Economist Mohamed El-Erian sticks to his advice against reflexively buying the dip a day after the stock market suffered its biggest one-day drop in two years on worries over the spread of COVID-19.
This couple spent a ‘small fortune’ on their troubled son, but they also own a home worth $1.4 million.
George Soros may be a lightning rod for political controversy, but everyone can agree that he’s a market and financial genius. He ran a hedge fund that maintained 33% annualized returns for over 30 years, and in 1992 he scored a $1 billion profit in just 24 hours with his famous short call against the Pound sterling.He also has a knack for spotting future events in current trends. In recent years, Soros has made public predictions on the move to regulate internet giants Facebook and Google as public utilities, on the ‘bubble’ nature of cryptocurrency, and on the Democrats’ off-year victory in the 2018 elections. He has been right more often than he has been wrong – although the jury is still out on his pronouncement that Europe will spark the next economic downturn.And for all of that, Soros eschews excitement. He has said, “If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing in boring.” The reason, of course, is that good investing in based on finding profitable returns and reliable dividends – and those stock are usually just plain staid. Soros has a positive genius for finding them, and reaping their gains.Looking into Soros' basket of stocks, we’ve chosen three of the fund’s new holdings that TipRanks’ Stock Screener reveals as “strong buys.” Let’s take a closer look and see what Wall Street analysts have to say.Activision Blizzard (ATVI)We’ll start in the gaming segment of the entertainment sector, where Activision Blizzard is a major name. The California-based company owns a wide range of popular gaming titles, including ‘Call of Duty,’ ‘Guitar Hero,’ ‘World of Warcraft,’ and ‘Candy Crush.’ By market cap, at $48 billion, Activision is the largest game company in the American and European markets.During the fourth quarter, Soros’ fund opened a new position in ATVI, purchasing 758,000 shares, which were worth over $45 million at the end of Q4.Wall Street is also bullish on ATVI. Weighing in from Wedbush, analyst Michael Pachter put the stock on his firm’s Best Ideas list. In his note, Pachter wrote, “The cupboard at Activision is full, and we see great potential for the company’s release pipeline over the next three years… we expect tech giants Amazon and Google to compete aggressively with Sony and Microsoft to roll out cloud-based game streaming initiatives; this could have the double-edged benefit of expanding the market for games dramatically and of increasing competition for titles, which should benefit Activision’s margins over the medium term.”Pachter backs his optimism with a Buy rating and a $76 price target, implying room for 24% growth on the upside. (To watch Pachter’s track record, click here)5-star analyst Laura Martin, of Needham, agrees that ATVI has a clear path ahead. She writes, “What we like most about ATVI’s strategic position is that it owns all if its IP and manages large, global, super-fan communities. Additionally, it has diverse revenue streams with big moats based on hit franchises. Also, its outstanding shooter games attract global audiences, which maximizes revenue. Finally, we like ATVI’s focus on creating eSports competitions around its games, including the Overwatch League and Call of Duty League, as it attracts sponsorship revenue which represents a new source of revenue…”Martin puts a $75 price target on ATVI, indicating her confidence in 20% growth, along with a Buy rating. (To watch Martin’s track record, click here)Overall, ATVI’s Strong Buy consensus rating is based on 20 recent analyst reviews, including 16 Buys versus only 4 Holds. The stock is selling for $61.82 now; the average price target of $68.26 suggests a modest upside of 10.5%. (See Activision’s stock analysis at TipRanks)Pioneer Natural Resources (PXD)The next Soros acquisition we’re looking at comes from the energy industry. Pioneer is a Texas oil company operating in the Permian Basin in the western part of the state. The Permian has powered the oil boom in Texas over the last decade, and become one of the world’s largest oilfields. Pioneer’s share is significant – the company has over 1 billion barrels of proven recoverable reserves. Pioneer’s reserves are split three ways, with 53% being oil and the remainder a combination of natural gas and natural gas liquids.Shares in PXD