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Tesla saw a decrease in China sales this past month that was faster than the broader market after warnings about constraints regarding capacity at its Shanghai gigafactory.

Tesla (TSLA) shares increased this week after the information from China showed a decrease in sales per month as the supply-chain problems continue to lessen capacity at its gigafactory in Shanghai.

Shares had a boost this week, as well, by an Exchange and Securities Commission filing showing Adage Capital Partners had raised its stake in the group by 21.3 percent, to 824,300 shares.

Tesla has sold 59,845 cars that were made in China in Jan., a 15.5% drop from the automaker’s record Dec. amount of 70,847 units in its most important market.

However, the total of the China car sales only dropped 1.4% from Dec. to Jan., to 2.11 million cars, and Tesla’s biggest rival NIO saw sales drop 8% to 9,652 cars. Xpeng sales decreased 19.2% down to 12,922 units sold, the CPCA said.

Tesla warned earlier this year that supply-chain problems have slowed the production capacity and will affect the speed of near-term output, a caution that took part of the gloss from a record 4th quarter, which had revenues that rose 65 percent from the past year to a record high of $17.72 billion.

“For a while now, (Shanghai and Freemont) factories have been working under capacity because of some challenges with logistics and supply,” Zach Kirkhorn, Tesla’s CFO, told investors in late Jan.. “From what we are seeing, the speed of growth during 2022 will, again, be decided by logistics and supply chain, which is not easy for us to estimate.”

Tesla shares were priced 3.5% more in trading this week to sell at $890.54 each, a move that would slow the stock’s three-month decline to about 15%.

Late last year, Elon Musk said the Model S Plaid, their high performance luxury sedan, will become available in China around March.

The cost of the Plaid is $140,000, and it has a charge range of about 520 miles and it has been reported to have speeds up to 200 mph.

“With China being the largest EV market, Tesla’s determined production plans in the U.S. turned out to be productive. Growth in production of the Model y and 3 from its gigafactory in Shanghai is helping top-line increase,” said Nanda Sai, Crisp Idea analyst, who has a ‘buy’ rating with a twelve-month cost target of $1,087.00 on Tesla stock.

“The Shanghai gigafactory factory is growing in production and has a large market share in the China electric vehicle market and the business stays focused on more improvements that will raise production rates,” he said.

Author: Blake Ambrose

It has been a relatively muted day in the cryptocurrency world. However, some coins are seeing outsized moves. One such coin that is worth taking a look at today is Neo. This coin has soared 11.3% higher to move up to 59th place in the market capitalization rankings.

Among the main drivers of coin’s increase today was the news that came out of Neo’s first-ever release of monthly tech reports. This report has highlighted progress that has been made on a few things Neo has been trying to complete for a while now. These included a wide range of bug fixes, as well as some new support and resources for developers utilizing Neo to put smart contracts into the decentralized apps.

Additionally, released “gas burn” data coming directly from the Neo team reveals significant new spikes, specifically one being at 3 a.m. ET. Neo coins are the governance coins linked to the voting rights for the network, while Gas coins are the “fuel” that let transactions take place within the network. System fees are then burned, with network fees being redistributed to the census nodes. Having higher gas burn rates indicate that transaction volumes have spiked over a given length of time.

So what

Neo is a blockchain that is China-based, usually regarded as the first of its kind from China, released in 2014. It is not surprising to have big spikes in what are considered after-hours trading if you live in North America, given this difference in time. However, the new gas burn data that was provided by Neo does indicates that activity might be picking up on its network. With the geopolitical concerns that have been coming out of China, this is certainly a bullish factor that many investors seem to like today.

Also, the technical update that was provided by the Neo team has offered some significant details on what is going on behind the curtain. Those with more sophisticated knowledge of what the inner workings of this network are seem to really like what they are seeing. Like any investment you make, the more transparency you have, the better it is. This seems to be the case for Neo today.

Now what

Neo is most certainly one of the more interesting blockchain networks and you may want to take a look at it soon. For anyone that is bullish on the continuing global growth in the cryptocurrency space, this may be a coin to put on your watch list. Indeed, Neo’s increase of over 11% during a time when the overall cryptocurrency market was up just under 1% signals that investors think there is some real near-term potential upside with this coin.

Like all crypto, investors should do their due diligence before they dive into any coin. Neo is a project I intend to study more following today’s news.

Author: Blake Ambrose

At first look, Airbnb might just look like another expensive stock, with a market capitalization of about $120 billion and a valuation of over 20 times its sales. But do not be fooled — this company is massively disruptive and has the capability of dominating its market.

