Jade78 personal page - To The Moon

Jade78

Jade78

No personal profile

14Follow

17Followers

1Topic

0Badge

05-14

Thanks for the informative analysis of QYLD and JEPQ. Can you also share your views on JEPI. Thanks

QYLD: Consider JEPQ As An Alternative

04-23

Im watching Amzn

2022-12-14

A very comprehensive discussion. Howard Marks talks sense.

Howard Marks Releases Memo: "Sea Change"

2022-07-30

A first rate analysis from a first rate mind!

Alibaba Vs. JD.Com: Let's Hear The Bears Out

2022-04-04

Looks like Elon can move anything on earth, mountains, twitter …

Twitter Shares Soar More Than 25% after Elon Musk Takes 9% Stake in It

2022-01-06

The descent of ARK will continue. Time to buySARK now?

Cathie Wood’s ARK ETFs Are in a Deep Hole—Already

2021-09-10

Apple maybe. PayPal? Not so sure.

2 Top Growth Stocks to Buy Right Now and Hold for the Long Term

2021-09-10

I am Tiger! Hear me Roarrrr. By far the easiestand most informative platform. Better, cheaper, and more efficient than ifast or the local banks’ trading platform. Well done Tiger!

UP Fintech Reports More Than 60% of Newly Funded Accounts Acquired From International Markets

2021-08-28

Interesting story. Bernard Ebbers was like the Emperor without clothes. A lesson there for allleaders of industry.

Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers

2021-08-18

Interesting… Will charitable giving also be a subject of the regulatory framework for internet companies?

Sorry, the original content has been removed

2021-08-13

If you catch falling knives you will bleed more.Exercise due diligence before buying falling stocks

Sorry, the original content has been removed

2021-08-12

Good results. Hoping the price will rise

Sorry, the original content has been removed

2021-07-26

Wonder if the Welcome charity trust made money from its investment in a speculative stock likeDoorDash?

Sorry, the original content has been removed

2021-07-15

Only time will tell. Jimmy Dimon is honest enough to say that he doesn’t know how the stock market will pan out. Keep some cash in case….

Sorry, the original content has been removed

2021-07-15

Looks like this is the latest stock market trendProfit goes up, share price drops for a period of time. Then starts to push higher like AAPL, AmD , Qcom…

Sorry, the original content has been removed

2021-07-15

Way to go Baba and Tencent!! And about timetoo!!

Sorry, the original content has been removed

2021-07-13

Apple has a valid case. If any App developer wants to use Apple’s App Store it’s only fair it pays rent for the use of the store space.

Apple's win in Blix case comes weeks before Epic decision

2021-07-08

What goes up must come down

3 Reasons To Stay Bullish On Stocks In The Second Half Of 2021

2021-07-07

I think it’s good for the US market to come down to earth after flying around space for so long.

Dow, S&P 500 fall as financials drag; Nasdaq at record

2021-07-03

Mosaic for fertilizer! Goodyear for rubber tyres! The world always needs these.

