Wall Street Whispers: Your Weekly Financial Briefing & Part 7 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: 5,254.35 +5.86 (+0.11%)

• NASDAQ: 16,379.46 -20.06 (-0.12%)

• Dow Jones: 39,807.37 +47.29 (+0.12%)

• 10-Year Treasury Yield: 4.206% (+0.01)

• Bitcoin: $69,628.23 -1,186.31 (-1.68%)

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

Market Bites::

1. Powell’s Economic Pow-Wow: Inflation’s Chill and Growth’s Thrill:

   Jerome Powell, the Fed’s head honcho, had a little chit-chat at the Macroeconomics and Monetary Policy Conference, and here’s the skinny:

   • PCE Report: The PCE index is behaving, sitting pretty at 2.8% and 2.5% for core and headline, respectively. Powell’s like, “That’s what I’m talking about!”

   • Rate Cuts? Maybe Later: The Fed’s not slashing rates until they’re sure inflation’s taking a chill pill down to 2%.

   • Economy’s Flexing: With over 3% growth, the economy’s hitting the gym hard. No rush to cut rates, says Powell, 'cause we’re waiting for inflation to bench press back to 2%.

   • Interest Rates’ Future: Powell’s crystal ball says rates won’t be lounging at pre-pandemic lows, but it’s anyone’s guess where they’ll crash.

   So, in short, Powell’s message: Inflation’s on a leash, growth’s pumping iron, and interest rates are playing hard to get.

2. The ‘Magnificent 7’ Soar in Q1: Tech Titans Take Charge:

   In the tech stock skies, the ‘Magnificent 7’ are flying high! Here’s the lowdown on their first-quarter flight:

   • Amazon is cruising at an altitude of +19%, all thanks to its cloud and ad services fueling the climb.

   • Nvidia is the rocket of the pack, blasting off to an astronomical +86% in 2024, now sitting as the third heaviest hitter in the S&P 500.

   • Meta is not far behind, soaring up 41% since the New Year’s countdown.

   • Microsoft, the big kahuna of market cap, is enjoying a steady ascent, up 13% for the quarter and a whopping +50% over the last year.

   • Alphabet is holding steady in the formation, up 8% and keeping its gains in check.

   It’s clear the ‘Magnificent 7’ are not just surviving but thriving, leading the charge and pushing the S&P 500 up by 9%. These tech giants are not just playing the game; they’re setting the rules! 🚀

3. Renewable Energy Stocks: Riding the Green Wave:

   Renewable energy stocks are having a moment in the sun this week, and here’s why:

   • Interest Rate Optimism: The Fed’s Jerome Powell hinted that inflation is behaving, sparking hopes of rate cuts. This is big for renewable energy firms since lower rates could mean more affordable long-term financing.

   • Stock Surge: Companies like Bloom Energy, Sunrun, and JinkoSolar saw their stocks jump up to 19.7%, with the industry hoping they’ve hit rock bottom and are bouncing back.

   • Tariff Talks: Treasury Secretary Janet Yellen’s comments about China’s renewable energy “dumping” could mean tariffs are on the table, potentially shaking up the market.

   In short, it’s a mix of market speculation, interest rate forecasts, and international trade talks fueling this eco-friendly rally

4. Ethereum Leads NFT Market; Bitcoin and Solana See Sales Dip:

   Ethereum is currently leading the NFT market with a daily sales figure of over US$11 million, marking a 5.21% increase. Bitcoin, which was the top network the previous day, experienced a 16% decrease in sales, still managing to secure the second spot with US$10.21 million in sales.

   Bitcoin is on the verge of surpassing a significant milestone of US$3 billion in total sales, being just shy of US$700,000 from this target. Meanwhile, Solana ranks third but has seen a 21.58% drop in sales to US$5.30 billion.

   Solana’s top projects, Mad Lads and Froganas, didn’t make it to the top three collections for the first time this week, each recording sales under US$1 million. On a brighter note, Mythos is showing a positive trajectory with a 10.71% increase in sales, reaching US$1.08 million in the last 24 hours, largely driven by the DMarket collection

5. Apple’s Legal Orchard: DOJ Sues Over ‘Buffett’s Moat’:

   In a twist of irony, the Department of Justice is using Warren Buffett’s own metaphor of a “moat” to sue Apple, his biggest stock bet. The DOJ claims Apple has built a “wide and deep” moat around its iPhone empire, stifling competition and innovation. With Apple’s stock dipping slightly, the tech giant faces a battle not just in the marketplace but in the courtroom as well. Buffett, whose Berkshire Hathaway holds a nearly 6% stake in Apple, might find this legal skirmish particularly interesting, given his fondness for businesses with strong defensive moats. The outcome of this lawsuit could redefine the competitive landscape for smartphone markets and beyond.

6. Fed’s Economic Data Dance: Inflation Tango and Interest Rate Waltz:

   The Fed’s keeping a keen eye on the economic dance floor, with the spotlight on inflation and interest rates. Here’s the quickstep recap:

   • Interest Rates: They’re holding steady, with the Fed’s benchmark rate chilling between 5.25% and 5.5%. But whispers of rate cuts are in the air, with three quarter-point dips potentially pirouetting in by end of 2024.

   • Inflation Rhythms: The PCE price index did a little hop to 2.5% annually in February, while core inflation, after shedding food and energy prices, swayed to 2.8%. The CPI’s also doing the cha-cha, climbing to 3.2% year-on-year in February.

   • Market Moves: Amidst all this, the S&P 500 strutted out its best first-quarter performance in five years.

   So, the Fed’s economic data flow is like a complex dance routine, with each step carefully watched to keep the economy grooving smoothly.

