New research ties the mental health of managers to the number of "illegitimate tasks" they feel they have to do as part of their job.
(Bloomberg) -- There’s an unwritten rule in global bond markets: never short Germany.But when Europe’s safest asset is in the midst of a retreat that threatens to push yields on bunds above 0% for the first time in more than two years, a paradigm shift may be underway.Toronto-Dominion Bank was forced to close its recommendation for investors to buy German bonds last week, after yields climbed above their stop-loss level. NatWest Markets are calling for investors to sell bunds, hailing the end of the “supercycle” that has seen the securities rally for the best part of two decades. Goldman Sachs Group Inc. and ING Groep NV are among banks who see yields rising to 0% by the end of the year.“The accelerating selloff in Germany is probably the defining feature of the market right now,” said Richard McGuire, head of rates strategy at Rabobank International.As the vaccine rollout gathers pace across the region, bets are on for a remarkable economic comeback -- and an accompanying spike in inflation. That, and the prospect of reduced bond buying by the European central bank, has eroded the haven appeal of bunds, while simultaneously threatening to sap appetite for high-yielding notes of debt-loaded nations like Italy.“The two cannot coexist happily with each other,” McGuire said. “There is a tension between bund yields rising as the market prices out ECB support and, at the same time, it putting upward pressure on peripheral borrowing costs.”Long-term investors have had to pay up for the privilege of holding German debt, which is seen as some of the safest that money can buy -- a reflection of its scarcity and the ECB’s extraordinary package of stimulus measures. That process was turbo-charged by the pandemic, pushing 10-year yields down to within touching distance of minus 1% last year.But expectations are growing that the ECB could start tapering its pandemic program this summer, potentially removing a key pillar of support, even as borrowing needs remain high. While quantitative easing helped cover the growing deficits of Italy and Spain during the pandemic so far, that might not be the case this year, HSBC Holdings Plc said.There’s also a political dimension to the rising yields.The growing strength of Germany’s Green party is feeding through into bets elections later this year could trigger a break with the nation’s traditional fiscal caution. Germany has historically maintained a so-called debt brake over the years, keeping the budget balanced and bond issuance limited.The 30-year swap spread -- which is sensitive to expectations of bond supply -- narrowed last week by the most in more than a year as investors prepare for increased spending and less monetary support.“It’s a quiet revolution,” wrote Giles Gale, head of European rates strategy at NatWest. Although the ECB “are buying at a stonking pace, they aren’t soaking up all the gross supply.”Reflation FrenzyWhile U.S. Treasuries have been caught in the reflation frenzy since the start of February, the fact that yields are catching up in Germany -- a bastion of tepid price increases -- is sending ripples across markets.The world’s stock of negative-yielding investment grade debt -- of which Europe made up the bulk -- has fallen to around 12 trillion dollars, the lowest level since June last year. As a share of outstanding debt, it’s now below 20%, compared with more than 30% at its peak in 2019.In equities, investors are rotating out of more expensive growth stocks and into cheaper value securities, according to Kasper Elmgreen, head of equities at Amundi SA.And European corporate bonds are feeling the effects too. The latest jump in yields has pushed about 80% of high-grade notes sold this year below their issue price, based on data compiled by Bloomberg. That’s up from earlier this month when the share of post-issuance losers stood at just under 50%.Traders have accumulated the largest short position in junk bonds since 2008 and high-grade short-selling has risen to its highest level since early 2014.The pickup in reflation bets in markets matches the outlook among economists surveyed by Bloomberg. The latest data show them raising their forecasts for consumer-price growth in the euro to 2.3% in the fourth quarter from 2.2% previously, and clearly above the ECB’s medium-term target of just under 2%.Positive bund yields would also have a psychological impact.In BofA Global Research’s latest European credit investor survey, 15% of respondents said the rally in corporate bonds will be done when 10-year German yields turn positive, making it the second most-cited bearish trigger after central bank tapering.