finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

The US Labor Department said that last month, employers added 261,000 jobs, while the unemployment rate increased slightly to 3.7%.

The news comes as the economy is still a main concern for voters ahead of the midterm elections. Rising costs also remain a huge aspect that hits public confidence.

Prices are on a rise not seen since the early 1980s, with inflation currently up at 8.2%.

The issue is having a tremendous impact on Democrats, who were already struggling to maintain hold of Congress.

Beth Ann Bovino, chief US economist at S&P Global Ratings said:

"People are depressed and often people vote with their pocketbooks. Inflation is almost everywhere. People are squeezed at the checkout stand, they're squeezed with their rental payments, when they try to buy a home."
"We're going to do what it takes to bring inflation down," said President Biden on Friday. "But as long as I'm president, I'm not going to accept an argument that the problem is that too many Americans are finding good jobs."

Employee Retention Tax Credit (ERTC)

The Employee Retention Credit 2022 is a tax credit that employers that keep their workers on the payroll during the COVID-19 pandemic can access as a form of relief. To be eligible, businesses must have experienced a decline in gross receipts of at least 50% when compared to the same quarter in 2019.

The credit is available for the first two quarters of 2020 and can be applied to qualified wages paid after March 12  2020 and before January 2021. The credit is worth up to 50% of eligible wages paid to each employee, with a maximum credit of $5,000 per employee.

Work Opportunity Tax Credit (WOTC)

The Work Opportunity Credit (WOTC) is a federal tax credit available to firms that hire certain types of workers. To be eligible, businesses must hire workers from one of the following groups:

The credit is worth up to $9,600 per eligible employee, depending on the number of hours they work.

Disabled Access Credit (DAC)

The Disabled Access Credit (DAC) is a tax credit available to businesses that make their facilities accessible to people with disabilities. To be eligible, businesses must incur expenses for the purpose of providing access to people with disabilities. These expenses can include things like modifications to restrooms, entrances, and exits; installing ramps; or providing Braille signage. The credit is worth up to 50% of eligible expenses up to $10,250, with a maximum credit of $5000 per year.

Small Business Health Care Tax Credit (SBHCTC)

The Small Business Health Care Tax Credit is available to small businesses and tax-exempt organisations that provide health insurance coverage to their employees. To be eligible, businesses must have fewer than 25 full-time equivalent employees and must pay at least 50% of their employees' health insurance premiums.

This tax credit is very valuable because it can cover up to 50% of premiums paid for small business employees and 35% of premiums paid for tax-exempt organisation employees. This credit can be claimed for health insurance coverage purchased through the Small Business Health Options Program (SHOP) Marketplace.

R&D Tax Credit

The R&D Tax Credit is a tax credit available to businesses of all sizes that invest in research and development. To be eligible, businesses must have incurred expenses for activities like developing new products or services, improving existing products or services, or increasing efficiency. This credit can be worth up to 14% of eligible expenses related to research and development, making it a valuable credit for businesses that are investing in innovation.

Endnote

As you can see, there are a variety of tax credits available to employers throughout the country. Depending on your business type and size, you may be eligible for one or more of these credits. Be sure to speak with your accountant or tax advisor to learn more about which credits you may be able to claim.

[ymal]

Key to my approach to markets is that they require political stability to thrive – hence the most remunerative markets tend to be found within the most stable nations. They tend to have robust and enforceable legal systems, solid financial infrastructure and a culture enabling transactions and risk-taking. That’s the key to understanding the fundamental strength of the City of London – centuries of stability.

All around the world, we are now seeing a rise in instabilities – triggered by supply chain breakdowns, the supply shocks in Energy and Food, and now wage demands. Nations are struggling with inflation, rising interest rates, higher debt service costs on borrowing, rising bond yields, currency weakness, and how to address multiple vectors of financial instability as they try to hold their financial sovereignty together.

It’s occurring at a time when we seem to have reached the lowest common denominator in the political cycle. That’s a critical problem – voters need leadership in crisis, and they can easily be fooled by populists.

