Feb.22 -- Patrick Zhong, founding managing partner at M31 Capital, discusses the selloff in tech stocks in the U.S. and Asia, his investment strategy and his outlook for the industry. He speaks on “Bloomberg Markets: China Open.”
Feb.22 -- Patrick Zhong, founding managing partner at M31 Capital, discusses the selloff in tech stocks in the U.S. and Asia, his investment strategy and his outlook for the industry. He speaks on “Bloomberg Markets: China Open.”
The U.S. House votes Friday on a bill to give you a third payment. Could there be another?
Here's what still has to happen, including the big vote scheduled for Friday.
Borrowers are backing off, mortgage demand is falling — but what if rates go even higher?
As of Feb. 19, only 8 full days into the 2021 filing season, the IRS received 34.69 million individual returns.
(Bloomberg) -- Ark Investment Management’s miserable week showed few signs of easing on Friday, as its flagship exchange-traded fund battled to avoid a fifth day of declines.The ARK Innovation ETF (ticker ARKK) rose 0.4% of 3:25 p.m. in New York, after swinging between gains and losses. The fund has dropped 15% this week amid a technology selloff that was triggered by rising Treasury yields, putting pressure on high-flying stocks. One of those shares is electric-car maker Tesla Inc., which remains as the ETF’s biggest holding and has faced intense volatility.The last time Ark founder Cathie Wood suffered a weekly run this bad was almost a year ago, during the worst of the Covid-fueled mayhem. Her main fund is now 11 times larger than it was then. It got close to erasing its gains for 2021 this week after soaring as much as 26% since the end of December.Assets in the ETF have slumped by $4.9 billion this week to $23.3 billion, according to data compiled by Bloomberg. The figure doesn’t include flows from Thursday, when ARKK dropped 6.4% for its worst day in almost six months. Investors pulled about $200 million from the fund in Wednesday trading. That brings total weekly outflows to $638 million, on pace to be the worst on record.“Money that is ‘easy come’ tends to be money that is ‘easy go’,” said Ben Johnson, Morningstar’s global director of ETF research. “You’re going to see similar, if not potentially greater, market impact on the way down, especially given that this is an actively managed ETF and a fully transparent one. The market is hanging on their every move, they’re watching their every move.”Bearish bets against the ETF continue to grow, with short interest now accounting for more than 4% of available shares, according to data from IHS Markit Ltd.Michael Purves, chief executive officer at Tallbacken Capital Advisors, said in a note Thursday that his firm is taking profits on ARKK puts, but “will look to re-enter a second bearish trade on a bounce.”Ark Investment slipped to the eighth place among the largest exchange-traded fund issuers in the $5.9 trillion industry, after becoming the seventh biggest earlier this month. Total ETF assets for the company are now just shy of $53 billion, down from more than $60 billion at the prior peak.Wood’s $10.6 billion ARK Genomic Revolution ETF (ARKG) is now flat for the year and lost $154 million on Wednesday for its third straight day of outflows. At the same time, traders pulled another $48 million from ARK Next Generation Internet ETF (ARKW).“If one were still in agreement with Ark on their long-term investment thesis, a meaningful market correction might provide an opportunity to participate more,” Linda Zhang, founder of Purview Investments.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.
