Dear Friend,
The U.S. economy is powering along at 2.8% growth, just below forecasts but still looking resilient ahead of Election Day.
Meanwhile, Trump and Harris have Wall Street buzzingāoneās promising corporate tax cuts, the other aiming for a boost in Social Security.
And Pennsylvaniaās seniors? Theyāre keeping a close eye on those pledges, as retirement benefits take center stage in this battleground state.
Goldās glittering too, with prices expected to soar to $3,000 by 2025. And donāt forget those last-minute tax moves before year-end; a few quick steps could mean more money in your pocket.
Catch all the details in this edition of the Everlasting Wealth Insider Report!
Jeremy Blossom
Editor in Chief, Everlasting Wealth
MARKET HEADLINES
š Election betting is booming this cycle, with platforms like Kalshi attracting huge interest. Kalshi, recently approved for U.S. election betting, saw $100 million in wagers this month alone and shot to the top of the finance charts on the App Store. Robinhood is also joining the trend with its own betting platform. Meanwhile, Polymarket, though off-limits to U.S. citizens, has seen record-breaking volume, with a āwhaleā trader placing as much as $30 million on Trump. This surge highlights a blend of entertainment and finance where markets like election outcomes can be “new arbiters of truth,” as Kalshiās CEO puts it.
š Markets saw a dip Wednesday as chip stocks dropped sharply, with AMD and Super Micro Computer leading the losses. Meanwhile, Alphabetās strong earnings report offered some optimism, but macro data painted a strong economic picture, potentially signaling that the Fed wonāt lower rates soon.
š» Chipmakers took a major hit as Super Micro Computer and AMD led a sell-off. Super Microās stock plummeted by 34% after its auditor, Ernst & Young, resigned over issues with the companyās financial controls, and amid a DOJ investigation spurred by a critical Hindenburg report. Meanwhile, AMD dropped 10% following disappointing revenue guidance, impacting other chip stocks like Nvidia, Broadcom, and Intel. Although AMDās CEO Lisa Su projected growth into 2025, the immediate outlook remains tough for the sector.
š¤ Microsoft and Meta are doubling down on AI spending, even as investors show caution. Both companies reported strong growth and met expectations but warned that heavy capital spending will continue. Microsoft has already spent $53 billion on capex this year, mainly to bolster Azureās AI capabilities, while Meta is set to spend $38-$40 billion, largely on AI infrastructure for Facebook and Instagram. While the companies say this investment is boosting user engagement and ad conversion, investors are increasingly looking for more concrete returns on these massive outlays.
3 Key Drivers Will Push Gold to $3,000 by 2025
Goldman Sachs sees gold climbing another 8% to $3,000 per ounce by late 2025, driven by three main factors.
First, high demand from central banks, which are buying up gold as a hedge against geopolitical risks, will keep pressure on prices.
Second, expected Fed rate cuts will make gold more appealing than interest-bearing assets, leading to an increase in gold-backed ETFs, which supports the commodityās price.
Lastly, goldās safe-haven appeal is set to remain strong, with potential trade conflicts, debt concerns, and a possible recession all keeping investors interested in this steady asset.
STOCKS TO WATCH
āļø Robinhood Markets: The popular trading app dropped 10% in premarket trading after reporting a quarterly profit that missed Wall Street’s revenue and earnings estimates.
āļø Meta Platforms: Shares of Facebookās parent company slid over 4% in premarket, as the company projected a āsignificantā increase in capital expenditures for continued AI investments.
āļø Trump Media & Technology: Shares of Truth Socialās parent declined another 7% premarket, following a sharp 22% drop Wednesday, reflecting volatility with the election approaching.
āļø Microsoft: The tech giantās stock fell more than 3% premarket on expectations of slower growth in its Azure cloud segment, a core component of its AI strategy.
āļø Airbus: European plane maker Airbus gained about 2.5% in Paris trading, driven by better-than-expected earnings and revenue, in contrast to Boeing’s recent challenges.
āļø Societe Generale: Shares of the French bank surged after it reported a strong rise in quarterly net profit and appointed a new chief financial officer.
This Day in the Markets
š On this day in 2008, the Dow fell 5% as the global financial crisis worsened. Investors faced intensified economic turmoil, with widespread concerns over the stability of financial markets.
STOCK PICK OF THE WEEK
Weiss Research
Bezos Goes All-In on AI: Hereās How You Can Profit Too
Jeff Bezos didn’t become a billionaire by accident.
He turned Amazon from a basement startup into a $600-billion-per-year monster.
That takes a lot more than just luck.
So, when Bezos makes a move, we need to sit up and take notice.
And right now, he’s all-in on one very big sector: Artificial Intelligence.
Thatās right! According to FINTRX, a private wealth intelligence platform, every single investment made by Bezos Expeditions (Jeff’s family office) this year has been in AI.
