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Home prices may pick up speed after the Federal Reserve cuts rates next year, Fitch Ratings said, offering little relief to an already-overvalued housing market.

In line with the central bank's own projections, Fitch expects the Federal Reserve to cut interest rates by 75 basis points in 2024.

Meanwhile, home prices are expected to move up 0%-3% next year, followed by a 2%-4% boost in 2025.

"This will continue to impact affordability, particularly for entry-level and first-time homebuyers, thereby constraining demand," Fitch said on Wednesday.

The projected increase in home prices would come as 88% of the metro areas in the US housing market were overvalued as of the second quarter, Fitch added.

That's little changed from 89% a year ago and up from 73% in the first quarter of last year. In addition the margin by which homes were overvalued widened. Fitch found that homes were 9.4% overvalued in this year's second quarter, up from 7.8% at the end of 2022.

Not everyone shares Fitch's price projections. For instance, Realtor.com sees lower mortgage rates slowing demand as buyers won't feel rushed to buy before rates rise further, resulting in a home-price dip of 1.7% in 2024.

Still, between high mortgage rates and rising home prices, the US housing market in 2023 was the least affordable on record, according to Redfin data going back to 2013.

That came as persistently high mortgage rates kept current homeowners largely off the market, worsening an already limited market supply. Some relief to this trend may come in 2024, as mortgages have already started slipping from highs of almost 8%.

The Chinese yuan's share of global payments hit a record high and became the fourth most used currency last month, according to data from the SWIFT Financial System.

In November, the yuan was used in 4.61% of transactions, climbing from 3.60% in October and overtaking the Japanese yen's share, which slipped to 3.41% from 3.91%.

The world's other top currencies also lost a bit of share during the month. The dollar's dipped to 47.08% from 47.25%, the euro's fell to 22.95% from 23.36%, and the pound's eased to 7.15% from 7.33%.

While the moves for the top three currencies and the yen are slight on an individual basis, collectively they add up to more than 1 percentage point of share.

And viewed from a yearly comparison, the latest figures show the yuan's global share has nearly doubled from November 2022, when it made up 2.37% of payments.

Its steady uptick comes on continued efforts to crack the greenback's global hegemony, with Beijing pushing to internationalize the yuan as a solid contender.

Through this year, cross-border yuan lending has jumped to 28% last month, while the People's Bank of China now holds over 30 bilateral currency swaps with foreign central banks, such as Saudi Arabia and Argentina.

In September, the yuan also took second place in global trade finance, ousting the euro. That's as Beijing's lower interest rates made trade financing more affordable, the Financial Times reported.

Meanwhile, China and Russia have almost fully phased out the dollar from their bilateral trade, Russian Prime Minister Mikhail Mishustin said this week.

Over 90% of trade between the two nations is done with either the yuan or the ruble, he said, according to Russia's state-run news agency TASS.

Gold bars continue to be a hit at Costco.

The company sold $100 million worth of one-ounce gold bars in its most recent quarter, CFO Richard Galanti said Thursday during an earnings call.

When asked what consumer trends Costco was seeing this holiday season, he quipped, "They're buying gold."

Galanti previously said the company sells out of its gold inventory "within a few hours" of the products being listed online.

Costco's website shows one-ounce bars of 24-karat gold from South Africa's Rand Refinery and from Swiss supplier PAMP Suisse. Orders from each refiner are limited to two per membership.

The company ended the quarter with 72 million paid memberships.

Pricing is not available as neither product is currently in stock, but gold was trading at $2,035 per ounce at the time of the call.

Galanti noted another remarkable collector's item sold during the quarter: an index card autographed by baseball legend Babe Ruth, which went for $20,000.

"For you last-minute shoppers out there," he added, "there's a Mickey Mantle autographed 1951 rookie card in nearly perfect condition, and it's on sale online for $250,000."

1. Define your goals:

The first step towards managing your finances effectively is to understand what financial freedom means to you. It could indicate a debt-free lifestyle, the ability to retire early, or the freedom to quit your job and start a business. Identify your financial goals and put forth clear, actionable steps to achieve them.