(Bloomberg) -- To crypto true-believers, meme traders, and Elon Musk fans, hedge fund titan Paul Singer can’t wait to say, “I told you so.”Offering a curmudgeonly riposte to today’s raucous financial markets, the 76-year-old billionaire said in a letter to clients of his $42 billion Elliott Management Corp. that a “flamboyant line-up” of excesses will come back to haunt investors. To Singer, who has long warned of an ugly end to the Federal Reserve’s easy-money policies, it’s all just a bit too much.“We believe that hindsight will show the champion of head-smacking craziness in the American stock market to be the period playing out right now,” Singer wrote in the Jan. 28 letter.In his view, the Fed’s current iteration of quantitative easing paired with trillions of dollars of stimulus to counter the pandemic are setting things up for a fall. Rampant inflation will shock policy makers, stock pickers and bond investors, alike.“‘Trouble ahead’ is signaled by a rare combination of low-quality securities, staggering valuation metrics, overleveraged capital structures, a scarcity of honest profits, a desperate dearth of understanding evinced by the most active traders, and economic macro prospects that are not as thrilling as the mobs braying ‘Buy! Buy!’ seem to think,” he wrote.Singer Says Long-Term Bonds Are a ‘Senseless’ Speculative TradeMarkets have begun to show cracks in recent days. Benchmark 10-year Treasury yields catapulted to their highest in more than a year, equities tumbled, and traders yanked forward their opinion of how soon the Fed will tighten monetary policy.While pledging to stick to the basics at his multistrategy operation -- which has lost money in just two years since its 1977 inception -- Singer exuded frustration at what he sees as the hysteria driving everything from Bitcoin to government debt -- a “return-free risk,” as his letter put it.Elliott made money every month in 2020, even in the March rout, gaining 12.7% for the year, thanks to “a combination of portfolio-protection trades related to interest rates and gold, together with our core activities” including distressed debt, equity activism, and private equity.The firm has registered annualized gains of about 13% in its 44 years, beating the S&P 500 Index.For a “reality check” on U.S. stocks, he pointed to Musk’s Tesla Inc., which trades at about 1,000 times earnings while “every other major carmaker in the world is rolling out electric vehicles in the near future.” Addressing its shareholders, “good luck ‘you few, you happy few, you band of brothers’ and sisters,” he wrote.But nothing has exercised the Republican donor like the boom in cryptocurrencies, which he has long called a fraud. Bitcoin has soared almost 70% this year alone and reached a record $57,350 on Feb. 21. Watching the digital currency rocket on the back of stumulus measures had the fund manager grasping for coping mechanisms.“Pulling out your hair is an option, though only if you have hair to spare,” the mostly bald Singer wrote. “Hiding under the bed to avoid people who gloat about being long Bitcoin can get…tiring. Deep breathing exercises can work, but only for short periods. We continue to press on for the day when we can say, ‘We told you so.’”And even as the world begins to recover from the pandemic, Singer urged keeping expectations in check. Certain industries and activities, like commercial real estate, movie theaters, retail, restaurants and business travel, will continue to be significantly challenged -- in some cases permanently, he said.In the meantime, he wrote, the recovery will be stymied by virus variants and policies “that sometimes seem governed by short-term political pressures rather than what is best for society, short and long term.”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.
(Bloomberg) -- The world’s largest Bitcoin fund is selling off faster than the cryptocurrency itself as investors rush to the exits.The $31.6 billion Grayscale Bitcoin Trust (ticker GBTC) plunged 22% this week, outpacing a 17% decline in the world’s largest cryptocurrency. That’s evaporated GBTC’s once-massive premium to the Bitcoin it holds, with the price of GBTC closing 3.8% below the value of its underlying holdings on Thursday -- a record discount, according to data compiled by Bloomberg.It’s an unusual situation for GBTC, which has persistently traded at a premium to its net asset value since the fund’s launch in 2013. That figure soared to 40% in late 2020, with investors willing to pay a markup for exposure to Bitcoin‘s dizzying rally. That avalanche of inflows swelled the number of GBTC shares outstanding to a record 692 million. However, GBTC doesn’t allow redemptions -- meaning that shares can only be created, but not destroyed. With Bitcoin’s climb now stalling, that’s created a supply and demand imbalance as participants in the trust seek to find buyers in the secondary market.