Confidence in a nation’s political direction and leadership is one of the key components of the Virtuous Sovereign Trinity, my simple way of explaining how Confidence in a country, the value of its Currency, and the Stability of its bond market are closely linked. When they are strong – they can be very strong. Strong economies rise to the top.

But, if any one of the Trinity’s legs were to fracture, then the whole edifice could come tumbling down. Which is why we should be concerned sterling is down over 10% this year. It strongly suggests global investors have issues with the UK.

Key to my approach to markets is that they require political stability to thrive – hence the most remunerative markets tend to be found within the most stable nations.

The UK is a good example of what might go wrong. If confidence wobbles in the government’s ability to handle the multiple economic crises now upon us, particularly the rising tide of industrial unrest as workers demand higher salaries to cope with inflation or servicing the nation’s debt, then the UK’s currency and bond markets could come under massive pressure. Investors will demand a higher interest rate to account for the increasing risk inherent from investing in the UK, while the currency could tumble as investors sell gilts to buy less vulnerable more stable nations.

At least the UK is financially sovereign. We control our own currency. Sterling may weaken, but we can always print more to repay debt… Except that would probably cause a global run on sterling as confidence in the UK would further tumble. If the currency leg were to fracture, interest rates would have to rise, wobbling confidence further.

The Virtuous Sovereign Trinity sounds stable, but experience shows it can quickly turn chaotic if issues are not swiftly addressed.

Clearly, the UK has some current confidence “issues” regarding the incumbent political leadership. The growing perception that Boris is a “lame duck” magnifies internationally held concerns about how his government has failed to seize the opportunities (such as they were) from Brexit, doubts about energy and food security, and the apparent dither in policies are all perceived as reasons for sterling weakness and are another reason bond yields are rising as global investors exit.

While the UK’s debt quantum should be manageable – Italy is somewhat different. As part of the Euro, Italy is no longer financially sovereign. It has rules on Debt/GDP to observe (and ignore). But effectively Italy borrows in a collective currency it has no real control over. It has to plead with the ECB for the right to borrow money and will rely on the ECB to announce special measures to make sure its debt costs don’t turn astronomical. Without the ECB, Italy would be heading straight for a debt crisis.

That’s why ECB head Christine Lagarde is desperately trying to guide the ECB towards the establishment of anti-fragmentation policies to stop Italian debt instability leading to a renewed European sovereign debt crisis. Fragmentation means Italian bond spreads widening to Germany – the European sovereign benchmark. It’s a political issue because Lagarde is no central banker, but a politician sent in to lead the ECB to the inevitable compromise that rich German workers will pay Italians’ pensions.

In the USA there is an even larger political impasse developing. The US Supreme Court’s decision – by 4 old men and one catholic woman appointed by Trump – to deny women the right to control their bodies by undoing abortion rights highlights the increasingly polarized nature of US politics. Republicans, and their fellow travellers on the religious right, are delighted. Democrats are appalled.

US politics simply doesn’t work. All efforts by Biden to pass critical infrastructure spending have been stymied. There is zero agreement between the parties – each has destroying the other at the top of its to-do list, rather than rebuilding the economy. The result is increasing doubts on the dollar. It’s a battle the Republicans are winning by dint of managing to stuff the Supreme Court with its appointees. It’s no basis for democracy or market stability.

At the moment the dollar is the go-to currency, and treasuries are the ultimate safe haven. It could change. The world’s attitude to the US is evolving. The West may be united on Ukraine, but global support is noticeably lacking. 35 nations representing 55% of the global population abstained from voting against Russia at the UN. The Middle East and India see Ukraine as a European problem and a crisis as much of America’s making. As the West lectures the Taliban on schooling girls, the Republican party has moved the US closer to a dystopian version of The Handmaid’s Tale of gender subjugation.