Once you identify your goal you will be able to start saving towards the goal based on your risk profile. If you are a conservative investor, you can put a large portion of your portfolio in fixed income instruments and if your risk-taking abilities are higher, you can take the advantage of higher return given by equities over the long term.

2. Live within your means:

It's vital to spend less than you earn. This sounds simple, but many people struggle to achieve this. Make it a habit to create monthly budgets and stick to them. Avoid impulse buying and unnecessary debts, and always strive to save a portion of your income, no matter how small.

The golden rule is to first save and then spend rather than spend first and save later. By saving at least 10-20 per cent of your salary you can take the right step towards financial freedom.

3. Build an emergency fund:

An unforeseen financial crisis can easily jeopardize your financial freedom. Emergency funds can be a safety net during such periods. This fund should ideally cover at least 6 months of living expenses. You can invest in fixed deposits or liquid funds for maintaining emergency funds.

4. Diversify your income:

Relying on a single source of income can be risky. Cultivate multiple income streams, including investing in real estate, stocks, or starting a side hustle. Diversification reduces the risk of financial insecurity as a single income source can be compromised.

5. Reduce debt:

Debt is a significant barrier to achieving financial freedom. Plan to pay off your debts systematically, starting with high-interest ones like credit card debts. You should avoid taking loans for vacations or buying an expensive mobile or phone as it can lead to overleveraging and causing you trap in a debt spiral.

6. Invest wisely:

Investing is one of the most effective ways to grow your wealth. Take the time to learn about the different investment options available and find what suits you best. Remember, it's not about following trends, but about making informed decisions that align with your financial goals.

The first right step is to start a Systematic Investment Plan or SIP in a long-term mutual fund. Doing so you can unlock the value of higher return by investing for a long term in equity market.

7. Financial discipline:

Educating yourself about personal finance is essential. Understand the basics of financial planning, investing and taxation. Also, cultivate financial discipline: consistently save, invest, and avoid unnecessary debts.

Moreover, you need to review and monitor your portfolio at least a year, so that if there is any divergence in your asset allocation strategy you can rebalance your portfolio.

In conclusion, achieving financial freedom is a gradual process that requires planning, discipline, and consistency. These tips provide a roadmap that can navigate you towards financial independence. Remember, every step, no matter how small, is a step towards financial freedom. So, begin today!

There’s no doubt artificial intelligence will continue to be an emerging force — technologically and financially — as we move into the new year. ChatGPT, the generative AI chatbot that can help you do everything from debugging code to deciding what to make for dinner, broke records with 100 million active users just two months after its launch, Reuters reported. Smart investors are putting at least some of their portfolio into AI stocks based on their tremendous growth potential.

If you know where to look, you can find cheap AI stocks under $10 that show promise as long-term investments. When we talk about AI stocks, we refer to companies that use AI as part of their technology, companies that make components (such as chips) that AI companies rely on, or companies where artificial intelligence is their core competency.

Best AI Stocks Under $10 in 2023

If you’re ready to invest in AI, consider these eight value stocks recommended by experts:

• Alithya Group Inc. (ALYA)
• CooTek (Cayman) Inc. (CTKYY)
• FiscalNote Holdings Inc. (NOTE)
• NIO Inc. (NIO)
• Lantronix Inc. (LTRX)
• SoundHound AI Inc. (SOUN)
• Nerdy Inc. (NRDY)
• AudioEye Inc. (AEYE)

1. Alithya Group Inc. (ALYA)

Alithya is a team of IT and strategy consultants who advise and guide companies through the strategic use of digital technologies, including AI.

The company works in many industries, including manufacturing, healthcare, energy, transportation and logistics, that increasingly use AI to improve operations, streamline workflows and stay a step ahead of competitors.

The stock trades at just $1.19 as of Nov. 21. According to CNN Business, as of November, three analysts consider the stock a “buy” and three consider it a “hold,” giving it a consensus rating of “buy,” and the stock has a median 12-month price target of $1.98.