“Everyone is at peak inflation panic,” said Charles Diebel, a money manager at Mediolanum SpA. “It’s psychologically important.”This Week:German, French and Spanish bond auctions totaling about 29 billion euros. The U.K. Will sell 3-, 15- and 20-year giltsPreliminary manufacturing and services PMIs for May in euro-area, Germany, France and U.K. will be in focus on FridayECB President Christine Lagarde speaks twice, as does chief economist Philip LaneFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Sanjeev Gupta’s plans to save his embattled industrial empire suffered a major setback as the U.K. opened a fraud investigation, prompting a potential financial partner to walk away.For two months, Gupta has been scrambling to refinance after the collapse of his group’s main lender, Greensill Capital, and recently looked close to winning a reprieve -- helped along by a surging commodity prices.But on Friday, the Serious Fraud Office announced a probe into Gupta’s GFG Alliance, including into the financing arrangements with Greensill. That prompted White Oak Global Advisors LLC -- which had recently offered a lifeline with terms for a 200 million-pound ($282 million) loan for Gupta’s U.K. steel business -- to walk away. White Oak was also behind funding for part of Gupta’s Australian assets, the Australian Financial Review has said.“As with any regulated financial institution, we are not in a position to continue discussions with any company that is under investigation by the Serious Fraud Office for money laundering,” White Oak said in a statement.GFG said Friday it will co-operate fully with the SFO investigation. It declined to comment on White Oak’s decision.The fraud probe also puts other efforts to replace about $5 billion Gupta had borrowed from Greensill in question.On Thursday, Gupta had conveyed a much brighter outlook, expressing confidence of a “new future” for his sprawling group of companies. On a podcast for employees, he said it had been “relatively easy to get refinancing” for the Whyalla mill in Australia. He also said that GFG had been “inundated by offers to help and to finance,” partly due to strong commodity markets.The picture is now bleaker in the wake of the SFO investigation, which follows months of scrutiny from lawmakers and the media over Gupta and Greensill’s financing practices. GFG has come under the microscope after the collapse of Greensill in March revealed it had been a recipient of financing based on expected future invoices, for sales that were merely predicted.Trading ActivitiesThe exact scope of the SFO investigation isn’t yet clear. Bloomberg has reported four banks stopped working with Gupta’s Liberty House Group trading business, starting in 2016, amid concerns about what they perceived to be problems in paperwork provided by Liberty, Bloomberg News has reported. In one example, the company had presented a bank with what seemed to be duplicate shipping receipts. A spokesman for Gupta has denied any wrongdoing.The two-month period it took from starting to covertly look into GFG and its financing by Greensill to announcing a formal probe is a quick turn-around for the SFO, which often takes years to publicly confirm it’s taking action against a company.It will now start to gather evidence, including securing devices and documents. However, it’ll likely take years for the office to make any tangible updates to the investigation, including whether it decides to charge individuals as part of the probe.The funding from Lex Greensill’s eponymous firm helped GFG expand at an astonishing rate in the past five years by targeting old, unwanted assets. His loose collection of companies now employs some 35,000 people worldwide, with steel and aluminum plants in the U.S., U.K., France, Romania and Australia.Staying afloat would enable Gupta to enjoy some of the best times his industrial businesses have seen. Steel prices are near an all-time high as demand recovers from the coronavirus pandemic and China cuts capacity to curb pollution. Aluminum, Gupta’s other major business, hit a three-year high this week amid a broad commodities boom.Still, Greensill’s collapse has already taken a major toll on Gupta’s businesses. On Thursday, his Wyelands Bank said it would be wound up if it can’t find a buyer. His steel units in France and Belgium have started creditor protection procedures, he’s approached buyers for some of his engineering assets, people familiar with the matter have said, and also sought buyers for two steel plants in France.For governments too, there is much at stake. Countries that once feted him as a savior for buying decrepit assets may have to pick up the pieces, due to the jobs at risk and some assets’ strategic importance to industry.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