“It’s more indicative of the fact that there are so many shares are available, and it indicates demand for Bitcoin at these prices is falling off,” said Bloomberg Intelligence analyst James Seyffart.Bitcoin surged to a record of over $58,000 last weekend, but has stumbled since. The cryptocurrency slipped another 0.2% on Friday, on track for its worst weekly pullback in a year. The wider Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether and three other cryptocurrencies, is down 19.7% this week.Bitcoin’s lurch lower is part of a broader risk asset stumble, as spiking Treasury yields rattle the market’s more speculative fringes. High-flying tech stocks have been hammered as investors reassess lofty valuations, with the Nasdaq 100 on track for its worst week since March.Among those hit the hardest is Cathie Wood’s lineup of Ark Investment Management ETFs. The flagship ARK Innovation ETF is on track for a fifth consecutive day of declines, and is poised to erase its year-to-date gains after a nearly 150% surge in 2020. Ark Investment is the fourth-largest holder in GBTC.Michael Sonnenshein, chief executive officer of Grayscale Investments, acknowledged the risk of GBTC’s premium disappearing while speaking in a panel for the Bloomberg Crypto Summit on Thursday.“It’s certainly a risk, no question about it, but ultimately price discovery in GBTC every day is driven entirely by market forces,” Sonnenshein said.A host of new entrants could also be challenging GBTC’s command of the competitive landscape. The Bitwise 10 Crypto Index Fund, the Osprey Bitcoin Trust and the SkyBridge Bitcoin Fund LP have all launched within the past three months. Meanwhile, two Bitcoin ETFs -- a structure yet to be approved by U.S. regulators -- began trading this month in Canada.“Since the beginning of the year, we’ve seen the launch of multiple competing products,” said Nate Geraci, president of the ETF Store, an advisory firm. “The unpleasant truth for GBTC investors is that competition erodes demand for the product, which can lead to a collapsing premium or even a discount.”(Updates prices throughout.)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.
You can get whiplash, trying to follow the market fluctuations these days. Volatility rules for now, as investors are pulling out of Big Tech – a move that is pushing the general markets down. The bearish sentiment comes as new COVID case numbers are falling, along with the weekly unemployment claims. Both are positive news bites for the economy, and will help to justify increased economic opening. At the same time, a Congressional COVID relief package working its way through the legislative process promises a booster shot for consumer spending – and combined with a recent rise in oil prices, this has market watchers thinking about inflation. The result: the US Treasury’s 10-year bond has hit a yield of 1.48%, a one-year high. So investor money is pulling out of stocks, and heading over to bonds. Overall, it’s a situation tailor made for defensive stocks. High-yield dividend plays are getting lots of love from Wall Street’s stock analysts, and are showing high upside potential as investors move toward them. These are the stocks that pad a portfolio, providing an income stream capable of compensating for low share appreciation. Using TipRanks database, we’ve found two dividend plays that are yielding just above 7%. If that’s not enough, all three received enough support from Wall Street analysts to earn a “Strong Buy” consensus rating. Sixth Street Specialty Lending (TSLX) The financial sector is frequently a source of high-yielding dividend stocks, so it makes sense to look there. Sixth Street Specialty Lending is, as its name suggests, a player in the credit industry, where it is a provider of capital and credit financing for small- to mid-market companies. These small and medium enterprises are the traditional engine of America’s business sector, providing a majority of all jobs created, and specialty finance companies like Sixth Street are essential to their success. Over the past year, two trends have been clear in Sixth Street’s performance. First, the company showed a steep drop earnings when corona hit, followed by a strong rebound in 2Q20, with the EPS figure falling since then back into line with historical norms. And second, the stock’s share price has regained value slowly but steadily since hitting bottom late last March. A quick look at the numbers bears this out. TSLX showed an earnings loss in Q1 last year, but the 79 cents per share reported in Q4, while down 34% sequentially, was