(krone) – In today’s batch from Winners & Losers, financial expert Rob Black talks about rising stocks, falling home prices and airline credit card rewards for travel.
Winner: Stocks soar after worst week since March 2020
There is a strong recovery attempt in the market today, which is a comforting sight for many after last week’s heavy losses.
The breadth of the market exemplifies the positive disposition.
Investors lead losers by a margin of 7 to 1 on the New York Stock Exchange and a margin of 4 to 1 on the Nasdaq.
The trade recovery was also evident in the cryptocurrency market, which came under attack last week and bled out over the extended weekend with bitcoin prices dropping below $18,000. Currently, the bitcoin price is up 3.6% to $21,586.20.
Uber will resume shared rides in US cities such as New York, San Francisco, Los Angeles, Chicago, Phoenix, San Diego, Portland, Indianapolis and Pittsburgh.
Food and snack giant Mondelez has agreed to buy energy bar company Clif Bar for nearly $3 billion. Emeryville-based Cliff makes Clif, Luna, and Clif Kid brands.
Twitter stock jumps as the board of directors recommends a $44 billion buyout bid for Elon Musk.
Someone paid $19 million to go to lunch with Warren Buffett. And no, not at the buffet. Proceeds Benefits Glide, a nonprofit organization in the Tenderloin area of San Francisco that helps people who don’t have homes or who struggle with addiction.
Dave & Buster’s is turning Miami Arcade into a bed and breakfast for just one night.
Loser: Home prices are likely to fall as prices rise
Home prices are likely to fall in the US as mortgage rates exceed 6%, hampering the affordability of the average buyer.
Real estate prices could shrink by 5% by the middle of next year.
The average family looking to buy a home at the median price now has to put more than a quarter of their annual income into mortgage payments. This exceeds the average of 24% seen in the mid-2000s.
We’ve been talking about rising mortgage rates, and here’s a sobering example: The average new mortgage payment in San Jose, California has gone up nearly $3,000 since the beginning of this year when it was $5,304.
And in New York, the cost of mortgages is about $1,000 more per month than it was in January.
“This decline in affordability will deprive many potential buyers of the market,” Matthew Boynton, chief real estate economist at Capital Economics, wrote for MBA. “This will reduce competition for homes, and sellers will eventually see the need to accept a lower price for their property.”
Winner: Airline Rewards Credit Cards for Travel
These two categories of credit cards may seem interchangeable, but they are actually quite different.
An airline credit card is a co-branded credit card of a particular airline, the rewards of which can only be redeemed with that airline and its airline alliance partners.
On the other hand, a Travel Rewards credit card is not tied to a specific travel brand, so the points earned are transferable and can be redeemed for all types of travel booked directly through the card’s travel portal or by transferring the points to any number of hotel or airline partners.
For example, the Capital One Venture X Rewards credit card allows you to earn Capital One miles, which can be redeemed through the Capital One travel portal for various travel purchases including flights, car rentals, and hotels. You can also choose to transfer your Capital One miles to one of our airline and hotel partners.
There are three questions to consider when choosing between airline credit cards or travel cards.
Both types of credit cards offer great opportunities to save money on an upcoming trip, and one is not inherently better than the other.
1. How do you usually travel?
If you tend to travel more than three times a year, an airline credit card may be a perfect fit, especially if you are loyal to a particular airline.
2. Are there expensive flights in the future?
Expensive flights like Europe usually involve more than one airline, so travel rewards cards like Amex Membership Rewards or Chase Ultimate Rewards® points might work best.
3. What is your budget for annual fees?
I eat out a lot, so a card with an annual fee doesn’t make me fail if the card offers triple rewards and things like $300 travel credits.
I never like the affinity cards associated with sports teams or universities.
Best Travel Rewards Credit Cards:
- Winner: The American Express® Gold Card
- Runners-up: Capital One Venture Rewards Credit Card
- Best Welcome Bonus: Chase Sapphire Preferred® Card
- Best for Luxury Travel: Chase Sapphire Reserve®
- Best Without Annual Fee: Discover it® Miles
While there are many good travel rewards cards from major card issuers like Chase and American Express to choose from, my personal favorite is Chase Sapphire Preferred because it gives me the flexibility to redeem my Ultimate Rewards points with many of the airline and hotel partners I’ve been to often. I use it. use.