On Wednesday, Ethereum (CCC:ETH-USD) co-founder Vitalik Buterin donated some $1 billion in Shiba Inu (CCC:SHIB-USD) crypto to help India fund its Covid-19 response. Source: shutterstock.com/JFunk The strange thing? Buterin never bought the Shiba coin himself. Instead, the Shiba community had gifted him the crypto as a joke. By sending him 50% of the outstanding coins, the gag went, the currency would become immune to a “rug pull” where controlling stakeholders hijack the coin for personal gain. Other joke cryptos — from Akita Inu (CCC:AKITA-USD) to Dogelon Mars (CCC:ELON-USD) — have since done the same.InvestorPlace - Stock Market News, Stock Advice & Trading Tips At the time, the 505 trillion Shiba coins were worth precisely $0, according to CoinMarketCap. Their first recorded price five months later — a princely sum of $0.0000000013 — would have valued Buterin’s coins at just $560,000. Fast forward to today and his SHIB coins alone are worth well over $9 billion. His other holdings add several billion more. 10 Dividend Aristocrat Stocks for Your Reliability Short List Already in 2021, cryptocurrencies have become one of the strangest financial manias in human history. Since January, digital currencies have added more than $1.3 trillion in market capitalization, growing far faster than the Nasdaq bubble of 1999. Traders have bought and sold trillions of dollars in cryptocurrency in the first five months of this year, even more than Americans spend on housing annually. As financial institutions start jumping into the fold, things will only get stranger. Much like the media giants of 1999, the U.S. banking sector of 2021 has begun rushing into an industry for fear of missing out. Whenever banks have run into an industry they don’t quite understand, the results have always been the same: historians look back and ask, “what on earth were those morons thinking?” The 2021 Crypto Bubble: Echoes of 1999 So far, the rise of cryptocurrencies has followed the same pattern of most asset bubbles: A grain of truth emerges (the idea that cryptocurrencies can help grease the wheels of finance). As the dominant players win (i.e., Bitcoin (CCC:BTC-USD) and Ethereum rise), the initial grain of truth gets stretched to extremes (the idea that all cryptocurrencies must win). The bubble bursts, leaving speculators with severe losses. The 1999 tech bubble followed this arc to a tee. For example, in 1999, one University of Pennsylvania study counted no fewer than 1,500 online marketplaces, as companies scrambled to join the internet revolution. Legacy firms like Mattel (NASDAQ:MAT) and Time Warner (now owned by AT&T (NYSE:T)) went on to splash out billions in buying these unprofitable tech moonshots. But the bonanza didn’t last. By 2004, only 31 had survived. Of those, only one public company — 1-800Contacts — ended with a price above its initial public offering. The remainder would spend years recouping lost share prices. (It would take Amazon (NASDAQ:AMZN) almost a decade to break out of its $90-range.) As for the legacy firms that bought in on fear? Time Warner would eventually write down 97% of AOL’s value, while Mattel would sell The Learning Company for a “catastrophic $27 million.” Fools Rush In Legacy banks have already started feeling the echoes of 1999. Much like the rise of digital media companies, today digital currencies pose an existential threat to existing players. Every dollar of deposits lost to Bitcoin or central-bank digital currencies means less available for lending. Many point to Facebook’s (NASDAQ:FB) Libra as the “Sputnik Moment” for banks. If a tech firm could issue a currency, why would customers need commercial banks? In response, bulge-bracket banks have rushed to develop in-house crypto platforms. Those without the means have started splashing out on acquisitions instead. According to PwC, a global consultancy, crypto deal-making already doubled in 2020 to $1.1 billion — a minor but rapidly growing figure. Now, 2021 has turned out even stranger. This week, the Andreessen Horowitz-backed Internet Computer Price (CCC:ICP-USD) quickly hit a $45 billion valuation. Today, it is the ninth largest cryptocurrency in the world by market cap. Few developers back the new currency, but its star-studded team was enough for investors to buy in. This Time It’s Worse: The Rise of ScamCoin It’s no surprise that the 2021 crypto bubble has inflated far faster than the 1999 tech one. Unlike dot-com companies, a skilled programmer can create a new cryptocurrency within minutes. Many tokens on the Ethereum or Binance (CCC:BNB-USD) blockchain don’t even bother with innovation — coins like SafeMoon (CCC:SAFEMOON-USD) copy their code directly from existing tokens. CoinMarketCap now counts over 5,000 different digital currencies. Adding in Ethereum and Binance’s token contracts puts that figure well over 700,000. In April, one TikTok creator made a coin called “SCAM” to highlight the absurdities of these copycats. “I just made the coin as a joke,” said Andre Lewis. The internet had the last laugh, sending the coin to a $70 million valuation within an hour. Within four days, the token would reach a peak value of almost $12 billion before Lewis shut the entire project down. How did this happen? In their rush to adopt digital currencies, institutional investors have created an aura of legitimacy around cryptocurrencies. Today, firms from JPMorgan to Citibank publish glowing reports on six-digit price targets for Bitcoin. That means legitimate cryptocurrencies like Ethereum now trade alongside jokes like Shiba Inu. As more cryptocurrencies join the fold, it will become increasingly difficult to tell them apart. Will Any Crypto Win? To a certain extent, all cryptocurrencies