Recent results reveal that travel demand is increasing and the market is absorbing the current inflation nicely. Here is a rundown of where the Airbnb business stands at today, and why this might become a trillion-dollar company over time.

Airbnb: Where do things stand now

To call Airbnb’s growth an impressive one wouldn’t do it the justice it deserves. The travel disruptor has come from literally just three air mattresses in the co-founder’s homes (this is where Airbnb got its name from) into a huge travel-booking platform that is currently seeing around $45 billion in yearly booking volume.

Recent growth has been quite impressive as the world is continuing its gradual return to normalcy. In the fourth quarter, there were about 73.4 million nights booked on the Airbnb platform. This was up 59% from the year before, although it is still a bit less than pre-pandemic levels were. However, because average costs each night have increased a lot, Airbnb’s revenue in its most recent quarter has increased by 38% from the comparable 2019 levels.

Not only is its growth impressive, Airbnb has a clear road to profitability. The company is not consistently profitable yet (although it was during its fourth quarter), but losses have lessened considerably, and the company produced $1.5 billion of adjusted earnings before taxes, interest, depreciation, and amortization last year.

There is reason to expect that 2022 will be an excellent year for the company. Airbnb reported that at the end of Jan., there were about 25% more nights booked for the Summer 2022 than in the comparable pre-pandemic times. When you combine that with a 20% boost in the average nightly rate, you have a recipe for significant growth.

Future potential is massive

It may sound like $45 billion in yearly booking volume is a large number — and that is because it is. However, it is important to put it into perspective, as the vacation-rental industry still has many potential properties that are not yet on its platform. In fact, Airbnb has estimated that the global market for short-term rentals is around $1.8 trillion.

If you were to include adjacent experiences, as well as the long-term vacation rentals, the market is thought to be a staggering $3.4 trillion in true size. And it is worth pointing out that this was at the time of Airbnb’s IPO (just over a year ago), so it does not take count the recent increase in average nightly rates.

Airbnb has about 1.3% of its addressable market opportunity today. it is never going to get close to touching 100%, but the point is that there is room for Airbnb grow considerably.

Author: Scott Dowdy

Cardano has been rising up in the levels of cryptocurrencies during the past year. This new player is now the 7th largest crypto in market value. Users and Investors are rushing to this blockchain. Its native currency — Ada — recently increased to a record of over 3 million, according to insights of Cardano’s Blockchain. And Cardano almost doubled its amount of developers this past year, an Electric Capital report said.

Plainly, this Valentine’s Day, you don’t need to be shot by Cupid’s arrow to fall for this incredible crypto. Here are 2 reasons to love Cardano.

1. An exciting update is on the way

Transaction speed is a huge focus for any blockchain trying to change the way business is done. Right now, Cardano makes around 250 TPS. But the blockchain is working on getting quicker. That is where Hydra comes in. Right now, software engineers are focusing on this solution that includes off-chain ledgers, or Hydra heads. They run parallel to the main network. A Hydra head can take care of transactions within a group of participants that agree to be part of it.

Hydra testing has shown that each head can process 1,000 Transactions per second. Of course, more heads would cause that number to be higher. So, Cardano is on the way to excelling when it comes to speed. But 3 other measures might be even more important than transactions per second, according to  Matthias Benkort, a software engineer for Hydra. And those are, the time to finish a transaction, the volume of data processed, and the amount of effort that can be done simultaneously. Hydra is ahead in these areas as well.

When can we expect the update to be released? It might happen as soon as this year.

2. A focus on quality

Cardano has put out a plan of 5 development stages.  And Cardano is on the last two. There is progress being made on these stages and both at the same time. The last goal is a completely self-sustaining system. This method is a step- by- step way to make sure of the quality.

But Cardano does not quit there. The blockchain also makes use of a peer review system. Which means any updates for the network has to first go through peer review and then be given approval before being implemented. The bad part is that this could slow down development. But here is the huge positive: These efforts could stop outages and glitches in the future. This means Cardano is working on a system that businesses and people can depend on. That could help Cardano stand out from the thousands of cryptocurrency players.

Author: Steven Sinclaire
Over the long term, gold has a proven track record of being a reliable hedge against inflation. However, gold’s track record over the short term isn’t as stable, but that does not mean it isn’t a valuable investment asset.

In Sept., Urban Jermann, who is an economics and Wharton finance professor released a paper outlining what the added value in gold is beyond what its intrinsic value as jewelry is.

“The model has implied that on average over half of the value of gold is because of its role as an investment asset,” Jermann stated. “What the model does is reveal a way to think about the metal as bonds where interest rates do matter. But it is not just a simple bond. It is a bond with an option to sell at the floor price.”

