💰 Maniac Minute: Gen Z Says $600k = Success. Agree?

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Good morning, Maniacs!

As we prep for family time and Thanksgiving feasts, the markets are serving up a platter of action. Stocks are on a winning streak, Bitcoin is flirting with $100k, and retail giants are set to report earnings. Will they feast like Walmart or get stuffed like Target?

And before you chase those Black Friday bargains, check out Part 5 of our Dividend Investing Series—it could put more cash in your pocket than any doorbuster sale ever will.

Let's get into it!

Market Recap 📈

Bitcoin continued its relentless climb, inching closer to that elusive $100k milestone. Stocks rejoined the rally, with the S&P 500 posting gains every day and all three major indices finishing in the green.

Earnings season is nearly complete, with 95% of S&P 500 companies reporting. So far, 75% have beaten expectations, marking a fifth straight quarter of year-over-year earnings growth.

However, valuations are stretching. The forward P/E ratio is sitting at 22.0—a level where the market has historically stumbled and well above the 10-year average of 18.1.

In other news, the U.S. decided to allow Ukraine to use American missiles to strike inside Russia. Putin retaliated by signing a revised nuclear doctrine, lowering the threshold for the use of nuclear weapons.

In response, oil prices jumped due to fears of supply disruption and gold gained as investors sought safe-haven assets.

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Winners & Losers 🚀

The market had its ups and downs last week—let's see who soared to new heights and who hit the skids:

Winners

1. Snowflake ($SNOW) – Market Cap: $56.1B (+32.9%)

Snowflake enjoyed its best day ever, with shares skyrocketing after the cloud data company beat earnings expectations and raised its full-year guidance. Revenues surged 28% year over year, and CEO Sridhar Ramaswamy noted that Snowflake is in the "sweet spot" to benefit from AI use cases over the next 12 to 18 months.

2. Williams-Sonoma ($WSM) – Market Cap: $31.6B (+21.3%)

Williams-Sonoma's stock soared to a record high after the upscale home furnishings retailer beat Q3 expectations and announced a $1 billion stock buyback program. The company—which owns brands like West Elm, Pottery Barn, and Rejuvenation—reported a 7.1% increase in earnings as improved margins offset slightly lower sales.

3. Walmart ($WMT) – Market Cap: $727.0B (+7.4%)

The retail giant delivered another strong quarter, with U.S. e-commerce sales jumping 22% and global e-commerce up 27%. Walmart's commitment to everyday low prices is paying off, boosting gross margins, and attracting customers across all income levels. The company also raised its full-year guidance, signaling confidence heading into the holiday season.

Losers

1. Target ($TGT) – Market Cap: $57.4B (-17.8%)

Target missed the mark this week, unlike its retail rivals Williams-Sonoma and Walmart. The company fell short of earnings estimates as it struggled with margin pressures and higher costs. Inventory hiccups and fierce competition aren't helping either. Caught between discount and high-end retailers, Target may need to re-aim and find its niche.

2. Pinduoduo ($PDD) – Market Cap: $139.0B (-14.7%)

Shares of Temu's parent company tumbled after posting its slowest revenue growth in over two years and missing analysts' expectations. The Chinese e-commerce giant faces challenges from a slowing domestic economy, regulatory scrutiny, and potential U.S. tariffs. Investors are concerned that Pinduoduo's high-flying days might be behind it.

3. Inuit ($INTU) – Market Cap: $179.3B (-6.9%)

Despite posting solid earnings, Intuit's shares couldn't balance the books, sliding as investors reacted to softer-than-expected guidance for the upcoming quarter. Concerns over slowing growth in its Mailchimp business and the looming threat of a government-developed free tax-filing app have investors on edge.

Dividend Investing Series: Part 5

So, you've picked some solid dividend-paying stocks—now what?

If you're a retiree, dividend income can be used to fund your lifestyle at tax rates often lower than ordinary income. Younger investors, on the other hand, may not need the cash and prefer to turbocharge their investment growth.

One simple way to do this is with Dividend Reinvestment Plans (DRIPs).

What Are DRIPs?

DRIPs automatically use your dividend payouts to purchase additional shares (or even fractional shares) of the same company.