essentially serve the same purpose — to help investors record monetary and real-world transactions. Ethereum and its “Ethereum killer” competitors — like Cardano (CCC:ADA-USD) and Polkadot (CCC:DOT-USD) — track nonfungible items in the real world. Meanwhile, Bitcoin and competitors like Dogecoin (CCC:DOGE-USD) and Litecoin (CCC:LTC-USD) act as stores of digital value. That means the survival rate for cryptos will likely be lower than those seen by 1999 e-commerce companies. When coins like Litecoin and Dogecoin have practically zero technological differentiation, there’s no practical reason for both to exist. Like past bubbles, retail investors will be the first ones to lose. Currencies like Dogecoin, SafeMoon and Shiba Inu have already lost traders billions from peak to trough. Copycats like Dogelon Mars, SafeMars (CCC:SAFEMARS-USD), and Akita Inu will likely keep these miniature boom-bust cycles going. But institutional investors will eventually inflate the broader bubble to a breaking point. From the Savings and Loan (S&L) Crisis of the 1980s to the mortgage-backed bonanza of the mid-2000s, financial institutions have a long history of taking good ideas to terrible extremes. Just like one Citigroup (NYSE:C) executive said in 2007, “as long as the music is playing, you’ve got to get up and dance.” In the near term, that means Bitcoin and its blue-chip altcoin counterparts will continue to see their values inflate. Financial institutions seem intent on keeping up with central banks and tech firms in adopting digital currencies. In the longer term, however, most cryptocurrencies will implode. Like Amazon’s competitors that went bankrupt, most of the 700,000 tokens today will disappear. Just like the 1999 bubble, we’ll look back at 2021 — a year where billions in Dogecoin rested on a single SNL performance — and wonder “what were those morons thinking?” On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post SafeMoon, Shiba Inu, Dogecoin: The 2021 Crypto Bubble Is Unlike Anything We’ve Seen appeared first on InvestorPlace.
The IRS detailed on how it will handle a mixup involving a tax break for jobless benefits that became law a month after many already filed returns.
Churchill Capital Corp IV (NYSE:CCIV) stock is trading under $18 as of this writing, a far cry from its astonishing 52-week high of $64.86 per share. Several stocks suffered due to the wider EV selloff, but few were hit as badly as CCIV stock. I still believe, though, that the blank check company got a raw deal. Source: gg_photography / Shutterstock.com Shares of Churchill rose by more than 470% after a merger between the special purpose acquisition company (SPAC) and Lucid Motors was announced. The excitement was understandable. After all, Lucid is led by ex-Tesla (NASDAQ:TSLA) engineering executive Peter Rawlinson. Plus, unlike several other companies in the space, Lucid is gaining a lot of traction in preorders. Lucid has sold out every available reservation for its Lucid Air sedan in Dream Edition trim, priced at a whopping $170,000 (minus rebates and options). That kind of momentum is hard to come by in the electric vehicle (EV) space. Just ask Hyliion (NYSE:HYLN), which is still struggling for preorders despite an innovative plug-and-play electronification product for existing Class 7/8 trucks and tractor-trailers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you are more of a day trader, the merger has not closed and the ticker has not started trading. Usually, that is when these SPAC stocks start to lose a bit of steam. All things considered, the steep drop has created a buy-the-dip opportunity that is too good to ignore. CCIV Stock Is Poised for a Comeback As I write this piece, CCIV stock has started moving towards its PIPE placement price of $15. Usually, this price is $10. The increase occurred because CCIV was changing hands for nearly $60 when the Lucid Motors merger was announced. 10 Dividend Aristocrat Stocks for Your Reliability Short List From a technical standpoint, the chart is not good. It has broken support at the 20-day moving averages. The 14-day Relative Strength Index (RSI) is also neutral at 37.7. It’s strange for CCIV stock to find itself in this position. I believe it’s linked to the sense that SPACs are cooling off in favor of investments in traditional industries. Additionally, regulators are coming down hard on the SPAC world, which has brought deal volumes down significantly from the first quarter of the year. All that being said, with the merger, Lucid Motors will have approximately $4.4 billion to finance its expansion. The company is also preparing to start making the Lucid Air, the company’s answer to the Tesla Model S, in the second half of 2021. And as I mentioned earlier, preorder momentum is strong. Plus, a pop is inevitable once the stock starts trading and we get our first earnings reports and delivery numbers. At least, that’s the pattern we have seen with the U.S.