slipped in 2019, and are down so far this year, too, as low oil prices are putting headwinds on the industry. The Soros fund took advantage of the falling share price and picked up 75,000 shares of PXD in Q4. That stake was worth $11.353 million at year’s end.The company is compensating for the lower market price of oil by raising production; in Q4, output reached 364,400 barrels per day, compared to 351,000 in Q3. At the same time, and reflecting the softness in prices, Q4 revenue was down 1.3% year-over-year, with the top line reported at $2.64 billion.In better news, revenues were higher than expected, and beat the forecast by 6%. EPS was strong, too, and at $2.36 was significantly higher than the $2.12 expected. Quarterly earnings were double the year-ago figure.Ryan Todd, writing from Piper Sandler, likes this stock, saying, “PXD delivered a substantial 4Q FCF beat driven by both operational execution and cost management. And with a FY20 outlook likely to be received as a relative ‘winner’ vs. those disclosed by peers thus far, we expect the shares to outperform the group…”Todd gives PXD shares a Buy rating with a $205 price target. His target implies a robust upside of 49% for the stock. (To watch Todd’s track record, click here)Jeanine Wai, of Barclays, also takes a bullish stance on PXD. She says the stock “checks all the boxes,” citing increased production and a well-engineered mix of drilling wells as reasons for optimism. She particularly likes the dividend, saying, “…management continues to enhance shareholder return, which the sector undoubtedly needs more of to attract investors.”Wai’s Buy rating is supported by a $204 price target, indicative of a 50% upside. (To watch Wai’s track record, click here)Pioneer has 8 Buy ratings and 2 Holds, overall, making this stock a Strong Buy on the analyst consensus. Shares sell for $134, and the average price target of $182.22 suggest that PXD has room for 36% upside growth. (See Pioneer stock analysis at TipRanks)BellRing Brands, Inc. (BRBR)Our third stock on the list is a new one – literally. BellRing started trading publicly last October, after it spun off of parent company Post. Chances are, you’ll recognize Post from its breakfast cereals – which include popular offerings such as Grape-Nuts, Raisin Bran, and Shredded Wheat. BellRing, now as an independent entity, encompasses Post’s active nutrition brands – a variety of protein shakes, powders, and bars. PowerBar is the most widely known of the new company’s brands.So, BRBR is an interesting stock. It’s made a strong start in the markets, and has a successful niche product line. These are likely the factors behind Soros’ purchase of 300,000 shares. At the end of Q4, the quarter of purchase, those shares were worth $6.387 million.The company reported fiscal Q4 earnings back in November, and showed revenue at $214.5 million, in line with the forecast. Net earnings were $26.7 million, up 1.1% from the previous year, when the company was a division f Post. In fiscal Q1, reported earlier this month, revenues rose to $244 million, with a gross profit of $91.3 million.As a new stock, without much history, investors have to look to the product offerings for clues to future performance. And here, BellRing has a strong portfolio. The company’s ‘Premier Protein’ shakes increased sales by 45% in Q4, while the company is optimizing its ‘PowerBar’ offerings in North America to focus on the most successful flavors.Jefferies analyst Robert Dickerson writes of BRBR, “We still foresee higher FY’20 EBTIDA relative to guidance. Given the strong Q1 start to the year, we’ve increased our EBITDA forecast to $209mm… BellRing should still grow revenues ~20% this year and EBITDA results can likely top guidance, all while the company remains well positioned in the fast-growth convenient nutrition category.”Dickerson starts his coverage here with a Buy rating and a $27 price target, suggestive of a 27% upside potential. (To watch Dickerson’s track record, click here)BellRing has attracted no fewer than 8 reviews in recent weeks – nothing gets attention on Wall Street like success. The Strong Buy consensus rating is based on 7 Buys and a single Hold. The average price target of $25.14 implies an upside potential of nearly 19% from the share price of $21.17. (See BellRing stock analysis at TipRanks)
Suze Orman says investors should stay the course and explains why she thinks investors worried about their retirement savings after a historic downturn for the Dow Jones Industrial Average should welcome such selloffs.