These 15 stocks -- June's biggest losers -- could become July's winners

Go to Tiger App to see more news

{"i18n":{"language":"en_US"},"userPageInfo":{"id":"3585101491648845","uuid":"3585101491648845","gmtCreate":1622102575597,"gmtModify":1622599958541,"name":"Jade78","pinyin":"jade78","introduction":"","introductionEn":"","signature":"","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","hat":null,"hatId":null,"hatName":null,"vip":1,"status":2,"fanSize":17,"headSize":14,"tweetSize":57,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":1,"name":"萌萌虎","nameTw":"萌萌虎","represent":"呱呱坠地","factor":"评论帖子3次或发布1条主帖（非转发）","iconColor":"3C9E83","bgColor":"A2F1D9"},"themeCounts":1,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":0,"symbols":null,"coverImage":null,"realNameVerified":"success","userBadges":[{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":1,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.02.22","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001},{"badgeId":"972123088c9646f7b6091ae0662215be-1","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Elite Trader","description":"Total number of securities or futures transactions reached 30","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.05.11","exceedPercentage":"60.15%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.29","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1102},{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100}],"userBadgeCount":4,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":1,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.02.22","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001},"individualDisplayBadges":null,"crmLevel":4,"crmLevelSwitch":1,"location":null,"starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":0,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"baikeInfo":{},"tab":"post","tweets":[{"id":305599325421576,"gmtCreate":1715643785724,"gmtModify":1715643789551,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Thanks for the informative analysis of QYLD and JEPQ. Can you also share your views on JEPI. Thanks&nbsp;","listText":"Thanks for the informative analysis of QYLD and JEPQ. Can you also share your views on JEPI. Thanks&nbsp;","text":"Thanks for the informative analysis of QYLD and JEPQ. Can you also share your views on JEPI. Thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/305599325421576","repostId":"2432913269","repostType":2,"repost":{"id":"2432913269","pubTimestamp":1714708777,"share":"https://ttm.financial/m/news/2432913269?lang=&edition=fundamental","pubTime":"2024-05-03 11:59","market":"fut","language":"en","title":"QYLD: Consider JEPQ As An Alternative","url":"https://stock-news.laohu8.com/highlight/detail?id=2432913269","media":"seekingalpha","summary":"The QYLD needs to re-invest excess premiums into the fund to cover situations where the written call options expire 'in-the-money'. For example, consider a month where the QYLD ETF wrote calls on the Nasdaq 100 Index with 17,000 strike in exchange for $300  in premiums. If the Nasdaq 100 Index is at 17,300 when the option expires, then the QYLD must pay out $300 to settle the difference. In this example, the QYLD would have paid $150 in distributions  and $300 to settle the options, so the net asset value  of the","content":"<html><body><p><figure><picture><img fetchpriority=\"high\" height=\"1097px\" sizes=\"(max-width: 768px) calc(100vw - 36px), (max-width: 1024px) calc(100vw - 132px), (max-width: 1200px) calc(66.6vw - 72px), 600px\" src=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg?io=getty-c-w750\" srcset=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg?io=getty-c-w1536 1536w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg?io=getty-c-w1280 1280w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg?io=getty-c-w1080 1080w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg?io=getty-c-w750 750w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg?io=getty-c-w640 640w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg?io=getty-c-w480 480w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg?io=getty-c-w320 320w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg?io=getty-c-w240 240w\" width=\"1536px\"/></picture><figcaption><p>PM Images</p></figcaption></figure></p> <p>Last summer, I wrote a cautious follow-up article on the <a href=\"https://laohu8.com/S/EFFE\">Global X</a> NASDAQ 100 Covered Call ETF (<span>NASDAQ:QYLD</span>). In my opinion, on any reasonably long time frame, QYLD's strategy will likely underperform the passive Invesco QQQ ETF (QQQ<span>) in delivering total returns, since markets trend up and the QYLD ETF trades off upside returns for premium income.</span></p> <p>So far, my cautious stance has proven correct, as the QYLD ETF has only delivered 11% total returns since my article, compared to 19% for the QQQ ETF and 18% or the S&amp;P 500 (Figure 1).</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/5/1/54854261-1714606550575822.png\"/></span></picture><figcaption><p>Figure 1 - QYLD has underperformed (Seeking Alpha)</p></figcaption></figure></p> <p>In fact, the QYLD underperforming is the norm instead of the exception. If we look at the long-term total return of the QYLD ETF, we can see that it has a 3/5/10 yr average annual return of only 3.6%/6.6%/7.5% to April<span> 30, 2024 (Figure 2).</span></p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/5/1/54854261-17146066674857745.png\"/></span></picture><figcaption><p>Figure 2 - QYLD historical returns (Morningstar)</p></figcaption></figure></p> <p>This is far lower than that of the QQQ ETF with 3/5/10 yr average annual return of 8.6%/18.3%/18.1% over the same timeframes (Figure 3).</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/5/1/54854261-17146067315887778.png\"/></span></picture><figcaption><p>Figure 3 - QQQ historical returns (Morningstar)</p></figcaption></figure></p> <h2>Understanding QYLD's Underperformance</h2> <p>To understand why QYLD underperforms, we need to understand the fund's strategy. The QYLD ETF owns the stocks in the Nasdaq 100 Index and seeks to pay an attractive distribution to unitholders by selling at-the-money (\"ATM\") call options on the Nasdaq 100 Index to collect premium income.</p> <p>Moneyness in this case refers to the strike price of options sold relative to the market price, and determines how much premiums are received vs. upside potential traded away (Figure 4).</p> <p><figure contenteditable=\"false\"><picture><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2022/11/19/54854261-16688913253888605_origin.png\"/></picture><figcaption><p>Figure 4 - QYLD strategy (Global X ETFs)</p></figcaption></figure></p> <p>The QYLD ETF writes one-month ATM call options that are rolled every month on 100% of the notional value of the fund. Mathematically, if we think of the forward returns as a probability distribution, then by giving up half of the returns distribution (selling ATM calls), the QYLD is bound to underperform.</p> <h2>High Yield But Amortizing NAV</h2> <p>While the premiums the QYLD generates can also fluctuate based on the implied volatility of the Nasdaq 100 Index at any given time, in general, selling ATM calls can net the QYLD ETF 1.5-4.0% per month in premiums.</p> <p>However, not all the premiums collected are paid out to investors. Instead, the QYLD ETF pays the lesser of 1% or half of the premiums collected in any given month, with the rest re-invested into the fund. Why does the QYLD have to re-invest premiums?</p> <p>The QYLD needs to re-invest excess premiums into the fund to cover situations where the written call options expire 'in-the-money'.</p> <p>For example, consider a month where the QYLD ETF wrote calls on the Nasdaq 100 Index with 17,000 strike in exchange for $300 (1.76% notional) in premiums. If the Nasdaq 100 Index is at 17,300 when the option expires, then the QYLD must pay out $300 to settle the difference. In this example, the QYLD would have paid $150 in distributions (half of the premiums received) and $300 to settle the options, so the net asset value (\"NAV\") of the fund decreased by $150 at the end of the month.</p> <p>Over time, we see QYLD's strategy paying out more in distributions and option settlements than it earns in premiums, which leads to a modestly amortizing NAV (Figure 5).</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/5/2/54854261-17146520117865767.png\"/></span></picture><figcaption><p>Figure 5 - QYLD is an amortizing fund (Global X ETFs)</p></figcaption></figure></p> <p>Another way to think about QYLD's amortizing NAV is to see that the total returns of the fund are only ~6-7%, and yet the fund pays an 11-12% distribution yield, so the difference must be funded through amortization of the NAV by 4-5% per year.</p> <h2>QYLD vs. JEPQ</h2> <p>Instead of the QYLD, what are some alternatives investors can consider if they want a relatively conservative, high-yielding equity options fund? I think investors can consider the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) instead (Figure 6).</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/5/2/54854261-1714655710760808.png\"/></span></picture><figcaption><p>Figure 6 - QYLD vs. JEPQ, fund details (Seeking Alpha)</p></figcaption></figure></p> <p>JEPQ is also an options-income fund that writes call options on the Nasdaq 100 Index, but it writes out-of-the-money (\"OTM\") options, so the fund retains some of the index's upside. It has a lower distribution yield compared to QYLD, but not by much (Figure 7).</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/5/2/54854261-17146557283997757.png\"/></span></picture><figcaption><p>Figure 7 - QYLD vs. JEPQ, distribution yield (Seeking Alpha)</p></figcaption></figure></p> <p>When the underlying index is in a strong bull market like we have seen in recent years, missing the upside can have a large negative impact on total returns. For example, on a trailing 1-year basis, JEPQ has returned 24.7% compared to just 13.0% for QYLD (Figure 8). QQQ and SPY returns were 31.7% and 22.2% for reference.</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/5/2/54854261-17146557859614525.png\"/></span></picture><figcaption><p>Figure 8 - QYLD vs. JEPQ, 1 year trailing returns (Seeking Alpha)</p></figcaption></figure></p> <p>Since JEPQ's inception in May 2022, JEPQ has returned 25.7% vs. 9.4% for QYLD, 29.7% for QQQ, and 20.3% for SPY (Figure 9).</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/5/2/54854261-1714655812538053.png\"/></span></picture><figcaption><p>Figure 9 - QYLD vs. JEPQ, since May 2022 returns (Seeking Alpha)</p></figcaption></figure></p> <p>I last wrote about the JEPQ fund here.</p> <h2>Watch Out For Tax Implication Of Distributions</h2> <p>Another aspect of the QYLD ETF that is little talked about is the tax implication of its high distribution yield. Due to its investments in both equities and option contracts, the QYLD ETF uses a 'mixed straddle' approach for taxation purposes.</p> <p>Option contracts are treated as a §1256 contract and stocks are treated as a non-§1256 security. These two categories have differing taxation characteristics on a day-to-day basis. Non-§1256 security gains are considered short-term, while §1256 contracts are a blend of 60% long-term and 40% short-term. At the end of the year, QYLD adds up the daily running total of short-term and long-term capital gains to determine the characteristics of the total distributions made to shareholders.</p> <p>Return of capital (\"ROC\") arises when the fund's distribution policy differs from the mixed straddle calculation described above. For example, for QYLD, the fund expects to distribute half of the premiums received by writing calls on the Nasdaq 100, capped at 1% of the fund's NAV. This distribution policy is designed to provide recurring income to investors, but is different from the mixed straddle calculation above. Therefore, in some years, the mixed straddle approach may find the fund has distributed more than is necessary, with the excess categorized as ROC.</p> <p>For example, in 2023, the QYLD ETF paid $2.04/share in distribution with $1.71 considered return of capital (\"ROC\") and $0.33 characterized as ordinary dividends (Figure 10).</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/5/2/54854261-17146635349247057.png\"/></span></picture><figcaption><p>Figure 10 - QYLD 2023 distribution taxation (Global X ETFs)</p></figcaption></figure></p> <p>However, in 2019, QYLD paid $2.32 per share in distributions with $1.98 considered as ordinary dividends/short term capital gains, $0.06 was treated as long-term capital gains, and only $0.28 was ROC.</p> <p>Thus, an investor's tax obligation with the QYLD ETF will vary depending on market action and is generally unknown until the Form 1099 is issued at year-end.</p> <h2>Conclusion</h2> <p>Since my last update, the Global X Nasdaq 100 Covered Call ETF has underperformed the QQQ ETF. This is to be expected because the QYLD trades off upside returns for premium income. While QYLD's ~12% distribution yield may look attractive, actual total returns are lower at 6-7% per annum.</p> <div></div> <p>Instead of the QYLD, I think a superior option income fund that is also based on the Nasdaq 100 Index is the JPMorgan Nasdaq Premium Income ETF (JEPQ). The JEPQ has slightly lower distribution yields, as it sells OTM instead of ATM calls. However, by retaining some of the returns upside, the JEPQ outperforms QYLD over the long-run.</p></body></html>","source":"seekingalpha_fund","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>QYLD: Consider JEPQ As An Alternative</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nQYLD: Consider JEPQ As An Alternative\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-03 11:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4688922-qyld-consider-jepq-as-alternative><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>PM Images Last summer, I wrote a cautious follow-up article on the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD). In my opinion, on any reasonably long time frame, QYLD's strategy will likely ...</p>\n\n<a href=\"https://seekingalpha.com/article/4688922-qyld-consider-jepq-as-alternative\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1365653171/image_1365653171.jpg","relate_stocks":{"JEPQ":"J.P. MORGAN NASDAQ EQUITY PREMIUM INCOME ETF","BK4561":"索罗斯持仓","QYLD":"纳斯达克100 Covered Call ETF-Global X",".IXIC":"NASDAQ Composite","TQQQ":"纳指三倍做多ETF","BK4581":"高盛持仓","PSQ":"纳指反向ETF","QID":"纳指两倍做空ETF","BK4593":"纳斯达克ETF","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","FDN":"First Trust Dow Jones Internet I","QQQ":"纳指100ETF","SQQQ":"纳指三倍做空ETF","BK4588":"碎股","BK4550":"红杉资本持仓","QLD":"纳指两倍做多ETF"},"source_url":"https://seekingalpha.com/article/4688922-qyld-consider-jepq-as-alternative","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2432913269","content_text":"PM Images Last summer, I wrote a cautious follow-up article on the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD). In my opinion, on any reasonably long time frame, QYLD's strategy will likely underperform the passive Invesco QQQ ETF (QQQ) in delivering total returns, since markets trend up and the QYLD ETF trades off upside returns for premium income. So far, my cautious stance has proven correct, as the QYLD ETF has only delivered 11% total returns since my article, compared to 19% for the QQQ ETF and 18% or the S&P 500 (Figure 1). Figure 1 - QYLD has underperformed (Seeking Alpha) In fact, the QYLD underperforming is the norm instead of the exception. If we look at the long-term total return of the QYLD ETF, we can see that it has a 3/5/10 yr average annual return of only 3.6%/6.6%/7.5% to April 30, 2024 (Figure 2). Figure 2 - QYLD historical returns (Morningstar) This is far lower than that of the QQQ ETF with 3/5/10 yr average annual return of 8.6%/18.3%/18.1% over the same timeframes (Figure 3). Figure 3 - QQQ historical returns (Morningstar) Understanding QYLD's Underperformance To understand why QYLD underperforms, we need to understand the fund's strategy. The QYLD ETF owns the stocks in the Nasdaq 100 Index and seeks to pay an attractive distribution to unitholders by selling at-the-money (\"ATM\") call options on the Nasdaq 100 Index to collect premium income. Moneyness in this case refers to the strike price of options sold relative to the market price, and determines how much premiums are received vs. upside potential traded away (Figure 4). Figure 4 - QYLD strategy (Global X ETFs) The QYLD ETF writes one-month ATM call options that are rolled every month on 100% of the notional value of the fund. Mathematically, if we think of the forward returns as a probability distribution, then by giving up half of the returns distribution (selling ATM calls), the QYLD is bound to underperform. High Yield But Amortizing NAV While the premiums the QYLD generates can also fluctuate based on the implied volatility of the Nasdaq 100 Index at any given time, in general, selling ATM calls can net the QYLD ETF 1.5-4.0% per month in premiums. However, not all the premiums collected are paid out to investors. Instead, the QYLD ETF pays the lesser of 1% or half of the premiums collected in any given month, with the rest re-invested into the fund. Why does the QYLD have to re-invest premiums? The QYLD needs to re-invest excess premiums into the fund to cover situations where the written call options expire 'in-the-money'. For example, consider a month where the QYLD ETF wrote calls on the Nasdaq 100 Index with 17,000 strike in exchange for $300 (1.76% notional) in premiums. If the Nasdaq 100 Index is at 17,300 when the option expires, then the QYLD must pay out $300 to settle the difference. In this example, the QYLD would have paid $150 in distributions (half of the premiums received) and $300 to settle the options, so the net asset value (\"NAV\") of the fund decreased by $150 at the end of the month. Over time, we see QYLD's strategy paying out more in distributions and option settlements than it earns in premiums, which leads to a modestly amortizing NAV (Figure 5). Figure 5 - QYLD is an amortizing fund (Global X ETFs) Another way to think about QYLD's amortizing NAV is to see that the total returns of the fund are only ~6-7%, and yet the fund pays an 11-12% distribution yield, so the difference must be funded through amortization of the NAV by 4-5% per year. QYLD vs. JEPQ Instead of the QYLD, what are some alternatives investors can consider if they want a relatively conservative, high-yielding equity options fund? I think investors can consider the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) instead (Figure 6). Figure 6 - QYLD vs. JEPQ, fund details (Seeking Alpha) JEPQ is also an options-income fund that writes call options on the Nasdaq 100 Index, but it writes out-of-the-money (\"OTM\") options, so the fund retains some of the index's upside. It has a lower distribution yield compared to QYLD, but not by much (Figure 7). Figure 7 - QYLD vs. JEPQ, distribution yield (Seeking Alpha) When the underlying index is in a strong bull market like we have seen in recent years, missing the upside can have a large negative impact on total returns. For example, on a trailing 1-year basis, JEPQ has returned 24.7% compared to just 13.0% for QYLD (Figure 8). QQQ and SPY returns were 31.7% and 22.2% for reference. Figure 8 - QYLD vs. JEPQ, 1 year trailing returns (Seeking Alpha) Since JEPQ's inception in May 2022, JEPQ has returned 25.7% vs. 9.4% for QYLD, 29.7% for QQQ, and 20.3% for SPY (Figure 9). Figure 9 - QYLD vs. JEPQ, since May 2022 returns (Seeking Alpha) I last wrote about the JEPQ fund here. Watch Out For Tax Implication Of Distributions Another aspect of the QYLD ETF that is little talked about is the tax implication of its high distribution yield. Due to its investments in both equities and option contracts, the QYLD ETF uses a 'mixed straddle' approach for taxation purposes. Option contracts are treated as a §1256 contract and stocks are treated as a non-§1256 security. These two categories have differing taxation characteristics on a day-to-day basis. Non-§1256 security gains are considered short-term, while §1256 contracts are a blend of 60% long-term and 40% short-term. At the end of the year, QYLD adds up the daily running total of short-term and long-term capital gains to determine the characteristics of the total distributions made to shareholders. Return of capital (\"ROC\") arises when the fund's distribution policy differs from the mixed straddle calculation described above. For example, for QYLD, the fund expects to distribute half of the premiums received by writing calls on the Nasdaq 100, capped at 1% of the fund's NAV. This distribution policy is designed to provide recurring income to investors, but is different from the mixed straddle calculation above. Therefore, in some years, the mixed straddle approach may find the fund has distributed more than is necessary, with the excess categorized as ROC. For example, in 2023, the QYLD ETF paid $2.04/share in distribution with $1.71 considered return of capital (\"ROC\") and $0.33 characterized as ordinary dividends (Figure 10). Figure 10 - QYLD 2023 distribution taxation (Global X ETFs) However, in 2019, QYLD paid $2.32 per share in distributions with $1.98 considered as ordinary dividends/short term capital gains, $0.06 was treated as long-term capital gains, and only $0.28 was ROC. Thus, an investor's tax obligation with the QYLD ETF will vary depending on market action and is generally unknown until the Form 1099 is issued at year-end. Conclusion Since my last update, the Global X Nasdaq 100 Covered Call ETF has underperformed the QQQ ETF. This is to be expected because the QYLD trades off upside returns for premium income. While QYLD's ~12% distribution yield may look attractive, actual total returns are lower at 6-7% per annum.  Instead of the QYLD, I think a superior option income fund that is also based on the Nasdaq 100 Index is the JPMorgan Nasdaq Premium Income ETF (JEPQ). The JEPQ has slightly lower distribution yields, as it sells OTM instead of ATM calls. However, by retaining some of the returns upside, the JEPQ outperforms QYLD over the long-run.","news_type":1},"isVote":1,"tweetType":1,"viewCount":458,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":298374896844872,"gmtCreate":1713877860763,"gmtModify":1713877864630,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Im watching Amzn","listText":"Im watching Amzn","text":"Im watching Amzn","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/298374896844872","isVote":1,"tweetType":1,"viewCount":322,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9921806899,"gmtCreate":1671017335111,"gmtModify":1676538476172,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"A very comprehensive discussion. Howard Marks talks sense.&nbsp;","listText":"A very comprehensive discussion. Howard Marks talks sense.&nbsp;","text":"A very comprehensive discussion. Howard Marks talks sense.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9921806899","repostId":"1181221730","repostType":2,"repost":{"id":"1181221730","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1671003520,"share":"https://ttm.financial/m/news/1181221730?lang=&edition=fundamental","pubTime":"2022-12-14 15:38","market":"us","language":"en","title":"Howard Marks Releases Memo: \"Sea Change\"","url":"https://stock-news.laohu8.com/highlight/detail?id=1181221730","media":"Tiger Newspress","summary":"sea change (idiom): a complete transformation, a radical change of direction in attitude, goals . . ","content":"<html><head></head><body><blockquote><b>sea change (idiom):</b> a complete transformation, a radical change of direction in attitude, goals . . . (<i>Grammarist</i>)</blockquote><p>In my 53 years in the investment world, I’ve seen a number of economic cycles, pendulum swings, manias and panics, bubbles and crashes, <b>but I remember only two real sea changes.  I think we may be in the midst of a third one today.</b></p><p>As I’ve recounted many times in my memos, when I joined the investment management industry in 1969, many banks – like the one I worked for at the time – focused their equity portfolios on the so-called “Nifty Fifty.”  The Nifty Fifty comprised the stocks of companies that were considered the best and fastest-growing – so good that nothing bad could ever happen to them.  For these stocks, everyone was sure there was “no price too high.”  But if you bought the Nifty Fifty when I started at the bank and held them until 1974, you were sitting on losses of more than 90% . . . from owning pieces of the best companies in America.  Perceived quality, it turned out, wasn’t synonymous with safety or with successful investment.</p><p>Meanwhile, over in bond-land, a security with a rating of single-B was described by Moody’s as “failing to possess the characteristics of a desirable investment.”  Non-investment grade bonds – those rated double-B and below – were off-limits to fiduciaries, since proper financial behavior mandated the avoidance of risk.  For this reason, what soon became known as high yield bonds couldn’t be sold as new issues.  But in the mid-1970s, Michael Milken and a few others had the idea that it should be possible to issue non-investment grade bonds – and to invest in them prudently – if the bonds offered enough interest to compensate for the risk of default.  In 1978, I started investing in these securities – the bonds of perhaps America’s riskiest public companies – and I was making money steadily and safely.</p><p><b>In other words, whereas prudent bond investing had previously consisted of buying only presumedly safe investment grade bonds, investment managers could now prudently buy bonds of almost any quality as long as they were adequately compensated for the attendant risk.</b> The U.S. high yield bond universe amounted to about $2 billion when I first got involved, and today it stands at roughly $1.2 trillion.</p><p>This clearly represented a major change in direction for the business of investing.  But that’s not the end of it.  Prior to the inception of high yield bond issuance, companies could only be acquired by larger firms – those that were able to pay with cash on hand or borrow large amounts of money and still retain their investment grade ratings.  But with the ability to issue high yield bonds, smaller firms could now acquire larger ones by using heavy leverage, since there was no longer a need to possess or maintain an investment grade rating.  This change permitted, in particular, the growth of leveraged buyouts and what’s now called the private equity industry.</p><p><b>However, the most important aspect of this change didn’t relate to high yield bonds, or to private equity, but rather to the adoption of anew investor mentality.  Now risk wasn’t necessarily avoided, but rather considered relative to return and hopefully borne intelligently.</b> This new risk/return mindset was critical in the development of many new types of investment, such as distressed debt, mortgage backed securities, structured credit, and private lending.  It’s no exaggeration to say today’s investment world bears almost no resemblance to that of 50 years ago. <b>Young people joining the industry today would likely be shocked to learn that, back then, investors didn’t think in risk/return terms.  Now that’s all we do.  Ergo, a sea change.</b></p><p>At roughly the same time, big changes were underway in the macroeconomic world.  I think it all started with the OPEC oil embargo of 1973-74, which caused the price of a barrel of oil to jump from roughly $24 to almost $65 in less than a year.  This spike raised the cost of many goods and ignited rapid inflation.  Because the U.S. private sector in the 1970s was much more unionized than it is now and many collective bargaining agreements contained automatic cost-of-living adjustments, rising inflation triggered wage increases, which exacerbated inflation and led to yet more wage increases.  