still up 41% year-over-year. The stock has also regained share price, rising 112% from its ‘covid panic’ trough. Sixth Street’s stock saw a momentary spike earlier this month, when it announced the Q4 results, along with the latest dividend declaration. The company’s earnings and revenue met expectations, and management declared a 41-cent per common share base dividend, along with a $1.25 special dividend. Sixth Street has a history of using special dividends to supplement the base payment. At the current base rate, the dividend yields a robust 7.5%. Raymond James analyst Robert Dodd is impressed with Sixth Street’s overall performance, but especially likes the dividend potential here. He writes, “With its recurring supplementals, a large special, and over-earning of the base dividend, we believe TSLX is aptly positioned to perform in a market where it is increasingly difficult to find yield…” Dodd rates TSLX an Outperform (i.e. Buy), and his $23.50 price target suggests room for 8% share growth in the coming year. (To watch Dodd’s track record, click here) Overall, it’s clear that Wall Street agrees with Dodd on Sixth Street’s quality – the stock has 5 recent reviews on record and all are to Buy, making the Strong Buy consensus rating unanimous. Share are priced at $21.67, and their recent appreciation has left room for just 6% upside under the average price target of $23. (See TSLX stock analysis on TipRanks) Barings BDC, Inc. (BBDC) Next up is Barings BDC, a business development corporation. Like Sixth Street, Barings provides financial services to middle-market companies. Barings’ services include capital access as well as asset management, and the company invests in debt, equity, and fixed income assets. The company boasted an investment portfolio worth $1.12 billion at the end of 3Q20, the last quarter reported. That last reported quarter also saw Barings beat expectations on earnings. The 17-cent EPS was up 21% sequentially. The net assets from operations increased to 90 cents per share, an enormous gain from the 10 cents reported in the same metric one year prior. The company also showed $7.1 million cash on hand at the end of Q3. Along with its secure financial situation, Barings has seen its share regain the value lost when the coronavirus first struck. The stock hit its lowest point on March 18 of last year; since then, the shares have rebounded 91%. That was all Q3. In Q4, Barings completed a merger with MVC Capital. The stock deal will leave Barings’ shareholders owning 73.4% of the combined entity (which will use the Barings name), while MVC shareholders will own the remaining 26.6%. The enlarged Barings is expected to show $1.5 billion in assets under management; the 4Q20 report, due in March, will give the details. Barings’ dividend reflects the company’s steady growth. In the past two years, management has kept the quarterly dividend payment growing, from 3 cents per share to the 19 cents declared earlier this month for payment in March. At 19 cents per common share, the dividend gives a yield of 7.8%. In his note on the stock for Compass Point, analyst Casey Alexander showed his clear approval of the dividend announcement: “BBDC preannounced expected 4Q20 NII of $0.19 per share versus our estimate of $0.16 and consensus estimates of $0.17. This was clearly driven by improved earnings power on the Barings platform…” In addition, Alexander sees the company making steady business gains, even without accounting for the MVC merger, writing, “Aside from the assets acquired from MVC Capital, BBDC originated $528M new investment commitments during the quarter. These commitments were spread across 24 new borrowers and 17 existing borrowers…” Alexander’s upbeat comments are complimented with a Buy rating on the stock, and his $10.25 price target implies an upside of 5% for the next 12 months. (To watch Alexander’s track record, click here) This is another stock with a Strong Buy analyst consensus rating based on a unanimous view; all three recent reviews are Buy-side. BBDC’s shares are selling for $9.66, and the average price target of $11 suggests a one-year upside of 13%. (See BBDC stock analysis on TipRanks) To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Billionaire Thomas Tull — who runs a holding company Tulco modeled in part after Buffett's — described a piece of advice from Buffett that 'impacted' his decision-making.
Tax refunds are flowing into pocketbooks — and the overall economy — much slower this season after a late start.
The $20 trillion Treasury bond market is getting jittery. The question is what is the Federal Reserve going to do about it? The US Treasury’s auctions of five- and seven-year securities were poorly received by investors.