Mailboxes are flooded with tax forms every year around this time, and many of them can be confusing, feel unnecessary or involve seemingly trivial amounts of money. But before succumbing…
Your retirement is safe in the hands of Warren Buffett. At least that’s the message former hedge-fund manager Whitney Tilson, who now runs Empire Financial Research, has for investors approaching their golden years, according to a note published by ValueWalk this week. “Importantly for all investors — and especially retirees — it’s incredibly safe,” he explained.
About two months ago, I gave a presentation to a group of CPAs, attorneys, and financial professionals on the use of trusts as beneficiaries of retirement plans. The Secure Act, which was signed by President Trump in December, does a number of things that change the rules around retirement plans.
The Dow Jones Industrial Average tumbled 1031.61 points, while the S&P 500 was off 3.4%. From a technical perspective, the S&P 500 should find support near its Jan. 31 low of 3225.52, according to Macro Risk Advisors’ John Kolovos. The S&P 500 has gained 3.6% over the following three months following such occurrences, according to Bespoke Investment Group data.
Mike Bloomberg has proposed hiking taxes on wealthy investors, imposing a levy on financial transactions, and toughening financial regulations. It is a fine list. The problem: It is the polar opposite of his past positions.
Amid a 10-year-plus bull market, many investors can’t come to terms with the idea that there could be a substantial decline in the stock market.
Boeing received its first commercial jet order in 2020 as Japan's ANA buys 787 Dreamliners with General Electric engines.
Shares of General Electric Co. dropped 2.1% in midday trading Tuesday, which puts them on track suffering an 8th-straight decline, after J.P. Morgan analyst Stephen Tusa said there were several items in the industrial conglomerate's 2019 annual report "worth calling out." The stock has tumbled 11.7% during the current 8-day losing streak, which would be the longest such stretch since the 9-day streak ending April 15, 2019. Among Tusa's talking points about GE's 10-K filing with the Securities and Exchange Commission after Monday's close, he said the headcount is basically unchanged from 2018, which raises questions about how the cost structure is supposed to improve. He said the results indicate that the $1.4 billion headwind from the issues with Boeing Co.'s 737 MAX wasn't the entire story for GE's aviation business after all, and that the entire free-cash-flow beat for 2019 was a result of restructuring and what he views as "unsustainable progress payment benefits." In addition, Tusa said the activity between GE and GE Capital Services "continues to show somewhat of a 'recycle' of capital there," with a "couple billion dollars" of cash positive transactions for GE Industrial. GE's stock has edged up 0.3% over the past three months, while the SPDR Industrial Select Sector ETF has lost 2.8% and the S&P 500 has gained 2.0%.
“The Fly,” who has been known to engage in cyber-scuffles from time to time, called out the president by responding in a tweet that “you deserve a crash.” Twitter didn’t take too kindly to that.
India-born Banga will take on the role of executive chairman, while Miebach will become the company's president on March 1. Chairman Richard Haythornthwaite will retire after more than a decade when Banga assumes his new role, the company said in a statement. Before joining Mastercard as president of Middle East and Africa in 2010, Miebach served as managing director at Barclays Bank and general manager at Citibank.
Gilead is one of the biggest biotech companies. But recent news and earnings have been mixed. So, is GILD stock a buy right now? Read on for a full analysis.