-listed Chinese electric vehicle (EV) makers Li Auto (NASDAQ:LI) and XPeng (NYSE:XPEV). Upset the Applecart Finally, a few reports show that Lucid Motors is in talks with Apple (NASDAQ:AAPL). Now, I am not trying to say that an Apple deal would not be big for the company. Any agreement between the two companies will be extremely fruitful for Lucid. But I am a bit gun-shy after the Workhorse (NASDAQ:WKHS) USPS debacle. For the uninitiated, retail traders bet the house that Workhorse would get a USPS contract to assemble 50,000 to 165,000 new vehicles for its fleet to be delivered over the next 10 years. However, USPS awarded Oshkosh (NYSE:OSK) the contract in a surprising turn of events. As a result, shares lost $2 billion in value after the electric vehicle maker missed the Next-Generation Delivery Vehicle contract. I do not think there is any chance of that happening to CCIV stock. But investing in this stock should not be based solely on the Apple deal, as enticing as it is. Even when you set aside the benefits of the potential deal, there is a lot to look forward to when it comes to Lucid Motors. Solid Stock, Wrong Timing It makes sense that investors are now pouring capital into traditional areas such as housing and lumber stocks. As vaccines continue to roll out and the year progresses, we will see a massive resurgence in companies that did not get a lot of love last year. But that does not mean that EVs are suddenly a bad place to park your capital. Each stock needs to be judged on its own merits. Despite the industry trend, CCIV stock has potential and is a good contrarian play for your portfolio right now. It doesn’t matter if you are a day trader or a passive investor at this point. Once the merger is complete and the ticker starts trading, you can decide if it’s good to exit then. On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post Churchill Capital IV Looks Poised for a Comeback appeared first on InvestorPlace.
Two of the world's most prominent billionaires Tesla Inc.'s CEO Elon Musk and Jack Dorsey are facing off over the merits of bitcoin, with the future of the world's No. 1 crypto likely hanging in the balance.
Now that the IRS knows more about your earnings, you may be eligible for more support.
The agency is plagued with setbacks that are causing a major backlog of returns.
Last week, we witnessed a classic “buy the rumor, sell the news” event with the cryptocurrency Dogecoin (CRYPTO:DOGE). Many Dogecoin enthusiasts were hoping that Tesla (NASDAQ: TSLA) CEO Elon Musk’s stint hosting the television show “Saturday Night Live” would lead to higher prices. After all, Musk has been known to pump the price of this cryptocurrency on Twitter and has been one of its biggest supporters. With so many Dogecoin holders anxious to see what the Dogefather had to say Saturday, the price of cryptocurrency rallied hard into the event to hit a record high of $0.74. Unfortunately, Doge investors learned that sometimes these types of events simply cannot live up to the hype. The price of Doge dropped more than 30% following the premiere of the show after Musk failed to deliver the praise for the cryptocurrency investors were hoping for. Traders can learn a lot from this story, particularly since this “buy the rumor, sell the news” scenario repeats itself time and time again in financial markets. It highlights just how difficult it can be to trade based on the news and should be viewed as a cautionary tale. With that said, perhaps the most important lesson here is that instead of gambling on Dogecoin, why not learn a trading strategy that can deliver real results? For example, Mindful Trader has created a data-driven swing-trading strategy that can potentially help you grow your account. Because he has analyzed and dissected historical stock market price data to test his trading strategy, you won’t have to worry about trying to guess right on binary events like the one mentioned above. Instead, you can use a statistical approach with proven results to take your trading to the next level. Signing up for the Mindful Trader service gives you access to tutorials and all the trading rules he uses for successfully generating returns with stocks and options trading. He also provides data-driven stock picks that he trades himself, which allows you to learn while following his suggestions. Whether you are a beginner trader or a seasoned veteran, Mindful Trader has something for everyone. Since Mindful Trader uses a swing-trading strategy that relies on price movement, not hope, you will always be confident in making a trade. That means you won’t have to trade the news and rely on hype to potentially generate returns like those unfortunate Dogecoin investors mentioned above. Check out this link to learn more about Mindful Trader’s trading strategy and why it’s such a smart alternative to gambling with Dogecoin. See more from BenzingaClick here for options trades from BenzingaThese OTC Securities Had the Most Trading Activity in April3 Advantages to Binary Options Trading with Nadex© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Here's how to tell if dogecoin's rebound is more bark than bite, according to technical analysts following the popular crypto.