As the World increasingly rejects America, then America will reject the rest of the World. Time is limited. The Republican Administration, run by Trump, or kowtowing to him, will likely pull the US from NATO and isolate itself. That’s going to become increasingly clear over the next few years. The dollar, the primacy of Treasuries… will leave a massive hole at the centre of the global trading economy.

It will be particularly tough for Europe. As we seek alternative energy sources, what happens when Trump 2.1 proves as pernicious as Putin and shuts off supplies?

The supreme court decision was clearly timed to come at the Nadir of this US political cycle – a weak president likely to lose the mid-terms in November – when the Roe vs Wade news will be off the front pages. It means the damage to the Republicans in the Mid-Term Elections could be limited – they will still make the US essentially ungovernable for the next 3 years.

If the US was a corporate, it would be a massive fail on corporate governance. But it’s not. It’s the current dominant global economy and currency. Politics and markets can’t be ignored.

Furthermore, an ever-increasing number of people within the US are opting to be paid in Bitcoin for their day job, many of them high profile sports stars and politicians. Although this increasingly common usage is not to suggest that the US will ever completely abandon the dollar in favour of Bitcoin or other cryptocurrencies.   

Current Global Examples Of Bitcoin Use

A specific current case of money being transferred internationally in Bitcoin and other cryptocurrencies from America (and from many other countries) can be seen in the enormous flow of digital funds as donations into Ukraine, completely legally.  

To date only one country has wholeheartedly adopted Bitcoin as its everyday currency, El Salvador introducing it in July 2021 and encouraging the population to embrace a move to crypto away from the US dollar, which remains legal tender. Commentators are treating El Salvador as an exemplary case, but it seems reasonable to expect other countries with low GDPs to follow suit.

CBDCs

One idea currently under discussion within many countries, with regard to the adoption of digital ‘coins’ for everyday spending, is the concept of Central Bank Digital Currencies or CBDCs. In the US, the Fed seems to have more or less ruled this out as the ‘stable coin’ Tether, a digital currency tied to the US dollar, with a market capitalisation of $80 billion, seems set to be a safe digital store of value for investors and commerce alike. In the UK, Europe and other countries, the jury is still out on the CBDC issue, and it is early days as trial projects are being launched. 

Longer-Term Utility

A further consideration for Bitcoin becoming a ‘digital fiat’ currency is its longer-term utility. Many experts believe that Bitcoin may become used as an asset in which to store wealth (similar to gold), rather than for transactional reasons. As such, whilst investors hold Bitcoin in their digital wallet, they may exchange it for any one of the many thousands of other digital coins or tokens – such as Ethereum for smart contracts or meme coins for gaming – that are most appropriate for specific transactions. In most cases, it will depend upon what a vendor is happy to accept. There are likely other cryptos better placed to act as currency, and Ethereum substantially outperforming Bitcoin speaks to this. 

All things considered, it is a very fluid time for cryptocurrencies, and that is before one even considers the role that NFTs will play within all major economies in the coming years. What does seem certain is that, for cross-border and global transactions, some form of digital currency, or several, will become the working value exchange of choice.

Final Thoughts

At the end of the day there is a big ‘does this really matter?’ question. Already major payment companies are happy for their clients to transact in Bitcoin and other digital coins. The older generation is likely to stick to FIAT for reasons of sentimentality and patriotism.  However, as time elapses, expect the ubiquity of crypto to engulf four corners of the world.  

About the author: Katharine Wooller is Managing Director UK at Dacxi.

The yearly volume of bitcoin transactions in Russia is estimated by the central bank to be over $5 billion. But a recent legislative recommendation escalated a brewing disagreement between the Russian Ministry of Finance and the central bank. Let’s take a deeper look at what the fuss is all about and how this can affect how cryptocurrency is taxed in the USA and across the globe.

Russia’s Latest Crypto Regulation

The finance ministry published legislative recommendations that contrasted with the central bank's call for a blanket ban. This escalated a brewing disagreement over cryptocurrency regulation in Russia.