7. Crypto: The Investment Spice Rack’s Hottest Chili:

   In the investment kitchen, crypto is the cayenne pepper of the spice rack. Just a dash, about 2% to 3% of your portfolio, can add some serious heat without burning your financial taste buds. It’s a volatile ingredient, so handle with care and measure according to your risk appetite. Whether you’re a seasoned chef or a home cook in the market’s kitchen, remember that every portfolio has its own recipe for success.

8. Amazon’s AI Ascent: Anthropic’s $2.75 Billion Boost:

   Amazon is upping the ante in the AI arena with a whopping $2.75 billion investment in Anthropic, marking its largest venture investment to date. This move adds to an initial $1.25 billion infusion, bringing Amazon’s total stake in the AI startup to $4 billion. Anthropic, known for its generative AI and Claude chatbot, is seen as a major player in the field, rivaling the likes of OpenAI and ChatGPT.

   With this investment, Amazon secures a minority stake without a seat on the board, signaling confidence in Anthropic’s valuation of $18.4 billion. It’s a clear sign that Amazon is betting big on AI, aiming to sharpen its competitive edge in this rapidly evolving tech landscape.

9. Huawei’s 2023 Profit Surge: A Tech Comeback Story:

   Huawei has reported a stellar financial performance for 2023, with its net profit more than doubling, a feat attributed to enhanced product offerings and strategic business moves. The company’s revenue saw a 9.6% increase year-on-year, reaching 704.2 billion yuan ($99.18 billion), while net profit soared by 144.5% to 87 billion yuan.

   A significant contributor to this success was the Huawei Mate 60 Pro, which made waves in the smartphone market with its advanced 5G capabilities, despite the U.S. restrictions impacting Huawei’s access to high-end semiconductor technology. This comeback is particularly noteworthy as it reflects Huawei’s resilience and adaptability in the face of international trade challenges.

   Moreover, Huawei’s presence at the MWC Barcelona 2024 was a testament to its ongoing commitment to innovation, where it showcased a vast array of new technologies, further cementing its position in the global tech arena

10. FTX’s Bankman-Fried Sentenced to 25 Years:

    Sam Bankman-Fried, the former crypto billionaire behind FTX, has been sentenced to 25 years in prison for a multi-billion dollar fraud. The sentence was delivered by U.S. District Judge Lewis Kaplan in Manhattan after a jury found Bankman-Fried guilty on seven counts of fraud and conspiracy. This marks a significant moment in one of the largest financial fraud cases in U.S. history, with Bankman-Fried showing no remorse according to Judge Kaplan.

And there you have it, folks! Remember, folks, the financial world is like a game of Monopoly—sometimes you’re the banker, sometimes you’re stuck in jail, and occasionally you land on Boardwalk and buy a hotel. Happy investing! 📈💰

 P.S. Did we miss anything major? Hit us up via an email with your hot takes and financial insights!

Alright, time to turn tax knowledge into action! Let's walk through the steps of filing your return, busting myths, and avoiding those pesky mistakes along the way.

Choosing Your Weapon:

• Paper Forms: The old-school way. It's free, but time-consuming and prone to errors. Only go paperless if you're a fan of manual labor and filing cabinets!

• E-filing: Faster, more accurate, and secure. Many free options exist, or paid software with bells and whistles. Definitely the way to go for most folks!

• Tax Software: These online or downloadable programs guide you through the process, do the math, and even flag potential errors. Great for those with more complex returns or who want hand-holding.

Gathering Your Arsenal:

• W-2s: These forms from employers show your wages and withheld taxes. Think of them as your income report cards.

• 1099s: If you had other income sources like freelance work, investments, or retirement distributions, you'll get these forms. They're like receipts for your side hustles and retirement accounts.

• Receipts: Keep these handy for eligible deductions like charitable donations, mortgage interest, or some business expenses (if you're itemizing).

• Other Documents: Depending on your situation, you might need additional documents like medical bills, proof of education expenses, or childcare costs. Basically, anything that supports your deductions or credits.

Reporting for Duty:

• Income: Be honest and thorough! Report all your income sources, even the odd ones like gambling winnings or prize money. Remember, Uncle Sam knows (almost) everything!

• Deductions: Claim what you're eligible for, but stick to the rules. Double-check if you qualify for standard or itemized deductions, and keep good records to support your claims.

• Credits: Don't miss out on free money! Explore credits you qualify for, like the Earned Income Tax Credit or education credits. They can significantly reduce your tax bill.

Tax Day Tango:

• Deadlines: April 15th is the usual suspect, but extensions are available if you need more time. Don't miss the deadline, or you'll face penalties!

• Payment Options: Pay electronically for the fastest and safest way. You can also mail a check, but make sure it arrives on time. Remember, filing an extension only gives you more time to file, not to pay what you owe.

Avoiding Blunders:

• Math Mistakes: Double-check your calculations. Even a small error can lead to delays or penalties. If math isn't your friend, use e-filing software or consult a tax professional.

• Missing Information: Ensure you have all the required documents and report all your income, even if it seems insignificant. Incomplete returns can be flagged for audits.

• Unrealistic Deductions: Claiming deductions you don't qualify for is a red flag. Stick to legitimate expenses and keep good records to prove them.

Remember, filing your return doesn't have to be a scary monster. By gathering the right info, choosing the right tools, and avoiding common mistakes, you can conquer tax season with confidence! And if things get too complex, don't hesitate to seek help from a tax professional. They're like the Gandalf of taxes, guiding you through the unknown.

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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 wealthiness (you see what we did there:)) to you!

📚 Bonus Resources:

• Investopedia: https://www.investopedia.com/

• The Motley Fool: https://www.fool.com/

• U.S. Department of Labor: https://www.dol.gov/

• Internal Revenue Service (IRS): https://www.irs.gov/

• Where's My Refund?: https://www.irs.gov/wheres-my-refund

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