"Market makers were heavily short puts in the range of $52,000 to $50,000, and I estimate were forced to sell nearly 2,900 bitcoin," one trader said.
An improving economy and rising inflation are likely to pull rates higher before long.
Dogecoin will likely transition from a proof-of-work protocol to proof-of-stake, speculated Alex Mashinsky, the chief executive and founder of The Celsius Network on Friday during a webcast hosted by his lending platform on YouTube.
When in February Glauber Contessoto decided to invest his life savings in Dogecoin (CRYPTO: DOGE), his friends questioned his mental soundness. Now that this decision has made him a millionaire (on paper), many may also be bewildered by his decision to not liquidate the investment. What Happened: Contessoto told The New York Times that his friends and family called him "crazy" when he made the decision that made him a millionaire. “It’s a joke coin. It’s a meme. It’s going to crash," he said his friends told him. Still, the markets are hardly following good sense these days, and Dogecoin has grown to become a network more valuable than blue chip companies Ford Motor (NYSE: F) and Kraft Heinz (NASDAQ: KHC). Like many others, Contessoto read about Dogecoin on Reddit. Then he made the unusual decision of going all-in on the coin: He maxed out his credit cards, borrowed money on Robinhood and spent everything he had. The value of Contessoto's investment is now about $2 million, making him a perfect example of what the article describes as "a new kind of hyper-online investor who is winning by applying the skills of the digital attention economy — sharing memes, cultivating buzz, producing endless streams of content for social media — to the financial markets." Such investors aren't interested in investing rationally. Instead of deciding what to invest in based on fundamentals, they invest according to what is funny or futuristic-looking or by how many celebrities are tweeting about it. “Memes are the language of the millennials," Contessoto said. "Now we’re going to have a meme matched with a currency.” Playing The Story: Contessoto explained that he believes that "Dogecoin has the best branding of all cryptocurrency" and that all the other coins appear "super high tech and futuristic," while Dogecoin "just looks like: 'Hey, guys, what’s up?'” While that may not be the most scientific of explanations, he believes that this is a big plus given that newbies investing in cryptocurrency for the first time might prefer investing in something more fun and recognizable. This Dogecoin millionaire believes that the coin's price will continue its ascent and does not want to miss out on future profits. He has already lost hundreds of thousands since the coin was at its all-time high, but he plans to continue holding and only liquidate 10% next year, once his earnings will be classified as long-term capital gains and taxed at a lower rate. See more from BenzingaClick here for options trades from BenzingaCardano And Polygon Skyrocket To New All-Time Highs As Investors Seek Elon Musk's Next Favorite CryptoHere's How You Can Get Shiba Inu For Free© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
With the right asset allocation and withdrawal strategy, investors may not worry so much about the large sum of money in their accounts.
Mortgage rates fall again to hold at sub-3% levels for a 4th consecutive week. Inventories continue to push house prices higher, however…
Institutional investors do not take kindly to inflation and they sold. 1. If indexes fall below their moving averages, take action: Traders and investors alike should watch moving averages, especially the 50-, 100-, and 200-day. When the indexes were sliding a few days ago, the S&P 500 (SPX) for example, did not break its 50-day moving average at 4050.