The proposed legislation to regulate cryptocurrencies in the country includes requirements that investors can no longer stay anonymous and that transactions be limited to a particular value, among many other things. In this context, it must be noted that enabling law enforcement, the ability to track money movements and transactions risks undermining one of the cryptocurrencies' key selling points: its anonymity.

However, to add to the complexity of the matter, a document obtained by Reuters states that the central bank opposes the ministry's plans. Also, it wants an official ban on the creation and distribution of cryptocurrencies.

In order to understand how this legislative recommendation affects the global crypto tax dynamics, let’s take a look at how cryptocurrency is taxed in the USA and in Russia.

How Is Cryptocurrency Taxed In Russia?

In the last month of 2020, the Russian Federation's government introduced Bill No. 1065710-7 to the State Duma, which includes measures that would control the circulation and possession of cryptocurrency and define liability for violations of the bill's laws.

The bill mandates residents, individuals, and legal companies operating in the Russian Federation to report their cryptocurrency holdings and imposes tax liability for illegal failure to submit information or declaring misleading information regarding cryptocurrency transactions. The bill's changes call for cryptocurrencies to be recognised as an "asset" and taxed appropriately.

How Is Cryptocurrency Taxed In The United States?

For tax purposes, the Internal Revenue Service considers cryptocurrencies as property and not currency. You must keep a record of the capital gains or the capital losses and incur the proper cryptocurrency tax rates, just like you would with stocks, bonds, or real estate. These crypto tax rates are determined by the holding period of the assets and your income tax bracket for the financial year.

Depending on your income tax bracket, long-term capital gains tax rates vary from 0% to 20%.

Depending on your income tax bracket, short-term capital gains tax rates vary from 10% to 37%.

What Is The Effect Of Russian Crypto Regulation On How Cryptocurrency Is Taxed In The USA?

The Russian government and the central bank have agreed to regulate cryptocurrencies and will treat them as foreign currency rather than a stock. Essentially, the plan states that transactions of $8,000 or more must be registered, and exchanges must be licensed.

With the change in crypto dynamics in Russia, the third-largest crypto mining country, the United States is now attempting to consider what its rules would look like. It is projected that crypto havens would spring up in either primarily island countries throughout the world that simply wants people to switch their bitcoin there to escape taxation. There will be a lot of amendments here from various nations across the globe.

The Bottom Line

These are all significant developments, even if they occur on a global scale, for how U.S. politicians may consider crypto, whether as a security or a currency.

FAQs:

Russia is the third-largest country in terms of mined cryptocurrencies. But officials have, for a very long time, questioned the crypto market, worrying about its volatility and risk of unlawful activities, and have demanded crypto rules be imposed. The yearly volume of bitcoin transactions in Russia is estimated by the central bank to be over $5 billion.

However, the Bitcoin sales in rubles have remained limited. Russians have purchased an average of 210 BTC each day with rubles. 

In the last month of 2020, the Russian Federation's government introduced Bill No. 1065710-7 to the State Duma. The bill mandates residents, individuals, and legal companies operating in the Russian Federation to report their cryptocurrency holdings and imposes tax liability for illegal failure to submit information or declaring misleading information regarding cryptocurrency transactions. The bill's changes call for cryptocurrencies to be recognized as an "asset" and taxed appropriately.

The proposed legislation to regulate cryptocurrencies in the country includes requirements that investors can no longer stay anonymous and that transactions be limited to a particular value, among many other things. In this context, it must be noted that enabling law enforcement, the ability to track money movements and transactions risks undermining one of the cryptocurrencies' key selling points: its anonymity.

Unfortunately, these profits aren’t being equally distributed. Just like always, some countries are still struggling, while some are accumulating money at full speed. In 2018, total global household opulence was increased by approximately fourteen billion US dollars to total more than three hundred billion US dollars. Europe and North America were the ones that experienced the biggest gains. 