2. CooTek (Cayman) Inc. (CTKYY)

CooTek is a cutting-edge app developer responsible for games like Crazy Painting and Hi Hamster, helpful lifestyle apps like Happy Jogging and Drink Water Reminder, and, notably, the AI-based TouchPal Smart Input predictive text technology for mobile devices. The latter is powered by a deep learning engine and enriched by user interaction.

If you are looking for a value stock you can pick up for under a dollar that could yield exponential returns over the next 12 months, take a look at CooTek. One analyst said the stock could skyrocket from its current 9 cents up to $21.71 over the next year, according to CNN Business.

3. FiscalNote Holdings Inc. (NOTE)

FiscalNote Holdings combines data, technology and insights to help organizations stay ahead of legislation and regulatory action while helping create a more sustainable world. In August 2023, the company introduced FiscalNoteGPT, a generative AI platform tailored to the policy and regulatory industry.

Wall Street analysts are giving FiscalNote Holdings Inc. a “moderate buy” rating, according to TipRanks. Currently trading at $1.05, the stock could rise to $7, with an average price target of $3.28 for the next 12 months.

4. NIO Inc. (NIO)

NIO is a China-based manufacturer of electric vehicles with offices across China and Europe, along with a U.S. headquarters in San Jose, California. In addition to electric vehicles, the high-tech company markets EV charging solutions and lifestyle products.

NIO may be trading under $10 now, but that wasn’t always the case. In August 2023, the stock hit a one-year high of more than $16. In 2021, the stock was trading at more than $61 per share.

Analysts are calling NIO a “buy” or “hold” right now, according to TipRanks. Analysts predict a high price target of $19.20, substantially more than NIO’s current $7.51 trading price. Its average one-year price target sits at $13.49.

Tesla may be the AI stock of choice for many investors, with AI solutions going into its Full Self-Driving feature and CEO Elon Musk using AI for many of his other endeavors, including the social media platform X, formerly known as Twitter. But NIO stock stands as a budget-friendly choice to support EVs and AI development for under $10 per share.

5. Lantronix Inc. (LTRX)

Lantronix is a global provider of hardware and software for the ever-evolving Internet of Things and device management. As such, it relies heavily on AI innovation and development. Headquartered in California with offices in Texas, Minnesota and across the globe, Lantronix is used across industries such as government, retail, transportation, utilities, healthcare and others.

Looking for a cheap AI stock under $10 with a promising future? Analysts rate Lantronix a “strong buy,” according to TipRanks, forecasting a high price target of $12, an average of $9.63 and a low of $8, which is still higher than its current selling price of $5.23 per share.

6. SoundHound AI Inc. (SOUN)

SoundHound provides voice AI solutions for restaurants, hospitality venues, in-car technology and smart home devices, among other industries. Not only is this useful AI tech that’s fun to use, but it’s also a hint at the future and the positive applications for AI. Companies like Hyundai, Jeep, Samsung, LG and White Castle are already implementing SoundHound tech. If you want to invest in AI technology that you may already use, consider a few shares of this stock.

SoundHound is rated a “strong buy” by Wall Street analysts, according to TipRanks. With a predicted high of $5 over the next year, an average target of $4.40 and a low of $3.60, which is still higher than its current price of $2.12, SoundHound could be a smart choice if you’re looking for an AI stock with a low entry point and plenty of profit potential.

7. Nerdy Inc. (NRDY)

Nerdy Inc. is an online education company that uses AI technology to enhance personalized live learning experiences across 3,000 subjects. The company’s Artificial Intelligence for Human Interaction platform uses AI to help deliver one-on-one and one-to-many education, by pairing learners with the best teachers for their needs.

In spite of lackluster quarterly reports in early November, which kicked the stock into a nearly 18% loss for the day, Nerdy remains a “buy” in the eyes of many investors.

Operational successes overshadowed bottom-line losses, with analysts giving Nerdy Inc. a “buy” rating that has held steady since August 2023, according to CNN Business. Selling at just $2.53 per share, it would be tough to lose with a high forecast of $6, a median of $5 and a low of $3 over the next 12 months.

8. AudioEye Inc. (AEYE)

AudioEye is a digital accessibility solution for businesses. The software-as-a-service company uses AI for automated testing, combined with human assessments to help businesses wherever they are when it comes to web accessibility for users and customers.

