is under control before giving the economy a break.

7. Buckle Up, Millionaires! BRICS to Outpace G7 in Wealth Explosion🤯 

   Hold onto your yachts, world! The BRICS nations (Brazil, Russia, India, China, South Africa) are about to mint a whole lot of millionaires . Over the next decade, their millionaire count is expected to skyrocket by 85%, leaving even the fancy G7 countries in the dust (they're only looking at a 45% increase).

   Who's leading the charge? India's wealth per capita is taking off like a rocket, with an estimated 110% jump by 2033. China, already a millionaire magnet, is still growing at an impressive 85%. But don't sleep on the UAE (95% growth!) and Saudi Arabia (105%!).

   Why the BRICS boom? It's a mix of things: growing economies, rising middle classes, and expanding investments. The BRICS are basically saying, "Move over, G7, we're coming for your crown!"

   So what does this mean for you? Well, it depends on where you live. If you're in a BRICS nation, you might see more opportunities (and maybe even a few more private jets in the sky). But if you're elsewhere, it could mean more competition for resources and investments.

   Either way, buckle up! The world's wealth map is about to get a major makeover.

8. Plastic Fantastic? Credit Card Rates Soar, Profits Boom!💥 

   💳 Ever feel like your credit card is costing you an arm and a leg (and maybe a kidney)? You're not wrong! Rates are at record highs, and it's not just the Fed's fault. Uncle Sam says credit card companies are jacking up their profits too!

   Here's the lowdown:

   • Interest rates are CRAY-Z: Up 10 points in a decade, hitting a whopping 22.8%.

   • Issuers are raking it in: Their "APR margins" (think profit %) are at an ALL-TIME HIGH.

   • Not all blame goes to the Fed: Credit card companies seem to be charging more even though they're not taking on extra risk.

   But fear not, savvy spender! You can still outsmart the system:

   • Pay your balance IN FULL, ON TIME. Duh. This magic trick avoids interest altogether. ✨

   • Boost your credit score. Lower rates await those with good credit karma.

   • Strategize with 0% intro offers. Transfer balances and enjoy a temporary interest-free break.

   Remember: Knowledge is power! By understanding the game (and keep reading this newsletter 😃), you can play it smarter and keep more plastic fantastic in your wallet.

   P.S. Industry consolidation might make things even trickier. Stay vigilant, friend!

9. Macy's Gets Swept Off Its Feet in $5.8 Billion Buyout Bid💍 

   Macy's, the department store known for epic sales and Santas that look suspiciously like your uncle Jerry, might be getting a new owner. Arkhouse and Brigade Capital, two investment firms with a real estate itch, offered a cool $5.8 billion to take Macy's private. That's like a $21-a-share gift card for each Macy's share, which is 21% more than it was worth last week.

   Why the fancy? Macy's has been struggling lately, with sales slumping and online competitors stealing its thunder. But hey, it's still got some prime real estate, which is probably what's got Arkhouse and Brigade starry-eyed. They might even offer more after checking the books!

   So, what's next? Macy's hasn't said yes or no yet, and it's unclear how shoppers feel about a new owner. Will Macy's become a real estate goldmine or just another forgotten relic of the retail past? Only time will tell, but one thing's for sure: this is a story that's far from over. ️

10. Funding thaw in Southeast Asia? Not quite yet, but the sun is starting to peek through the clouds!☀️

    Looks like the tech party in Southeast Asia might be winding down, but fear not, fellow innovators! There's still hope for a funding comeback in 2024. The VCs are saying they'll loosen their purse strings, but only for companies with a clear path to making that sweet, sweet green.

    So, what does this mean for you, my tech-savvy friend? Time to buckle up and focus on turning a profit! Forget the "grow at all costs" mentality, it's all about being smart and strategic with your resources. Show the VCs you've got a plan, and they might just be your knight in shining armor.

    Here's the gist:

    VCs are feeling more optimistic about 2024, but they're still being picky.

    Cash is king (or queen!), so focus on profitability and being efficient.

