🏠 House prices are dropping

Salesforce’s good results didn’t stop shares dipping | House prices kept on slipping | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for December 2nd in 3:13 minutes. ❷ Two days might seem too short a span to change your trajectory. But when that time’s jam-packed with insights from [the greatest minds in finance](, it might just change your long-term financial footing. So join some of the biggest names on Wall Street for the [Modern Investor Summit]( on Tuesday and Wednesday, and discover how your portfolio can change course. [Get your free ticket]( Today's big stories - Salesforce’s results update left investors with a lot to think about - You might want to be cautious in this stock market rally – [Read Now]( - UK house prices continued their slide last month Salesforce Shares Slump [Salesforce Shares Slump] What’s Going On Here? Salesforce [reported]( unexpectedly strong results earlier this week, but investors fretted about some bumps in the road. What Does This Mean? Digitization is a hot topic right now, and Salesforce hasn’t just got a finger in the pie: it’s got all ten of them in there. The firm’s wide range of products, from its flagship sales cloud software to the workplace messenger Slack, has drawn customers aplenty, even as the economy’s gone (ahem) slack. That success continued last quarter, with both revenue and profit growth beating analyst expectations – but there are signs the downturn’s begun to rock even Salesforce. Businesses are taking a leaf from the Jungle Book right now, spending on nothing but the bare necessities, which could be why the firm says it’s facing “intense customer scrutiny”. That's reflected in the numbers: the company's 14% revenue growth last quarter versus the same time the year before was the first time the metric’s ever come in under 20%. That, plus a worse-than-expected revenue outlook, could explain why investors sent Salesforce’s stock down 7%. Why Should I Care? Zooming in: Taylor’s high-tailin’. The sudden departure of Salesforce’s co-CEO probably didn’t reassure investors either: they ran day-to-day operations at Salesforce, and their speedy exit has raised questions about why they’re really leaving and who’s going to step into their shoes. And on an even more basic level, the co-CEO was considered quite the asset: helping invent Facebook’s like button and creating Google Maps are pretty impressive achievements, after all. For markets: Think twice. It’s been a dire year for the stocks of cloud software companies like Salesforce, with an index that tracks some of the biggest names in the industry dropping over 40%. But don’t rush out to grab a bargain just yet: see, a key valuation metric of the index is still well above its long-term average, and analysts [reckon]( cloud players’ shares could drop even further as the sector’s growth slows. You might also like: [How to invest when everything is falling.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Salesforce Shares Slump&utm_campaign=daily-global-02-12-2022&utm_source=email) Analyst Take Investors Are Betting On A Dream Soft Landing [Investors Are Betting On A Dream Soft Landing]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst The [S&P 500 rallied]( 3% Wednesday, to end November with a 5% gain. That followed another 8% gain in October – meaning the S&P is now [down only 14%]( since January. In a year when inflation broke 40-year highs and the Federal Reserve hiked interest rates more aggressively than ever to try to tame it, [that’s pretty remarkable](. But it may suggest [a bit of over-optimism](. That’s today’s Insight: [why it might be wise to be cautious about this stock market rally.]( [Read or listen to the Insight here]( Finimize x Revolut Pretty good stuff, right? Our analysts write Insights like this every day, and you can read every single one of them with [Finimize Premium](. There’s no better time to get started: our new partnership means you can get [six free months of Finimize Premium]( and [three free months of Revolut Premium]( if you [sign up for Revolut today](. We’ll even send you £10 (or equivalent) to your Revolut account to get you started. SPONSORED BY 3COMMAS Stand on the shoulders of crypto giants Nobody said trading crypto was easy, but [3Commas]( have done their darndest to make it so. Rather than starting from scratch, you’ll be able to copy the investment strategies of successful traders on the platform. See, 3Commas uses automated bots to make trades, and you can [configure your bots to exactly how successful traders have theirs]( – or craft your own strategy if you’d prefer. Either way, you’ll have bots executing your wishes around the clock – even while you’re sleeping. And that should help with things like [market volatility.]( You can trade on all the big platforms – including Coinbase and Binance – via 3Commas. And right now, [you’ll get 60% off any plan](. There’s no need to reinvent the wheel: [get started with 3Commas today](. [Find Out More]( House-Poor Britain [House-Poor Britain] What’s Going On Here? Data out on Thursday [showed]( that UK house prices fell more sharply than expected last month. What Does This Mean? It’s not a cheap time to be buying a house right now: with inflation raging and interest rates on a steep upward climb, the average rate for new mortgages in the UK is now clocking in above 3%, the highest since 2014. So, with homebuyers no longer so gung-ho about finding their dream crib, sellers have little choice but to cut prices to garner interest. In fact, it’s estimated that a tenth of homes on the market have been discounted by 5% or more since September. All said then, the average house price fell 1.4% to £263,788 ($319,120) in November – the sharpest drop since Covid was laying waste to the property market back in June 2020. Why Should I Care? For markets: Sorry, sellers. After October's dropoff, this is starting to look like a trend – one that economists reckon could see house prices fall nearly 10% in the next year. Things are set to get tighter, after all: for one, most British mortgage holders are on a fixed rate, so they still haven’t felt the full impact of higher rates – which could double payments next year. And for another, spare cash is going to be in even shorter supply as government support wanes and unemployment increases in the coming months. The bigger picture: Don’t start partying. Falling house prices might sound good to wannabe buyers, but they’re actually bad news for the wider economy. See, about a third of household wealth is tied up in home values – so consumer spending, a key driver of the economy, will likely dip further as prices decline. That’s not to mention the effect on the wider housing industry, which makes up a fair chunk of the British economy too: the UK’s biggest homebuilders, from Persimmon to Taylor Wimpey, have all [warned]( of tough times ahead in recent weeks. You might also like: [Are we headed for a housing market crash?]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=House-Poor Britain&utm_campaign=daily-global-02-12-2022&utm_source=email) 💬 Quote of the day “People who have what they want are fond of telling people who haven’t what they want that they really don’t want it.” – Ogden Nash (an American poet) [Tweet this]( SPONSORED BY 3COMMAS Learn from the best, forget the rest The crypto market is always moving and changing, so your investment strategy probably should too. That’s easier said than done though, or it was until [3Commas]( came along… Their platform, which uses automated bots to make trades, lets you see which strategies have worked best in different market conditions. So you can [pick and choose which one to use when](. Whether the market’s going up, down, or moving sideways, you can set 3Commas bots up to profit. And because you can [connect to most major exchanges]( from within the 3Commas platform, you can easily manage all your crypto activities from one place. You’ll even [get 60% off any 3Commas plan]( if you sign up today. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🥳 Coming Up In The Next Week… All events in UK time. 🌍 [Finding Opportunities In A Challenging Market With BlackRock](: 1pm, December 2nd 🇦🇪 [The Modern Investor Opening Party In Dubai](: 6pm, December 6th 🎉 [Modern Investor Summit](: 12pm, December 6th and 7th 🌱 [The Best Vegan Stocks To Buy In 2023](: 3pm, December 9th 👀 And After That… ♻️ [Green Energy Could Be A Better Investment Than Oil](: 5.30pm, December 12th ✍️ [How To Protect Your Crypto In 2023](: 11am, December 14th 🧠[Three Behavioral Biases To Avoid When Investing](: 5pm, December 14th 🥂 [The Best Luxury Stocks To Buy In 2023](: 5pm, December 15th 🎯 On Our Radar - Now that’s what we call leading. Here’s how to spot a leader [with high emotional IQ](. - Not quite 1984. This is what China’ social credit system [really involves](. - Battle of the divas. 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