Posts by Rick Newman

  • As political donors, the Chicago Cubs' owners swing for the fences

    Rick Newman at Yahoo Finance 1 day ago

    Baseball fans probably hope they can escape presidential politics during this year’s World Series, which starts Tuesday night between the Chicago Cubs and the Cleveland Indians. It just so happens that the Cubs, however, are owned by one of the country’s most politically active families—with millions in donations to both sides of the aisle.

    The Ricketts family purchased a 95% stake in the Cubs in 2009, when the Tribune Co. decided to sell the team. Joe Ricketts, 75, is the founder of the online brokerage now known as TD Ameritrade (AMTD), which just announced plans to purchase rival Scottrade, for $4 billion. Ricketts, a self-made billionaire, isn’t involved in running the Cubs, but his money largely financed the purchase of the team.

    Rick Newman is the author of four books, including Rebounders: How Winners Pivot from Setback to Success. Follow him on Twitter: @rickjnewman.

  • This Wall Streeter’s career is 'littered with failures'

    Rick Newman at Yahoo Finance 2 days ago

    Anthony Scaramucci wants you to know about everything he’s done wrong: He failed the bar exam twice, got fired from his dream job at Goldman Sachs, and nearly lost his investing firm during the 2008 financial crisis.

    Today, his firm is back in the black, while Scaramucci is a well-known financial pundit, a trade-show entrepreneur and one of Donald Trump’s economic advisors. “What sometimes happens on Wall Street is, we sanitize our success,” he tells Yahoo Finance in the video above. “It didn’t really happen like that.”

    Scaramucci writes about his setbacks and comebacks in the new book, “Hopping Over the Rabbit Hole: How Entrepreneurs Turn Failure Into Success.” Why focus so much on things gone bad? “We have to pay things forward to a younger generation,” he says. “For young people to get an accurate window into what really happens, as opposed to the sanitized, sound-bite nonsense that we sometimes are forced to read.”

  • Donald Trump’s new role: the noble underdog

    Rick Newman at Yahoo Finance 2 days ago

    His odds might be worsening—but now, anything is possible.

    That’s the latest theme emanating from the campaign of the Republican presidential nominee Donald Trump, who has faltered badly in polls and prediction markets the last several weeks. Many forecasters now give him just a 10% to 15% chance of winning on Nov. 8.

    “To me, that’s still enough,” Trump adviser Anthony Scaramucci tells Yahoo Finance in the video above. “There are a lot of vagaries that can happen between now and Election Day. You can’t rule him out entirely.”

    Since summer, Trump supporters have compared his rogue bid for the White House to the “Brexit” vote in the United Kingdom, the June referendum in which Brits voted to leave the European Union. Numerous polls had mistakenly predicted the vote would fail. Instead, Brits voted to reject an economic arrangement widely seen as benefiting elites more than anybody else.

  • There’s a better way to create jobs that Trump and Clinton are totally missing

    Rick Newman at Yahoo Finance 2 days ago

    Travis Little graduated from the Colorado School of Mines in 2007 with a mechanical engineering degree and found quick employment in the booming oil industry. With the fracking revolution taking off, Little made good money working 80 to 100 hours a week at sites in Colorado, Utah, North Dakota and other states.

    Today, Little is unemployed, and training to be a machinist at a community college in Longmont, Colo. That’s right – after graduating from college just a few years ago, he’s getting retrained for blue-collar work. Like many other energy-industry workers, Little lost his job in 2015, as oil prices plunged. Some of those jobs will come back eventually, but Little figures getting into manufacturing makes more sense. “It’s a great opportunity to get some retraining and find work in a more stable industry,” he says. “I’m hoping to combine my skills to become an exceptional engineer.”

    More training = more income

    What skills are needed?

  • You’re not even remotely ready for a big Internet outage

    Rick Newman at Yahoo Finance 3 days ago

    Most people can go a day without the Internet. But what about a month? Or longer?

    It’s something most of us never think about, because the Internet is always there, like the water that comes out of the tap or the lights that flick on when we hit a switch. But maybe we should think about it, and pay alert attention to the sporadic Internet outage that hit many parts of the country on October 21.

    Unknown hackers bombarding one key node of the Internet’s backbone were able to disrupt huge sites such as Twitter, Netflix, SoundCloud, the New York Times and many others, in an attack that began on the East Coast but spread throughout the United States. The FBI and Dept. of Homeland Security are investigating, suggesting that the U.S. government sees the disruption as a national-security threat posed by an unseen enemy, possibly backed by Russia or China.