Jermann’s research in the investment value of gold comes at a time when the Federal Reserve is looking to raise interest rates to fight increasing inflation pressures. Markets have been pricing in the possibility that the United States central bank increases interest rates by about 50 basis points in the month of March. In total, markets are expecting around six rates hikes in 2022.

Markets are pricing the aggressive monetary policy as inflation see an unprecedented increases. This past week consumer prices increased 7.5% for the year.

Jermann’s modeling mentions that its gold’s connection to interest rates is the reason why it is not a great short-term hedge against rising inflation. He stated that gold’s relationship with interest rates has been strong for the past 15 years.

Jermann said that gold might struggle in the environment of today; however, there’s a natural floor in the price.

“Gold is attractive as a store of value in times of negative and low real interest rates,” Jermann stated in his report. “When interest rates increase again, the value of gold will decline again. However, this isn’t the whole story.”

“What my model does capture is that if interest rates were to increase, gold prices will fall, but they will stop falling at some point,” Jermann says. “At some point, the people that like jewelry will purchase the gold. They basically offer you as an investor a kind of insurance. As interest rates go up, gold prices respond to them less because gold becomes less of an asset of investment and more of a consumption good.”

As to how far gold prices might fall, Jermann says that the market may see a 20% correction as the Federal Reserve looks to increase the interest rates.

Helping to combat the effects of the coming rate hike cycle is a new safe-haven demand as tensions between the United States and Russia remain elevated.

Author: Steven Sinclaire

For many years now, Social Security has had some important changes. These changes include a yearly benefits boost if the consumer price index reveals costs are going up, as well as a raise in how much income will be subject to SS taxes.

In recent years, there was something else that changed as well — and it has affected when retirees are able to claim their standard SS benefits, as well as how much of their income Social Security will offer to them. This year will be the last time that this adjustment will happen, though, and it is important for every future and current retiree to realize what the implications are.

This Social Security rule will not have any more changes under the current law

In recent years, the full retirement age has been seeing some changes for recently eligible SS beneficiaries. However, this year is the last time that this will happen.

Now, if you’re not familiar with the rules of the Social Security benefits program, chances are you are not sure why this matters or what this means. If that is the case, here is what you should know:

  • Retirees can first become eligible to receive Social Security benefits when they turn 62 years of age.
  • If you Claim benefits at age 62, or any time prior to reaching FRA, it is considered an early benefits claim.
  • Early claims will result in early filing penalties, which will reduce your monthly benefits. The penalties apply for each month benefits are claimed before FRA.
  • Full retirement age can be determined based on birth year. It has gradually been moving higher thanks to amendments that have been made to Social Security in 1983.

Because FRA has been shifting older and older for recently eligible beneficiaries, every new group who has turned 62 recently will be made to wait a little while longer to begin Social Security checks if they want the standard payment. They will also have less opportunities to earn a delayed retirement credit, which can be earned until age 70 for every month you delayed claiming your benefits after FRA.

Everyone who is turning 62 in 2022 or after will have the same FRA.

So anyone that turns 62 this year or after, full retirement age will become 67. These seniors have to wait until they reach age 67 to avoid the early filing penalties. In contrast, those individuals that turned 62 last year can get their standard benefit check at age 66 and 10 months, while everyone that reached this milestone in 2020 was able to claim benefits at 66 and 8 months and not have to face penalties.

Now, there is a chance that Congress might make further changes to the Social Security benefits and shift FRA even later in the future. But unless that does happen, anyone who first becomes eligible for SS retirement benefits this year or later will no longer need to delay claiming their SS checks just to receive the full benefits they have earned during their lifetime of work.

Author: Scott Dowdy

As the crypto market continues to see volatility in 2022, certain themes are starting to emerge. One is that developers have been taking the opportunity very seriously, building some excellent utilities that might be disruptive in many markets ranging from event ticketing to finance. Another theme is that blockchains have been dealing with various challenges in meeting user needs and scaling, which is causing trouble in some areas.

The crypto that could deal with both the challenges and opportunities best will be the largest winners long term. That is why I think Solana, Ethereum, and Polkadot are the leading cryptocurrencies to purchase today.

1. Solana’s calling card

Developers are being attracted to the Solana blockchain — and for a great reason. Transactions on Solana tend to take only a few seconds to complete and cost a fraction of a penny. That compares to ETH, which is the biggest smart-contract enabled blockchain, which could cost over $100 for transactions that could take a few minutes to finality.