This seemingly unstoppable upward spiral kindled strong inflationary expectations, which in many cases became self-fulfilling, as is their nature.</p><p>The year-over-year increase in the Consumer Price Index, which was 3.2% in 1972, rose to 11.0% by 1974, receded to the range of 6-9% for four years, and then rebounded to 11.4% in 1979 and 13.5% in 1980.  There was great despair, as no relief was forthcoming from inflation-fighting tools ranging from WIN (“Whip Inflation Now”) buttons to price controls to a federal funds rate that reached 13% in 1974.  It took the appointment of Paul Volcker as Fed chairman in 1979 and the determination he showed in raising the fed funds rate to 20% in 1980 to get inflation under control and extinguish inflationary psychology.  As a result, inflation was back down to 3.2% by the end of 1983.</p><p>Volcker’s success in bringing inflation under control allowed the Fed to reduce the fed funds rate to the high single digits and keep it there over the rest of the 1980s, before dropping it to the mid-single digits in the ’90s. <b>His actions ushered in a declining-interest-rate environment that prevailed for four decades</b>(much more on this in the section that follows). <b>I consider this the second sea change I’ve seen in my career.</b></p><p><b>The long-term decline in interest rates began just a few years after the advent of risk/return thinking, and I view the combination of the two as having given rise to (a) the rebirth of optimism among investors, (b) the pursuit of profit through aggressive investment vehicles, and (c) an incredible four decades for the stock market.</b> The S&amp;P 500 Index rose from a low of 102 in August 1982 to 4,796 at the beginning of 2022, for a compound annual return of 10.3% per year.  What a period!  There can be no greater financial and investment career luck than to have participated in it.</p><h2>An Incredible Tailwind</h2><p>What are the factors that gave rise to investors’ success over the last 40 years?  We saw major contributions from (a) the economic growth and preeminence of the U.S.; (b) the incredible performance of our greatest companies; (c) gains in technology, productivity and management techniques; and (d) the benefits of globalization. <b>However, I’d be surprised if 40 years of declining interest rates didn’t play the greatest role of all.</b></p><p>In the 1970s, I had a loan from a Chicago bank, with an interest rate of “three-quarters over prime.”  (We don’t hear much about the prime rate anymore, but it was the benchmark interest rate – the predecessor of LIBOR – at which the money-center banks would lend to their best customers.)  I received a notice from the bank each time my rate changed, and I framed the one that marked the high point in December 1980: It told me the interest rate on my loan had risen to 22.25%!  Four decades later, I was able to borrow at just 2.25%, fixed for 10 years.  This represented a decline of 2,000 basis points.  Miraculous!</p><h2>What are the effects of declining interest rates?</h2><ul><li><p>They accelerate the growth of the economy by making it cheaper for consumers to buy on credit and for companies to invest in facilities, equipment, and inventory.</p></li><li><p>They provide a subsidy to borrowers (at the expense of lenders and savers).</p></li><li><p>They reduce businesses’ cost of capital and thus increase their profitability.</p></li><li><p>They increase the fair value of assets.  (The theoretical value of an asset is defined as the discounted present value of its future cash flows.  The lower the discount rate, the higher the present value.)  Thus, as interest rates fall, valuation parameters such as p/e ratios and enterprise values rise, and cap rates on real estate decline.</p></li><li><p>They reduce the prospective returns investors demand from investments they’re considering, thereby increasing the prices they’ll pay.  This can be seen most directly in the bond market – everyone knows it’s “rates down; prices up” – but it works throughout the investment world.</p></li><li><p>By lifting asset prices, they create a “wealth effect” that makes people feel richer and thus more willing to spend.</p></li><li><p>Finally, by simultaneously increasing asset values and reducing borrowing costs, they produce a bonanza for those who buy assets using leverage.</p></li></ul><p>I want to spend more time on that last point.  Think about a buyer who employs leverage in a declining-rate environment:</p><ul><li><p>He analyzes a company, concludes that he can make 10% a year on it, and decides to buy it.</p></li><li><p>Then he asks his head of capital markets how much it would cost to borrow 75% of the money.  When he’s told it’s 8%, it’s full speed ahead.  Earning 10% on three-quarters of the capital that’s borrowed at 8% would lever up the return on the other one-quarter (his equity) to 16%.</p></li><li><p>Banks compete to make the loan, and the result is an interest rate of 7% instead of 8%, making the investment even more profitable (a 19% levered return).</p></li><li><p>The interest cost on his floating-rate debt declines over time, and when his fixed-rate debt matures, he finds he can roll it over at 5%.  Now the deal is a home run (a 25% levered return, all else being equal).</p></li></ul><p>This narrative ignores the beneficial impact of declining interest rates on both the profitability of the company he bought and the market value of that company.  Is it any wonder then that private equity and other levered strategies enjoyed great success over the last 40 years?</p><p>In a recent visit with clients, I came up with a bit of imagery to convey my view of the effect of the prolonged decline in interest rates: At some airports, there’s a moving walkway, and standing on it makes life easier for the weary traveler.  But if rather than stand still on it, you walk at your normal pace, you move ahead rapidly.  That’s because your rate of travel over the ground is the sum of the speed at which you’re walkingplusthe speed at which the walkway is moving.</p><p>That’s what I think happened to investors over the last 40 years.  They enjoyed the growth of the economy and the companies they invested in, as well as the resulting increase in the value of their ownership stakes.  But in addition, they were on a moving walkway, carried along by declining interest rates.  The results have been great, but I doubt many people fully understand where they came from. <b>It seems to me that a significant portion of all the money investors made over this period resulted from the tailwind generated by the massive drop in interest rates.  I consider it nearly impossible to overstate the influence of declining rates over the last four decades.</b></p><h2>The Recent Experience</h2><p>The period between the end of the Global Financial Crisis in late 2009 and the onset of the pandemic in early 2020 was marked by ultra-low interest rates, and the macroeconomic environment – and its effects – were highly unusual.</p><p>An all-time low in interest rates was reached when the Fed cut the fed funds rate to approximately zero in late 2008 in an effort to pull the economy out of the GFC.  The low rates were accompanied by quantitative easing: purchases of bonds undertaken by the Fed to inject liquidity into the economy (and perhaps to keep investors from panicking).  The effects were dramatic:</p><ul><li><p>The low rates and vast amounts of liquidity stimulated the economy and triggered explosive gains in the markets.</p></li><li><p>Strong economic growth and lower interest costs added to corporate profits.</p></li><li><p>Valuation parameters rose, as described above, lifting asset prices.  Stocks increased non-stop for more than ten years, except for a handful of downdrafts that each lasted a few months.  From a low of 667 in March 2009, the S&amp;P 500 reached a high of 3,386 in February 2020, for a compound return of 16% per year.</p></li><li><p><b>The markets’ strength encouraged investors to drop their crisis-inspired risk aversion and return to risk taking much sooner than expected.  It also made FOMO – the fear of missing out – the prevalent emotion among investors.  Buyers were eager to buy, and holders weren’t motivated to sell.</b></p></li><li><p>Investors’ revived desire to buy caused the capital markets to reopen, making it cheap and easy for companies to obtain financing.  Lenders’ eagerness to put money to work enabled borrowers to pay low interest rates under less-restrictive documentation that reduced lender protections.</p></li><li><p><b>The paltry yields on safe investments drove investors to buy riskier assets.</b></p></li><li><p>Thanks to economic growth and plentiful liquidity, there were few defaults and bankruptcies.</p></li><li><p>The main exogenous influences were increasing globalization and the limited extent of armed conflict around the world.  Both influences were clearly salutary.</p></li></ul><p>As a result, in this period, the U.S. enjoyed its longest economic recovery in history (albeit also one of its slowest) and its longest bull market, exceeding ten years in both cases.</p><p>When the Covid-19 pandemic caused much of the world’s economy to be shut down, the Fed dusted off the rescue plan that had taken months to formulate and implement during the GFC and put it into effect in a matter of weeks at a much larger scale than its earlier version.  The U.S. government chipped in with loans and vast relief payments (on top of its customary deficit spending).  The result in the period from March 2020 to the end of 2021 was a complete replay of the post-GFC developments enumerated above, including a quick economic bounce and an even quicker market recovery.  (The S&amp;P 500 rose from its low of 2,237 in March 2020 to 4,796 on the first day of 2022, up 114% in less than two years.)</p><p><b>For what felt like eons – from October 2012 to February 2020 – my standard presentation was titled “Investing in a Low Return World,” because that’s what our circumstances were.</b> With the prospective returns on many asset classes – especially credit – at all-time lows, I enumerated the principal options available to investors:</p><ul><li><p>invest as you previously have, and accept that your returns will be lower than they used to be;</p></li><li><p>reduce risk to prepare for a market correction, and accept a return that is lower still;</p></li><li><p>go to cash and earn a return of zero, hoping the market will decline and thus offer higher returns (and do it soon); or</p></li><li><p>ramp up your risk in pursuit of higher returns.</p></li></ul><p>Each of these choices had serious flaws, and there’s a good reason for that. <b>By definition, it’s hard to achieve good returns dependably and safely in a low-return world.</b></p><p>Regular readers of my memos know that my observations regarding the investment environment are primarily based on impressions and inferences rather than data.  Thus, in recent meetings, I’ve been using the following list of properties to describe the period in question.  (Think about whether you agree with this description.  I’ll return to it later.)</p><p><img src=\"https://static.tigerbbs.com/903bfda9e342132e1bd15cd037898318\" tg-width=\"941\" tg-height=\"1102\" referrerpolicy=\"no-referrer\"/></p><p>The overall period from 2009 through 2021 (with the exception of a few months in 2020) was one in which optimism prevailed among investors and worry was minimal.  Low inflation allowed central bankers to maintain generous monetary policies.  These were golden times for corporations and asset owners thanks to good economic growth, cheap and easily accessible capital, and freedom from distress. <b>This was an asset owner’s market and a borrower’s market.</b> <b>With the risk-free rate at zero, fear of loss absent, and people eager to make risky investments, it was a frustrating period for lenders and bargain hunters.</b></p><p>On recent visits with clients, I’ve been describing Oaktree as having spent the years 2009 through 2019 “in the wilderness” given our focus on credit and our heavy emphasis on value investing and risk control.  To illustrate, after raising our largest fund up to that time in 2007-08 and putting most of it to work very successfully in the wake of the Lehman Brothers bankruptcy, we thought it appropriate, given the investment environment, to cut the amount in half for its successor fund and halve it again for the fund after that.  Oaktree’s total assets under management grew relatively little during this period, and the returns on most of our closed-end funds, although fine, were moderate by our standards. <b>It felt like a long slog.</b></p><p>That Was Then.  This Is Now.</p><p>Of course, all of the above flipped in the last year or so.  Most importantly, inflation began to rear its head in early 2021, when our emergence from isolation permitted too much money (savings amassed by people shut in at home, including distributions from massive Covid-19 relief programs) to chase too few goods and services (with supply hampered by the uneven restart of manufacturing and transportation).  Because the Fed deemed the inflation “transitory,” it continued its policies of low interest rates and quantitative easing, keeping money loose.  These policies further stimulated demand (especially for homes) at a time when it didn’t need stimulating.</p><p>Inflation worsened as 2021 wore on, and late in the year, the Fed acknowledged that it wasn’t likely to be short-lived.  Thus, the Fed started reducing its purchases of bonds in November and began raising interest rates in March 2022, kicking off one of the quickest rate-hiking cycles on record.  The stock market, which had ignored inflation and rising interest rates for most of 2021, began to fall around year-end.</p><p>From there, events followed a predictable course. <b>As I wrote in the memo</b> <b><i>On the Couch</i></b> <b>(January 2016), whereas events in the real world fluctuate between “pretty good” and “not so hot,” investor sentiment often careens from “flawless” to “hopeless” as events that were previously viewed as benign come to be interpreted as catastrophic.</b></p><ul><li><p>Higher interest rates led to higher demanded returns.  Thus, stocks that had seemed fairly valued when interest rates were minimal fell to lower p/e ratios that were commensurate with higher rates.</p></li><li><p>Likewise, the massive increase in interest rates had its usual depressing effect on bond prices.</p></li><li><p>Falling stock and bond prices caused FOMO to dry up and fear of loss to replace it.</p></li><li><p>The markets’ decline gathered steam, and the things that had done best in 2020 and 2021 (tech, software, SPACs, and cryptocurrency) now did the worst, further dampening psychology.</p></li><li><p>Exogenous events have the ability to undercut the market’s mood, especially in tougher times, and in 2022 the biggest such event was Russia’s invasion of Ukraine.</p></li><li><p>The Ukraine conflict reduced supplies of grain and oil &amp; gas, adding to inflationary pressures.</p></li><li><p>Since the tighter monetary policies were designed to slow the economy, investors focused on the difficulty the Fed would likely have achieving a soft landing, and thus the strong likelihood of a recession.</p></li><li><p>The anticipated effect of that recession on earnings dampened investors’ spirits.  Thus, the fall of the S&amp;P 500 over the first nine months of 2022 rivaled the greatest full-year declines of the last century.  (It has now recovered a fair bit.)</p></li><li><p>The expectation of a recession also increased the fear of rising debt defaults.</p></li><li><p>New security issuance became difficult.</p></li><li><p>Having committed to fund buyouts in a lower-interest-rate environment, banks found themselves with many billions of dollars of “hung” bridge loans unsaleable at par.  These loans have saddled the banks with big losses.</p></li><li><p>These hung loans forced banks to reduce the amounts they could commit to new deals, making it harder for buyers to finance acquisitions.</p></li></ul><p>The progression of events described above caused pessimism to take over from optimism.  The market characterized by easy money and upbeat borrowers and asset owners disappeared; now lenders and buyers held better cards.  Credit investors became able to demand higher returns and better creditor protections.  The list of candidates for distress – loans and bonds offering yield spreads of more than 1,000 basis points over Treasurys – grew from dozens to hundreds.  Here’s how the change in the environment looks to me:</p><p><img src=\"https://static.tigerbbs.com/e3f9de92a81e3391abe91cc5ee6f4206\" tg-width=\"1179\" tg-height=\"1116\" referrerpolicy=\"no-referrer\"/></p><p>If the right-hand column accurately describes the new environment, as I believe it does, then we’re witnessing a complete reversal of the conditions in the middle column, which prevailed in 2021 and late 2020, throughout the 2009-19 period, and for much of the last 40 years.</p><p>How has this change manifested itself in investment options?  Here’s one example: In the low-return world of just one year ago, high yield bonds offered yields of 4-5%.  A lot of issuance was at yields in the 3s, and at least one new bond came to the market with a “handle” of 2.  The usefulness of these bonds for institutions needing returns of 6 or 7% was quite limited.  Today these securities yield roughly 8%, meaning even after allowing for some defaults, they’re likely to deliver equity-like returns, sourced from contractual cash flows on public securities.  Credit instruments of all kinds are potentially poised to deliver performance that can help investors accomplish their goals.</p><h2>The Outlook</h2><p>Inflation and interest rates are highly likely to remain the dominant considerations influencing the investment environment for the next several years.  While history shows that no one can predict inflation, it seems likely to remain higher than what we became used to after the GFC, at least for a while.  The course of interest rates will largely be determined by the Fed’s progress in bringing inflation under control.  If rates go much higher in that process, they’re likely to come back down afterward, but no one can predict the timing or the extent of the decrease.</p><p>While everyone knows how little I think of macro forecasts, a number of clients have asked recently about my views regarding the future of interest rates.  Thus, I’ll provide a brief overview.  (Oaktree’s investment philosophy doesn’t prohibit having opinions, just acting as if they’re right.)  In my view, the buyers who’ve driven the S&amp;P 500’s recent 10% rally from the October low have been motivated by their beliefs that (a) inflation is easing, (b) the Fed will soon pivot from restrictive policy back toward stimulative, (c) interest rates will return to lower levels, (d) a recession will be averted, or it will be modest and brief, and (e) the economy and markets will return to halcyon days.</p><p>In contrast, here’s what I think:</p><ul><li><p>The underlying causes of today’s inflation will probably abate as relief-swollen savings are spent and as supply catches up with demand.</p></li><li><p>While some recent inflation readings have been encouraging in this regard, the labor market is still very tight, wages are rising, and the economy is growing strongly.</p></li><li><p>Globalization is slowing or reversing.  If this trend continues, we will lose its significant deflationary influence.  (Importantly, consumer durables prices declined by 40% over the years 1995-2020, no doubt thanks to less-expensive imports.  I estimate that this took 0.6% per year off the rate of inflation.)</p></li><li><p>Before declaring victory on inflation, the Fed will need to be convinced not only that inflation has settled near the 2% target, but also that inflationary psychology has been extinguished.  To accomplish this, the Fed will likely want to see a positive real fed funds rate – at present it’s minus 2.2%.</p></li><li><p>Thus, while the Fed appears likely to slow the pace of its interest rate increases, it’s unlikely to return to stimulative policies any time soon.</p></li><li><p>The Fed has to maintain credibility (or regain it after having claimed for too long that inflation was “transitory”).  It can’t appear to be inconstant by becoming stimulative too soon after having turned restrictive.</p></li><li><p>The Fed faces the question of what to do about its balance sheet, which grew from $4 trillion to almost $9 trillion due to its purchases of bonds.  Allowing its holdings of bonds to mature and roll off (or, somewhat less likely, making sales) would withdraw significant liquidity from the economy, restricting growth.</p></li><li><p>Rather than be in a stimulative posture on a perpetual basis, one might imagine the Fed would prefer to normally maintain a “neutral interest rate,” which is defined as neither stimulative nor restrictive.  (I know I would.)  Most recently – last summer – that rate was estimated at 2.5%.</p></li><li><p>Similarly, although most of us believe the free market is the best allocator of economic resources, we haven’t had a free market in money for well over a decade.  The Fed might prefer to reduce its role in capital allocation by being less active in controlling rates and holding mortgage bonds.</p></li><li><p>There must be risks associated with the Fed keeping interest rates stimulative on a long-term basis.  Arguably, we’ve seen most recently that doing so can bring on inflation, though the inflation of the last two years can be attributed largely to one-off events related to the pandemic.</p></li><li><p>The Fed would probably like to see normal interest rates high enough to provide it with room to cut if it needs to stimulate the economy in the future.</p></li><li><p>People who came into the business world after 2008 – or veteran investors with short memories – might think of today’s interest rates as elevated.  But they’re not in the longer sweep of history, meaning there’s no obvious reason why they should be lower.</p></li></ul><p><b>These are the reasons why I believe that the base interest rate over the next several years is more likely to average 2-4% (i.e., not far from where it is now) than 0-2%.</b> Of course, there are counterarguments.  But, for me, the bottom line is that highly stimulative rates are likely not in the cards for the next several years, barring a serious recession from which we need rescuing (and that would have ramifications of its own). <b>But I assure you Oaktree isn’t going to bet money on that belief.</b></p><p>What we do know is that inflation and interest rates are higher today than they’ve been for 40 and 13 years, respectively.  No one knows how long the items in the right-hand column above will continue to accurately describe the environment.  They’ll be influenced by economic growth, inflation, and interest rates, as well as exogenous events, all of which are unpredictable.  Regardless, I think things will generally be less rosy in the years immediately ahead:</p><ul><li><p>A recession in the next 12-18 months appears to be a foregone conclusion among economists and investors.</p></li><li><p>That recession is likely to coincide with deterioration of corporate earnings and investor psychology.</p></li><li><p>Credit market conditions for new financings seem unlikely to soon become as accommodative as they were in recent years.</p></li><li><p>No one can foretell how high the debt default rate will rise or how long it’ll stay there.  It’s worth noting in this context that the annual default rate on high yield bonds averaged 3.6% from 1978 through 2009, but an unusually low 2.1% under the “just-right” conditions that prevailed for the decade 2010-19.  In fact, there was only one year in that decade in which defaults reached the historical average.</p></li><li><p><b>Lastly, there is a forecast I’m confident of: Interest rates aren’t about to decline by another 2,000 basis points from here.</b></p></li></ul><p><b>As I’ve written many times about the economy and markets, we never know where we’re going, but we ought to know where we are.</b> The bottom line for me is that, in many ways, conditions at this moment are overwhelmingly different from – and mostly less favorable than – those of the post-GFC climate described above.  These changes may be long-lasting, or they may wear off over time.  But in my view, we’re unlikely to quickly see the same optimism and ease that marked the post-GFC period.</p><p><b>We’ve gone from the low-return world of 2009-21 to a full-return world, and it may become more so in the near term.  Investors can now potentially get solid returns from credit instruments, meaning they no longer have to rely as heavily on riskier investments to achieve their overall return targets.  Lenders and bargain hunters face much better prospects in this changed environment than they did in 2009-21.  And importantly, if you grant that the environment is and may continue to be very different from what it was over the last 13 years – and most of the last 40 years – it should follow that the investment strategies that worked best over those periods may not be the ones that outperform in the years ahead.</b></p><p><b>That’s the sea change I’m talking about.</b></p><p>December 13, 2022</p><p><i><b>Howard Stanley Marks</b></i><i> </i><i>(born April 23, 1946) is an American investor and writer. He is the co-founder and co-chairman of</i><i> Oaktree Capital Management</i><i>, the largest investor in</i><i> distressed securities </i><i>worldwide. In 2022, with a net worth of $2.2 billion, Marks was ranked No. 1365 on the</i><i> Forbes </i><i>list of billionaires.</i></p><p><i>Marks is admired in the investment community for his &#34;memos&#34;, which detail his investment strategies and insight into the economy and are posted publicly on the Oaktree website. He has also published 3 books on investing.</i><i> </i><i>According to</i><i> Warren Buffett</i><i>, &#34;When I see memos from Howard Marks in my mail, they&#39;re the first thing I open and read. I always learn something, and that goes double for his book.&#34;</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Howard Marks Releases Memo: \"Sea Change\"</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHoward Marks Releases Memo: \"Sea Change\"\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2022-12-14 15:38</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><blockquote><b>sea change (idiom):</b> a complete transformation, a radical change of direction in attitude, goals . . . (<i>Grammarist</i>)</blockquote><p>In my 53 years in the investment world, I’ve seen a number of economic cycles, pendulum swings, manias and panics, bubbles and crashes, <b>but I remember only two real sea changes.  I think we may be in the midst of a third one today.</b></p><p>As I’ve recounted many times in my memos, when I joined the investment management industry in 1969, many banks – like the one I worked for at the time – focused their equity portfolios on the so-called “Nifty Fifty.”  The Nifty Fifty comprised the stocks of companies that were considered the best and fastest-growing – so good that nothing bad could ever happen to them.  For these stocks, everyone was sure there was “no price too high.”  But if you bought the Nifty Fifty when I started at the bank and held them until 1974, you were sitting on losses of more than 90% . . . from owning pieces of the best companies in America.  Perceived quality, it turned out, wasn’t synonymous with safety or with successful investment.</p><p>Meanwhile, over in bond-land, a security with a rating of single-B was described by Moody’s as “failing to possess the characteristics of a desirable investment.”  Non-investment grade bonds – those rated double-B and below – were off-limits to fiduciaries, since proper financial behavior mandated the avoidance of risk.  For this reason, what soon became known as high yield bonds couldn’t be sold as new issues.  