Moderna (NASDAQ: MRNA) saw its stock jump on Thursday despite mounting losses, after the COVID-19 vaccine-maker reported more than double the revenue Wall Street predicted. Moderna missed EPS expectations with revenue far surpassing analyst forecasts as the company first began to recognize revenue from sales of its COVID-19 vaccine in December 2020. The loss was simply a result of heavy investment to increase the production of its COVID-19 vaccine. The company has spent the past two months producing and shipping its much-awaited coronavirus vaccine but its fourth-quarter is merely the surface of its vaccine success. In 2021, Moderna plans to manufacture 600-700 million doses of its COVID-19 vaccine but it should be able to expand its capacity to 1.4 billion doses in 2022 due to heavy capital investments, all of which should result in massive profits. Q4 and FY 2020 For the fourth quarter ended December 31, Moderna reported a quarterly loss of $0.69 per share, which was below Zacks Consensus Estimate of $0.25. Moderna did bring in $570.75 billion in sales. That crushed the average estimate of analysts surveyed by FactSet for $279.4 million and surpassing the Zacks Consensus Estimate by 74.76%. Just one year ago, revenues amounted to $14.06 million but until its mRNA-1273 coronavirus vaccine, the company had never brought an approved medicine to the market. Losses grew to 69 cents per share after a 37-cent per-share loss in the year-ago period, whereas analysts expected a 34-cent loss. Although a big portion of revenue still came from the grant received from the Biomedical Advanced Research and Development Authority to advance its COVID vaccine, for the first time, Moderna had product sales, and they amounted to $199.87 million as the company began recognizing COVID vaccine sales in December. Although losses widened in 2020, Moderna's sales skyrocket to $803.4 million. Possible threat One of the biggest risks ahead for all vaccine makers is the prevalence of new coronavirus variants. To tackle this, Moderna is investigating two upgrades. The first is actually a third dose of vaccine that would increase neutralizing antibody levels to better fend off new strains. The second is a strain-specific upgraded version which has been moved into preclinical and phase 1 trials as of the end of January. Moderna is designing it to target the. If successful, the company should be able to quickly adapt it to protect against future strains, although it is designed to target the South African variation. Teenagers In early December, Moderna began a phase 2/3 trial of its COVID vaccine in young adults who are 12 to 17years old. The data will be reported in spring and should result in Emergency Use Authorization just in time for the back-to-school period in September. But as of last month, Moderna didn't have enough adolescent volunteers. Teens aren't at the greatest risk from serious COVID-19 complications but they play a role in the transmission of the virus, so their vaccination is another important element in containing the pandemic. 2021 The company expects $18.4 billion in full-year 2021 sales of its COVID vaccine. The figure is based on already inked advance purchase agreements but additional discussions are ongoing for both 2021 and 2022. That outlook shattered forecasts as analysts expected $11 billion. Furthermore, the company said it plans to make 700 million doses of its vaccine this year, while still working to bring that capacity up to 1 billion. In 2022, Moderna expects to be able to produce 1.4 billion doses. Chief Executive Stephane Bancel called 2020 a historic year for the company as it trailed Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) by a week in the U.S by gaining emergency use authorization. The vaccine is Moderna's first commercial product with 32 million doses having been administered in the U.S. to millions of people around the world. In 2020, Moderna went from knowing mRNA vaccines can be highly efficient it went to cash-flow generating commercial company that is helping save the world from the claws of an invisible enemy. The latest reported quarter ended a milestone year for the biotech company. 2020 was a year in which the world went dark but the pandemic helped Moderna shine as it provided us with a glimpse of light at the end of the tunnel. Since the beginning of 2021, its shares gained 38.6%, greatly exceeding S&P 500's gain of 4.5%. This article is not a press release and is contributed by IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: firstname.lastname@example.org Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: email@example.com The post Moderna Misses Expectations But Things Are More Than Fine appeared first on IAM Newswire. See more from BenzingaClick here for options trades from BenzingaChinese EV Company Li Did Well Last Quarter, But Not Well EnoughBaidu Is Determined To Show It Has More To Offer© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Shares of GameStop Corp. doubled yesterday and jumped another 19% today. Options traders think the stock can do much better than that.The most-active option traded on the stock Thursday was a contract betting that GameStop shares would spike to $800 on Friday. Some 52,000 contracts changed hands during the session betting on this one-day gain of 636%For other options traders, it was a question of when GameStop would hit the $800 mark, not if. The seventh and eighth most-active contracts were call options wagering that the stock would reach $800 by next Friday or in three weeks. It’s hard to say whether the contracts were mainly bought or sold, two traders said.“It’s speculation gone wild, pure and simple,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “It is Exhibit A in the nuttiness that is associated with GameStop.”GameStop’s Reddit-driven roller-coaster ride that roiled markets last month is continuing this week, with shares more than doubling in the final 90 minutes of trading on Wednesday and rising as much as 101% on an intraday level on Tuesday. The rally came as popular tech names from Tesla Inc. to Zoom Video Communications Inc. were battered after U.S. 10-year Treasury yields spiked to 1.6%.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.