    Rick Newman is the author of four books, including Rebounders: How Winners Pivot from Setback to Success. Follow him on Twitter: @rickjnewman.

  • Clinton and Trump are debating about the economy like it's 1996

    Rick Newman at Yahoo Finance 6 days ago

    If thethird presidential debate between Hillary Clinton and Donald Trump took place in 1996, you’d scarcely notice the economy they were talking about was 20 years in the future.

    There was no discussion of the digital economy when Trump and Clinton met in Las Vegas to spar for one final time before voters hit the polls on Nov. 8. Nothing about automation or workers becoming obsolete. The only reference to the internet involved Clinton’s ever-elusive emails. Clinton made one vague reference to “high-tech manufacturing,” a comment that could have come any time during the last 30 years. Other than that, you’d think the US economy was still dominated by smokestacks and jackhammers.

    Some inconvenient facts undermine these backward-looking prescriptions for sluggish economic growth. First, there is no shortage of jobs in America today. Employers report 5.4 million openingsat the moment, nearly the highest number in the 14 years the government has been tracking such data:

  • If Hillary Clinton wins, here’s what will happen next

    Rick Newman at Yahoo Finance 7 days ago

    Hillary Clinton and Donald Trump have very different economic plans—and we can now safely disregard them both. The real question isn’t what’s in the plans, it’s what will be possible once the election’s finally over on Nov. 8.

    That depends, of course, on what happens in Congress. Polls and prediction markets now forecast that voters will elect the Democratic nominee, Hillary Clinton, president on Election Day. The odds of Democrats winning the Senate from Republicans are 50/50 or a little better, but the odds of Dems taking the House are only around 20%. So Republicans will most likely control at least one chamber of Congress for the next two years, which means split government much as we’ve had for the last six years.

    If that’s the case, a few important pieces of legislation could get through Congress. Here’s what to watch for:


  • Get ready for Donald Trump’s 4th Act

    Rick Newman at Yahoo Finance 8 days ago

    Mitt Romney, he’s not.

    If Donald Trump loses the presidential election on Nov. 8, as most prediction markets and polls suggest, there’s just about no way he’ll fade into the background and become some kind of Republican elder statesman. The Republicans wouldn’t have him, for one thing, and he’s not statesmanlike anyway. No, Trump will instead become a brand-new force on the alt-right spectrum, and one who probably turns out to be way more clever at making money than Bill O’Reilly or Rush Limbaugh.

    Act III is happening now. Trump the Presidential Candidate is a shaky business, since he has alienated women and minorities (by definition, well over half the US population), nearly all Democrats, many independents and even a substantial portion of those belonging to his own Republican party. But Trump has done something else that’s important, by tapping into a vein of outrage among some Americans that no other national politician has been able to capture. In business, that’s called a potential market.

    Rick Newman is the author of four books, including  Rebounders: How Winners Pivot from Setback to Success . Follow him on Twitter:  @rickjnewman

  • Here’s what Hillary Clinton really thinks about Wall Street

    Rick Newman at Yahoo Finance 9 days ago

    Hillary Clinton has a complicated relationship with the Wall Street banks that nearly wrecked the global economy in 2008.

    On one hand, it was her job to look out for their interests from 2001 to 2009 when she was a New York senator. Megabanks were some of the biggest employers in her state, and like any senator, she looked out for the interests of these big companies.

    But the banks also messed up big, which ultimately subjected them to the heavy-handed Dodd-Frank reforms, which became law in 2010. Clinton had left the Senate by then to become Secretary of State, so she never voted on the law. But during the 2016 primary elections, this year’s Democratic presidential nominee took relentless flak from Bernie Sanders for being too cozy with Wall Street and accepting millions of dollars in fees for speaking to financial firms after she became a private citizen in 2013. Such attacks from the left forced Clinton to sharpen her criticism of Wall Street and promise a new crackdown on banks, if elected president.

  • What Hillary Clinton really thinks about gridlock in Washington

    Rick Newman at Yahoo Finance 9 days ago

    Why is our government so bad? And what can we do to fix it?

    Both candidates in this year’s presidential race have views on how to make Washington more effective. Republican Donald Trump has lambasted a “rigged system” and pledged to basically dismantle it. Democrat Hillary Clinton is more nuanced, with a series of better-government proposals that would basically amount to incremental reforms within the existing system.

    Voters wonder, of course, what Clinton really thinks, and she herself has said that politicians “need both a public and a private position.” So what’s her real view on gridlock and how to fix it?

    [Related: Hillary Clinton’s speeches to Goldman Sachs will bore you to death.]

    [Related: What Hillary Clinton really thinks about Wall Street.]