But in the mid-1970s, Michael Milken and a few others had the idea that it should be possible to issue non-investment grade bonds – and to invest in them prudently – if the bonds offered enough interest to compensate for the risk of default.  In 1978, I started investing in these securities – the bonds of perhaps America’s riskiest public companies – and I was making money steadily and safely.</p><p><b>In other words, whereas prudent bond investing had previously consisted of buying only presumedly safe investment grade bonds, investment managers could now prudently buy bonds of almost any quality as long as they were adequately compensated for the attendant risk.</b> The U.S. high yield bond universe amounted to about $2 billion when I first got involved, and today it stands at roughly $1.2 trillion.</p><p>This clearly represented a major change in direction for the business of investing.  But that’s not the end of it.  Prior to the inception of high yield bond issuance, companies could only be acquired by larger firms – those that were able to pay with cash on hand or borrow large amounts of money and still retain their investment grade ratings.  But with the ability to issue high yield bonds, smaller firms could now acquire larger ones by using heavy leverage, since there was no longer a need to possess or maintain an investment grade rating.  This change permitted, in particular, the growth of leveraged buyouts and what’s now called the private equity industry.</p><p><b>However, the most important aspect of this change didn’t relate to high yield bonds, or to private equity, but rather to the adoption of anew investor mentality.  Now risk wasn’t necessarily avoided, but rather considered relative to return and hopefully borne intelligently.</b> This new risk/return mindset was critical in the development of many new types of investment, such as distressed debt, mortgage backed securities, structured credit, and private lending.  It’s no exaggeration to say today’s investment world bears almost no resemblance to that of 50 years ago. <b>Young people joining the industry today would likely be shocked to learn that, back then, investors didn’t think in risk/return terms.  Now that’s all we do.  Ergo, a sea change.</b></p><p>At roughly the same time, big changes were underway in the macroeconomic world.  I think it all started with the OPEC oil embargo of 1973-74, which caused the price of a barrel of oil to jump from roughly $24 to almost $65 in less than a year.  This spike raised the cost of many goods and ignited rapid inflation.  Because the U.S. private sector in the 1970s was much more unionized than it is now and many collective bargaining agreements contained automatic cost-of-living adjustments, rising inflation triggered wage increases, which exacerbated inflation and led to yet more wage increases.  This seemingly unstoppable upward spiral kindled strong inflationary expectations, which in many cases became self-fulfilling, as is their nature.</p><p>The year-over-year increase in the Consumer Price Index, which was 3.2% in 1972, rose to 11.0% by 1974, receded to the range of 6-9% for four years, and then rebounded to 11.4% in 1979 and 13.5% in 1980.  There was great despair, as no relief was forthcoming from inflation-fighting tools ranging from WIN (“Whip Inflation Now”) buttons to price controls to a federal funds rate that reached 13% in 1974.  It took the appointment of Paul Volcker as Fed chairman in 1979 and the determination he showed in raising the fed funds rate to 20% in 1980 to get inflation under control and extinguish inflationary psychology.  As a result, inflation was back down to 3.2% by the end of 1983.</p><p>Volcker’s success in bringing inflation under control allowed the Fed to reduce the fed funds rate to the high single digits and keep it there over the rest of the 1980s, before dropping it to the mid-single digits in the ’90s. <b>His actions ushered in a declining-interest-rate environment that prevailed for four decades</b>(much more on this in the section that follows). <b>I consider this the second sea change I’ve seen in my career.</b></p><p><b>The long-term decline in interest rates began just a few years after the advent of risk/return thinking, and I view the combination of the two as having given rise to (a) the rebirth of optimism among investors, (b) the pursuit of profit through aggressive investment vehicles, and (c) an incredible four decades for the stock market.</b> The S&amp;P 500 Index rose from a low of 102 in August 1982 to 4,796 at the beginning of 2022, for a compound annual return of 10.3% per year.  What a period!  There can be no greater financial and investment career luck than to have participated in it.</p><h2>An Incredible Tailwind</h2><p>What are the factors that gave rise to investors’ success over the last 40 years?  We saw major contributions from (a) the economic growth and preeminence of the U.S.; (b) the incredible performance of our greatest companies; (c) gains in technology, productivity and management techniques; and (d) the benefits of globalization. <b>However, I’d be surprised if 40 years of declining interest rates didn’t play the greatest role of all.</b></p><p>In the 1970s, I had a loan from a Chicago bank, with an interest rate of “three-quarters over prime.”  (We don’t hear much about the prime rate anymore, but it was the benchmark interest rate – the predecessor of LIBOR – at which the money-center banks would lend to their best customers.)  I received a notice from the bank each time my rate changed, and I framed the one that marked the high point in December 1980: It told me the interest rate on my loan had risen to 22.25%!  Four decades later, I was able to borrow at just 2.25%, fixed for 10 years.  This represented a decline of 2,000 basis points.  Miraculous!</p><h2>What are the effects of declining interest rates?</h2><ul><li><p>They accelerate the growth of the economy by making it cheaper for consumers to buy on credit and for companies to invest in facilities, equipment, and inventory.</p></li><li><p>They provide a subsidy to borrowers (at the expense of lenders and savers).</p></li><li><p>They reduce businesses’ cost of capital and thus increase their profitability.</p></li><li><p>They increase the fair value of assets.  (The theoretical value of an asset is defined as the discounted present value of its future cash flows.  The lower the discount rate, the higher the present value.)  Thus, as interest rates fall, valuation parameters such as p/e ratios and enterprise values rise, and cap rates on real estate decline.</p></li><li><p>They reduce the prospective returns investors demand from investments they’re considering, thereby increasing the prices they’ll pay.  This can be seen most directly in the bond market – everyone knows it’s “rates down; prices up” – but it works throughout the investment world.</p></li><li><p>By lifting asset prices, they create a “wealth effect” that makes people feel richer and thus more willing to spend.</p></li><li><p>Finally, by simultaneously increasing asset values and reducing borrowing costs, they produce a bonanza for those who buy assets using leverage.</p></li></ul><p>I want to spend more time on that last point.  Think about a buyer who employs leverage in a declining-rate environment:</p><ul><li><p>He analyzes a company, concludes that he can make 10% a year on it, and decides to buy it.</p></li><li><p>Then he asks his head of capital markets how much it would cost to borrow 75% of the money.  When he’s told it’s 8%, it’s full speed ahead.  Earning 10% on three-quarters of the capital that’s borrowed at 8% would lever up the return on the other one-quarter (his equity) to 16%.</p></li><li><p>Banks compete to make the loan, and the result is an interest rate of 7% instead of 8%, making the investment even more profitable (a 19% levered return).</p></li><li><p>The interest cost on his floating-rate debt declines over time, and when his fixed-rate debt matures, he finds he can roll it over at 5%.  Now the deal is a home run (a 25% levered return, all else being equal).</p></li></ul><p>This narrative ignores the beneficial impact of declining interest rates on both the profitability of the company he bought and the market value of that company.  Is it any wonder then that private equity and other levered strategies enjoyed great success over the last 40 years?</p><p>In a recent visit with clients, I came up with a bit of imagery to convey my view of the effect of the prolonged decline in interest rates: At some airports, there’s a moving walkway, and standing on it makes life easier for the weary traveler.  But if rather than stand still on it, you walk at your normal pace, you move ahead rapidly.  That’s because your rate of travel over the ground is the sum of the speed at which you’re walkingplusthe speed at which the walkway is moving.</p><p>That’s what I think happened to investors over the last 40 years.  They enjoyed the growth of the economy and the companies they invested in, as well as the resulting increase in the value of their ownership stakes.  But in addition, they were on a moving walkway, carried along by declining interest rates.  The results have been great, but I doubt many people fully understand where they came from. <b>It seems to me that a significant portion of all the money investors made over this period resulted from the tailwind generated by the massive drop in interest rates.  I consider it nearly impossible to overstate the influence of declining rates over the last four decades.</b></p><h2>The Recent Experience</h2><p>The period between the end of the Global Financial Crisis in late 2009 and the onset of the pandemic in early 2020 was marked by ultra-low interest rates, and the macroeconomic environment – and its effects – were highly unusual.</p><p>An all-time low in interest rates was reached when the Fed cut the fed funds rate to approximately zero in late 2008 in an effort to pull the economy out of the GFC.  The low rates were accompanied by quantitative easing: purchases of bonds undertaken by the Fed to inject liquidity into the economy (and perhaps to keep investors from panicking).  The effects were dramatic:</p><ul><li><p>The low rates and vast amounts of liquidity stimulated the economy and triggered explosive gains in the markets.</p></li><li><p>Strong economic growth and lower interest costs added to corporate profits.</p></li><li><p>Valuation parameters rose, as described above, lifting asset prices.  Stocks increased non-stop for more than ten years, except for a handful of downdrafts that each lasted a few months.  From a low of 667 in March 2009, the S&amp;P 500 reached a high of 3,386 in February 2020, for a compound return of 16% per year.</p></li><li><p><b>The markets’ strength encouraged investors to drop their crisis-inspired risk aversion and return to risk taking much sooner than expected.  It also made FOMO – the fear of missing out – the prevalent emotion among investors.  Buyers were eager to buy, and holders weren’t motivated to sell.</b></p></li><li><p>Investors’ revived desire to buy caused the capital markets to reopen, making it cheap and easy for companies to obtain financing.  Lenders’ eagerness to put money to work enabled borrowers to pay low interest rates under less-restrictive documentation that reduced lender protections.</p></li><li><p><b>The paltry yields on safe investments drove investors to buy riskier assets.</b></p></li><li><p>Thanks to economic growth and plentiful liquidity, there were few defaults and bankruptcies.</p></li><li><p>The main exogenous influences were increasing globalization and the limited extent of armed conflict around the world.  Both influences were clearly salutary.</p></li></ul><p>As a result, in this period, the U.S. enjoyed its longest economic recovery in history (albeit also one of its slowest) and its longest bull market, exceeding ten years in both cases.</p><p>When the Covid-19 pandemic caused much of the world’s economy to be shut down, the Fed dusted off the rescue plan that had taken months to formulate and implement during the GFC and put it into effect in a matter of weeks at a much larger scale than its earlier version.  The U.S. government chipped in with loans and vast relief payments (on top of its customary deficit spending).  The result in the period from March 2020 to the end of 2021 was a complete replay of the post-GFC developments enumerated above, including a quick economic bounce and an even quicker market recovery.  (The S&amp;P 500 rose from its low of 2,237 in March 2020 to 4,796 on the first day of 2022, up 114% in less than two years.)</p><p><b>For what felt like eons – from October 2012 to February 2020 – my standard presentation was titled “Investing in a Low Return World,” because that’s what our circumstances were.</b> With the prospective returns on many asset classes – especially credit – at all-time lows, I enumerated the principal options available to investors:</p><ul><li><p>invest as you previously have, and accept that your returns will be lower than they used to be;</p></li><li><p>reduce risk to prepare for a market correction, and accept a return that is lower still;</p></li><li><p>go to cash and earn a return of zero, hoping the market will decline and thus offer higher returns (and do it soon); or</p></li><li><p>ramp up your risk in pursuit of higher returns.</p></li></ul><p>Each of these choices had serious flaws, and there’s a good reason for that. <b>By definition, it’s hard to achieve good returns dependably and safely in a low-return world.</b></p><p>Regular readers of my memos know that my observations regarding the investment environment are primarily based on impressions and inferences rather than data.  Thus, in recent meetings, I’ve been using the following list of properties to describe the period in question.  (Think about whether you agree with this description.  I’ll return to it later.)</p><p><img src=\"https://static.tigerbbs.com/903bfda9e342132e1bd15cd037898318\" tg-width=\"941\" tg-height=\"1102\" referrerpolicy=\"no-referrer\"/></p><p>The overall period from 2009 through 2021 (with the exception of a few months in 2020) was one in which optimism prevailed among investors and worry was minimal.  Low inflation allowed central bankers to maintain generous monetary policies.  These were golden times for corporations and asset owners thanks to good economic growth, cheap and easily accessible capital, and freedom from distress. <b>This was an asset owner’s market and a borrower’s market.</b> <b>With the risk-free rate at zero, fear of loss absent, and people eager to make risky investments, it was a frustrating period for lenders and bargain hunters.</b></p><p>On recent visits with clients, I’ve been describing Oaktree as having spent the years 2009 through 2019 “in the wilderness” given our focus on credit and our heavy emphasis on value investing and risk control.  To illustrate, after raising our largest fund up to that time in 2007-08 and putting most of it to work very successfully in the wake of the Lehman Brothers bankruptcy, we thought it appropriate, given the investment environment, to cut the amount in half for its successor fund and halve it again for the fund after that.  Oaktree’s total assets under management grew relatively little during this period, and the returns on most of our closed-end funds, although fine, were moderate by our standards. <b>It felt like a long slog.</b></p><p>That Was Then.  This Is Now.</p><p>Of course, all of the above flipped in the last year or so.  Most importantly, inflation began to rear its head in early 2021, when our emergence from isolation permitted too much money (savings amassed by people shut in at home, including distributions from massive Covid-19 relief programs) to chase too few goods and services (with supply hampered by the uneven restart of manufacturing and transportation).  Because the Fed deemed the inflation “transitory,” it continued its policies of low interest rates and quantitative easing, keeping money loose.  These policies further stimulated demand (especially for homes) at a time when it didn’t need stimulating.</p><p>Inflation worsened as 2021 wore on, and late in the year, the Fed acknowledged that it wasn’t likely to be short-lived.  Thus, the Fed started reducing its purchases of bonds in November and began raising interest rates in March 2022, kicking off one of the quickest rate-hiking cycles on record.  The stock market, which had ignored inflation and rising interest rates for most of 2021, began to fall around year-end.</p><p>From there, events followed a predictable course. <b>As I wrote in the memo</b> <b><i>On the Couch</i></b> <b>(January 2016), whereas events in the real world fluctuate between “pretty good” and “not so hot,” investor sentiment often careens from “flawless” to “hopeless” as events that were previously viewed as benign come to be interpreted as catastrophic.</b></p><ul><li><p>Higher interest rates led to higher demanded returns.  Thus, stocks that had seemed fairly valued when interest rates were minimal fell to lower p/e ratios that were commensurate with higher rates.</p></li><li><p>Likewise, the massive increase in interest rates had its usual depressing effect on bond prices.</p></li><li><p>Falling stock and bond prices caused FOMO to dry up and fear of loss to replace it.</p></li><li><p>The markets’ decline gathered steam, and the things that had done best in 2020 and 2021 (tech, software, SPACs, and cryptocurrency) now did the worst, further dampening psychology.</p></li><li><p>Exogenous events have the ability to undercut the market’s mood, especially in tougher times, and in 2022 the biggest such event was Russia’s invasion of Ukraine.</p></li><li><p>The Ukraine conflict reduced supplies of grain and oil &amp; gas, adding to inflationary pressures.</p></li><li><p>Since the tighter monetary policies were designed to slow the economy, investors focused on the difficulty the Fed would likely have achieving a soft landing, and thus the strong likelihood of a recession.</p></li><li><p>The anticipated effect of that recession on earnings dampened investors’ spirits.  Thus, the fall of the S&amp;P 500 over the first nine months of 2022 rivaled the greatest full-year declines of the last century.  (It has now recovered a fair bit.)</p></li><li><p>The expectation of a recession also increased the fear of rising debt defaults.</p></li><li><p>New security issuance became difficult.</p></li><li><p>Having committed to fund buyouts in a lower-interest-rate environment, banks found themselves with many billions of dollars of “hung” bridge loans unsaleable at par.  These loans have saddled the banks with big losses.</p></li><li><p>These hung loans forced banks to reduce the amounts they could commit to new deals, making it harder for buyers to finance acquisitions.</p></li></ul><p>The progression of events described above caused pessimism to take over from optimism.  The market characterized by easy money and upbeat borrowers and asset owners disappeared; now lenders and buyers held better cards.  Credit investors became able to demand higher returns and better creditor protections.  The list of candidates for distress – loans and bonds offering yield spreads of more than 1,000 basis points over Treasurys – grew from dozens to hundreds.  Here’s how the change in the environment looks to me:</p><p><img src=\"https://static.tigerbbs.com/e3f9de92a81e3391abe91cc5ee6f4206\" tg-width=\"1179\" tg-height=\"1116\" referrerpolicy=\"no-referrer\"/></p><p>If the right-hand column accurately describes the new environment, as I believe it does, then we’re witnessing a complete reversal of the conditions in the middle column, which prevailed in 2021 and late 2020, throughout the 2009-19 period, and for much of the last 40 years.</p><p>How has this change manifested itself in investment options?  Here’s one example: In the low-return world of just one year ago, high yield bonds offered yields of 4-5%.  A lot of issuance was at yields in the 3s, and at least one new bond came to the market with a “handle” of 2.  The usefulness of these bonds for institutions needing returns of 6 or 7% was quite limited.  Today these securities yield roughly 8%, meaning even after allowing for some defaults, they’re likely to deliver equity-like returns, sourced from contractual cash flows on public securities.  Credit instruments of all kinds are potentially poised to deliver performance that can help investors accomplish their goals.</p><h2>The Outlook</h2><p>Inflation and interest rates are highly likely to remain the dominant considerations influencing the investment environment for the next several years.  While history shows that no one can predict inflation, it seems likely to remain higher than what we became used to after the GFC, at least for a while.  The course of interest rates will largely be determined by the Fed’s progress in bringing inflation under control.  If rates go much higher in that process, they’re likely to come back down afterward, but no one can predict the timing or the extent of the decrease.</p><p>While everyone knows how little I think of macro forecasts, a number of clients have asked recently about my views regarding the future of interest rates.  Thus, I’ll provide a brief overview.  (Oaktree’s investment philosophy doesn’t prohibit having opinions, just acting as if they’re right.)  In my view, the buyers who’ve driven the S&amp;P 500’s recent 10% rally from the October low have been motivated by their beliefs that (a) inflation is easing, (b) the Fed will soon pivot from restrictive policy back toward stimulative, (c) interest rates will return to lower levels, (d) a recession will be averted, or it will be modest and brief, and (e) the economy and markets will return to halcyon days.</p><p>In contrast, here’s what I think:</p><ul><li><p>The underlying causes of today’s inflation will probably abate as relief-swollen savings are spent and as supply catches up with demand.</p></li><li><p>While some recent inflation readings have been encouraging in this regard, the labor market is still very tight, wages are rising, and the economy is growing strongly.</p></li><li><p>Globalization is slowing or reversing.  If this trend continues, we will lose its significant deflationary influence.  (Importantly, consumer durables prices declined by 40% over the years 1995-2020, no doubt thanks to less-expensive imports.  I estimate that this took 0.6% per year off the rate of inflation.)</p></li><li><p>Before declaring victory on inflation, the Fed will need to be convinced not only that inflation has settled near the 2% target, but also that inflationary psychology has been extinguished.  To accomplish this, the Fed will likely want to see a positive real fed funds rate – at present it’s minus 2.2%.</p></li><li><p>Thus, while the Fed appears likely to slow the pace of its interest rate increases, it’s unlikely to return to stimulative policies any time soon.</p></li><li><p>The Fed has to maintain credibility (or regain it after having claimed for too long that inflation was “transitory”).  It can’t appear to be inconstant by becoming stimulative too soon after having turned restrictive.</p></li><li><p>The Fed faces the question of what to do about its balance sheet, which grew from $4 trillion to almost $9 trillion due to its purchases of bonds.  Allowing its holdings of bonds to mature and roll off (or, somewhat less likely, making sales) would withdraw significant liquidity from the economy, restricting growth.</p></li><li><p>Rather than be in a stimulative posture on a perpetual basis, one might imagine the Fed would prefer to normally maintain a “neutral interest rate,” which is defined as neither stimulative nor restrictive.  (I know I would.)  Most recently – last summer – that rate was estimated at 2.5%.</p></li><li><p>Similarly, although most of us believe the free market is the best allocator of economic resources, we haven’t had a free market in money for well over a decade.  The Fed might prefer to reduce its role in capital allocation by being less active in controlling rates and holding mortgage bonds.</p></li><li><p>There must be risks associated with the Fed keeping interest rates stimulative on a long-term basis.  Arguably, we’ve seen most recently that doing so can bring on inflation, though the inflation of the last two years can be attributed largely to one-off events related to the pandemic.</p></li><li><p>The Fed would probably like to see normal interest rates high enough to provide it with room to cut if it needs to stimulate the economy in the future.</p></li><li><p>People who came into the business world after 2008 – or veteran investors with short memories – might think of today’s interest rates as elevated.  But they’re not in the longer sweep of history, meaning there’s no obvious reason why they should be lower.</p></li></ul><p><b>These are the reasons why I believe that the base interest rate over the next several years is more likely to average 2-4% (i.e., not far from where it is now) than 0-2%.</b> Of course, there are counterarguments.  But, for me, the bottom line is that highly stimulative rates are likely not in the cards for the next several years, barring a serious recession from which we need rescuing (and that would have ramifications of its own). <b>But I assure you Oaktree isn’t going to bet money on that belief.</b></p><p>What we do know is that inflation and interest rates are higher today than they’ve been for 40 and 13 years, respectively.  No one knows how long the items in the right-hand column above will continue to accurately describe the environment.  They’ll be influenced by economic growth, inflation, and interest rates, as well as exogenous events, all of which are unpredictable.  Regardless, I think things will generally be less rosy in the years immediately ahead:</p><ul><li><p>A recession in the next 12-18 months appears to be a foregone conclusion among economists and investors.</p></li><li><p>That recession is likely to coincide with deterioration of corporate earnings and investor psychology.</p></li><li><p>Credit market conditions for new financings seem unlikely to soon become as accommodative as they were in recent years.</p></li><li><p>No one can foretell how high the debt default rate will rise or how long it’ll stay there.  It’s worth noting in this context that the annual default rate on high yield bonds averaged 3.6% from 1978 through 2009, but an unusually low 2.1% under the “just-right” conditions that prevailed for the decade 2010-19.  In fact, there was only one year in that decade in which defaults reached the historical average.</p></li><li><p><b>Lastly, there is a forecast I’m confident of: Interest rates aren’t about to decline by another 2,000 basis points from here.</b></p></li></ul><p><b>As I’ve written many times about the economy and markets, we never know where we’re going, but we ought to know where we are.</b> The bottom line for me is that, in many ways, conditions at this moment are overwhelmingly different from – and mostly less favorable than – those of the post-GFC climate described above.  These changes may be long-lasting, or they may wear off over time.  But in my view, we’re unlikely to quickly see the same optimism and ease that marked the post-GFC period.</p><p><b>We’ve gone from the low-return world of 2009-21 to a full-return world, and it may become more so in the near term.  Investors can now potentially get solid returns from credit instruments, meaning they no longer have to rely as heavily on riskier investments to achieve their overall return targets.  Lenders and bargain hunters face much better prospects in this changed environment than they did in 2009-21.  And importantly, if you grant that the environment is and may continue to be very different from what it was over the last 13 years – and most of the last 40 years – it should follow that the investment strategies that worked best over those periods may not be the ones that outperform in the years ahead.