Fears of a coronavirus pandemic sent the markets into a tailspin on Monday with all three major indexes registering heavy losses. Additionally, oil dropped by 4%, and the European equities markets had their worse performing day since mid-2016. In contrast, gold – traditionally a safe haven asset - notched a seven-year high, while the CBOE Volatility Index (VIX), the Street’s fear gauge, shot up by over 46%.The virus has now spread further afield, with the death toll rising to seven in Italy and dozens of deaths reported in Iran. Amidst all the chaos, the search is on to find a cure and contain the outbreak. In a market gripped by turmoil, though, certain companies in the Healthcare space stand to make headway if they can find a solution or stop the virus claiming more lives.With this in mind, we sought out three names currently in the hunt for a viable treatment or engaged in mitigating its impact. With a little help from TipRanks’ Stock Screener we were able to gauge the Street’s current sentiment towards all three. Let’s take a closer look.Moderna Inc (MRNA)This clinical stage biotech is hogging the headlines right now, and for good reason. Moderna disclosed yesterday that its experimental mRNA COVID-19 vaccine (mRNA-1273) is ready to be human tested. The first batch has now been sent to the National Institute of Allergy and Infectious Diseases (NIAID). Clinical trials should begin in late April, with initial results expected in July or August. In reaction, MRNA stock is up nearly 15% in pre-market trading.Moderna is developing mRNA therapies to treat autoimmune diseases. Hypothetically, mRNA vaccines are faster and more effective than DNA-based ones. Unlike DNA-based vaccines which must connect with the nucleus of the cell, mRNA (messenger RNA) is found all across the cell and, therefore, is significantly more accessible. We say “hypothetically” as mRNA vaccines have yet to be tested on humans and it’s still unclear how effective the new coronavirus vaccine will be.Piper Sandler’s Edward Tenthoff is bullish on Moderna and notes that the company is “the leader in developing mRNA medicines.” The 5-star analyst expounded, “Moderna and VRC finalized sequences to be used in mRNA-1273 and manufacture of the first clinical batch was completed on February 7th. This showcases the speed of Moderna’s mRNA vaccine development capabilities, which starting from concept design to scale up manufacturing, was done in 25 days… We believe Moderna’s mRNA vaccine platform is ideally suited to address emerging viral outbreaks. In this regard, Moderna can rapidly advance from sequence to vaccine and manufacture scale up; all of which are crucial in responding to public health threats.”To this end, Tenthoff reiterated an Overweight rating on Moderna stock and kept his price target of $32 as is. This conveys the analyst’s belief that shares can soar by a further 72% in the coming months. (To watch Tenthoff’s track record, click here)Looking at the consensus breakdown, all 6 analysts tracked over the last 3 months rate the vaccine pioneer as a Buy. Moderna’s Strong Buy consensus rating is accompanied by an average target price of $31.20 and implies potential gains in the shape of 68%. (See Moderna stock analysis on TipRanks)Co-Diagnostics Inc (CODX)Co-Diagnostics provides molecular diagnostics technology that is used to detect diseases and advance life sciences research. The micro-cap has a market value of only $98 million, but if it continues 2020’s performance so far, it won’t be a penny stock for long. CODX is up by a mercurial 339% year-to-date. Yesterday the stock spiked by 29%.So, why amidst all the sell off, is this small company doing so well? The simple answer is that Co-Diagnostics has developed a test for the diagnosis of coronavirus. What’s more, the test has just received European regulatory approval. Co-Diagnostics’ Logix Smart Coronavirus Covid-19 Test got regulatory clearance to be an in vitro diagnostic in markets that accept CE (European Community) marking. The company plans to ramp up production to meet global demand and will turn its focus to obtaining approval form other bodies. Co-Diagnostics noted it is the first U.S. company to receive a CE-marking for a coronavirus IVD.Maxim’s Jason McCarthy is impressed with the speed of execution: “The company has demonstrated the ability to rapidly develop tests for emerging diseases like Zika and Ebola, and now the coronavirus, thereby highlighting the versatility of its platform, as well as demonstrating that the company will be able to develop tests for future emerging outbreaks. Considering the platform, the versatility of the testing, the unique CoPrimer approach, and the valuation of the company (despite rising in 2020 with activity in coronavirus), there is still more upside in CODX shares, in our view.”The high praise is mirrored in the 4-star analyst’s actions; McCarthy reiterated a Buy on CODX, while also raising his price target, up from $2 to $5. Should the target be met over the next 12 months, investors stand to pocket a further 