Lots of news about NFTs, stimulus, and the Fed lately. Before you roll out for the weekend, scroll down to catch up on the latest financial news.
NFTs: Non-fungible tokens are unique, easily verifiable digital assets representing items such as GIFs, images, videos, music albums, and more. Almost anything that exists on the internet can be bought as an NFT.
Think of it as digital art. Some may buy it for its emotional value, while others may buy it and resell it for more.
So far, a JPG file sold for $69.3 million at Christie's, bids for Jack Dorsey's OG tweet hit $2.5 million and offers for Elon Musk's NFT passed $1 million.
Stimulus: The $1.9 trillion stimulus package is here!
Let's take a step back.
Since the pandemic, the gov't has created $5.3 trillion worth of stimulus, averaging $43,000 per household. It's adding to the $28 trillion national debt, which is now larger than the entire US economy.
Even without this stimulus, the economy has been healing as ~13 million jobs have returned since April 2020. Last year, many expected the recovery to be slow and steady. Now, economists predict a quicker recovery. This year, they expect the US to grow 6%, the fastest annual growth since 1983 — and 3 million jobs are expected to be added. The US could finish 2021 with even higher growth than was projected pre-pandemic due to Stimulus #3. Only time will tell.
TN Real Estate
|Highlights of TN Q4 2020:|
Home Sales: In annual comparison, Knoxville's closings jumped by 18.94%, Nashville’s closings climbed by 17.09%, and Memphis’s closings by 13.31%.
On the flip side, inventory dropped annual comparisons in all areas. Knoxville dropped by (-46.49%), Memphis fell by (-33.38%), and Nashville declined by (-33.51%).
Home Prices: Home prices statewide grew by 7.1%, while home prices in the US increased by 6% compared to last year.
Thoughts: TN home prices may have exploded in value, but there is still lingering whiplash from covid-19 affecting many Tennesseans.
|Jedi Mind Tricks|
In "Never Split Split the Difference," written by a former FBI negotiator, Chris Voss talks about a simple negotiation tool called “mirroring.”
Mirroring is repeating the keywords the other person says in a conversation. It's designed to show the person that you're listening and that you understand them.
According to Voss, mirroring is most effective when you repeat one, two, or three words from the last words your counterpart has spoken. It's especially effective in defusing anger or hostility.
Your partner: "I've had a tough year, and it seems like you're disregarding all the financial and personal stress I've been under."
You: "Financial and personal stress?"
The method puts people at ease, reduces tension (if it's a stressful situation), and makes the other person feel like someone is listening. It can also cause people to repeat or expand upon what they said, giving the listener clarity. "People love to talk to someone who is paying attention to them," says Voss.
It's a simple and easy tool to use in almost any conversation.
You can message your questions here. We’ll do the homework!
Stayed invested, my friends