</b></p><p><b>That’s the sea change I’m talking about.</b></p><p>December 13, 2022</p><p><i><b>Howard Stanley Marks</b></i><i> </i><i>(born April 23, 1946) is an American investor and writer. He is the co-founder and co-chairman of</i><i> Oaktree Capital Management</i><i>, the largest investor in</i><i> distressed securities </i><i>worldwide. In 2022, with a net worth of $2.2 billion, Marks was ranked No. 1365 on the</i><i> Forbes </i><i>list of billionaires.</i></p><p><i>Marks is admired in the investment community for his &#34;memos&#34;, which detail his investment strategies and insight into the economy and are posted publicly on the Oaktree website. He has also published 3 books on investing.</i><i> </i><i>According to</i><i> Warren Buffett</i><i>, &#34;When I see memos from Howard Marks in my mail, they&#39;re the first thing I open and read. I always learn something, and that goes double for his book.&#34;</i></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite",".DJI":"道琼斯"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1181221730","content_text":"sea change (idiom): a complete transformation, a radical change of direction in attitude, goals . . . (Grammarist)In my 53 years in the investment world, I’ve seen a number of economic cycles, pendulum swings, manias and panics, bubbles and crashes, but I remember only two real sea changes.  I think we may be in the midst of a third one today.As I’ve recounted many times in my memos, when I joined the investment management industry in 1969, many banks – like the one I worked for at the time – focused their equity portfolios on the so-called “Nifty Fifty.”  The Nifty Fifty comprised the stocks of companies that were considered the best and fastest-growing – so good that nothing bad could ever happen to them.  For these stocks, everyone was sure there was “no price too high.”  But if you bought the Nifty Fifty when I started at the bank and held them until 1974, you were sitting on losses of more than 90% . . . from owning pieces of the best companies in America.  Perceived quality, it turned out, wasn’t synonymous with safety or with successful investment.Meanwhile, over in bond-land, a security with a rating of single-B was described by Moody’s as “failing to possess the characteristics of a desirable investment.”  Non-investment grade bonds – those rated double-B and below – were off-limits to fiduciaries, since proper financial behavior mandated the avoidance of risk.  For this reason, what soon became known as high yield bonds couldn’t be sold as new issues.  But in the mid-1970s, Michael Milken and a few others had the idea that it should be possible to issue non-investment grade bonds – and to invest in them prudently – if the bonds offered enough interest to compensate for the risk of default.  In 1978, I started investing in these securities – the bonds of perhaps America’s riskiest public companies – and I was making money steadily and safely.In other words, whereas prudent bond investing had previously consisted of buying only presumedly safe investment grade bonds, investment managers could now prudently buy bonds of almost any quality as long as they were adequately compensated for the attendant risk. The U.S. high yield bond universe amounted to about $2 billion when I first got involved, and today it stands at roughly $1.2 trillion.This clearly represented a major change in direction for the business of investing.  But that’s not the end of it.  Prior to the inception of high yield bond issuance, companies could only be acquired by larger firms – those that were able to pay with cash on hand or borrow large amounts of money and still retain their investment grade ratings.  But with the ability to issue high yield bonds, smaller firms could now acquire larger ones by using heavy leverage, since there was no longer a need to possess or maintain an investment grade rating.  This change permitted, in particular, the growth of leveraged buyouts and what’s now called the private equity industry.However, the most important aspect of this change didn’t relate to high yield bonds, or to private equity, but rather to the adoption of anew investor mentality.  Now risk wasn’t necessarily avoided, but rather considered relative to return and hopefully borne intelligently. This new risk/return mindset was critical in the development of many new types of investment, such as distressed debt, mortgage backed securities, structured credit, and private lending.  It’s no exaggeration to say today’s investment world bears almost no resemblance to that of 50 years ago. Young people joining the industry today would likely be shocked to learn that, back then, investors didn’t think in risk/return terms.  Now that’s all we do.  Ergo, a sea change.At roughly the same time, big changes were underway in the macroeconomic world.  I think it all started with the OPEC oil embargo of 1973-74, which caused the price of a barrel of oil to jump from roughly $24 to almost $65 in less than a year.  This spike raised the cost of many goods and ignited rapid inflation.  Because the U.S. private sector in the 1970s was much more unionized than it is now and many collective bargaining agreements contained automatic cost-of-living adjustments, rising inflation triggered wage increases, which exacerbated inflation and led to yet more wage increases.  This seemingly unstoppable upward spiral kindled strong inflationary expectations, which in many cases became self-fulfilling, as is their nature.The year-over-year increase in the Consumer Price Index, which was 3.2% in 1972, rose to 11.0% by 1974, receded to the range of 6-9% for four years, and then rebounded to 11.4% in 1979 and 13.5% in 1980.  There was great despair, as no relief was forthcoming from inflation-fighting tools ranging from WIN (“Whip Inflation Now”) buttons to price controls to a federal funds rate that reached 13% in 1974.  It took the appointment of Paul Volcker as Fed chairman in 1979 and the determination he showed in raising the fed funds rate to 20% in 1980 to get inflation under control and extinguish inflationary psychology.  As a result, inflation was back down to 3.2% by the end of 1983.Volcker’s success in bringing inflation under control allowed the Fed to reduce the fed funds rate to the high single digits and keep it there over the rest of the 1980s, before dropping it to the mid-single digits in the ’90s. His actions ushered in a declining-interest-rate environment that prevailed for four decades(much more on this in the section that follows). I consider this the second sea change I’ve seen in my career.The long-term decline in interest rates began just a few years after the advent of risk/return thinking, and I view the combination of the two as having given rise to (a) the rebirth of optimism among investors, (b) the pursuit of profit through aggressive investment vehicles, and (c) an incredible four decades for the stock market. The S&P 500 Index rose from a low of 102 in August 1982 to 4,796 at the beginning of 2022, for a compound annual return of 10.3% per year.  What a period!  There can be no greater financial and investment career luck than to have participated in it.An Incredible TailwindWhat are the factors that gave rise to investors’ success over the last 40 years?  We saw major contributions from (a) the economic growth and preeminence of the U.S.; (b) the incredible performance of our greatest companies; (c) gains in technology, productivity and management techniques; and (d) the benefits of globalization. However, I’d be surprised if 40 years of declining interest rates didn’t play the greatest role of all.In the 1970s, I had a loan from a Chicago bank, with an interest rate of “three-quarters over prime.”  (We don’t hear much about the prime rate anymore, but it was the benchmark interest rate – the predecessor of LIBOR – at which the money-center banks would lend to their best customers.)  I received a notice from the bank each time my rate changed, and I framed the one that marked the high point in December 1980: It told me the interest rate on my loan had risen to 22.25%!  Four decades later, I was able to borrow at just 2.25%, fixed for 10 years.  This represented a decline of 2,000 basis points.  Miraculous!What are the effects of declining interest rates?They accelerate the growth of the economy by making it cheaper for consumers to buy on credit and for companies to invest in facilities, equipment, and inventory.They provide a subsidy to borrowers (at the expense of lenders and savers).They reduce businesses’ cost of capital and thus increase their profitability.They increase the fair value of assets.  (The theoretical value of an asset is defined as the discounted present value of its future cash flows.  The lower the discount rate, the higher the present value.)  Thus, as interest rates fall, valuation parameters such as p/e ratios and enterprise values rise, and cap rates on real estate decline.They reduce the prospective returns investors demand from investments they’re considering, thereby increasing the prices they’ll pay.  This can be seen most directly in the bond market – everyone knows it’s “rates down; prices up” – but it works throughout the investment world.By lifting asset prices, they create a “wealth effect” that makes people feel richer and thus more willing to spend.Finally, by simultaneously increasing asset values and reducing borrowing costs, they produce a bonanza for those who buy assets using leverage.I want to spend more time on that last point.  Think about a buyer who employs leverage in a declining-rate environment:He analyzes a company, concludes that he can make 10% a year on it, and decides to buy it.Then he asks his head of capital markets how much it would cost to borrow 75% of the money.  When he’s told it’s 8%, it’s full speed ahead.  Earning 10% on three-quarters of the capital that’s borrowed at 8% would lever up the return on the other one-quarter (his equity) to 16%.Banks compete to make the loan, and the result is an interest rate of 7% instead of 8%, making the investment even more profitable (a 19% levered return).The interest cost on his floating-rate debt declines over time, and when his fixed-rate debt matures, he finds he can roll it over at 5%.  Now the deal is a home run (a 25% levered return, all else being equal).This narrative ignores the beneficial impact of declining interest rates on both the profitability of the company he bought and the market value of that company.  Is it any wonder then that private equity and other levered strategies enjoyed great success over the last 40 years?In a recent visit with clients, I came up with a bit of imagery to convey my view of the effect of the prolonged decline in interest rates: At some airports, there’s a moving walkway, and standing on it makes life easier for the weary traveler.  But if rather than stand still on it, you walk at your normal pace, you move ahead rapidly.  That’s because your rate of travel over the ground is the sum of the speed at which you’re walkingplusthe speed at which the walkway is moving.That’s what I think happened to investors over the last 40 years.  They enjoyed the growth of the economy and the companies they invested in, as well as the resulting increase in the value of their ownership stakes.  But in addition, they were on a moving walkway, carried along by declining interest rates.  The results have been great, but I doubt many people fully understand where they came from. It seems to me that a significant portion of all the money investors made over this period resulted from the tailwind generated by the massive drop in interest rates.  I consider it nearly impossible to overstate the influence of declining rates over the last four decades.The Recent ExperienceThe period between the end of the Global Financial Crisis in late 2009 and the onset of the pandemic in early 2020 was marked by ultra-low interest rates, and the macroeconomic environment – and its effects – were highly unusual.An all-time low in interest rates was reached when the Fed cut the fed funds rate to approximately zero in late 2008 in an effort to pull the economy out of the GFC.  The low rates were accompanied by quantitative easing: purchases of bonds undertaken by the Fed to inject liquidity into the economy (and perhaps to keep investors from panicking).  The effects were dramatic:The low rates and vast amounts of liquidity stimulated the economy and triggered explosive gains in the markets.Strong economic growth and lower interest costs added to corporate profits.Valuation parameters rose, as described above, lifting asset prices.  Stocks increased non-stop for more than ten years, except for a handful of downdrafts that each lasted a few months.  From a low of 667 in March 2009, the S&P 500 reached a high of 3,386 in February 2020, for a compound return of 16% per year.The markets’ strength encouraged investors to drop their crisis-inspired risk aversion and return to risk taking much sooner than expected.  It also made FOMO – the fear of missing out – the prevalent emotion among investors.  Buyers were eager to buy, and holders weren’t motivated to sell.Investors’ revived desire to buy caused the capital markets to reopen, making it cheap and easy for companies to obtain financing.  Lenders’ eagerness to put money to work enabled borrowers to pay low interest rates under less-restrictive documentation that reduced lender protections.The paltry yields on safe investments drove investors to buy riskier assets.Thanks to economic growth and plentiful liquidity, there were few defaults and bankruptcies.The main exogenous influences were increasing globalization and the limited extent of armed conflict around the world.  Both influences were clearly salutary.As a result, in this period, the U.S. enjoyed its longest economic recovery in history (albeit also one of its slowest) and its longest bull market, exceeding ten years in both cases.When the Covid-19 pandemic caused much of the world’s economy to be shut down, the Fed dusted off the rescue plan that had taken months to formulate and implement during the GFC and put it into effect in a matter of weeks at a much larger scale than its earlier version.  The U.S. government chipped in with loans and vast relief payments (on top of its customary deficit spending).  The result in the period from March 2020 to the end of 2021 was a complete replay of the post-GFC developments enumerated above, including a quick economic bounce and an even quicker market recovery.  (The S&P 500 rose from its low of 2,237 in March 2020 to 4,796 on the first day of 2022, up 114% in less than two years.)For what felt like eons – from October 2012 to February 2020 – my standard presentation was titled “Investing in a Low Return World,” because that’s what our circumstances were. With the prospective returns on many asset classes – especially credit – at all-time lows, I enumerated the principal options available to investors:invest as you previously have, and accept that your returns will be lower than they used to be;reduce risk to prepare for a market correction, and accept a return that is lower still;go to cash and earn a return of zero, hoping the market will decline and thus offer higher returns (and do it soon); orramp up your risk in pursuit of higher returns.Each of these choices had serious flaws, and there’s a good reason for that. By definition, it’s hard to achieve good returns dependably and safely in a low-return world.Regular readers of my memos know that my observations regarding the investment environment are primarily based on impressions and inferences rather than data.  Thus, in recent meetings, I’ve been using the following list of properties to describe the period in question.  (Think about whether you agree with this description.  I’ll return to it later.)The overall period from 2009 through 2021 (with the exception of a few months in 2020) was one in which optimism prevailed among investors and worry was minimal.  Low inflation allowed central bankers to maintain generous monetary policies.  These were golden times for corporations and asset owners thanks to good economic growth, cheap and easily accessible capital, and freedom from distress. This was an asset owner’s market and a borrower’s market. With the risk-free rate at zero, fear of loss absent, and people eager to make risky investments, it was a frustrating period for lenders and bargain hunters.On recent visits with clients, I’ve been describing Oaktree as having spent the years 2009 through 2019 “in the wilderness” given our focus on credit and our heavy emphasis on value investing and risk control.  To illustrate, after raising our largest fund up to that time in 2007-08 and putting most of it to work very successfully in the wake of the Lehman Brothers bankruptcy, we thought it appropriate, given the investment environment, to cut the amount in half for its successor fund and halve it again for the fund after that.  Oaktree’s total assets under management grew relatively little during this period, and the returns on most of our closed-end funds, although fine, were moderate by our standards. It felt like a long slog.That Was Then.  This Is Now.Of course, all of the above flipped in the last year or so.  Most importantly, inflation began to rear its head in early 2021, when our emergence from isolation permitted too much money (savings amassed by people shut in at home, including distributions from massive Covid-19 relief programs) to chase too few goods and services (with supply hampered by the uneven restart of manufacturing and transportation).  Because the Fed deemed the inflation “transitory,” it continued its policies of low interest rates and quantitative easing, keeping money loose.  These policies further stimulated demand (especially for homes) at a time when it didn’t need stimulating.Inflation worsened as 2021 wore on, and late in the year, the Fed acknowledged that it wasn’t likely to be short-lived.  Thus, the Fed started reducing its purchases of bonds in November and began raising interest rates in March 2022, kicking off one of the quickest rate-hiking cycles on record.  The stock market, which had ignored inflation and rising interest rates for most of 2021, began to fall around year-end.From there, events followed a predictable course. As I wrote in the memo On the Couch (January 2016), whereas events in the real world fluctuate between “pretty good” and “not so hot,” investor sentiment often careens from “flawless” to “hopeless” as events that were previously viewed as benign come to be interpreted as catastrophic.Higher interest rates led to higher demanded returns.  Thus, stocks that had seemed fairly valued when interest rates were minimal fell to lower p/e ratios that were commensurate with higher rates.Likewise, the massive increase in interest rates had its usual depressing effect on bond prices.Falling stock and bond prices caused FOMO to dry up and fear of loss to replace it.The markets’ decline gathered steam, and the things that had done best in 2020 and 2021 (tech, software, SPACs, and cryptocurrency) now did the worst, further dampening psychology.Exogenous events have the ability to undercut the market’s mood, especially in tougher times, and in 2022 the biggest such event was Russia’s invasion of Ukraine.The Ukraine conflict reduced supplies of grain and oil & gas, adding to inflationary pressures.Since the tighter monetary policies were designed to slow the economy, investors focused on the difficulty the Fed would likely have achieving a soft landing, and thus the strong likelihood of a recession.The anticipated effect of that recession on earnings dampened investors’ spirits.  Thus, the fall of the S&P 500 over the first nine months of 2022 rivaled the greatest full-year declines of the last century.  (It has now recovered a fair bit.)The expectation of a recession also increased the fear of rising debt defaults.New security issuance became difficult.Having committed to fund buyouts in a lower-interest-rate environment, banks found themselves with many billions of dollars of “hung” bridge loans unsaleable at par.  These loans have saddled the banks with big losses.These hung loans forced banks to reduce the amounts they could commit to new deals, making it harder for buyers to finance acquisitions.The progression of events described above caused pessimism to take over from optimism.  The market characterized by easy money and upbeat borrowers and asset owners disappeared; now lenders and buyers held better cards.  Credit investors became able to demand higher returns and better creditor protections.  The list of candidates for distress – loans and bonds offering yield spreads of more than 1,000 basis points over Treasurys – grew from dozens to hundreds.  Here’s how the change in the environment looks to me:If the right-hand column accurately describes the new environment, as I believe it does, then we’re witnessing a complete reversal of the conditions in the middle column, which prevailed in 2021 and late 2020, throughout the 2009-19 period, and for much of the last 40 years.How has this change manifested itself in investment options?  Here’s one example: In the low-return world of just one year ago, high yield bonds offered yields of 4-5%.  A lot of issuance was at yields in the 3s, and at least one new bond came to the market with a “handle” of 2.  The usefulness of these bonds for institutions needing returns of 6 or 7% was quite limited.  Today these securities yield roughly 8%, meaning even after allowing for some defaults, they’re likely to deliver equity-like returns, sourced from contractual cash flows on public securities.  Credit instruments of all kinds are potentially poised to deliver performance that can help investors accomplish their goals.The OutlookInflation and interest rates are highly likely to remain the dominant considerations influencing the investment environment for the next several years.  While history shows that no one can predict inflation, it seems likely to remain higher than what we became used to after the GFC, at least for a while.  The course of interest rates will largely be determined by the Fed’s progress in bringing inflation under control.  If rates go much higher in that process, they’re likely to come back down afterward, but no one can predict the timing or the extent of the decrease.While everyone knows how little I think of macro forecasts, a number of clients have asked recently about my views regarding the future of interest rates.  Thus, I’ll provide a brief overview.  (Oaktree’s investment philosophy doesn’t prohibit having opinions, just acting as if they’re right.)  In my view, the buyers who’ve driven the S&P 500’s recent 10% rally from the October low have been motivated by their beliefs that (a) inflation is easing, (b) the Fed will soon pivot from restrictive policy back toward stimulative, (c) interest rates will return to lower levels, (d) a recession will be averted, or it will be modest and brief, and (e) the economy and markets will return to halcyon days.In contrast, here’s what I think:The underlying causes of today’s inflation will probably abate as relief-swollen savings are spent and as supply catches up with demand.While some recent inflation readings have been encouraging in this regard, the labor market is still very tight, wages are rising, and the economy is growing strongly.Globalization is slowing or reversing.  If this trend continues, we will lose its significant deflationary influence.  (Importantly, consumer durables prices declined by 40% over the years 1995-2020, no doubt thanks to less-expensive imports.  I estimate that this took 0.6% per year off the rate of inflation.)Before declaring victory on inflation, the Fed will need to be convinced not only that inflation has settled near the 2% target, but also that inflationary psychology has been extinguished.  To accomplish this, the Fed will likely want to see a positive real fed funds rate – at present it’s minus 2.2%.Thus, while the Fed appears likely to slow the pace of its interest rate increases, it’s unlikely to return to stimulative policies any time soon.The Fed has to maintain credibility (or regain it after having claimed for too long that inflation was “transitory”).  It can’t appear to be inconstant by becoming stimulative too soon after having turned restrictive.The Fed faces the question of what to do about its balance sheet, which grew from $4 trillion to almost $9 trillion due to its purchases of bonds.  Allowing its holdings of bonds to mature and roll off (or, somewhat less likely, making sales) would withdraw significant liquidity from the economy, restricting growth.Rather than be in a stimulative posture on a perpetual basis, one might imagine the Fed would prefer to normally maintain a “neutral interest rate,” which is defined as neither stimulative nor restrictive.  (I know I would.)  Most recently – last summer – that rate was estimated at 2.5%.Similarly, although most of us believe the free market is the best allocator of economic resources, we haven’t had a free market in money for well over a decade.  The Fed might prefer to reduce its role in capital allocation by being less active in controlling rates and holding mortgage bonds.There must be risks associated with the Fed keeping interest rates stimulative on a long-term basis.  Arguably, we’ve seen most recently that doing so can bring on inflation, though the inflation of the last two years can be attributed largely to one-off events related to the pandemic.The Fed would probably like to see normal interest rates high enough to provide it with room to cut if it needs to stimulate the economy in the future.People who came into the business world after 2008 – or veteran investors with short memories – might think of today’s interest rates as elevated.  But they’re not in the longer sweep of history, meaning there’s no obvious reason why they should be lower.These are the reasons why I believe that the base interest rate over the next several years is more likely to average 2-4% (i.e., not far from where it is now) than 0-2%. Of course, there are counterarguments.  But, for me, the bottom line is that highly stimulative rates are likely not in the cards for the next several years, barring a serious recession from which we need rescuing (and that would have ramifications of its own). But I assure you Oaktree isn’t going to bet money on that belief.What we do know is that inflation and interest rates are higher today than they’ve been for 40 and 13 years, respectively.  No one knows how long the items in the right-hand column above will continue to accurately describe the environment.  They’ll be influenced by economic growth, inflation, and interest rates, as well as exogenous events, all of which are unpredictable.  Regardless, I think things will generally be less rosy in the years immediately ahead:A recession in the next 12-18 months appears to be a foregone conclusion among economists and investors.That recession is likely to coincide with deterioration of corporate earnings and investor psychology.Credit market conditions for new financings seem unlikely to soon become as accommodative as they were in recent years.No one can foretell how high the debt default rate will rise or how long it’ll stay there.  It’s worth noting in this context that the annual default rate on high yield bonds averaged 3.6% from 1978 through 2009, but an unusually low 2.1% under the “just-right” conditions that prevailed for the decade 2010-19.  In fact, there was only one year in that decade in which defaults reached the historical average.Lastly, there is a forecast I’m confident of: Interest rates aren’t about to decline by another 2,000 basis points from here.As I’ve written many times about the economy and markets, we never know where we’re going, but we ought to know where we are. The bottom line for me is that, in many ways, conditions at this moment are overwhelmingly different from – and mostly less favorable than – those of the post-GFC climate described above.  