Endings don’t always have to be bad. While all things must come to an end, let’s wrap up a week of shocking endings, with some interesting beginnings as well.
Movies. Experiences. Food. Businesses. Everything’s got an expiry date— it’s all life after all. Right?
This week has seen quite a few ends, with various implications. But most people meet endings with a sad attitude. It’s understandable, but it doesn’t always have to be that way. As Mitch Albom, author of the acclaimed memoir Tuesdays with Morrie puts it
“Every ending is a beginning. We just don’t know it at the time.”
So while the top news in this edition of SimplVest Weekly covers a couple of these ends, there are big beginnings all around.
What we’ve got for you:
🛑The end of USD transactions on Binance.US
🐻The longest Bear market finally ends
🚗Not-so-random car trouble
🏡Buying a house? You’ll find these tips useful
Let’s dive in.
🐂S&P Outlook: Run, Bull, Run
What was a record run (the longest bear market for the S&P 500 since the 1940s), has finally come to a much-welcome end. The index closed up 0.6% to 4,294 this past Thursday, signifying the return of the bull market.
Things are looking up, thanks in part to big gains for big tech, Nvidia (and the resurgence of the AI phenomenon), as well as Tesla. 248 trading days of declining prices come to an end, and the stock market seems to be filled with a spirit of optimism in global economies— much different from the dark clouds that plagued us last year.
The greater implications are also evident. The year started out with worries about recession everywhere, but somehow we’re yet to see any of the harder expectations play out. Instead, the global economy seems to be cooling down. Inflation is far from last summer’s peak, job numbers are surprisingly on the upside of things and the debt ceiling drama has been sidelined.
🏡3 Tips That Make Home-buying More Doable
Speaking of new beginnings, homeownership is a fantastic way to build wealth. That’s a tale as old as time. But with elevated home prices and higher interest rates making mortgage costs scary, how do you make sure purchasing a home isn’t a far dream, and is successful?
Prepare for unexpected homeownership costs
The buy vs rent argument leads us to one of the pros of home purchases: buying gives you the ability to have fixed costs. However, it would be a mistake to assume there won’t be any surprise costs.
Property taxes are increasing in many cities, so the wise thing would be to anticipate the rise in those costs. You should also prepare for the costs of landscaping, furnishing, and any other surprises such as faulty pipe systems.
Look for flexibility in your purchase
Never mind the rising interest rates and home prices, there are ways for you to cut down on your spending.
For example, get a shorter mortgage (15 years instead of 30 sounds about right), and you unlock a world of lower interest rates. Buying points on your mortgage can also let you get lower interest rates.
Your earnings shouldn’t be a deterrent either. If you have a lower income, look out for down payment or homeownership assistance programs in your city. A quick scan of county/ city websites should point you in the right direction.
Finally, search for homebuying incentives, like closing costs, that can help to reduce your home’s overall price. They’ve started to make a comeback, so be sure to capitalize on them.
Prepare for monthly home payments in advance
One of the best ways to put yourself in a financial position that can afford a house is through saving. But most people think you should save enough just for the down payment. Instead, save a little extra so you can have a safety net. This way, the cost of a new home won’t surprise you.
An improved credit score also betters your chances for a good mortgage rate. This means you need to cut back on credit card usage, watch your spending and monitor your report frequently for any inaccuracies.
❌No Fiat Zone
Crypto enthusiasts, Binance.US is suspending all USD deposits. You heard right. ALL USD DEPOSITS.
It’s a total USD shutdown! Not even USD trading pairs have been spared. This follows Binance US’s decision to become a crypto-only exchange after its banking partners move to suspend all USD channels in the coming week.
The fiasco brings to light the fact that the Securities and Exchange Commission sued Binance and its CEO/founder Changpeng Zhao, on Monday, claiming the crypto giant artificially inflated trading volumes and diverted customer funds. The suit came with a request from the SEC for courts to seize the company’s assets.
As Binance and Zhao attempt to defend themselves, the crypto exchange has decided to limit any actual damages. Hence, it won’t be able to complete any fiat deposits or withdrawals. Trading pairs (e.g. BTC-to-USD) will also be delisted from next week.
All users have been advised to withdraw any USD they have on the platform by Tuesday the 13th of June, 2023. Any outstanding balances on the platform after June 15th cannot be withdrawn but can be converted into stablecoins.
While crypto operations will continue, this development isn’t exactly the best of developments. What do you think? Could this be the beginning of the end for Binance U.S.?
Buzz Bites: 🚗Dude, That’s My Car!
New York City joins other major U.S. cities in a lawsuit against Hyundai Motor and Kia. The city alleges that the South Korean automakers have been negligent and created a public nuisance by manufacturing vehicles that are “dangerously susceptible” to being stolen.
This follows the fact that around 977 Hyundai and Kia vehicles have been stolen in New York in just the first four months of the year. Compared to the theft statistics from 2022, there has been a 660% increase in these brands of cars being stolen. New York has cited the problem to be the automakers’ failure to install immobilizers, a problem that both Kia and Hyundai haven’t addressed for much of the last decade. You may want to double-check on your Kia or Hyundai right now.
For all the predictions of a mighty doom that 2023 has faced, this week has had some pretty good news to boot. The coming week remains a mystery, but this recent ending of things, however bittersweet, may just be the start of a new beginning that we’ve all been waiting for.
All things do come to an end after all.
