Welcome to 10 Things Before the Opening Bell.
Let's jump in.
1. Federal Reserve rate hikes won't scupper the stock market rally. Investors' fears may be overblown as they brace for US policymakers to raise interest rates next year, according to DataTrek Research.
Traders have been conditioned to believe equities perform poorly when the Fed hikes rates — but the S&P 500 has only had two losing years in the last 30 when the central bank was lifting rates. So DataTrek thinks investors shouldn't be too concerned.
"There are plenty of reasons to be skittish on US large caps (valuation chief among them) but Fed rate hikes aren't at the top of our list," DataTrek co-founder Nicholas Colas said in a note.
Here's what else to keep in mind:
- October's Consumer Price Index data showed inflation hit its highest rate since 1990.
- Consumer sentiment is at a 10-year low.
- Some analysts warn of multiple pullbacks if the Fed tightens policy too soon.
2. US stocks are holding up, though COVID-19's resurgence in Europe has investors wary. Optimism about the US economic recovery abounds for now, but Fed minutes later in the week could dent that. Here are the latest moves on the market.
3. Two college friends who co-own 200 rental units use the "1% rule" to decide whether to invest. They say monthly rent should be at least 1% of the purchase price — a rule that has helped them acquire properties across Massachusetts and Connecticut. They shared five tips for people looking to get into real-estate investing.
5. A majority of Gen Z investors think crypto will make them millionaires. The idea of gaining wealth from crypto comes from factors like the rising cost of real estate and a college education, an expert told Insider — "This generation has a greater acceptance and comfort with all things digital."
6. Elon Musk has sold nearly $9 billion worth of Tesla stock in two weeks. But he's only halfway toward selling 10% of his stake, as he promised in his Twitter poll. Read about the theories for what's behind Musk's selling spree — including what "Big Short" investor Michael Burry thinks.
7. Citadel's Ken Griffin outbid a group of 17,000 crowdfunders who pitched in millions to buy an original copy of the US Constitution. The crypto fans formed a DAO, a decentralized autonomous organization, and they raised $46 million in ether. But Griffin beat them singlehandedly in an auction — and now plans to lend the rare document to a museum.
8. Binance's CEO is buying his first home in crypto-friendly Dubai. Some see this as a hint to where the crypto exchange may eventually establish its headquarters. Binance boss CZ also confirmed its US affiliate will soon close a multimillion-dollar funding round.
9. Fund manager Alex Ely has beaten 96% of his peers in the past five years. He told Insider that he's doubling down on investing in innovative, "disruptive" companies that he thinks are set to grow in 2022. These are the 16 stocks he's most bullish on.
10. Five crypto experts explained what's behind the recent bitcoin sell-off. The token slid after hitting an all-time high, and one analyst said investors' profit-taking created a dip. Here's what other experts said — and why they are eyeing these four metaverse and gaming altcoins.
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