These changes may be long-lasting, or they may wear off over time.  But in my view, we’re unlikely to quickly see the same optimism and ease that marked the post-GFC period.We’ve gone from the low-return world of 2009-21 to a full-return world, and it may become more so in the near term.  Investors can now potentially get solid returns from credit instruments, meaning they no longer have to rely as heavily on riskier investments to achieve their overall return targets.  Lenders and bargain hunters face much better prospects in this changed environment than they did in 2009-21.  And importantly, if you grant that the environment is and may continue to be very different from what it was over the last 13 years – and most of the last 40 years – it should follow that the investment strategies that worked best over those periods may not be the ones that outperform in the years ahead.That’s the sea change I’m talking about.December 13, 2022Howard Stanley Marks (born April 23, 1946) is an American investor and writer. He is the co-founder and co-chairman of Oaktree Capital Management, the largest investor in distressed securities worldwide. In 2022, with a net worth of $2.2 billion, Marks was ranked No. 1365 on the Forbes list of billionaires.Marks is admired in the investment community for his \"memos\", which detail his investment strategies and insight into the economy and are posted publicly on the Oaktree website. He has also published 3 books on investing. According to Warren Buffett, \"When I see memos from Howard Marks in my mail, they're the first thing I open and read. I always learn something, and that goes double for his book.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":491,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9901386903,"gmtCreate":1659139755702,"gmtModify":1676536262483,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"A first rate analysis from a first rate mind!&nbsp;","listText":"A first rate analysis from a first rate mind!&nbsp;","text":"A first rate analysis from a first rate mind!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9901386903","repostId":"1114809450","repostType":4,"repost":{"id":"1114809450","pubTimestamp":1659108300,"share":"https://ttm.financial/m/news/1114809450?lang=&edition=fundamental","pubTime":"2022-07-29 23:25","market":"us","language":"en","title":"Alibaba Vs. JD.Com: Let's Hear The Bears Out","url":"https://stock-news.laohu8.com/highlight/detail?id=1114809450","media":"Seeking Alpha","summary":"SummaryI am a long-term Alibaba Bull, but here I will argue against my own bull thesis.My favorite C","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>I am a long-term Alibaba Bull, but here I will argue against my own bull thesis.</li><li>My favorite Charles Munger quote is not to comment on a topic until I can argue against myself better than the people on the other side.</li><li>Following this wisdom, the focus here is to address some potential risks for Alibaba that are not often discussed.</li><li>And these risks are best illustrated by comparison and contrast against JD.com.</li><li>The goal is not to dismiss these risks (they are 100% valid), but to provide a full view so both bears and bulls can all make informed decisions.</li></ul><p><b>Thesis</b></p><p>My last comparison article on Alibaba Group Holding Limited (NYSE:BABA,OTCPK:BABAF) and JD.com, Inc. (NASDAQ:JD) was co-produced with Sensor Unlimited and published back in May 2022. That article focused on the similarities and differences in their business fundamentals and the megatrend in the Asian-Pacific regions.</p><p>In this article, I want to compare them again, but from a completely different angle and for a completely different purpose. This time, I want to compare them to address many of the risks facing BABA. Some of these risks have been often mentioned by BABA bears, while some of them are less mentioned (like BABA’s profitability sustainability and platform role). All these risks are 100% valid to me. So, the point of this article is not to prove the bears to be wrong. To the contrary, their concerns are 100% valid to me. I am here to hear them out and provide my thoughts so both bulls and bears can all make informed decisions.</p><p>After all, the hallmark of a first-rate mind is the ability to hold conflicting views at the same time without losing the ability to act.</p><p>And we will start with the elephant in the room first – the risk in China.</p><p><b>Risk in China</b></p><p>The implied argument here is that the BABA thesis does not depend much on its business fundamentals. Instead, the Chinese government (or the CCP, or the VIE structure, et al) is a central part (or even all) of the thesis.</p><p>As just mentioned, it is a 100% valid argument to me, and I am not here to dismiss it or prove it wrong. I am here to provide my perspective for a full view. And I invite BABA investors or potential BABA investors to consider the following aspects.</p><p>First, I feel the argument is border-lining a political or ideological discussion. Not say political or ideological considerations are not important in investment decisions – to the contrary, they are very important. However, they are difficult to quantify. To me, investing is pretty much all about PRICING risks. It is hard to put a price tag on risks that you cannot quantify. As such, I won’t dwell more on this issue here myself. I recommend Ray Dalio’s recent book entitled “Principles for Dealing with the Changing World Order” for readers who are interested in his view on politics and ideologies. I feel he has deeper insights about China than most Chinese themselves. And, of course, he understands the West deeper than most westerners too. A few quotes from his book are provided below:</p><blockquote><ul><li><i>“I urge those of you who have not spent considerable time in China to look past the caricatured pictures that are often painted by biased parties and rid yourself of any stereotypes you might have that are based on what you thought you knew about the old “communist China” - because they are wrong.</i></li><li><i>“As an aside, I think the widespread medium distortions and the blind and the near-violent loyalties that stand in the way of the thoughtful exploration of our different perspectives are a frightening sign of our times.”</i></li></ul></blockquote><p>Second, this is where JD enters the picture. If the risk is valid, then it should apply to all other major Chinese firms too, such as BABA’s close peer JD. After all, they all operate in the same country and are governed by the same laws (or lack of laws, as many have bears argued). If BABA’s business fundamentals don’t mean much to the investment thesis, then neither should JD’s.</p><p>However, reality does not seem to confirm. The following chart shows a simple counterexample in terms of stock price actions. As you can see from the below chart, over the past year, JD suffered a total loss of around 4%, totally within the range of random fluctuations. On the other hand, BABA&#39;s stock price suffered a total loss of more than 46% in the past years.</p><p>And as you already know, JD is still trading at a healthy (or even lofty) valuation with a P/E around 35x. This leads us to the next risk associated with BABA, its profitability. And we will discuss this next.</p><p><img src=\"https://static.tigerbbs.com/32d445f99fbb8cf67372cf8ba8707ca8\" tg-width=\"640\" tg-height=\"434\" referrerpolicy=\"no-referrer\"/></p><p>Seeking Alpha</p><p><b>But BABA also has higher margins</b></p><p>The next bearish argument is that due to the regulatory changes, BABA’s good old days are gone and its profitability couldn&#39;t sustain in the future. Therefore, its valuation should be discounted correspondingly.</p><p>A very valid argument again. And moreover, this argument is indeed supported by data, as you can see from the top panel in the next chart. To net profit margin as an example, BABA’s margin has been quite stable and fluctuated in a narrow range between about 20% to 30% in the past before the tech crackdown started in 2020. Then it declined all the way to the current level of 6.4%.</p><p>But as advised by Charlie Munger, being smart is all about actively looking for disconfirming evidence, not confirming evidence. And JD’s margin, shown in the bottom panel of this chart, is an easy disconfirming evince to find. You can see JD’s net margin has declined (and in a more dramatic fashion) since 2021, it is currently in the negative (-1%), and its long-term average is nowhere near BABA’s. In terms of long-term averages, BABA’s margin of 23% is 13x higher than JD’s 1.7%. Even when we compared BABA’s current margin of 6.4% against JD’s long-term average (kind of unfair), BABA is still ahead by about 3.8x.</p><p>And this leads us yet to the next bears’ argument associated with BABA, which goes more or less like this: margins (or profitability in general) are not the whole story, and their business models are not entirely comparable. And we will address this next.</p><p><img src=\"https://static.tigerbbs.com/c68b1d15c317dd7a3a7c0e642dbbbda1\" tg-width=\"640\" tg-height=\"448\" referrerpolicy=\"no-referrer\"/></p><p>Seeking Alpha</p><p><b>Business model comparison</b></p><p>A few key differences here. First, even though BABA is better known and bigger than JD in market-cap (by almost 3x), JD’s revenues are actually larger than BABA. JD is China&#39;s largest direct retailer in terms of revenue. Second, JD relies almost exclusively on a single source of revenue while BABA is more diversified. JD&#39;s retail business represents 94% of its total sales and almost 100% of its total profits. BABA&#39;s core eCommerce operation “only” accounts for about 87% of its total sales, with the rest coming from other segments such as its cloud service.</p><p>Now, even within the e-commerce segment, they are very different. JD’s main operation is its first-party marketplace. It sells its own goods and keeps its own inventories. In contrast, BABA’s main role is to provide a platform and act as a third party. For reference, Amazon (AMZN) is more of a hybrid. Its Third-Party Sales and First-Party Sales are about an even split in recent years.</p><p>The focus of this article is not trying to argue which model (first-party, third-party, or a hybrid) is better, although that would be a fascinating topic for another article. The point is to acknowledge the bears’ point that net profit margin is not the entire picture because of the differences in business fundamentals</p><p>Or to put it differently, margins do not entirely determine profitability. Intuitively, the reasons are summarized by the following simple example used in one of our earlier articles:</p><blockquote><i>If you buy an orange today for $1 and sell it tomorrow for $1.01, your margin is a meager 1% but your ROIC (which is your true profitability) would be an astronomical 365%. There are three knobs that management can turn to drive up profitability: profit margin (“PM”), asset turnover ratio (“ATR”), and leverage. And PM is only one of the 3 knobs.</i></blockquote><p>And different business models lead to different ATR, as you can clearly see from the following chart. Because of its third-party dominant model, BABA’s ATR has been on average about 0.45x in the past five years (although note that the trend has been improving). In contrast, JD’s ATR is much higher. It has fluctuated in a range from 1.97x to about 2.46x in the past five years, with an average of 2.23x. So, because of its first-party dominant model, JD can operate its asset much more effectively than BABA, on average by about a factor of almost 5x.</p><p><img src=\"https://static.tigerbbs.com/75deb5d294785307e58c8b1e54eb6bc0\" tg-width=\"640\" tg-height=\"449\" referrerpolicy=\"no-referrer\"/></p><p>Seeking Alpha</p><p><b>True profitability comparison</b></p><p>The next chart compares their return on capital employed (“ROCE”), a comprehensive measure of profitability combining the effects of all three knobs as detailed in my free blog article here. As seen, their current ROCE is on the same order of magnitude – both are at terrific levels. They are not different by 3.8x as net margin would suggest or by 5x as asset utilization would. BABA’s ROCE currently stands at about 95%, and JD at about 85%. Both JD and BABA’s ROCEs have been in decline since 2020 while BABA’s decline is more dramatic.</p><p><img src=\"https://static.tigerbbs.com/1720d0a06becf9ad3bb5dfa46b2ff913\" tg-width=\"640\" tg-height=\"336\" referrerpolicy=\"no-referrer\"/></p><p>Author</p><p><b>Yet BABA P/E is less than ½ of JD</b></p><p>The comparable ROCE now leads me to the following valuation comparison. As you can see, despite very comparable ROCE (BABA is actually higher), BABA&#39;s valuation is less than ½ of JD by most metrics. Let me cite a few examples. BABA’s FY1 P/E of 13.8x is almost only 1/3 of JD’s 35x. Its FY2 P/E of 11.5x is less than 1/2 of JD’s 23.8x.</p><p>And next, we will see that the valuation discount is a bit less than what&#39;s on the surface because of the differences in their balance sheets.</p><p><img src=\"https://static.tigerbbs.com/f8e55787bae44c98c1e22fd8103edec6\" tg-width=\"640\" tg-height=\"566\" referrerpolicy=\"no-referrer\"/></p><p>Seeking Alpha</p><p><b>Balance sheet and adjusted P/E</b></p><p>Currently, BABA has about $72 billion of cash on its ledger and JD about $28 billion, translating into $26.8 per share for BABA and about $18.6 dollars per share for JD. Both of them also have some debt but the debt is both lower than the cash position. As a result, both carry a net cash position (a quite sizable one) on their ledger. The net cash position for BABA is about $44.5 billion and for JD about $8.3 billion.</p><p>In other words, at their current market cap ($274 billion for BABA and $96 billion for JD), about 16% of BABA’s market cap is just its cash and the percentage is about 20.8% for JD.</p><p>When we subtract the cash out of the stock price, their Pes would both become lower. For BABA, the FY1 P/E would become only 11.6x after adjusting for its cash position. And for JD, the FY1 P/E would become 27.7x, still more than 2x above BABA.</p><p><img src=\"https://static.tigerbbs.com/bec38b2bfebedfcb0394b6a639e2b5b6\" tg-width=\"640\" tg-height=\"300\" referrerpolicy=\"no-referrer\"/></p><p>Seeking Alpha</p><p><b>Final thoughts and risks</b></p><p>Even though I feel the market has gone too far in the fear direction for BABA (or not enough for JD), I think the bearish arguments are 100% valid. The common bearish concerns concerning BABA such as risk in China, profitability sustainability, and business model, are 100% valid. And I hope the comparison and contrast against its close peer JD better accentuate these concerns so we can all make better investment decisions.</p><p>Finally, besides the above risks mentioned. There are also unfolding macroscopic risks that could impact both BABA and JD. BABA has more exposure overseas and will be more sensitive to global geopolitics such as the Russian/Ukraine situation. The upside is that it’s better poised to tap into the global eCommerce movement, especially in the Asian-Pacific region. There are also macroeconomic headwinds specific to China, which would impact both BABA and JD. In the short term, China faces the challenge of balancing COVID control and economic growth. The World Bank projects its GDP growth to slow in 2022 to 4.3 percent (0.8% lower than China’s own economic update).</p><p>At the same time, China’s housing market is seeing weakening demand and dealing with sizable debt issues. A JPMorgan report estimated that the housing sector has been contributing up to 25% of its GDP when related sectors are considered in the past few years. But demand for housing is predicted to fall 47% by 2030. Such a large decline will create ripple effects throughout its entire economy.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.Com: Let's Hear The Bears Out</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.Com: Let's Hear The Bears Out\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-07-29 23:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4526927-alibaba-vs-jdcom-lets-hear-the-bears-out?source=content_type%3Aall%7Cfirst_level_url%3Aportfolio%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A41><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryI am a long-term Alibaba Bull, but here I will argue against my own bull thesis.My favorite Charles Munger quote is not to comment on a topic until I can argue against myself better than the ...</p>\n\n<a href=\"https://seekingalpha.com/article/4526927-alibaba-vs-jdcom-lets-hear-the-bears-out?source=content_type%3Aall%7Cfirst_level_url%3Aportfolio%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A41\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"JD":"京东","09988":"阿里巴巴-W","BABA":"阿里巴巴","09618":"京东集团-SW"},"source_url":"https://seekingalpha.com/article/4526927-alibaba-vs-jdcom-lets-hear-the-bears-out?source=content_type%3Aall%7Cfirst_level_url%3Aportfolio%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A41","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1114809450","content_text":"SummaryI am a long-term Alibaba Bull, but here I will argue against my own bull thesis.My favorite Charles Munger quote is not to comment on a topic until I can argue against myself better than the people on the other side.Following this wisdom, the focus here is to address some potential risks for Alibaba that are not often discussed.And these risks are best illustrated by comparison and contrast against JD.com.The goal is not to dismiss these risks (they are 100% valid), but to provide a full view so both bears and bulls can all make informed decisions.ThesisMy last comparison article on Alibaba Group Holding Limited (NYSE:BABA,OTCPK:BABAF) and JD.com, Inc. (NASDAQ:JD) was co-produced with Sensor Unlimited and published back in May 2022. That article focused on the similarities and differences in their business fundamentals and the megatrend in the Asian-Pacific regions.In this article, I want to compare them again, but from a completely different angle and for a completely different purpose. This time, I want to compare them to address many of the risks facing BABA. Some of these risks have been often mentioned by BABA bears, while some of them are less mentioned (like BABA’s profitability sustainability and platform role). All these risks are 100% valid to me. So, the point of this article is not to prove the bears to be wrong. To the contrary, their concerns are 100% valid to me. I am here to hear them out and provide my thoughts so both bulls and bears can all make informed decisions.After all, the hallmark of a first-rate mind is the ability to hold conflicting views at the same time without losing the ability to act.And we will start with the elephant in the room first – the risk in China.Risk in ChinaThe implied argument here is that the BABA thesis does not depend much on its business fundamentals. Instead, the Chinese government (or the CCP, or the VIE structure, et al) is a central part (or even all) of the thesis.As just mentioned, it is a 100% valid argument to me, and I am not here to dismiss it or prove it wrong. I am here to provide my perspective for a full view. And I invite BABA investors or potential BABA investors to consider the following aspects.First, I feel the argument is border-lining a political or ideological discussion. Not say political or ideological considerations are not important in investment decisions – to the contrary, they are very important. However, they are difficult to quantify. To me, investing is pretty much all about PRICING risks. It is hard to put a price tag on risks that you cannot quantify. As such, I won’t dwell more on this issue here myself. I recommend Ray Dalio’s recent book entitled “Principles for Dealing with the Changing World Order” for readers who are interested in his view on politics and ideologies. I feel he has deeper insights about China than most Chinese themselves. And, of course, he understands the West deeper than most westerners too. A few quotes from his book are provided below:“I urge those of you who have not spent considerable time in China to look past the caricatured pictures that are often painted by biased parties and rid yourself of any stereotypes you might have that are based on what you thought you knew about the old “communist China” - because they are wrong.“As an aside, I think the widespread medium distortions and the blind and the near-violent loyalties that stand in the way of the thoughtful exploration of our different perspectives are a frightening sign of our times.”Second, this is where JD enters the picture. If the risk is valid, then it should apply to all other major Chinese firms too, such as BABA’s close peer JD. After all, they all operate in the same country and are governed by the same laws (or lack of laws, as many have bears argued). If BABA’s business fundamentals don’t mean much to the investment thesis, then neither should JD’s.However, reality does not seem to confirm. The following chart shows a simple counterexample in terms of stock price actions. As you can see from the below chart, over the past year, JD suffered a total loss of around 4%, totally within the range of random fluctuations. On the other hand, BABA's stock price suffered a total loss of more than 46% in the past years.And as you already know, JD is still trading at a healthy (or even lofty) valuation with a P/E around 35x. This leads us to the next risk associated with BABA, its profitability. And we will discuss this next.Seeking AlphaBut BABA also has higher marginsThe next bearish argument is that due to the regulatory changes, BABA’s good old days are gone and its profitability couldn't sustain in the future. Therefore, its valuation should be discounted correspondingly.A very valid argument again. And moreover, this argument is indeed supported by data, as you can see from the top panel in the next chart. To net profit margin as an example, BABA’s margin has been quite stable and fluctuated in a narrow range between about 20% to 30% in the past before the tech crackdown started in 2020. Then it declined all the way to the current level of 6.4%.But as advised by Charlie Munger, being smart is all about actively looking for disconfirming evidence, not confirming evidence. And JD’s margin, shown in the bottom panel of this chart, is an easy disconfirming evince to find. You can see JD’s net margin has declined (and in a more dramatic fashion) since 2021, it is currently in the negative (-1%), and its long-term average is nowhere near BABA’s. In terms of long-term averages, BABA’s margin of 23% is 13x higher than JD’s 1.7%. Even when we compared BABA’s current margin of 6.4% against JD’s long-term average (kind of unfair), BABA is still ahead by about 3.8x.And this leads us yet to the next bears’ argument associated with BABA, which goes more or less like this: margins (or profitability in general) are not the whole story, and their business models are not entirely comparable. And we will address this next.Seeking AlphaBusiness model comparisonA few key differences here. First, even though BABA is better known and bigger than JD in market-cap (by almost 3x), JD’s revenues are actually larger than BABA. JD is China's largest direct retailer in terms of revenue. Second, JD relies almost exclusively on a single source of revenue while BABA is more diversified. JD's retail business represents 94% of its total sales and almost 100% of its total profits. BABA's core eCommerce operation “only” accounts for about 87% of its total sales, with the rest coming from other segments such as its cloud service.Now, even within the e-commerce segment, they are very different. JD’s main operation is its first-party marketplace. It sells its own goods and keeps its own inventories. In contrast, BABA’s main role is to provide a platform and act as a third party. For reference, Amazon (AMZN) is more of a hybrid. Its Third-Party Sales and First-Party Sales are about an even split in recent years.The focus of this article is not trying to argue which model (first-party, third-party, or a hybrid) is better, although that would be a fascinating topic for another article. The point is to acknowledge the bears’ point that net profit margin is not the entire picture because of the differences in business fundamentalsOr to put it differently, margins do not entirely determine profitability. Intuitively, the reasons are summarized by the following simple example used in one of our earlier articles:If you buy an orange today for $1 and sell it tomorrow for $1.01, your margin is a meager 1% but your ROIC (which is your true profitability) would be an astronomical 365%. There are three knobs that management can turn to drive up profitability: profit margin (“PM”), asset turnover ratio (“ATR”), and leverage. And PM is only one of the 3 knobs.And different business models lead to different ATR, as you can clearly see from the following chart. Because of its third-party dominant model, BABA’s ATR has been on average about 0.45x in the past five years (although note that the trend has been improving). In contrast, JD’s ATR is much higher. It has fluctuated in a range from 1.97x to about 2.46x in the past five years, with an average of 2.23x. So, because of its first-party dominant model, JD can operate its asset much more effectively than BABA, on average by about a factor of almost 5x.Seeking AlphaTrue profitability comparisonThe next chart compares their return on capital employed (“ROCE”), a comprehensive measure of profitability combining the effects of all three knobs as detailed in my free blog article here. As seen, their current ROCE is on the same order of magnitude – both are at terrific levels. They are not different by 3.8x as net margin would suggest or by 5x as asset utilization would. BABA’s ROCE currently stands at about 95%, and JD at about 85%. Both JD and BABA’s ROCEs have been in decline since 2020 while BABA’s decline is more dramatic.AuthorYet BABA P/E is less than ½ of JDThe comparable ROCE now leads me to the following valuation comparison. As you can see, despite very comparable ROCE (BABA is actually higher), BABA's valuation is less than ½ of JD by most metrics. Let me cite a few examples. BABA’s FY1 P/E of 13.8x is almost only 1/3 of JD’s 35x. Its FY2 P/E of 11.5x is less than 1/2 of JD’s 23.8x.And next, we will see that the valuation discount is a bit less than what's on the surface because of the differences in their balance sheets.Seeking AlphaBalance sheet and adjusted P/ECurrently, BABA has about $72 billion of cash on its ledger and JD about $28 billion, translating into $26.8 per share for BABA and about $18.6 dollars per share for JD. Both of them also have some debt but the debt is both lower than the cash position. As a result, both carry a net cash position (a quite sizable one) on their ledger. The net cash position for BABA is about $44.5 billion and for JD about $8.3 billion.In other words, at their current market cap ($274 billion for BABA and $96 billion for JD), about 16% of BABA’s market cap is just its cash and the percentage is about 20.8% for JD.When we subtract the cash out of the stock price, their Pes would both become lower. For BABA, the FY1 P/E would become only 11.6x after adjusting for its cash position. And for JD, the FY1 P/E would become 27.7x, still more than 2x above BABA.Seeking AlphaFinal thoughts and risksEven though I feel the market has gone too far in the fear direction for BABA (or not enough for JD), I think the bearish arguments are 100% valid. The common bearish concerns concerning BABA such as risk in China, profitability sustainability, and business model, are 100% valid. And I hope the comparison and contrast against its close peer JD better accentuate these concerns so we can all make better investment decisions.Finally, besides the above risks mentioned. There are also unfolding macroscopic risks that could impact both BABA and JD. BABA has more exposure overseas and will be more sensitive to global geopolitics such as the Russian/Ukraine situation. The upside is that it’s better poised to tap into the global eCommerce movement, especially in the Asian-Pacific region. There are also macroeconomic headwinds specific to China, which would impact both BABA and JD. In the short term, China faces the challenge of balancing COVID control and economic growth. The World Bank projects its GDP growth to slow in 2022 to 4.3 percent (0.8% lower than China’s own economic update).At the same time, China’s housing market is seeing weakening demand and dealing with sizable debt issues. A JPMorgan report estimated that the housing sector has been contributing up to 25% of its GDP when related sectors are considered in the past few years. But demand for housing is predicted to fall 47% by 2030. Such a large decline will create ripple effects throughout its entire economy.","news_type":1},"isVote":1,"tweetType":1,"viewCount":483,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9018574372,"gmtCreate":1649073412150,"gmtModify":1676534445061,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Looks like Elon can move anything on earth, mountains, twitter …&nbsp;","listText":"Looks like Elon can move anything on earth, mountains, twitter …&nbsp;","text":"Looks like Elon can move anything on earth, mountains, twitter …","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9018574372","repostId":"1166573354","repostType":4,"repost":{"id":"1166573354","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1649067720,"share":"https://ttm.financial/m/news/1166573354?lang=&edition=fundamental","pubTime":"2022-04-04 18:22","market":"us","language":"en","title":"Twitter Shares Soar More Than 25% after Elon Musk Takes 9% Stake in It","url":"https://stock-news.laohu8.com/highlight/detail?id=1166573354","media":"Tiger Newspress","summary":"Twitter shares soar more than 25% after Elon Musk takes 9% stake in it.Musk owns 73,486,938 shares o","content":"<html><head></head><body><p>Twitter shares soar more than 25% after Elon Musk takes 9% stake in it.