Portugal’s Cryptocurrency Tax?
Plus, looking at bond yields.
Today is Tuesday, October 11, 2022.
New to this newsletter? Sign up here.
Portugal’s Cryptocurrency Tax?
Portugal wants to tax capital gains on cryptocurrency, according to a budget draft proposal on Monday.
Details: The plan calls for a 28% capital gains tax on crypto assets held for less than one year. Cryptos held for more than one year would not be subject to the new tax.
Background: Crypto transactions in Portugal remain untaxed unless they are for professional and business reasons. There have been talks about initiating a crypto tax in Portugal for some time.
Big Picture: Taxes on crypto vary throughout the world. Belgium taxes 33% on crypto transactions, whereas countries such as Switzerland and El Salvador generally do not impose a tax on crypto. There are also taxes on crypto transactions in the United States. Portugal is considered to be one of the most crypto-friendly countries. A capital gains tax would change that perception.
Numbers: The prices of most cryptos sunk on Monday, partly because of the news from Portugal.
Final Thoughts: While the proposal is only a draft and it may not pass, it’s another reminder that crypto investors should watch out for new rules and regulations in the future.
Notable Earnings Today: AZZ (NYSE: AZZ), E2open (NYSE: ETWO), Applied Blockchain (Nasdaq: APLD), Pinnacle Financial Partners (Nasdaq: PNFP).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Lightsense Technology (StartEngine).
Notable Economic Events Today: N/A.
What to Make of Bond Yields in 2022?
With stocks and cryptos plummeting in 2022, should investors look more carefully at bonds?
Background: Since the late 2000s, we’ve been in a period of historically low-interest rates. As interest rates rise, there’s a bit of price sensitivity involved with bonds.
Protection: The benefit of investing in bonds is that it is usually lower risk than stocks. However, the yield is usually lower.
Current State: Recent economic events, such as the rate hikes from the Federal Reserve and U.S. job data, have caused bond yields to rise.
Final Thoughts: Not all bonds are the same. Just like stocks, some bonds react differently than others when there is economic news. That said, experts say that some bonds are good for an investment portfolio.
Equity Crowdfunding Spotlight: TENNTS
Briefly describe your business. TENNTS is a PropTech and hospitality brand with a smart living technology automating flexible rentals and empowering local businesses to grow.
What are the terms of the investment for your campaign? $11.5M Valuation. $1.15 Price per Share. $299.00 Minimum Investment. Equity Offering: Common Shares (no vote). $1.23M Offering Max. Reg CF Offering. Investment Incentives and Bonuses. See StartEngine for details.
What makes your startup special? We identified a mass opportunity that we expended the last two years studying the market and building the MVP and now, we have a team of mind-like people who shares our values and have the same entrepreneurial DNA as the founder to make history.
Trends to Watch
Total Recall: Rivian shares skid after EV maker recalls nearly all vehicles (Reuters)
Harsh Truth: Vote to delay Trump Media merger with Digital World Acquisition Corp postponed for another three weeks (CNBC)
Falling: Is It Time To Sell Ford Stock, General Motors? Here's What Analysts Say (Investor’s Business Daily)
Semi-Bad News: ‘No Possibility of Reconciliation’ as US Slams China Chips (Bloomberg)
No Leg to Stand on: Leggett & Platt Slashes 2022 Sales, Earnings Guidance (MarketWatch)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Be social: Like our Facebook page and follow us on Twitter.
Want more investing tips? Listen to the podcast.
Questions or comments? Hit reply to reach out.