Trading at $4.12 as of Nov. 21, AudioEye is far below its five-year high of over $44 with plenty of room to grow.

According to Markets Insider, analysts give AudioEye a consensus rating of “buy,” with a high price target of $10, a median of $9.50 and a low of $8, which is still nearly double its price per share right now.

Bottom Line

Chip manufacturer Nvidia remains an AI stock darling, rising over 241% year to date as of Nov. 21. Analysts indicated the stock hasn’t hit its ceiling yet, either.

Nvidia is currently trading at nearly $500 per share. That means unless you want to get in with fractional shares through a stock trading app, you’ll need a decent amount of money to invest. And one share won’t really move the needle on your investment portfolio.

That doesn’t mean you can’t jump on the AI bandwagon right now. Whether you have hundreds or thousands to invest, AI stocks can help you meet your goals.

If you’re looking to invest in the AI industry, you’ll find a plethora of stocks under $10. With options ranging from a company that produces AI-driven apps to an electric vehicle manufacturer that relies on AI for various aspects of its operation, the list above offers comprehensive options for AI investments under $10.

While mortgage rates have started to slightly come down, they are still at record highs, and it’s difficult for homebuyers and homeowners to think about anything positive associated with them lately.

Yet, as The Wall Street Journal argued, “it is time to look more favorably on your mortgage.”

According to the article, the jump in interest rates of the past two years “means that an old fixed-rate loan should be thought of as one of your most valuable assets, rather than a deadweight loss you have to pay the bank every month.”

Mortgage rates — which had been hovering around 8% for the past few weeks — started to come slightly down.

The Freddie Mac fixed rate for a 30-year mortgage dropped for a third week in a row, declining to 7.44% last week. To put this in context, it was at 6.61% for the corresponding week of 2022 (Nov.17, 2022) and at 3.10% for the corresponding week in 2021 (Nov. 18, 2021). Meanwhile, it stood at what now seems an almost impossibly low 2.72% for the corresponding week in 2020 (Nov.19, 2020), according to Freddie Mac data.

In turn, The Wall Street Journal argued that the average borrower would see they were tens of thousands of dollars richer as a result.

“Those who secured a sub-3% rate for the full 30 years on an average-size mortgage are more than $100,000 better off,” according to the article, noting however, that there is a problem, as in the “the real world, the wealth gain doesn’t show up anywhere.”

“That’s already changed the behavior of homeowners, who cling to homes they would otherwise sell in order to keep the mortgage. It also means it makes sense to keep both debt and savings for financial–not just tax–reasons, because the savings earn more than you pay on the mortgage,” according to the article.

Redfin, for instance, found that 14 of every 1,000 U.S. homes changed hands during the first six months of 2023, down from 19 of every 1,000 during the same period of 2019- the lowest turnover rate in at least a decade.

“Just 1% of the nation’s homes have changed hands this year,” according to Redfin. “That means prospective homebuyers have 28% fewer homes to choose from than they did before the pandemic upended the U.S. housing market.”

To put this in context, 91.8% of U.S. mortgaged homeowners have a rate below 6%, while 82.4% have a rate below 5%; 62% have a rate below 4%; and 23.5% an interest rate below 3%, near the highest share on record, according to a July Redfin report. In turn, homebuyers have felt locked and not willing to sell, which has amplified the already low inventory — having a domino effect on prices.

“Being able to borrow cheaply and invest dearly is a huge advantage in today’s environment,” said Jason Sorens Ph.D., senior research faculty, American Institute for Economic Research. “Lucky households with low-interest mortgages should think of themselves as richer now, so long as they are saving and investing at attractive rates of return.”

Yet, while rethinking mortgages matters for your personal finances, if you made upward of $100,000 on yours, should you mark yourself to market, The Wall Street Journal pondered.

“Think of yourself as that much richer, and you might want to splurge on a holiday or new car. You probably shouldn’t, though. The danger is that mark-to-market gains can vanish just as easily as they arrived, and will do so at exactly the wrong time: when there’s a recession,” it noted.