The federal payment pause on student loans has given some debtors breathing room. But a new survey shows how borrowers have taken advantage of the pause to target their loans.
CNBC host Jim Cramer said Thursday that GameStop Corporation (NYSE: GME) could justify its share price by turning into a cryptocurrency play. What Happened: The “Mad Money” host made references to other companies like Paypal Holdings Inc (NASDAQ: PYPL) and Nvidia Corporation (NASDAQ: NVDA), both of which are linked in some way or the other to cryptocurrency at the present. “If GameStop were to turn itself into a 5,000-store introduction to crypto, make it so that they sell $1 billion worth of stock ... and buy crypto with it, and then make it so it’s an international gaming place where you win bitcoin, I think you can justify the stock price,” theorized Cramer. “I have not been able to come up with anything else, but this works. And it doesn’t have to be bitcoin. We can make it crypto.” See also: How to Buy GameStop (GME) Stock Cramer said if GameStop turns itself into a “crypto information place” and has worldwide games with no latency it would add to the credibility of GameStop investor and Chewy Inc. (NYSE: CHWY) co-founder Ryan Cohen. The former hedge fund manager also pointed to the upcoming resignation of GameStop CFO Jim Bell and said, “CFOs, they tend not to have bitcoin on their balance sheet. Perhaps Jim Bell, that’s what he didn’t want.” Cramer called Cohen a “big thinker” and said “I have a feeling that this is the way to get this stock higher. I can’t come up with another way.” Why It Matters: GameStop, AMC Entertainment Holdings Inc (NYSE: AMC), BlackBerry Ltd (NYSE: BB), and Nokia Oyj (NYSE: NOK) shares were buoyed in a short squeeze carried out by Reddit forum r/WallStreetBets. A notable poster on the forum — “Deep F---ing Value” — who has been credited by forum members for pointing out the short squeeze opportunity told U.S. lawmakers that he likes GameStop stock. “As far as I can tell, the market remains oblivious to GameStop’s unique opportunity within the gaming industry,” said the poster whose real name is Keith Partick Gill. On Wednesday, Cramer called the over 103% rise in the shares of GameStop “a mockery,” and questioned, “Where is the government?” Alma Angotti, a former Securities and Exchange Commission enforcement attorney said that heightened interest from regulatory bodies could be expected. “I think both Congress and the SEC will be studying that balance between orderly markets and letting people invest what they want to invest for whatever reasons they want to invest even if it doesn’t make sense to us,” CNBC reported. Price Action: GameStop shares closed nearly 18.6% higher at $108.73 on Thursday and fell 2.51% to $106 in the after-hours session. For news coverage in Italian or Spanish, check out Benzinga Italia and Benzinga España. Photo courtesy: EPIC via Wikimedia See more from BenzingaClick here for options trades from BenzingaTesla Stock Performance And WallStreetBets Mentions Have A 'Real' Connection: BarclaysWhy AMC Shares Spiked 20% Today© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Higher bond yields have arrived. Now investors have to consider what, if any, changes to make to their portfolios.