27% gain. (To watch Ellis’s track record, click here)Over the last 3 months, only one fellow analyst has published a review regarding Co-Diagnostics’ prospects. The additional Buy rating, though, means CODX has a Moderate Buy consensus rating bestowed upon it. The average price target hits $4.5 and implies possible upside of 14.5%. (See CODX price targets and analyst ratings on TipRanks)Vir Biotechnology (VIR)Another company making waves right now is Vir Biotechnology. VIR stock soared by over 16% yesterday, adding further muscle to a strong performance so far in 2020; year-to-date Vir‘s share price has increased by 51%.The company’s aim of ‘a world without infectious diseases’ resonates in these times. The clinical stage biotech is focused on preventing serious infectious diseases by combining immunologic insights with cutting-edge technologies; It uses four technology platforms to develop treatments for various diseases including influenza and tuberculosis.The reason behind Vir’s recent surge is down to new research which identified 2 monoclonal antibodies (mAbs) that bind to SARS-CoV-2, the spike protein in the region that the virus uses to enter cells. These were originally found because they bind and neutralize the original SARS-CoV. The company is continuing its research to determine whether these or additional antibodies can be effective treatments for the coronavirus.J.P. Morgan’s Anupam Rama commented, “Near-term, based on our conversation with the company, the strategy around Wuhan coronavirus is evolving (i.e., a drug candidate via the antibody platform or otherwise would need to be identified, examined, and manufactured, for which the timelines are unclear) and the impact to our model is uncertain at this point… in the near-term, VIR shares could be volatile, and we would await a better entry point before adding to positions (or creating a new position)."Accordingly, Rama downgraded his rating from Overweight to Neutral. The price target, though, gets a slight bump upwards, from $25 to $26. Despite the downgrade, the new target implies possible upside of 37%. (To watch Rama’s track record, click here)It has been relatively quiet when it comes to other analyst activity. Overall, in the last three months, only 2 analysts have issued ratings. The word on the Street is that VIR is a Moderate Buy based on 1 "buy" and 1 "hold" rating. In addition, the average price target of $25.50 amounts to 34.5% upside potential. (See VIR stock analysis on TipRanks)
The average rate for a 30-year fixed-rate mortgage now stands at 3.45%, the lowest since 2016 — and that’s spurring a wave of refinancing activity.
(Bloomberg) -- Democratic presidential candidate Pete Buttigieg took on one of the most fraught tax issues in Democratic politics, proposing that the $10,000 cap on state and local tax deductions be lifted.Buttigieg updated his tax plan Monday, adding a plank that would remove the $10,000 limit on so-called SALT deductions for those earning up to $400,000, partially reversing a provision in President Donald Trump’s tax law that capped those write-offs, which were previously unlimited.The proposal is likely to play well in high-tax states such as California, New York and New Jersey, Democratic strongholds where local leaders have said the cap hurts residents whose incomes and property values tend to be higher. Democrats say the cap had a political motivation because it overwhelmingly affects Democratic-dominated states.But the plan could also open the candidate to criticism from some progressives who say most of the benefit of lifting the SALT cap would flow to top earners and homeowners, at a time when the party is focused on income inequality and large, new tax increases on the wealthy.Buttigieg’s $7.2 trillion tax plan could protect him from some of those critiques. Only those earning less than $400,000 would be able to write off all of their SALT liability. The proposal also includes several tax benefits for lower-income people, including expanding the child tax credit to $2,000 a year and increasing the average earned income tax credit by $1,000 a year per household.Corporations, investors and banks would also pay more. Buttigieg is calling to roll back the Trump tax cuts for the wealthy and for corporations. The effective tax rate for millionaires would increase to 49% from 31%, though the plan doesn’t specify how it reached those figures. He also calls for a 0.1% financial transaction tax on stock and bond trades and for raising taxes on corporations that shift jobs and profits overseas.