Learning All About Global Wealth Rankings

The USA In The Lead 

When it comes to household wealth, in the past couple of years, the USA has been experiencing a persistent rise, according to several reports. Furthermore, overall wealth and wealth per adult person has grown each year since 2008.

Moreover, North America added more than six trillion US dollars to its entire household wealth, and almost all of it went directly to the USA alone. During the same period, Europe added over four trillion US dollars to the stock of household wealth, while the Asia-Pacific (without counting India and China) added one trillion US dollars.

As for Latin America, it was the only area that experienced a downfall in household wealth, due to turbulence in Brazil and Argentina. China, on the other hand, ended in second place in the world's wealth rankings, adding more than two trillion US dollars to its overall household wealth last year.

Biggest changes in household net wealthWhen it comes to mean wealth per adult, the biggest leaders in the world are Switzerland (more than 500,000 US dollars per adult), Australia (over 400,000 US dollars per person), and the USA with a bit less than Australia. Speaking of Australia, if you want to know the current situation when it comes to home loans in this country, the Image set by Compare the Market will give you a deeper insight into it.

What else you should know: Millionaires 

A lot of financial experts claim that by 2023, global wealth will increase by more than 25%. According to some reports, the emerging markets will be positively affected by this rise as well.

Furthermore, by 2023, the number of millionaires will also grow and will reach fifty-five million. For the time being, there are more than forty-five million millionaires in the world. The latest reports stated that the bottom 50% of the world’s population owns approximately 1% of global wealth, while the wealthiest 10% of adult persons owns around 85%. 

What seems like a silver lining for the time being is the fact that the gap between poor and rich has stopped getting bigger. One study has uncovered that wealth inequality hasn’t increased in the past couple of years.

Smallest changes in household wealth

No matter how gloomy the current situation may be to a lot of people, it seems like it isn’t as bad as most people tend to think. Nobody knows what tomorrow will bring, but one can only hope for the best.

Dow Jones Industrial Average futures climbed 60 points or 0.17%. Meanwhile, S&P 500 futures were up 0.2% and Nasdaq 100 futures increased 0.12%. 

The shift follows a tumultuous week for stocks, largely pressured by fears of a Russian attack on Ukraine as well as reports of US inflation reaching its highest level in 40 years

For the week, the Dow and the S&P 500 dropped 1% and 1.8% respectively. On Friday, the Dow fell 503.53 points or 1.43%. Meanwhile, the S&P 500 dropped 1.9% and the Nasdaq Composite saw a decline of 2.8%. 

The White House has warned that a war in Ukraine could come any day now and has urged US citizens to leave the country without delay. 

US National Security Adviser Jake Sullivan warned Russian forces were now "in a position to be able to mount a major military action.”

"We obviously cannot predict the future, we don't know exactly what is going to happen, but the risk is now high enough and the threat is now immediate enough that [leaving] is prudent," Sullivan said.

Over the weekend, President Joe Biden attempted to dissuade President Vladimir Putin from attacking Ukraine over a phone call. However, Biden reportedly failed to achieve a breakthrough.

The jump in the consumer price index (CPI) survey which measures the costs of various goods — was the largest on record since February 1982, with the costs of food, electricity, and housing amongst the biggest contributors to the hike. 

In January this year, the food index for the US rose 0.9% following a 0.5% increase in December. The energy index was also up 0.9% over the month.

With gas, food, and housing prices still increasing across the United States, just 37% of Americans currently approve of President Joe Biden’s handling of the economy according to a poll by Associated Press-NORC Center for Public Affairs Research.  

"What we have seen is inflation not get worse on a month-to-month level, and I am hopeful that will translate into a slow decline as we move through the spring and into summer," said Federal Reserve Bank of Atlanta President Raphael Bostic. “[That] will give me some comfort that we are heading in the right direction.”