(Bloomberg) -- Billionaire George Soros’s investment firm snapped up shares of ViacomCBS, Discovery and Baidu as they were being sold off in massive blocks during the collapse of Bill Hwang’s Archegos Capital Management.Soros Fund Management bought $194 million of ViacomCBS Inc., Baidu Inc. stock valued at $77 million, as well $46 million of Vipshop Holdings Ltd. and $34 million of Tencent Music Entertainment Group during the first quarter, according to a regulatory filing released Friday. A person familiar with the fund’s trading said the company didn’t hold the shares prior to Archegos’s implosion.Archegos, the family office of former hedge fund manager Hwang, fell apart during the last week of March after amassing large leveraged positions in a concentrated portfolio of U.S. and Chinese companies. At its peak, the family office had more than $20 billion of capital and total bets exceeding $100 billion.Hwang was wiped out in just days after investments including ViacomCBS and Discovery tumbled, triggering margin calls from global banks, who then sold the stocks in the big block trades. The fiasco is expected to cost the finance industry about $10 billion, has prompted an investigation by the U.S. Securities and Exchange Commission and caused heads to roll at Credit Suisse Group AG, where the hit exceeds $5 billion.The 13F filing provides one of the first examples of how a hedge fund attempted to capitalize on the distressed remains of Archegos. It also offers an insight into Soros’s investment firm, which is run by Chief Investment Officer Dawn Fitzpatrick.She told Bloomberg in March that she was willing to jump on dislocations in the market, investing $4 billion during the pandemic-induced swoon a year ago, including buying residential mortgages on the cheap. Soros returned almost 30% in the 12 months through February and manages $27 billion across a range of strategies.“When there’s a dislocation, we’re prepared to not just double down but triple down when the facts and circumstances support that,” Fitzpatrick, 51, said in a “Front Row” interview on Bloomberg TV.Soros also increased its bet on Amazon.com Inc. and homebuilder DR Horton Inc., which is now its second-largest public equity position.The 13F, which money managers overseeing more than $100 million in U.S. equities must file quarterly, revealed that Soros held $4.5 billion of U.S. equities, down $77 million from the prior quarter.The biggest exit in the quarter was Palantir Technologies Inc. Soros sold 18.5 million shares valued at about $435 million. The firm originally revealed it owned a stake in the controversial data-mining company controlled by Peter Thiel in November, but rapidly issued a statement saying the original investment was made in 2012 and it regretted the decision.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Lawmakers are looking for quick action to improve an existing forgiveness program.
Income stocks and retirement go hand in hand because they are both built for the long term. You don’t buy stocks for their dividends for the short term. They are steady investments that enhance your wealth the old-timey way, slowly over time. The challenge is to find stocks that can maintain and grow their dividends year after year. If their dividends are solid, their business is likely solid as well, and you’ll also see stock price growth, too. But there are stocks in special categories — limited partnerships (LPs), real estate investment trusts (REITs), business development corporations (BDCs) — that are structured in such a way that they cut the investor directly in on net profits and can offer tantalizing dividend yields.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 10 Dividend Aristocrat Stocks for Your Reliability Short List However, they can be cyclical, and those dividends may be here one day, gone the next. The seven dividend stocks to avoid in your retirement portfolio are unreliable stocks right now, so keep them out of your long-term plans. Boston Properties (NYSE:BXP) PPL Corp (NYSE:PPL) Energy Transfer LP (NYSE:ET) AT&T (NYSE:T) VF Corp (NYSE:VFC) Equity Residential (NYSE:EQR) Lamar Advertising (NASDAQ:LAMR) Retirement Stocks to Avoid: Boston Properties (BXP) Source: Shutterstock Real estate is hot, so why is this REIT on the list? Because it’s the wrong kind of real estate in the wrong places. Certainly, in this low-interest-rate environment, REITs as a whole have done well. But you don’t judge a stock on how well it does in the good times. It’s how it gets through the bad times that matters most for long-term investors looking toward retirement. BXP is the largest publicly traded commercial real estate developer in the U.S. It has nearly 200 buildings in Boston, Los Angeles, San Francisco, New York City and Washington, DC. These major cities were also experiencing an exodus of corporate workforces even before the pandemic. And now it’s worse. Add to that the kryptonite of REITs — rising interest rates — and BXP becomes a REIT that’s looking like shopping mall REITs did a few years ago. Given that, its 3.7% dividend may look tempting now, but the stock is already pulling back. The stock gets a D rating in my Portfolio Grader. PPL Corp (PPL) Source: Shutterstock With a 5.72% dividend and utility businesses in the U.K., as well as boomtown Louisville and central Pennsylvania, this would seem like a great stock for buy-and-hold investors looking toward retirement cash. But the U.K. business is up for sale, and rising rates aren’t good for utilities because it’s a cash-intensive business, keeping everything running, reliable and safe. That means rising rates aren’t going to help PPL. And if it sells its U.K. business, that’s going to affect cash flow, which may have a negative effect on its generous dividend. If it has to cut its dividend, that is usually like blood in the water with investors. This isn’t the time to be blinded by PPL’s risks just for the sake of its alluring dividend. 