Benefits of Reinvesting Dividends

Dollar-Cost Averaging: Reinvesting dividends means buying shares at regular intervals, which can smooth out the effects of market volatility.

Fee Efficiency: Many DRIP programs have low or no fees, allowing more of your money to work for you.

Simplicity and Discipline: DRIPs automate your investing process, helping you stay consistent without extra effort.

Growth on Growth: By reinvesting dividends, you're not just earning returns on your initial investment—you’re also earning returns on your returns. By doing this automatically, you avoid the hassle of manual reinvestment and maximize your time invested.

Over time, these compounding effects can significantly boost your portfolio's value.

Example: Imagine you invest $10,000 in a stock with a 3% annual dividend yield. If you take the dividends as cash, you'd earn $300 pre-tax each year. But if you reinvest those dividends, you’ll likely enjoy more appreciation and greater dividend payouts—because you own more shares.

Things to Consider

Taxable Accounts: If you reinvest dividends in a taxable account, they are still considered taxable income in the year received.

Tax-Advantaged Accounts: Reinvesting dividends within IRAs or 401(k)s allows your investments to grow tax-deferred, enhancing the compounding effect.

Avoid Overconcentration: Continually buying more of the same stock can lead to an overweight position. Keep an eye on your portfolio's diversification to manage risk effectively.

Cash Needs: If you rely on dividend income for living expenses, reinvesting might not be for you.

How to Get Started with DRIPs

Most brokerage firms offer an option to automatically reinvest dividends. You can typically enable this feature in your account settings with just a few clicks. Fidelity users, for example, can manage this setting here on either a security-specific or account-wide level.

Bottom Line: Reinvesting dividends is a powerful strategy for long-term investors aiming to maximize growth. DRIPs are one more way to automate your financial strategy and tap into the exponential potential of compound growth.

Worth The Read 📚

 💵 Is the U.S. dollar's global dominance at risk as nations explore alternatives and challenge the world's favorite currency?

✈️ Travelers are tearing up the rulebook. Booking.com lays out 9 bold predictions for how globetrotters will break away from the status quo in 2025.

⚡ A tidal wave of cheap used electric vehicles is about to hit the market, potentially sparking an EV revolution and shaking up car sales.

📊 State budgets are in the black like never before. Only two states reported annual deficits in 2022, flipping the fiscal script across America.

💰 Gen Z is setting the bar sky-high, thinking they need $600k a year to feel successful—is this ambition or pure financial fantasy?

🏝️ The ultra-rich are hiding their treasure in these top 10 tax havens that keep wealth under wraps.

🏦 Good news: the number of 'unbanked' households hit a record low, marking progress in financial inclusion.

👴 China is raising the retirement age for the first time since '78, stirring up the workforce and sparking blowback despite significant life expectancy gains.

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The Week Ahead 🔍

Retailers are stepping into the spotlight on Tuesday as the whole mall seems to be reporting earnings. On Wednesday, we’ll get the Fed’s preferred inflation measure—the core PCE— just before we all check out for a long weekend.

Monday

• Earnings from Zoom

Tuesday

• Earnings from Dell, CrowdStrike, Workday, HP, Best Buy, Burlington, Dick’s Sporting Goods, Abercrombie, Macy's, Nordstrom, Urban Outfitters, and Kohl’s

• Case-Shiller Home Price Index (est. 4.9% annually)

• New Home Sales (est. 730,000)

Wednesday

• Initial Jobless Claims (est. 215,000)

• Core PCE index (est. 2.8% annually, 0.3% monthly)

   

Thursday

• Thanksgiving holiday

• Markets closed

Friday

• Black Friday

• Stock market closes early (1 p.m. EST)

• Bond market closes early (2 p.m. EST)

That’s a wrap! Hope you enjoyed the Maniac Minute—we’ll see you next Monday with all the market insights and money tips you need to stay ahead.

Keep stacking,
The Money Maniac 💸

P.S. Got feedback, burning questions, or just want to say hi? Feel free to reply directly to this email!

DISCLAIMER: The information provided in this newsletter is for informational purposes only and should not be construed as financial advice or a solicitation to buy or sell any assets. All opinions expressed are those of the author and are subject to change without notice. Please do your own research or consult with a licensed professional before making any investment decisions.