So, whether you’re moving there for family, work, or just because you want to find the best home you can in the Old Dominion State, one of the best ways to do that is to hire a mortgage broker to help. But navigating this somewhat challenging aspect of our modern lives can be a bit tough. What are mortgage brokers, exactly? How do you find one? And what do they do? In this article, we’ll answer these questions and discuss the advantages of using a mortgage broker when you move to (or are already living in) Virginia. 

What Are Mortgage Brokers?

Unlike a loan officer who only works for a single lender, mortgage brokers can work with multiple lenders to find the best loan applicable to your situation and criteria. They help clients get competitive rates, decent pricing, and ensure the loan is a good match for the buyer. According to Bankrate.com, mortgage brokers are essentially a middle man who helps you secure a mortgage from a range of different lenders. But they can be so much more than that. They can help you refinance, secure other types of mortgage loans, help with reverse mortgages, and assist you with the large amount of paperwork involved with the process. They are finance professionals subject to a regulatory process and held to high standards.

Accessibility

Mortgage brokers make not only securing a mortgage loan more accessible, but they make information about the process easier to understand. They are adept at supplying incredible resources and applying their knowledge to helping you find the right mortgage loan for your family. If you want to learn about Adjustable Rate Mortgages, understand FHA loans, see what a typical gift letter looks like or need help arranging any aspect of the process (such as the home inspection), a professional mortgage broker who has a strong positive track record can be just the help you need. Instead of trying to figure these things out on your own, it helps to have a 

Less Work

Buying a home is a lot of work. It requires research, dedication, plenty of paperwork, and more time than you might expect. A mortgage broker helps streamline this process. They'll help you define what's affordable for you, estimate your monthly payment, help you manage payments after securing the mortgage, and figure out down payments, all while helping you find the right lender and secure your mortgage. There will still be plenty of work for you to do, but having a broker guide and assist you along the way helps keep things smooth and on track as you purchase your new home. 

Fee Management

If there's one thing that remains consistent across any type of lending process, it's the fees. There are many fees associated with purchasing a home that a mortgage lender can help you manage. Selecting reputable mortgage brokers in Charlottesville, VA can help you navigate the treacherous financial waters of these fees with their knowledge, skills, and dedication. 

Fast Closing Times

When you want to get into your new home fast, a prompt closing time is critical. Because there's a lot of paperwork and additional leg work to be done before you can finally close on the house, having a helping hand from your mortgage broker can really come in handy. They can help you get all of your documents in order, keep in touch with the lender, understand your mortgage credit score, and help you identify/eliminate any issues that might affect your loan's underwriting. Having a system in place to help speed up the closing process will get you into your home faster and you'll be glad you retained the services of a professional firm for such a vital purchase.

Health insurance helps people with their financial needs by paying a portion of their medical care. As we all know, we don’t know when we will get sick, but with good health insurance, you don’t have to worry about the financial aspects. That said, there are many reasons why you should get health insurance not just for yourself but also for your family. But before we get to the reasons why you should get health insurance, let’s talk about what health insurance is.

What is health insurance?

Health insurance provides you with financial support in medical costs by paying your medical bills. As we all know, medical bills are staggering, and a huge portion of the population can’t afford to pay them with their income alone.

As insurances go, there are a lot of kinds in the market. There are insurance plans that are run by the government, namely Medicare and Medicaid. Medicare is health insurance for people who are aged 65 and older or people under 65 with a medical disability. Meanwhile, Medicaid is health insurance for people who have low income.

Private insurances, on the other hand, are offered by healthcare companies. You can mostly see this type of insurance from your employer or company. Probably the biggest difference between government-run health insurance and private ones is that private ones often make you pay premiums every month. Government-run health insurances mostly don’t have monthly premiums.

So how does medical insurance work? It mostly works like car insurance. When a car gets into an accident, you’re going to have it repaired, and the repair costs are often expensive. If the damage is big, you can just go ahead and buy a new car. The car insurance itself would pay for either one of them. But unlike car insurance, health insurance covers more than the hospital bills from an accident. It also covers annual checkups, preventive health, and even vaccination. It’s like car insurance, but the provider also pays for the tire, oil change, and other maintenance costs. 