7 Great Growth Stocks to Consider for Your Short List The stock gets a D rating in my Portfolio Grader. Energy Transfer LP (ET) Source: Casimiro PT / Shutterstock.com As a limited partnership, ET treats its shareholders (technically unitholders) as owners and by law pays them out of net profits using a stock dividend. Given the comeback in oil stocks recently, it’s not surprising that ET’s current dividend is 6.11%. That’s certainly tempting, but there’s plenty of risk and volatility that comes along with that. ET is a leading midstream oil company, which means it makes its money in pipelines, moving oil, natural gas and natural gas liquids from fields to refineries and distribution centers. Do you remember Standing Rock? That was an ET-owned pipeline trying to get across the Sioux Nation. It’s still an issue. And then there’s the current ransomware attack on the Colonial Pipeline on the East Coast. The point is, there are risks here. It’s a big company, moving about 30% of the energy patch bounty around the nation. But LPs and their dividends aren’t something you can count on, and the industry is cyclical, which isn’t exactly what you want in a retirement stock. The stock gets a D rating in my Portfolio Grader. AT&T (T) Source: Roman Tiraspolsky / Shutterstock.com It seems odd to see the old Ma Bell on this list given its long reputation as a blue-chip company. However, T isn’t the company of old. As a matter of fact, you could make the argument that its legacy is precisely what has put it in the predicament it’s in today. It thought its primacy was going to continue when the mobile market exploded, given its powerful position in the telecom world. But more aggressive competitors started going after AT&T’s dissatisfied base, and today it’s losing ground. What’s more, when it bought TimeWarner Media it wasn’t prepared for entering the new digital content and streaming sector. It has been an expensive lesson. It’s crazy to think this company with a $230 billion market capitalization and 6.5% dividend is a risky choice for retirement money, but that’s where we are. 7 Stocks to Start your Robinhood Portfolio With Just $2,000 The stock gets a D rating in my Portfolio Grader. VF Corp (VFC) Source: rblfmr / Shutterstock.com On any given day, you likely see a brand or two that belongs to VF Corp. It has been making apparel since 1899, and today owns brands like Dickies, Supreme, The North Face, Jansport, Vans, Timberland and others. That seems like a pretty solid portfolio of brands covering work, outdoors and upscale leisurewear, and it is. But it’s also competing in a very competitive, low-margin market for the most part. And it’s at the will of consumer spending. Year to date, the stock is slightly underwater. And its 2.3% dividend is solid, for now. But any disruption with suppliers in China or a weakening dollar could hurt margins. There are plenty of other stocks without these risks, with better payouts. The stock gets a D rating in my Portfolio Grader. Equity Residential (EQR) Source: IgorGolovniov / Shutterstock.com As its name implies, EQR is a residential REIT focused on apartment buildings in major cities around the country — Washington, DC; New York; Denver; Seattle; southern California — to name a few. The trouble is, the pandemic has moved the country online, and work-from-home solutions may well become part of the new work reality for some. Hybrid work schedules will make it less important to be working in a dense, loud, expensive city. That means current rents and building fees may take a hit to keep units full. And given current unemployment rates, there may be tenants that just don’t have the means to live downtown. The stock is up 25% year to date, and it has a 3.3% dividend. There are much better REITs out there at this point. 10 Ideal Dividend Stocks for Your Retirement The stock gets an F rating in my Portfolio Grader. Lamar Advertising (LAMR) Source: Andriy Blokhin / Shutterstock.com Forget about digital advertising, LAMR has been in the advertising business since 1902. But its business is about 200 billboards around the U.S. and Canada, as well as about 325,000 logos, signs and transit displays. About seven years ago, it transitioned the company into a REIT. It’s certainly a unique business, and there are none of the risks that go along with many REITs trying to make money in a rising interest rate environment. But LAMR is expensive, trading at a current price-to-earnings (P/E) ratio of 42. There’s just not enough growth in its model for that kind of valuation. Its current dividend is around 3%, but it’s hard to see how LAMR continues at this pace long term. The stock gets a D rating in my Portfolio Grader. On the date of publication, Louis Navellier has no positions in any stocks in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post 7 Dividend Stocks to Avoid in Your Retirement Portfolio appeared first on InvestorPlace.