Low costs let developers to create products that are able to disrupt other industries.  Solana Pay was announced a few weeks ago, which is a transaction system that lets customers pay merchants with stablecoin or Solana. Fees are just fractions of a penny, which can threaten expensive financial networks like Mastercard and Visa that charge 2% to 3% for every transaction.

Non-fungible tokens are also increasing on Solana in everything from video games to decentralized finance products, which has allowed developers to fund projects.

We do not know what creators will build on top of the Solana blockchain, but the there are endless possibilities, given the very low costs and quick transaction speeds, which is one reason you should be bullish on Solana crypto today.

2. Ethereum is the leader but has a big year ahead

The big money in smart contracts is on ETH, which is where NFTs have really became popular and businesses like Opensea are now processing NFT sales that amount to billions of dollars every month. But ETH does face higher transaction costs and a relatively slower network because of its POW structure, which will be a headwind if it is not improved fast.

A few upgrades are meant to move ETH to a reduced cost proof-of-stake protocol, which is known as Ethereum 2.0. If finished as planned, this will cut the cost of ETH and improve its transaction speeds, allowing it to compete better with Solana. And given the momentum and financial investment already behind Ethereum, simply being close in speed and cost might be enough for it to keep the leading spot among blockchains that are smart-contract enabled.

3. Polkadot’s future innovations

The blockchain that links other blockchains is Polkadot. It is able to create bridges across other blockchains like parachains or Ethereum, which are independent blockchains that live on Polkadot.

Like Solana, the price of Polkadot is not what the blockchain itself does but instead what developers do with the blockchain. If they were to use it to bridge from one blockchain to another or unlock new decentralized apps, the Polkadot coin will be used as a main part of that exchange.

What will be challenging is getting developers on board. I mentioned above that ETH is arguably the most mature crypto for developers and Solana is growing fast. I think Polkadot has a chance at unlocking a different layer of collaboration and development with parachains, bridges and other technologies. That is why this is a top crypto today.

Author: Scott Dowdy

Shopping around for the best loan terms and rates is important borrow from a bank. But it is especially crucial that you put in the time it takes to find a loan with the best terms when you are taking out a home loan. That is because chances are good you will be borrowing a lot of money and having to repay it over many decades.

Unfortunately, searching for the perfect mortgage can sometimes be difficult because there are a lot of different lenders and types of loans you can pick from. The good news is, it is easier to find the right load if you take Suze Orman’s advice on the three-step process.

Here are the steps Suze Orman says you need to take when searching for a home loan.

1. Don’t let the budget be set by your lender

The first step Orman recommends taking is to figure out how large of a home loan fits your budget.

She says you should be making your own choices about how much money to borrow rather than allowing the mortgage companies to suck you in and offer you a bigger loan than you are comfortable with.

Mortgage lenders normally want to provide you the biggest loan they think you will be able to afford, as this will maximize their profit. While it is tempting to take more money and purchase a more expensive home, the fact is a big mortgage payment might interfere with your other financial goals you have.

If you take the time to choose what fits your budget the best– while also completing other tasks, such as saving for retirement — you are much less likely to be talked into borrowing a large amount of money that will leave you house poor.

2. Shop around with other financial institutions

Orman warns against assuming that your current bank will always offer the best deal on a home loan.

Instead of sticking with the same bank and just applying for your mortgage loan with the financial institution you are already doing business with, Orman recommends applying with at least three other lenders.

This is her most important advice, as there could be wide variation in terms and rates among mortgage lenders. Even an increase that is small could add tens of thousands in added interest over the life of the home loan. You do not want to settle for a terrible deal on a mortgage loan just because you do not realize you can do better.

3. Work with a lender who will get the deal done

Finally, Orman recommends looking at how effective other lenders are at getting the loans closed when you pick which mortgage to apply for.

As she explains, a lot of lenders could take too long to get your loan to closing. This will can end up costing you a house if the seller is trying to have a fast sale or if you exceed the amount of time that is allowed to secure the financing based on what your purchase agreement says.

Orman recommends asking real estate agents which lenders are usually efficient — and do not tend to cause issues — during the closing process.

By following all these tips, you might find an affordable home loan at a low rate that closes fast so you will end up happy with your new home purchase.

Author: Steven Sinclaire

In my experience, companies that have an edge usually grow faster, operate more efficiently, and produce more cash. And those qualities have a tendency to make the company unstoppable over the long term. Arista Networks and Union Pacific can be used as two great examples. These businesses have established a strong competitive position, and both stocks have the potential to make you richer in the coming years.

Here is why.

1. Arista Networks

Arista pioneered the software-driven networking for cloud data centers, an approach that doesn’t use dedicated hardware and instead utilizes software to manage network traffic. The business has since extended its tech to the bigger parts of enterprise campus, growing its market opportunity in the process. The Extensible Operating System is Arista’s main innovation, which is software that powers its lineup of routing and switching platforms, providing the speed, scalability and programmability that modern data centers require.

EOS runs across Arista’s whole portfolio of hardware, letting clients deploy a seamless network across public and private clouds. By comparison, vendors such as Cisco Systems use various operating systems in different environments, which boosts complexity and cost. Arista further differentiates itself from CloudVision, software that provides network-wide monitoring and automation from one platform. Here again, Cisco makes its clients use multiple management tools.

Put simply, Arista helps make high-speed networking a less costly and less complex, and that value proposition has turned into strong financial results for the company. Over the last year, revenue increased 25% to $2.8 billion and its earnings soared 10% to $2.47 each diluted share. More importantly, the company is well-positioned to see continued growth in the coming years.

2. Union Pacific

Union Pacific is one of the seven Class I freight railroads within North America, a classification that is reserved for the biggest rail carriers. Union Pacific has benefited from an effective duopoly in the western two-thirds of the United States, where it works with around 10,000 customers and serves as an important link in the supply chain around the world, transporting everything from automobiles and food to plastics and forest products.

Union Pacific’s best asset is scale. The business manages over 32,400 route miles of railroad track that connect the Gulf Coast ports and Pacific Coast with gateways to the Canada, Atlantic Coast and Mexico, making it almost impossible for a new competitor to enter the market. It would take way too much time and cost too much money to construct competing infrastructure. But Union Pacific is also the only railroad that serves all six large Mexico gateways, and it owns about 55% of the refrigerated boxcars within North America, giving the business an edge in shipping perishable items.

Here is the big picture: The transport of completed goods and raw materials is the backbone of the economy, and Union Pacific is a main player in logistics around the globe. To that end, natural economic growth should be a consistent tailwind for the business, and its focus on efficiency should push increased profitability up over time.

Author: Scott Dowdy

There are bargains out there in the crypto market. A lot of digital currencies have been trading far below their highs of last year, and you could find bargains if you have faith in the future of crypto the way that I do.

I will not get into the biggest tokens that you may already know about all too well these days. I predict a lot of turnaround potential in Terra, Fantom, and Polygon, three cryptocurrencies that are promising and recently fell 48%, 44%, and 43%, from their previous highs. They would have to almost double to reach their all-time highs again. Let’s see why that might happen.

Terra

Terra’s appeal is how it works in unison with the TerraUSD stablecoin project. Terra is the native coin of TerraUSD and other nation-specific stablecoins. TerraUSD is the stablecoin that might seem boring to many crypto investors since it attempts to trade near the $1 mark. Some risk-tolerant income traders see TerraUSD much differently, as they could earn almost 20% in yearly interest if it is staked through the Anchor lending and savings protocol that was released by Terra last year.

Now let’s go back to Terra. TerraUSD’s popularity as the high-yielding stablecoin is excellent news for the extra volatile Terra. As demand is growing for TerraUSD, it results in Terra being retired or burned in the swap for TerraUSD directly from the community pool. Terra has become the second-most-popular cryptocurrency on decentralized finance (DeFi) apps, behind only market darling ETH.

Fantom

Developers of the DeFi apps have taken a liking to Fantom. Its ease of use and its flexibility (as well as its lightning-fast ability to validate the transactions) have made it an ever rising star for a surprisingly smaller digital currency with a $4.9 billion market capitalization. Fantom’s sponsoring organization is also making its own luck by helping to encourage its use.

The amount of DeFi assets that are on Fantom-based apps has taken a hit in the last two weeks, but it still had $8.2 billion in TVL as of this week. Among the 15 biggest DeFi protocol chains, Fantom remains the only one of these that has a smaller market capitalization than its TVL. It is the same as a value stock in the cryptocurrency world, but the main thing here is that the assets cannot keep sliding the way that they have this month.

Polygon

Lastly, we have Polygon, a layer-2 network that plays an important role in helping to scale ETH. Ethereum does have shortcomings. Until it finishes its migration to a POS model, it is expensive and slow to move around. The Polygon Network is a sidechain, a scaling solution to help make the smart-contract pioneer a lot more efficient.

With Polygon joining Fantom and Terra as cryptocurrencies that are trading over 40% below their peak, there is major upside to all of these if the market were to bounce back.

Author: Blake Ambrose

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