And it’s not just Bezos ā¦
The UBS Global Family Office Report reveals that AI is the #1 investment category for family offices worldwide right now.
The message is clear: AI is where nearly all the smart money is going.
But which AI stocks should YOU invest in? Thatās the million-dollar question.
We’ve identified 3 stocks that could be your best bet to cash in.
Here’s why ā¦
These 3 small companies are set to play a HUGE role in Nvidia’s game-changing AI pivot, reaping substantial returns in the process.
Want to learn more about this once-in-a-lifetime opportunity?
Watch my urgent presentation for the full details!
ECONOMY
U.S. Economy Still Growing Strongly, but Just Shy of Expectations Ahead of Election
The U.S. economy grew 2.8% in Q3, just shy of forecasts, but consumer spending remains a standout, jumping 3.7% annually.
Job layoffs are low, wages are strong, and inflation-adjusted incomes are steady, so no, a recession isnāt on the horizon just yet.
Investments in nonresidential equipment surged 11.1%, though nonresidential structures dipped 4%.
With the election and a Fed rate decision just around the corner, the GDP report reinforces a resilient economy.
Economists expect the Fed to cut rates next week, helping shape the economic landscape going into 2025.
ECONOMY HEADLINES
š The next president will inherit a strong economy characterized by high productivity, tech growth, and energy independence, though geopolitical and market uncertainties remain potential challenges.
š Harris aims to address grocery and housing costs through price gouging bans and affordable housing incentives, while Trumpās plans focus on limiting imports to support U.S. production, potentially raising prices.
š BlackRockās CEO predicts limited Fed rate cuts due to persistent inflationary pressures from policies like reshoring, hinting at ongoing financial constraints.
š¼ Gen Z and millennials face a tougher job market, with rising layoffs leading many to seek job stability and consider trade fields over tech and media roles.
šļø Reshoring manufacturing could add $10 trillion to the U.S. economy over a decade, boosting sectors like tech and pharmaceuticals, aided by AI and government initiatives.
BUSINESS
Trump vs. Harris: How Their Policies Could Reshape Your Investment Portfolio
With the election around the corner, Wall Street is weighing how a Trump or Harris win could impact investments.
Trumpās plans to cut corporate taxes to 15% might boost sectors like consumer discretionary, though his pro-drilling stance could oversupply the energy market, hurting profits.
Harrisās proposed 28% corporate tax rate, by contrast, could pressure overall earnings.
Financials might see gains under Trump due to deregulation, while his proposed tariffs could increase inflation and squeeze profit margins.
Both candidates are seen as positive for crypto, offering stability there regardless of the outcome.
RETIREMENT
Retirement Concerns Dominate Pennsylvania’s Election as Aging Voters Demand Action
With one of the nationās fastest-aging populations, Pennsylvania is a bellwether for how the U.S. will manage a surge in retirees and fewer young workers.
In this swing state, seniors like 67-year-old Maureen and 80-year-old Marjorie Klein weigh Trumpās and Harrisās pledges on Social Security and Medicare.
Trump promises to maintain Social Security but faces skepticism about potential cuts, while Harris aims to strengthen these programs by increasing taxes on corporations and the wealthy.
The stakes are high, as retirees rely on federal programs to offset high living costs and healthcare needs, with some forced to choose between medication and meals.
State leaders emphasize that meeting retireesā needs isnāt just a social issueāitās crucial to the economy.
TRIVIA
What factor has historically been the most significant driver of long-term stock market returns in the United States?
A) Inflation
B) Corporate earnings growth
C) Federal Reserve interest rate policies
D) Tax policy changes
E) Trade deficits and trade agreements
Scroll for the answer
TAXES
Beat the Clock: Essential Tax Moves to Make Before 2024 Ends
With just weeks left in 2024, itās time to make tax moves to cut your bill.
First, review your tax withholdings and estimated payments to avoid the yearās hefty 8% underpayment penalty.
Next, inherited IRA beneficiaries should plan withdrawals carefully to avoid large tax hits down the road, especially with new guidance requiring certain heirs to take annual distributions starting in 2025.
Also, decide whether to take the standard deduction or itemize; bunching deductions, like charitable contributions, into one year can maximize benefits.
Finally, don’t miss out on expanded home energy credits for solar, heat pumps, and other upgrades, which are more generous than ever and stackable with state incentives.
Answer
What factor has historically been the most significant driver of long-term stock market returns in the United States?
B) Corporate earnings growth
While factors like inflation, interest rate policies, and trade agreements impact short-term market fluctuations, itās corporate earnings growth that historically drives long-term stock market returns.
Stock prices tend to rise in response to increasing profits, as higher earnings usually indicate stronger companies, which ultimately benefit investors over time.