    The competition is heating up, so stand out with a smart strategy.

    Don't despair, there's still plenty of fuel in the tank for Southeast Asia's tech scene!

    Remember, even though the funding winter might linger a bit longer, the sun is always bound to shine again. Stay focused, stay innovative, and keep your eyes on the prize!

That's all for this week, folks! Remember, the world of finance is full of twists and turns, but with a little knowledge and a lot of wit, you can navigate it like a pro. Stay tuned for more financial fun next week!

P.S. Don't forget to share this newsletter with your friends! After all, financial literacy is hot! 📈💰. Did we miss anything major? Hit us up via an email with your hot takes and financial insights!

Now let's get into the nitty-gritty of different situations you might encounter on your tax journey. Buckle up, and remember, even complex scenarios can be navigated with the right knowledge!

Investing Like a Tax Ninja:

• Stocks & Bonds: Capital gains taxes apply when you sell investments for more than you bought them. There are short-term (held less than a year) and long-term (held over a year) rates, with long-term being more favorable. Dividends (like payouts from stocks) are also taxable.

• Real Estate: Selling rental properties involves capital gains taxes. Owning rental properties also comes with deductions for depreciation, repairs, and other expenses. Remember, there are specific rules for claiming home office deductions if you run your business from home.

Saving for Retirement Smartly:

• Contributions: Many retirement contributions are tax-deductible, lowering your taxable income now. Traditional IRA withdrawals in retirement are taxed, while Roth IRA withdrawals (if you meet eligibility requirements) are generally tax-free.

• Withdrawals: Early withdrawals from retirement accounts usually come with penalties and taxes, so plan carefully!

Self-Employment: Taxes for the Boss You Are:

• Self-employment tax: Covers Social Security and Medicare taxes you normally pay as an employee. But hey, the good news is you can deduct half of it!

• Business expenses: Many business-related expenses are deductible, from office supplies to travel costs. Keep good records to track and claim them.

• Estimated taxes: Since you don't have an employer withholding taxes, you'll need to make quarterly estimated payments to avoid penalties.

Standard vs. Itemized Deduction Showdown:

• Standard deduction: A fixed amount you can deduct without needing receipts. This is the simpler option for most people.

• Itemized deductions: You can deduct individual expenses, but only if they total more than the standard deduction. This requires more effort and record-keeping.

• The winner? It depends! Do the math or use tax software to compare both options and see which one saves you more tax.

Tax Credits: Your Tax-Time Superpowers:

• Earned Income Tax Credit (EITC): A refundable credit for low- and moderate-income earners, boosting your refund or reducing your tax bill.

• Child Tax Credit: Helps offset the cost of raising children.

• Education Credits: Can help cover college tuition and other education expenses.

• There's more! Explore other credits you might qualify for, like the retirement savings credit or the healthcare credit. They can significantly reduce your tax burden.

Remember, tax laws can get complex, and this is just a simplified overview. For specific advice tailored to your situation, consult a tax professional. They'll be your tax sherpa, guiding you through the twists and turns and helping you navigate your unique tax landscape!

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So, there you have it! With a little guidance and the right tools, you'll be a master in understanding (and hopefully master it) taxes in no time. Go forth, plant your seeds, and watch your wealth garden flourish!

This is the next one in this comprehensive series on All Things Tax Related ( we want to get you ready for the tax season). You can checkout the previous part(s) of the series here.

If you liked this, checkout our 5 Part series on Investing and all our previous articles here.

So, whether you are crawling and sprinting, let's do this together!

Until next time, wishing you happy wealthness (you see what we did there:)) to you!

📚 Bonus Resources:

• Tax Policy Center: Tax Policy Center

• Investopedia - Tax Guide: Investopedia Tax Guide

• NerdWallet - Tax Guide: NerdWallet Tax Guide

• Tax Foundation: Tax Foundation

• Internal Revenue Service (IRS): IRS Website

• H&R Block: H&R Block

• TurboTax: TurboTax

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