“Trump placed a politically motivated cap on SALT. Trump’s economic adviser gloated that it would deliver ‘death to Democrats’ by hurting families in Democratic-leaning states with high costs of living and more progressive tax policies and social services,” Buttigieg’s plan says. “Removing the SALT cap for families undoes Trump’s politically motivated tax increase and enables governors and mayors across the country to enact progressive tax policies.”Republicans have said the change makes the tax code more progressive and that if Democratic states are worried that their residents pay too much in taxes, they should pass state and local legislation to lower those levies.Buttigieg’s SALT proposal would likely result in only a small percentage of households being able to write-off more from their tax bills. Only about 10% of taxpayers itemize -- including many earning more than $400,000 -- meaning that about 90% of people take the standard deduction, which makes them ineligible to claim the SALT deduction. And, in many states with low or no state income taxes, many people don’t have more than $10,000 to deduct even if they are itemzing.The Democratic-controlled House in December passed legislation that would temporarily repeal the SALT cap in exchange for raising the top tax rate. The passage was a symbolic victory, particularly for some moderate Democrats representing suburban districts in southern California and New Jersey, who had flipped seats in the 2018 midterms after voters were angry the tax law limited their tax breaks. Republican Senate leaders have said they won’t address the bill.The Senate in October also rejected a resolution that would give states leeway to help residents avoid the $10,000 limit on SALT payments. Senator Amy Klobuchar, one of Buttigieg’s moderate rivals in the race, voted for the resolution. Senators Bernie Sanders and Elizabeth Warren were not present for the vote. Former Vice-President Joe Biden has said he favors removing the cap.(Disclaimer: Michael Bloomberg is seeking the Democratic presidential nomination. He is the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.)\--With assistance from Tyler Pager.To contact the reporter on this story: Laura Davison in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Wendy Benjaminson at email@example.com, Max BerleyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
401(k) millionaire accounts at Fidelity averaged $1.46 million by Dec. 31, helped in large part by account owners' savvy retirement planning.
(Bloomberg) -- Warren Buffett criticized companies including life insurers that respond to low interest rates by taking more risks, even as he acknowledged that the urge to seek better returns is normal.“Reaching for yield is really stupid, but it’s very human,” Buffett said Monday in an interview on CNBC. “People are reaching for yield, there’s no question about that. And that’s stupid and it has consequences over time, but it’s very human.”Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., was asked about life insurance companies that sell products, such as annuities, that promise higher returns than the rates the companies can earn on investments. The push for yield sometimes persuades executives to make risky changes, leading to the boom in leveraged loans and the weakening of covenants, he said.Buffett, in his annual letter to shareholders Saturday, discussed his view on repurchases and corporate governance. The 89-year-old investor said he plans to allow shareholders to direct questions to his key deputies, Ajit Jain and Greg Abel, at this year’s annual meeting, giving a greater voice to two people seen as top contenders to replace him when he steps down as CEO.What Bloomberg Intelligence Says:“Warren Buffett’s annual letter supports our view that Berkshire’s next CEO will be one of two vice chairmen -- Ajit Jain or Greg Abel. 4Q share repurchase was above our expectation, but we believe buybacks will stay limited.”--Matthew Palazola, an analyst at Bloomberg Intelligence\--Read the report hereOn Monday, Buffett was also asked about his bets on some of the major airlines, including Delta Air Lines Inc. and Southwest Airlines Co. He said it was “very unlikely” that Berkshire would buy an airline outright, partly because it’s such a regulated industry.To contact the reporter on this story: Katherine Chiglinsky in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Steve Dickson, Daniel TaubFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Days after some customers saw an unexpected $0 balance, Fidelity’s site was down again — and they’re not the only ones
Affording home payments is a struggle many homeowners face, especially in a large city with high living costs. Questions of budgeting and saving come into play, as well as how much additional debt - from the likes of car loans and … Continue reading ->The post Salary Needed to Afford Home Payments in the 15 Largest U.S. Cities - 2020 Edition appeared first on SmartAsset Blog.
General Electric shed about 78,000 workers last year, as the industrial conglomerate sold off business units to improve its financial position,
Chinese bank failures, loan defaults and supply-chain disruptions would put a dent in global GDP, writes Brian Frank.
HOWARD GOLD'S NO-NONSENSE INVESTING The coronavirus was first identified in early January in China, but investors in U.S. stocks paid it little mind. Just last week, both the S&P 500 (SPX) and the Nasdaq Composite (COMP) hit all-time highs, a feat the Dow Jones Industrial Average (DJIA) had achieved the week before.