What Happened: The largest crypto exchange in Southeast Asia, Philippines-based PDAX, experienced a technical failure that led to Bitcoin trading at $6,000 – an 88% discount to its current price. Following the incident, PDAX asked its customers to return their Bitcoins, threatening legal action, a local news outlet Bitpinas has reported. According to the exchange’s CEO, the system error was not due to a hack but a technical “glitch” caused by a massive surge in trading activity. Why It Matters: The initial outage is said to have taken place on February 18; however, since then, reports have surfaced on social media of customers being locked out of their exchange accounts and being asked to “return their Bitcoin.” “After almost 24 hours, they sent me a demand letter and SMS, requesting me to transfer back the BTC, or they “may” be compelled to take legal actions against me.” said one trader who believed his purchase was well within his rights without violating any laws or regulations of the trading platform. See also: How to Buy Bitcoin (BTC) Rafael Padilla, an attorney representing the affected users who are currently locked out of their accounts, commented on the issue on Facebook. “Our client’s trade transaction was legitimate under applicable laws, decided cases, and of course according to PDAX’s very own terms and conditions/user agreement.” According to Padilla, PDAX has opted to lock users out of their accounts because it cannot unilaterally reverse the transactions. An official statement from PDAX claims that 95% of accounts have been restored, but according to the report, many users are still locked out of their accounts. “It’s very understandable that a lot of users will feel upset they were able to buy what they thought an order was there for Bitcoin at very low prices. But unfortunately, the underlying Bitcoins were never in the possession of the exchange, so there’s never really anything there to be bought or sold, unfortunately.”, said PDAX CEO Nichel Gaba in a press conference earlier today. Image: vjkombajn via Pixabay See more from BenzingaClick here for options trades from BenzingaElon Musk's Tweet About Dogecoin Sends Price Up 10% In 30 Minutes AgainMicroStrategy Buys Additional .026B Worth Of Bitcoin, Surpasses Tesla's Bitcoin Holdings© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Physical gold demand in India gained momentum this week as retail buyers and jewellers lapped up bullion at near eight-month low prices, while Singapore continued to see steady interest for both gold and silver. Gold futures in India were trading around 46,000 rupees per 10 grams, not far from the eight-month trough of 45,861 rupees touched last week. He added the 50,000-rupee mark is a psychological price barrier for Indian consumers.
(Bloomberg) -- State Street’s $786 million exchange-traded fund investing in retailers was only just recovering from its last brush with GameStop Corp. Now it’s all happening again.The SPDR S&P Retail ETF (ticker XRT) is being distorted by the bricks-and-mortar seller of video games for a second time, just a few weeks after losing 80% of its assets in January’s meme-stock drama.GameStop is on another tear, surging roughly 50% on Thursday after a 104% gain the previous day. That’s a problem for XRT because it’s supposed to hold an equal amount of each stock, but it doesn’t rebalance swiftly enough to counter GameStop’s jump.The company now makes up about 5.9% of the fund. It should be more like 1%.Last time around, GameStop’s weighting eventually ballooned to 20% of XRT, prompting an exodus from the fund. It took about three weeks for assets to recover -- they hit the highest level since 2018 on Tuesday, just before the latest bout of meme-stock madness.With GameStop’s sudden revival, there could be more pain ahead of the passive fund’s March rebalance, according to CFRA Research’s Todd Rosenbluth.“Investors in XRT have seen this movie before, with GameStop quickly dominating the normally equally weighted portfolio before falling sharply,” said Rosenbluth, CFRA’s director of ETF research. “With no limits on position sizes and the rebalance nearly a month away, the risk is high that the stock will drive performance up and down. Some may not want to stick around to see if the sequel is any better.”Of course, GameStop’s rally in January was on a different scale -- it soared 1,600%, powering XRT to monthly gains of about 37%. That was a record for the normally staid ETF. But when the retailer plunged, the ETF was hit, and XRT remains around 5% lower in February despite a boost from GameStop this week.Such whiplash may dim XRT’s appeal as a portfolio hedging tool, according to Citigroup Inc.’s Scott Chronert.“When you have a stock-specific circumstance like this one, it might mess up how the hedging aspect is working,” Chronert said in an interview earlier this month. “If you’re looking to hedge a long book of retail or consumer names, the weighting impact on the broader sector ETF might not be a very good hedge because it’s dominated by a single name.”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.
Shares of the small US company skyrocketed early this morning by more than 80% due to a second round of interest from retail investors.