<img src=\"https://static.tigerbbs.com/cd2c43c961af5ab3897095b5affaf2c9\" tg-width=\"866\" tg-height=\"875\" referrerpolicy=\"no-referrer\"/>Musk owns 73,486,938 shares of Twitter, which represents a 9.2% stake in the company, according to the Securities and Exchange Commission filing.</p><p>The stake is worth more than $2.8 billion, based Twitter’s closing price on Friday.</p><p>Musk is a frequent user of Twitter and has more than 80 million followers on the platform. However, some of his tweets have gotten the Tesla chief into hot water over the years.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Twitter Shares Soar More Than 25% after Elon Musk Takes 9% Stake in It</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTwitter Shares Soar More Than 25% after Elon Musk Takes 9% Stake in It\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2022-04-04 18:22</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Twitter shares soar more than 25% after Elon Musk takes 9% stake in it.<img src=\"https://static.tigerbbs.com/cd2c43c961af5ab3897095b5affaf2c9\" tg-width=\"866\" tg-height=\"875\" referrerpolicy=\"no-referrer\"/>Musk owns 73,486,938 shares of Twitter, which represents a 9.2% stake in the company, according to the Securities and Exchange Commission filing.</p><p>The stake is worth more than $2.8 billion, based Twitter’s closing price on Friday.</p><p>Musk is a frequent user of Twitter and has more than 80 million followers on the platform. However, some of his tweets have gotten the Tesla chief into hot water over the years.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1166573354","content_text":"Twitter shares soar more than 25% after Elon Musk takes 9% stake in it.Musk owns 73,486,938 shares of Twitter, which represents a 9.2% stake in the company, according to the Securities and Exchange Commission filing.The stake is worth more than $2.8 billion, based Twitter’s closing price on Friday.Musk is a frequent user of Twitter and has more than 80 million followers on the platform. However, some of his tweets have gotten the Tesla chief into hot water over the years.","news_type":1},"isVote":1,"tweetType":1,"viewCount":604,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9008629692,"gmtCreate":1641433770768,"gmtModify":1676533615065,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"The descent of ARK will continue. Time to buySARK now?&nbsp;","listText":"The descent of ARK will continue. Time to buySARK now?&nbsp;","text":"The descent of ARK will continue. Time to buySARK now?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9008629692","repostId":"1100831214","repostType":4,"repost":{"id":"1100831214","pubTimestamp":1641432481,"share":"https://ttm.financial/m/news/1100831214?lang=&edition=fundamental","pubTime":"2022-01-06 09:28","market":"us","language":"en","title":"Cathie Wood’s ARK ETFs Are in a Deep Hole—Already","url":"https://stock-news.laohu8.com/highlight/detail?id=1100831214","media":"Barrons","summary":"The new year did not bring a fresh start for Cathie Wood’s ARK Invest, a fund company known for its ","content":"<html><head></head><body><p>The new year did not bring a fresh start for Cathie Wood’s ARK Invest, a fund company known for its focus on innovation stocks and high price targets.</p><p>The firm’s flagship ARK Innovation exchange-traded fund (ARKK) plunged 7.1% in Wednesday trading, marking its worst day since Sept 3, 2020. All of ARK’s other ETFs, including the latest ARK Transparency ETF (CTRU) launched just last December, are also deep in the negative territory.</p><p>Growth stocks fell on Wednesday after the latest minutes from the Federal Reserve’s December policy meeting was released, suggesting that the central bank’s rate increases might be earlier and faster than market has expected.</p><p>Investors were spooked as Fed Chairman Jerome Powell shifted his tone to emphasize the risks of inflation—after months of describing the rising prices as “transitory”—as a new Covid-19 variant is rampaging across the country and causing supply-chain disruptions.</p><p>The S&amp;P 500 lost 2% in the last two hours of Wednesday’s trading, growth stocks within the index tumbled 3%, and the tech-heavy Nasdaq Composite dropped 3.3%.</p><p>But the ARK ETFs are some of the worst-performing funds amid Wednesday’s decline. Besides ARK Innovation, the ARK Genomic Revolution ETF (ARKG) is down 7.1%, the ARK Fintech Innovation ETF (ARKF) dropped 6.6%, and the ARK Next Generation Internet ETF (ARKW) fell by 6.2%. Other groups of growth stocks, such as blockchain, cannabis, clean energy, and technology, are also in deep red.</p><p>Wednesday’s loss was just the latest stretch of ARK funds’ year-long struggle. ARK ETFs were some of the best-performing funds in 2020, soaring an average of 150% as the pandemic accelerated the adoption of many emerging platforms and technologies that companies in its portfolios own.</p><p>Since peaking in February 2021, however, the funds have been tumbling downhill, shedding much of their gains from the year before. Rising inflation has made the future cash flow of growth-oriented innovation firms less valuable today, and investors were seeking returns from safer corners such as the cheaply-traded cyclical stocks.</p><p>With the Fed’s hawkish pivot, it looks like volatility in growth stocks and ARK funds will continue. But if inflation can be somewhat contained following the Fed’s tightening policy in 2022, innovation stocks might embrace some rebound—though that won’t be any time soon.</p></body></html>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cathie Wood’s ARK ETFs Are in a Deep Hole—Already</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCathie Wood’s ARK ETFs Are in a Deep Hole—Already\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-06 09:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/ark-etf-funds-performance-51641424042?mod=hp_LATEST><strong>Barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The new year did not bring a fresh start for Cathie Wood’s ARK Invest, a fund company known for its focus on innovation stocks and high price targets.The firm’s flagship ARK Innovation exchange-traded...</p>\n\n<a href=\"https://www.barrons.com/articles/ark-etf-funds-performance-51641424042?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"ARKF":"ARK Fintech Innovation ETF","ARKG":"ARK Genomic Revolution ETF","ARKK":"ARK Innovation ETF","ARKO":"ARKO Corp","ARKQ":"ARK Autonomous Technology & Robotics ETF"},"source_url":"https://www.barrons.com/articles/ark-etf-funds-performance-51641424042?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1100831214","content_text":"The new year did not bring a fresh start for Cathie Wood’s ARK Invest, a fund company known for its focus on innovation stocks and high price targets.The firm’s flagship ARK Innovation exchange-traded fund (ARKK) plunged 7.1% in Wednesday trading, marking its worst day since Sept 3, 2020. All of ARK’s other ETFs, including the latest ARK Transparency ETF (CTRU) launched just last December, are also deep in the negative territory.Growth stocks fell on Wednesday after the latest minutes from the Federal Reserve’s December policy meeting was released, suggesting that the central bank’s rate increases might be earlier and faster than market has expected.Investors were spooked as Fed Chairman Jerome Powell shifted his tone to emphasize the risks of inflation—after months of describing the rising prices as “transitory”—as a new Covid-19 variant is rampaging across the country and causing supply-chain disruptions.The S&P 500 lost 2% in the last two hours of Wednesday’s trading, growth stocks within the index tumbled 3%, and the tech-heavy Nasdaq Composite dropped 3.3%.But the ARK ETFs are some of the worst-performing funds amid Wednesday’s decline. Besides ARK Innovation, the ARK Genomic Revolution ETF (ARKG) is down 7.1%, the ARK Fintech Innovation ETF (ARKF) dropped 6.6%, and the ARK Next Generation Internet ETF (ARKW) fell by 6.2%. Other groups of growth stocks, such as blockchain, cannabis, clean energy, and technology, are also in deep red.Wednesday’s loss was just the latest stretch of ARK funds’ year-long struggle. ARK ETFs were some of the best-performing funds in 2020, soaring an average of 150% as the pandemic accelerated the adoption of many emerging platforms and technologies that companies in its portfolios own.Since peaking in February 2021, however, the funds have been tumbling downhill, shedding much of their gains from the year before. Rising inflation has made the future cash flow of growth-oriented innovation firms less valuable today, and investors were seeking returns from safer corners such as the cheaply-traded cyclical stocks.With the Fed’s hawkish pivot, it looks like volatility in growth stocks and ARK funds will continue. But if inflation can be somewhat contained following the Fed’s tightening policy in 2022, innovation stocks might embrace some rebound—though that won’t be any time soon.","news_type":1},"isVote":1,"tweetType":1,"viewCount":504,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":883450672,"gmtCreate":1631265614896,"gmtModify":1676530513539,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Apple maybe. PayPal? Not so sure.&nbsp;","listText":"Apple maybe. PayPal? Not so sure.&nbsp;","text":"Apple maybe. PayPal? Not so sure.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/883450672","repostId":"2166120346","repostType":4,"repost":{"id":"2166120346","pubTimestamp":1631240205,"share":"https://ttm.financial/m/news/2166120346?lang=&edition=fundamental","pubTime":"2021-09-10 10:16","market":"us","language":"en","title":"2 Top Growth Stocks to Buy Right Now and Hold for the Long Term","url":"https://stock-news.laohu8.com/highlight/detail?id=2166120346","media":"Motley Fool","summary":"Apple and PayPal have delivered years of big gains for their shareholders, and their growth stories are far from over.","content":"<p>Some investors are growing concerned about the state of the economy, inflation, and the direction the stock market might go next. Regardless of what happens in the near term, though, successful investing is about buying shares in strong companies and sticking with them for many years.</p>\n<p><a href=\"https://laohu8.com/S/TWOA.U\">Two</a> top growth stocks that are poised to deliver market-beating returns over the next decade or more are <b>Apple</b>&nbsp;(NASDAQ:AAPL) and <b><a href=\"https://laohu8.com/S/PYPL\">PayPal</a></b> (NASDAQ:PYPL). Here are the key factors that should fuel their prospects for a long time.</p>\n<p class=\"t-img-caption\"><img src=\"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F642221%2Fhappy_ipad_user.jpg&amp;w=700&amp;op=resize\" tg-width=\"700\" tg-height=\"467\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>Apple</h2>\n<p>Apple has all the qualities that long-term investors should look for in a stock. It has a loyal base of customers making use of 1.65 billion active Apple devices. It generates loads of cash -- $95 billion in free cash flow over the last four quarters alone. Above all, it has tremendous brand power combined with a very sticky ecosystem of services.</p>\n<p>Smartphone rival Samsung just launched its latest round of foldable phones -- the Galaxy Z Fold 3 and Galaxy Z Flip 3 -- and they've received good reviews. Apple still hasn't unveiled a competing offering, but it's always late to the party when it comes to adopting the latest technologies. Yet its customer satisfaction rates remain high, driving a record $347 billion in total spending on products and services over the last year.</p>\n<p>What keeps Apple users from jumping ship to competitors' products is the software experience. Its ever-growing suite of services, accessories, and features forms a wide competitive moat. Services revenue increased 28% year over year through the first three quarters of fiscal 2021. Sales of wearables and accessories, including the Apple Watch, grew 30%. The array of apps and features like Handoff, which allows a user to switch seamlessly from an app on an iOS device to a Mac, makes Apple's devices work better together, which gives customers an extra incentive to just stick with the company for all of their tech needs.</p>\n<p>It's no surprise that Apple continues to report strong growth for non-iPhone products. Mac sales surged 16% year over year in the most recent quarter. Moreover, the new M1-based Macs, featuring Apple's new internally developed processor, position the company to squeeze extra profit out of its computer business since the M1 chip is estimated to cost Apple less than the <b>Intel</b> chips it previously used.</p>\n<p>As for iPhones, consumers are getting more interested in upgrading to 5G devices, which is expected to make the launch of the iPhone 13 a big <a href=\"https://laohu8.com/S/AONE.U\">one</a>. The prospect of a strong upgrade cycle to 5G devices, combined with the continued growth of its higher-margin services business, makes Apple a solid investment.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3e10ab183314b301aeed89ba7c4e8015\" tg-width=\"700\" tg-height=\"465\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>PayPal</h2>\n<p>PayPal has delivered many years of consistent growth, previously as part of <b><a href=\"https://laohu8.com/S/EBAY\">eBay</a></b> and now as an independent company, but the pandemic has accelerated the trend away from cash and toward digital payments. A <b>Mastercard</b> survey found that 71% of consumers expect to use cash for transactions less often in the future, which plays right into the hands of PayPal.</p>\n<p>The digital payments provider's customer engagement has steadily climbed in recent years and should continue to do so. Since the end of 2017, transactions per account have climbed from 33.6 on a trailing-12-month basis to 43.5 as of the second quarter of 2021. This means the average customer still uses their PayPal account less than once per week, but there are good reasons to expect this metric to continue rising.</p>\n<p>Recent introductions of a cryptocurrency trading feature and a buy-now, pay-later option, plus the potential for adding the ability to trade stocks from within the app, could significantly grow engagement across PayPal's 403 million active accounts.</p>\n<p>This growing array of services and features has a direct correlation with PayPal's rising revenue. For example, it has seen a 19% increase in total payment volume from customers who use its QR codes to check out at stores.</p>\n<p>The company has experienced phenomenal growth, and the stock delivered a massive return of 640% over the last five years. Its revenue also more than doubled, and that is with customers still using their accounts less than once per week on average. PayPal could grow enormously from here if engagement strengthens, which is management's goal.&nbsp;For these reasons, this growth stock&nbsp;should remain a rewarding investment for years to come.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>2 Top Growth Stocks to Buy Right Now and Hold for the Long Term</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n2 Top Growth Stocks to Buy Right Now and Hold for the Long Term\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-10 10:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/09/09/2-top-growth-stocks-to-buy-and-hold-for-long-term/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Some investors are growing concerned about the state of the economy, inflation, and the direction the stock market might go next. Regardless of what happens in the near term, though, successful ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/09/09/2-top-growth-stocks-to-buy-and-hold-for-long-term/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PYPL":"PayPal","AAPL":"苹果"},"source_url":"https://www.fool.com/investing/2021/09/09/2-top-growth-stocks-to-buy-and-hold-for-long-term/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2166120346","content_text":"Some investors are growing concerned about the state of the economy, inflation, and the direction the stock market might go next. Regardless of what happens in the near term, though, successful investing is about buying shares in strong companies and sticking with them for many years.\nTwo top growth stocks that are poised to deliver market-beating returns over the next decade or more are Apple (NASDAQ:AAPL) and PayPal (NASDAQ:PYPL). Here are the key factors that should fuel their prospects for a long time.\nImage source: Getty Images.\nApple\nApple has all the qualities that long-term investors should look for in a stock. It has a loyal base of customers making use of 1.65 billion active Apple devices. It generates loads of cash -- $95 billion in free cash flow over the last four quarters alone. Above all, it has tremendous brand power combined with a very sticky ecosystem of services.\nSmartphone rival Samsung just launched its latest round of foldable phones -- the Galaxy Z Fold 3 and Galaxy Z Flip 3 -- and they've received good reviews. Apple still hasn't unveiled a competing offering, but it's always late to the party when it comes to adopting the latest technologies. Yet its customer satisfaction rates remain high, driving a record $347 billion in total spending on products and services over the last year.\nWhat keeps Apple users from jumping ship to competitors' products is the software experience. Its ever-growing suite of services, accessories, and features forms a wide competitive moat. Services revenue increased 28% year over year through the first three quarters of fiscal 2021. Sales of wearables and accessories, including the Apple Watch, grew 30%. The array of apps and features like Handoff, which allows a user to switch seamlessly from an app on an iOS device to a Mac, makes Apple's devices work better together, which gives customers an extra incentive to just stick with the company for all of their tech needs.\nIt's no surprise that Apple continues to report strong growth for non-iPhone products. Mac sales surged 16% year over year in the most recent quarter. Moreover, the new M1-based Macs, featuring Apple's new internally developed processor, position the company to squeeze extra profit out of its computer business since the M1 chip is estimated to cost Apple less than the Intel chips it previously used.\nAs for iPhones, consumers are getting more interested in upgrading to 5G devices, which is expected to make the launch of the iPhone 13 a big one. The prospect of a strong upgrade cycle to 5G devices, combined with the continued growth of its higher-margin services business, makes Apple a solid investment.\nImage source: Getty Images.\nPayPal\nPayPal has delivered many years of consistent growth, previously as part of eBay and now as an independent company, but the pandemic has accelerated the trend away from cash and toward digital payments. A Mastercard survey found that 71% of consumers expect to use cash for transactions less often in the future, which plays right into the hands of PayPal.\nThe digital payments provider's customer engagement has steadily climbed in recent years and should continue to do so. Since the end of 2017, transactions per account have climbed from 33.6 on a trailing-12-month basis to 43.5 as of the second quarter of 2021. This means the average customer still uses their PayPal account less than once per week, but there are good reasons to expect this metric to continue rising.\nRecent introductions of a cryptocurrency trading feature and a buy-now, pay-later option, plus the potential for adding the ability to trade stocks from within the app, could significantly grow engagement across PayPal's 403 million active accounts.\nThis growing array of services and features has a direct correlation with PayPal's rising revenue. For example, it has seen a 19% increase in total payment volume from customers who use its QR codes to check out at stores.\nThe company has experienced phenomenal growth, and the stock delivered a massive return of 640% over the last five years. Its revenue also more than doubled, and that is with customers still using their accounts less than once per week on average. PayPal could grow enormously from here if engagement strengthens, which is management's goal. For these reasons, this growth stock should remain a rewarding investment for years to come.","news_type":1},"isVote":1,"tweetType":1,"viewCount":297,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":883427546,"gmtCreate":1631265538385,"gmtModify":1676530513531,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"I am Tiger! Hear me Roarrrr. By far the easiestand most informative platform. Better, cheaper, and more efficient than ifast or the local banks’ trading platform. Well done Tiger!&nbsp;","listText":"I am Tiger! Hear me Roarrrr. By far the easiestand most informative platform. Better, cheaper, and more efficient than ifast or the local banks’ trading platform. Well done Tiger!&nbsp;","text":"I am Tiger! Hear me Roarrrr. By far the easiestand most informative platform. Better, cheaper, and more efficient than ifast or the local banks’ trading platform. Well done Tiger!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/883427546","repostId":"1108076835","repostType":4,"repost":{"id":"1108076835","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1631260909,"share":"https://ttm.financial/m/news/1108076835?lang=&edition=fundamental","pubTime":"2021-09-10 16:01","market":"us","language":"en","title":"UP Fintech Reports More Than 60% of Newly Funded Accounts Acquired From International Markets","url":"https://stock-news.laohu8.com/highlight/detail?id=1108076835","media":"Tiger Newspress","summary":"$Leading$ online brokerage firm, UP Fintech Holding Limited  , today reported revenues of US$60.2 million for the second quarter ended June 30, 2021 compared to revenue of US$30.3 million in the second quarter of 2020. Notably, more than 60% of the Company’s newly funded accounts were derived from international markets in the quarter. Growth was driven by enhanced platform capabilities and rising demand for convenient access to global brokerage services.UP Fintech Holding Limited Reports Unaudit","content":"<p><a href=\"https://laohu8.com/S/LBIX\">Leading</a> online brokerage firm, UP Fintech Holding Limited (<a href=\"https://laohu8.com/S/NDAQ\">Nasdaq</a>: TIGR) (“UP Fintech” or the “Company”), today reported revenues of US$60.2 million for the second quarter ended June 30, 2021 compared to revenue of US$30.3 million in the second quarter of 2020. Notably, more than 60% of the Company’s newly funded accounts were derived from international markets in the quarter. Growth was driven by enhanced platform capabilities and rising demand for convenient access to global brokerage services.</p>\n<p><a href=\"https://ir.itiger.com/news-releases/news-release-details/fintech-holding-limited-reports-unaudited-second-quarter-2021\" target=\"_blank\"><b>UP Fintech Holding Limited Reports Unaudited Second Quarter 2021 Financial Results</b></a></p>\n<p>“We maintained our solid business momentum with a high client retention rate and increased operational synergies, ”commented Mr. Wu Tianhua, founder and CEO of UP Fintech. “I am confident in the positive outlook for our Company and our industry. Our singular focus is to employ technology to make investing more efficient and we are committed to increasing the breadth and diversity of our product offerings, as well as leveraging our leading position in underwriting and ESOP (Employee Share Ownership Plans) to attract new clients.”</p>\n<p>During the second quarter, the total number of funded accounts increased to 529,100. The Company added more funded accounts in the first six months of 2021 than it did in its entire cumulative operating history. The total account balance increased 188.9% year-over-year to US$23.9 billion as the Company continued to attract new clients from multiple international markets. In Singapore, UP Fintech’s local subsidiary, <a href=\"https://laohu8.com/S/TIGR\">Tiger Brokers</a> (Singapore) Pte. Ltd., launched new products and in-APP functions such as an industry heatmap, Mini USD/CNH futures, and OSE futures, supplementing the wide range of analytical tools and securities trading functions available on the Company’s platform.</p>\n<p>The Company also recently announced that it has received approval-in-principle to be admitted as a Clearing Member of The Central Depository (Pte) Limited (CDP), and a trading member of Singapore Exchange Securities Trading Limited (SGX) and Singapore Exchange Derivatives Trading Limited. These partnerships aim to improve the user experience and further strengthen the Company’s presence in the Singaporean market.</p>\n<p>The Company’s ESOP business continued to exhibit healthy growth with 51 new clients, up from 41 new clients in the previous quarter；ESOP adoption is accelerating and in the first six months of 2021 the Company added more new clients than it did in all of 2020. The Company is a leader in providing extensive expertise and guidance for start-ups at every stage of their ESOP from initial establishment through to execution and reporting. In addition, the Company is now offering its ESOP service to A-Share companies, further expanding its prospective client base.</p>\n<p>The Company served as an underwriter or member of the selling group in 17 IPOs, and in total provided subscriptions to 29 IPOs, including several high profile Hong Kong IPOs such as those of Angelalign (HK:6699) and Nayuki (HK:2150). In addition, The Company completed its own follow-on offering of 6.5 million <a href=\"https://laohu8.com/S/AFG\">American</a> Depository Shares in the second quarter and even&nbsp;offered retail investors the opportunity to subscribe through its flagship mobile trading APP, Tiger Trade.