So why should you get health insurance?

Save Money

According to the Peter G. Peterson Foundation, the US has some of the most expensive medical costs worldwide, and it’s still increasing. When you’re uninsured, you’re in for a world of hurt because you're paying a lot of medical costs on your own, and they’re not exactly cheap. Sure, you’ll be fine if you’re already paying annually for routine checkups and antibiotics, but when an emergency happens, like an injury or an acute medical condition, you’ll be responsible for all of the costs. Although the costs for various conditions vary from state to state, HealthCare.gov notes some of the most common medical expenses as follows:

Cancer Treatment: above $100,000

Broken Leg: $7,500

Hospital Care for Three Days: $30,000

Having Insurance Helps You Stay Healthy

It’s only a myth when people say that health insurances are only for people who have chronic illnesses. That’s far from the truth. In fact, nowadays, a lot more people are getting health insurance even if they are perfectly healthy, especially with the COVID-19 pandemic still going on. Also, health insurance inspires you to be healthy and does a successful job doing so. Under the ACA, most health insurances cover a lot of preventive healthcare services. Some of them include:

With all of these preventive services and more, you can say that having health insurance is convenient and beneficial for both your health and finances. And because of these free services, you’ll be as healthy as can be, and you can avoid illnesses in the long run, which will save you money. 

You also have the benefit of catching an illness early to prevent it with all the screenings available for you. But again, health insurances vary from each other in terms of their services. That said, you can try to shop Assurance's health insurance if you want to find something that will suit your needs.

It Reduces The Chances of You Going Bankrupt

Sure, having health insurance won’t save you from paying all your medical costs, but those costs will be capped with health insurance. This is because most health insurance tends to have a maximum when it comes to copays, coinsurance, and even deductibles. Most plans also have a maximum when it comes to out-of-pocket costs. Once you hit that limit, your provider will be responsible for all the costs moving forward for the rest of your stay in the hospital.

Final Words

With the pandemic still going on and another variant of COVID-19 spreading, there’s no better time to get your very own health insurance than today. Sure, you’ll still pay a lot in medical costs, but in the long run, you’ll thank your past self for getting one. So with health insurance, not only are you safe medically but financially as well.

Back in September, Reuters reported that Reddit, which was founded in 2005 by Steve Huffman and Alexis Ohanian, was hoping to reach a valuation exceeding $15 billion by the time it planned to list its shares. 

The San Francisco-based company’s message boards have been at the heart of a pitched battle between small-time traders and large Wall Street firms that carried forward big gains in highly-shorted shares of companies such as GameStop and helped to grow the popularity of the term “meme stocks”. 

At the peak of the craze in February, Reddit’s value doubled to $6 billion from the previous year and, in August, was valued at $10 billion in a private fundraising round. 

In October 2020, Reddit had approximately 52 million daily active users and over 100,000 communities. In the second quarter of this year, the company reported $100 million in advertising revenue, almost a threefold jump from the same period in 2020.

The pound slumped as low as $1.3364, trading below a key $1.34 support level. The slump marks sterling's weakest point since December last year when the market was impacted by concerns of a no-deal Brexit.  

According to data from the Office for National Statistics (ONS), the UK economy grew by 1.3% in the three months to the end of September, a figure which trails behind analyst forecasts of 1.5%.  

Shortages of goods and labour had the most substantial impact on growth amid the struggle to meet the sharp rebound in demand. The biggest drivers were from the hospitality, arts and reactions, and health sectors as remaining Covid-19 restrictions were eased. 

This comes following an initial tumble by the pound sterling last week, caused by the Bank of England surprising traders by leaving interest rates unchanged at record lows of 0.1% following a majority vote by the Monetary Policy Committee (MPC). 

On the other hand, expectations that the Federal Reserve will raise interest rates faster than expected has seen the dollar boosted. This follows a 31-year high surge of US inflation

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram