Here’s what you need to know today

• The US stock market is hitting record highs. The S&P 500 index briefly crossed 6,000 and the Dow Jones Industrial Average crossed 44,000, both for the first time ever on Friday. Since the market closed on election day on Tuesday afternoon, the S&P 500 is up 4% in 3 trading days. (AFR)
  
  

• China has announced its latest stimulus package intended to help boost its sluggish economy. Over the next 3-5 years, the central government will issue bonds worth 10 trillion yuan (US$1.4 trillion) to help local governments refinance their debt. China’s slowing economy now faces a whole new series of challenges with President-elect Trump promising tariffs of 60-100% on all Chinese imports into the US. (Bloomberg)
  
  

• Both the US Federal Reserve and the UK’s Bank of England cut interest rates 25 basis points last week. The Fed now has a target range of 4.5-4.75% and the Bank of England is a 4.75%. Both the US and UK are seeing lower inflation than Australia, but they both did raise faster and more aggressively in 2022 and 2023. (Reuters | Capital Brief)
  
  

• For the first time in more than 2 years, Tesla’s market cap is back above US$1 trillion. Tesla’s share price was up 30% last week as the electric vehicle maker was a big winner from Trump’s victory. That is somewhat ironic given Trump’s dislike of government incentives for electric vehicles and JD Vance’s view that EV incentives should be removed and instead given to ICE vehicles. Much of the investor optimism comes from Trump’s promise of tariffs on Chinese electric vehicles and to ban self-driving Chinese vehicles in the US. (CNBC | Fortune)
  
  

• As Tesla’s share price rises, so does Elon Musk’s wealth. The world’s richest person has crossed a personal net worth of $300 billion, returning to a high water mark he reached 3 years ago in the peak of the 2021 stock market boom. (Fortune)
  
  

• Nissan is in trouble. The Japanese car maker announced it would cut 9,000 jobs globally and reduce production capacity by 20% as it struggles to sell its hybrids in key markets, particularly the US. CEO, Makoto Uchida, also announced he would take a 50% pay cut as part of the cuts. (Capital Brief)

What the…?

Super Micro Computer was an AI darling, but the troubles at the computer hardware maker keep getting worse. After its auditor EY refused to sign off on its annual results and quit, Super Micro has now come out to say it has no timeline for getting sign off on its annual report.

The company must file by mid-November otherwise its faces getting delisted from the Nasdaq stock exchange. In the past year, the stock ran up 350% to March and then has fallen back down 80%, meaning overall it is down 8% in the past 12 months. What a wild ride. (CNBC)

Investing is a lifelong journey

Here’s what you can learn today.

This is an excerpt from our book Get Started Investing, a summary of everything we’ve learned about building wealth in the stock market after 8 years of Equity Mates. You can pick up a copy wherever you buy books.

How to get the most out of your super

One of the best things about superannuation is that it is automatic. You don’t have to think about it, you can’t touch it and it just compounds and compounds for decades. Ideally growing into a meaningful nest egg for your retirement.

There are a few things you should do to ensure you’re set up optimally.

The steps in the checklist below are worth working through. It’s worth thinking about how your super is set up; don’t just leave it on autopilot for the early part of your working life. If your super is set up correctly in your twenties and thirties, you’re giving yourself a much better chance to retire with a larger amount of money in your sixties or seventies.

• Don’t just use your employer’s default super account. It may not be the right one for you, and you could be losing out on better returns. Check your options, do some research online and speak to a financial adviser if you have one. It is really easy to change super accounts if your default account isn’t the best.

• Check the fees you’re paying and compare them to other funds. Fees can have a big impact on your overall returns, so make sure you’re minimising your fees.

• Ensure you’re happy with your insurance and other arrangements. Many people don’t know, but their superannuation account comes with a life insurance policy as a default option. Which you pay for out of your super. If you’re young, single and don’t have any dependants, think about whether you really need life insurance. If you decide you don’t need it, make sure you aren’t paying for it.

• Make sure you’re happy with the investment strategy. Many super funds allow you to choose between ‘conservative’, ‘balanced’ or ‘aggressive’ settings. As a general rule of thumb you want to be aggressive while you’re younger (because your account can really start compounding early and has decades to recover any losses) and then get more conservative as you get older (because not losing money becomes more important the closer you are to retirement).

Today’s sponsor is Australian Property Scout

Join Sammy Gordon, Equity Mates’ regular property expert, in the studio with property investor Ella, who, at just 24 years old, has built a $2.4 million property portfolio.

This episode is packed with valuable insights as Ella shares her journey with Sammy, showcasing what perseverance and grit can achieve.

Tune in to this inspiring episode on the Scouting Australia Podcast on all your favourite listening platforms.

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