</p>\n<p>“While the market will have its ups and downs and competition will remain intense, our innovative platform and technology have been built to create long term value for our clients,” Wu stated. “User experience has always been our top priority and we see significant room for growth as we continue to broaden our global footprint in the near-term.”</p>\n<p></p>\n<p>Safe Harbor Statement</p>\n<p>This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other statements, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. <a href=\"https://laohu8.com/S/FORD\">Forward</a>-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; trends and competition in global financial markets; the effects of the global COVID-19 pandemic; and governmental policies relating to the Company’s industry and general economic conditions in <a href=\"https://laohu8.com/S/CAAS\">China</a> and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.</p>\n<p></p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>UP Fintech Reports More Than 60% of Newly Funded Accounts Acquired From International Markets</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUP Fintech Reports More Than 60% of Newly Funded Accounts Acquired From International Markets\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-09-10 16:01</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p><a href=\"https://laohu8.com/S/LBIX\">Leading</a> online brokerage firm, UP Fintech Holding Limited (<a href=\"https://laohu8.com/S/NDAQ\">Nasdaq</a>: TIGR) (“UP Fintech” or the “Company”), today reported revenues of US$60.2 million for the second quarter ended June 30, 2021 compared to revenue of US$30.3 million in the second quarter of 2020. Notably, more than 60% of the Company’s newly funded accounts were derived from international markets in the quarter. Growth was driven by enhanced platform capabilities and rising demand for convenient access to global brokerage services.</p>\n<p><a href=\"https://ir.itiger.com/news-releases/news-release-details/fintech-holding-limited-reports-unaudited-second-quarter-2021\" target=\"_blank\"><b>UP Fintech Holding Limited Reports Unaudited Second Quarter 2021 Financial Results</b></a></p>\n<p>“We maintained our solid business momentum with a high client retention rate and increased operational synergies, ”commented Mr. Wu Tianhua, founder and CEO of UP Fintech. “I am confident in the positive outlook for our Company and our industry. Our singular focus is to employ technology to make investing more efficient and we are committed to increasing the breadth and diversity of our product offerings, as well as leveraging our leading position in underwriting and ESOP (Employee Share Ownership Plans) to attract new clients.”</p>\n<p>During the second quarter, the total number of funded accounts increased to 529,100. The Company added more funded accounts in the first six months of 2021 than it did in its entire cumulative operating history. The total account balance increased 188.9% year-over-year to US$23.9 billion as the Company continued to attract new clients from multiple international markets. In Singapore, UP Fintech’s local subsidiary, <a href=\"https://laohu8.com/S/TIGR\">Tiger Brokers</a> (Singapore) Pte. Ltd., launched new products and in-APP functions such as an industry heatmap, Mini USD/CNH futures, and OSE futures, supplementing the wide range of analytical tools and securities trading functions available on the Company’s platform.</p>\n<p>The Company also recently announced that it has received approval-in-principle to be admitted as a Clearing Member of The Central Depository (Pte) Limited (CDP), and a trading member of Singapore Exchange Securities Trading Limited (SGX) and Singapore Exchange Derivatives Trading Limited. These partnerships aim to improve the user experience and further strengthen the Company’s presence in the Singaporean market.</p>\n<p>The Company’s ESOP business continued to exhibit healthy growth with 51 new clients, up from 41 new clients in the previous quarter；ESOP adoption is accelerating and in the first six months of 2021 the Company added more new clients than it did in all of 2020. The Company is a leader in providing extensive expertise and guidance for start-ups at every stage of their ESOP from initial establishment through to execution and reporting. In addition, the Company is now offering its ESOP service to A-Share companies, further expanding its prospective client base.</p>\n<p>The Company served as an underwriter or member of the selling group in 17 IPOs, and in total provided subscriptions to 29 IPOs, including several high profile Hong Kong IPOs such as those of Angelalign (HK:6699) and Nayuki (HK:2150). In addition, The Company completed its own follow-on offering of 6.5 million <a href=\"https://laohu8.com/S/AFG\">American</a> Depository Shares in the second quarter and even&nbsp;offered retail investors the opportunity to subscribe through its flagship mobile trading APP, Tiger Trade.</p>\n<p>“While the market will have its ups and downs and competition will remain intense, our innovative platform and technology have been built to create long term value for our clients,” Wu stated. “User experience has always been our top priority and we see significant room for growth as we continue to broaden our global footprint in the near-term.”</p>\n<p></p>\n<p>Safe Harbor Statement</p>\n<p>This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other statements, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. <a href=\"https://laohu8.com/S/FORD\">Forward</a>-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; trends and competition in global financial markets; the effects of the global COVID-19 pandemic; and governmental policies relating to the Company’s industry and general economic conditions in <a href=\"https://laohu8.com/S/CAAS\">China</a> and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.</p>\n<p></p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TIGR":"老虎证券"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1108076835","content_text":"Leading online brokerage firm, UP Fintech Holding Limited (Nasdaq: TIGR) (“UP Fintech” or the “Company”), today reported revenues of US$60.2 million for the second quarter ended June 30, 2021 compared to revenue of US$30.3 million in the second quarter of 2020. Notably, more than 60% of the Company’s newly funded accounts were derived from international markets in the quarter. Growth was driven by enhanced platform capabilities and rising demand for convenient access to global brokerage services.\nUP Fintech Holding Limited Reports Unaudited Second Quarter 2021 Financial Results\n“We maintained our solid business momentum with a high client retention rate and increased operational synergies, ”commented Mr. Wu Tianhua, founder and CEO of UP Fintech. “I am confident in the positive outlook for our Company and our industry. Our singular focus is to employ technology to make investing more efficient and we are committed to increasing the breadth and diversity of our product offerings, as well as leveraging our leading position in underwriting and ESOP (Employee Share Ownership Plans) to attract new clients.”\nDuring the second quarter, the total number of funded accounts increased to 529,100. The Company added more funded accounts in the first six months of 2021 than it did in its entire cumulative operating history. The total account balance increased 188.9% year-over-year to US$23.9 billion as the Company continued to attract new clients from multiple international markets. In Singapore, UP Fintech’s local subsidiary, Tiger Brokers (Singapore) Pte. Ltd., launched new products and in-APP functions such as an industry heatmap, Mini USD/CNH futures, and OSE futures, supplementing the wide range of analytical tools and securities trading functions available on the Company’s platform.\nThe Company also recently announced that it has received approval-in-principle to be admitted as a Clearing Member of The Central Depository (Pte) Limited (CDP), and a trading member of Singapore Exchange Securities Trading Limited (SGX) and Singapore Exchange Derivatives Trading Limited. These partnerships aim to improve the user experience and further strengthen the Company’s presence in the Singaporean market.\nThe Company’s ESOP business continued to exhibit healthy growth with 51 new clients, up from 41 new clients in the previous quarter；ESOP adoption is accelerating and in the first six months of 2021 the Company added more new clients than it did in all of 2020. The Company is a leader in providing extensive expertise and guidance for start-ups at every stage of their ESOP from initial establishment through to execution and reporting. In addition, the Company is now offering its ESOP service to A-Share companies, further expanding its prospective client base.\nThe Company served as an underwriter or member of the selling group in 17 IPOs, and in total provided subscriptions to 29 IPOs, including several high profile Hong Kong IPOs such as those of Angelalign (HK:6699) and Nayuki (HK:2150). In addition, The Company completed its own follow-on offering of 6.5 million American Depository Shares in the second quarter and even offered retail investors the opportunity to subscribe through its flagship mobile trading APP, Tiger Trade.\n“While the market will have its ups and downs and competition will remain intense, our innovative platform and technology have been built to create long term value for our clients,” Wu stated. “User experience has always been our top priority and we see significant room for growth as we continue to broaden our global footprint in the near-term.”\n\nSafe Harbor Statement\nThis announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other statements, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; trends and competition in global financial markets; the effects of the global COVID-19 pandemic; and governmental policies relating to the Company’s industry and general economic conditions in China and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.","news_type":1},"isVote":1,"tweetType":1,"viewCount":329,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":813058431,"gmtCreate":1630115963823,"gmtModify":1676530228321,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Interesting story. Bernard Ebbers was like the Emperor without clothes. A lesson there for allleaders of industry.&nbsp;","listText":"Interesting story. Bernard Ebbers was like the Emperor without clothes. A lesson there for allleaders of industry.&nbsp;","text":"Interesting story. Bernard Ebbers was like the Emperor without clothes. A lesson there for allleaders of industry.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":11,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/813058431","repostId":"1184130616","repostType":4,"repost":{"id":"1184130616","pubTimestamp":1630111537,"share":"https://ttm.financial/m/news/1184130616?lang=&edition=fundamental","pubTime":"2021-08-28 08:45","market":"us","language":"en","title":"Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers","url":"https://stock-news.laohu8.com/highlight/detail?id=1184130616","media":"Benzinga","summary":"Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the head","content":"<p><i>Does crime pay?</i></p>\n<p>Among the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,<b>Bernard Ebbers</b>physically stood out from his peers — the 6-foot-4 head of WorldCom was dubbed the “telecom cowboy” thanks to his sartorial preference for jeans, cowboy boots and a 10-gallon hat.</p>\n<p>Ebbers also stood out from his peers for tightly holding on to Luddite practices as the digital age dawned. He famously refused to communicate with his workforce via email. Even worse, he stood out thanks to a prickly personality that quickly seethed when confronted with unpleasant news. A 2002 profile in The Economist defined him as “parochial, stubborn, preoccupied with penny-pinching … a difficult man to work for.”</p>\n<p><b>But ultimately, Ebbers stood out for being at the center of what was (at the time) the largest accounting fraud in U.S. history, which was followed by the harshest prison sentence ever imposed on a corporate executive for financial crimes.</b></p>\n<p><b>A Man In Search Of Himself:</b>&nbsp;Bernard John Ebbers was born Aug. 27, 1941, in Edmonton, Alberta, the second of five children. His father John was a traveling salesman and his peripatetic profession brought the family down from Canada into California, where he jettisoned his sales work and became an auto mechanic. The family later relocated to Gallup, New Mexico, where Ebbers’ parents became teachers on the Navajo Nation Indian reservation.</p>\n<p>The Ebbers clan was back in Canada when Ebbers was a teenager and Bernie (as he was commonly known) came into adulthood unable to determine a course for his life. He&nbsp;attended Canada’s University of Alberta and Michigan’s Calvin College before accepting a basketball scholarship to Mississippi College. But he was the victim of a robbery prior to his senior year that left him seriously injured and switched his attention from playing to coaching the junior varsity team.</p>\n<p>Ebbers graduated in 1967 majoring in physical education and minoring in secondary education. He supported himself during his college years by taking on a variety of odd jobs including a bouncer and milk delivery driver. He married his college sweetheart,<b>Linda Pigott,</b>after graduating and landed work teaching science to middle-school students while coaching high school basketball.</p>\n<p>But Ebbers didn’t stay very long in the school system. When his wife received a job offer as a teacher in another Mississippi town, the couple relocated and he found work managing a garment factory warehouse. By 1974, he tired of working for others and responded to a newspaper advertisement seeking a buyer for a motel in Columbia, Mississippi.</p>\n<p>Ebbers’ approach to running a hospitality establishment sometimes bordered on the eccentric.&nbsp;He would distribute bathroom towels at the front desk and require guests to return them to avoid being charged for taking them. Nonetheless, he found a niche in hospitality management and by the early 1980s he owned and operated eight motels within Mississippi and Texas; he also picked up a car dealership that also proved profitable.</p>\n<p><b>Calling Out Around The World:</b>Ebbers might have remained in the Mississippi hospitality industry had it not been for the 1982 breakup of<b>AT&amp;T Inc.'s</b>&nbsp;T 0.41%monopoly on the U.S. telephone system. This created a seismic shift in the telecommunications world by enabling other companies to begin reselling long-distance telephone services.</p>\n<p>In 1983, Ebbers and three friends met at a diner in Hattiesburg, Mississippi, to consider the feasibility of pursuing this newly opened opportunity. Ebbers theorized that having control of his long-distance calling services could benefit his motel business. In the days before mobile phones, guests in lodging establishments in need of long-distance calling would either have to feed handfuls of quarters into payphones or make calls from their rooms, which usually came with extra fees.</p>\n<p>Ebbers and his pals decided to get into the telecommunications business with&nbsp;<b>Long Distance Discount Services,</b>&nbsp;which they established in 1985 with headquarters in Jackson, Mississippi, with Ebbers as CEO.</p>\n<p><b>Carl J. Aycock,</b>a Mississippi financial advisor who was among the early investors in LDDS, would later laugh at the unlikelihood of Ebbers running a telecom company.</p>\n<p>“The only experience Bernie had before operating a long-distance company was he used the phone,” Aycock quipped in a 1997 interview.</p>\n<p>Maybe Ebbers did not possess an encyclopedic knowledge of telecommunications technology, but the good fortune he enjoyed in the motel business transitioned to this unlikely setting. Within four years of its launch, LDDS was being publicly traded.</p>\n<p>Within 10 years of its opening, LDDS took on an almost Pac Man-style persona of gobbling up telecom firms in&nbsp;sight of the company, acquiring more than 60 different telecommunications company. By 1995, the company renamed itself LDDS WorldCom.</p>\n<p>Many of the company’s acquisitions were on the small side, and the company was never considered a major player in the telecom industry until its $720 million acquisition of&nbsp;<b>Advanced Telecommunications Corporation</b>&nbsp;in 1992.</p>\n<p>The unlikely acquisition came with Ebbers’ ability to outbid industry titans AT&amp;T and&nbsp;<b>Sprint Corporation,</b>both considerably larger players in this field.</p>\n<p>The one unfortunate development during this time was the end of Ebbers’ marriage in 1997. He remarried in 1999 to&nbsp;<b>Kristie Webb.</b></p>\n<p>In February 1998, Ebbers’ company launched its acquisition plans for&nbsp;<b>CompuServe</b>&nbsp;from&nbsp;<b>H&amp;R Block Inc</b>.</p>\n<p>This transaction was followed by an astonishing spin of assets: LDDS sold the CompuServe Information Service portion of its acquisition to<b>America Online,</b>while retaining the CompuServe Network Services portion of the business. AOL simultaneously sold LDDS WorldCom its networking division, Advanced Network Services.</p>\n<p>In September 1998, LDDS WorldCom sealed a $37 billion union with&nbsp;<b>MCI Communications,</b>which created the largest corporate merger in U.S. history. The combined entity became MCI WorldCom, and for Ebbers it seemed that the sky was the limit —&nbsp;except that Ebbers’ ability to soar in the corporate skies resulted in an Icarus-worthy predicament.</p>\n<p><b>A Little Out Of Touch:</b>One year after the CompuServe and MCI deals, Ebbers’ company boasted an 80,000-person workforce, a market capitalization of roughly $185 billion and its shares were trading at a peak of nearly $62.</p>\n<p>At the peak of the company’s success, Ebbers granted an interview to The New York Times aboard his 130-yacht, which he berthed in the resort town of Hilton Head, South Carolina. He claimed that the secret of his success was “not as complicated as people make it out to be,” adding that he surrounded himself with experts who advised him on which moves to make.</p>\n<p>“I’m not an engineer by training,” he said. “I’m not an accountant by training. I’m the coach. I’m not the point guard who shoots the ball.”</p>\n<p>But as the company grew larger, Ebbers penny-pinching behavior during his early motel management days became more extreme. WorldCom executives would later complain that Ebbers stopped providing free coffee within their offices and directed security guards fill the water coolers with tap water.</p>\n<p>And for the head of a telecommunications company, Ebbers was curiously distrustful of cutting-edge tech developments. He refused to communicate via email and would not carry a pager or a cell phone. He would explain his actions internally by repeating “That’s the way we did it at LDDS,” and in a 1997 Business Week interview about this behavior he claimed that “when you come to the table with a (physical education) degree like I do, you don't know a lot about the technical stuff.”</p>\n<p>While Ebbers’ arms-length distance from personal technology could have been attributed to a zany quirk, there was another problem that couldn’t be happily shrugged away. As the company expanded, operational problems began to permeate the multiple divisions. Ebbers would become impatient or worse when confronted with problems, to the point that he would angrily demand that he only wanted to be addressed with good news.</p>\n<p><b>In retrospect, Ebbers’ refusal to acknowledge that his company was growing too fast and too large proved to be a fatal flaw</b>, especially when the corporate culture began to manufacture good news in lieu of reporting problems. As a result, Ebbers’ XL-sized business empire was sustained by taking on massive amounts of debt and highly improper accounting.</p>\n<p><b>Detour Off The Cliff:</b>The first cracks in this corporate story began in October 1999 when MCI WorldCom —&nbsp;which had become the second-largest long-distance telephone company in the country —&nbsp;announced a $129 billion merger with Sprint, the third-largest telecom carrier. Within nine months of this announcement, the merger was canceled in the face of pressure from U.S. and European regulators who feared a telecom monopoly would be born from this union. MCI WorldCom walked away from the failure by renaming itself as WorldCom.</p>\n<p>With the rise of the new millennium came the fall of the dot-com industry, and almost any company that had a tech-related aspect found itself taking a financial tumble. When Ebbers’ company tried to cut corners and save money, it turned into an act of self-immolation.</p>\n<p>Worldcom’s network systems engineering division exhausted its annual capital expenditures budget by November 2000, with a&nbsp;senior manager ordering&nbsp;a halt to processing payments for network systems vendors and suppliers until the beginning of 2001.</p>\n<p>The company’s chief technical officer,<b>Fred Briggs,</b>then ordered all of the labor associated with the capital projects in the network systems division to be booked as an expense rather than a capital project —&nbsp;and his directive was shared with other divisions in the company.</p>\n<p>A WorldCom budget analyst named&nbsp;<b>Kim Amigh</b>in the company’s Richardson, Texas, office recognized the legal ramifications of intentionally mischaracterizing capital expenses and lodged a protest against the order. The directive was canceled and so was Amigh —&nbsp;three months after his action, Amigh was abruptly laid off from the company.</p>\n<p>But Vice President of Internal Audit&nbsp;<b>Cynthia Cooper</b>&nbsp;learned of Amigh’s findings and picked up his trail. Her department began combing through WorldCom’s accounts and found $2 billion that the company claimed in its public filings was spent on capital expenditures during the first three quarters of 2001 —&nbsp;except that the funds were never authorized for that purpose and were clearly operating costs moved into the capital expenditure accounting as a way to make WorldCom look more profitable.</p>\n<p>Cooper could not find anyone in the WorldCom leadership ranks to explain the $2 billion discrepancy. Most executives said it was a “prepaid capacity,” a meaningless term which they couldn’t define when pressed by Cooper.</p>\n<p>And Cooper was not alone in her suspicions. The U.S. Securities and Exchange Commission could not fathom how WorldCom continued to claim robust profits during the dot-com period while its competitors were operating at a loss, and it sent forth a “Request for Information” to learn the secret of its success.</p>\n<p>Adding to this chaos were Ebbers’ personal financial woes, which became exacerbated during to dot-com crisis by margin calls on his WorldCom shares, which were tanking as the economy plummeted into a recession.</p>\n<p>To alleviate his monetary pain, Ebbers borrowed $50 million from WorldCom in September 2000&nbsp;— and then borrowed again&nbsp;and again. By April 2002, Ebbers was $400 million in debt to WorldCom and the board of directors demanded his resignation, which he provided.</p>\n<p>In June 2002, WorldCom acknowledged its earnings reports contained $3.9 billion in accounting misstatements, with the figure&nbsp;later adjusted to $11 billion. In July 2002, the company declared bankruptcy and was delisted from public trading. Also during that month, Ebbers was called before the U.S. House of Representatives Committee on Financial Services to explain what happened. He pleaded the Fifth Amendment.</p>\n<p><b>Road’s End:</b>The efforts to bring Ebbers to trial got off to a weird start when the State of Oklahoma jumped the gun with a 15-count indictment, only to drop its charges in favor of federal prosecution.</p>\n<p>Ebbers was indicted in May 2004 on seven counts of filing false statements with securities regulators plus one count each of conspiracy and securities fraud. Ebbers agreed to testify on his behalf, which many observers later considered to be a major mistake because he came across as evasive and unconvincing when insisting WorldCom’s downfall was solely the fault of his subordinates and that he was ignorant about how his company worked.</p>\n<p>“I know what I don’t know,” Ebbers said during his trial. “To this day, I don’t know technology, and I don’t know finance or accounting.”</p>\n<p>Ebbers was found guilty on all counts and was sentenced to 25 years in prison, the longest sentence ever handed down in U.S. history for a financial fraud case against a corporate executive.</p>\n<p>He remained free on bail while fighting to overturn the verdict, but the conviction was upheld in the U.S. Court of Appeals for the Second Circuit in July 2006. Two months later, he drove himself in his luxury Mercedes-Benz to a low-security Louisiana prison to begin his sentence. Two years later, his wife Kristie successfully filed for divorce.</p>\n<p>After 13 years behind bars, Ebbers was granted a compassionate release on Dec. 21, 2019, due to a deteriorating state of health that included macular degeneration that left him legally blind, anemia, a weakened heart condition and the beginnings of dementia. He returned to his home in Brookhaven, Mississippi, and passed away on Feb. 2, 2020.</p>\n<p>In defining his rise to the top, Ebbers harkened back to his basketball days by insisting, “The coach's job is to get the best players and get them to play together.” But in explaining his fall from grace, Ebbers forgot that the core of coaching is accepting responsibility for the team’s performance and he blamed his “best players” for not being able to “play together” while absolving himself from their errors.</p>\n<p>Said Ebbers when confronted with his ultimate failure as the corporate equivalent of a coach: “I didn't have anything to apologize for.”</p>\n<p></p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-08-28 08:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/news/21/08/22680432/wall-street-crime-and-punishment-bernard-ebbers-and-worldcoms-seriously-wrong-numbers><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,Bernard Ebbersphysically stood out from his peers — the 6-foot-4 ...</p>\n\n<a href=\"https://www.benzinga.com/news/21/08/22680432/wall-street-crime-and-punishment-bernard-ebbers-and-worldcoms-seriously-wrong-numbers\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"HRB":"H&R布洛克税务"},"source_url":"https://www.benzinga.com/news/21/08/22680432/wall-street-crime-and-punishment-bernard-ebbers-and-worldcoms-seriously-wrong-numbers","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1184130616","content_text":"Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,Bernard Ebbersphysically stood out from his peers — the 6-foot-4 head of WorldCom was dubbed the “telecom cowboy” thanks to his sartorial preference for jeans, cowboy boots and a 10-gallon hat.\nEbbers also stood out from his peers for tightly holding on to Luddite practices as the digital age dawned. He famously refused to communicate with his workforce via email. Even worse, he stood out thanks to a prickly personality that quickly seethed when confronted with unpleasant news. A 2002 profile in The Economist defined him as “parochial, stubborn, preoccupied with penny-pinching … a difficult man to work for.”\nBut ultimately, Ebbers stood out for being at the center of what was (at the time) the largest accounting fraud in U.S. history, which was followed by the harshest prison sentence ever imposed on a corporate executive for financial crimes.\nA Man In Search Of Himself: Bernard John Ebbers was born Aug. 27, 1941, in Edmonton, Alberta, the second of five children. His father John was a traveling salesman and his peripatetic profession brought the family down from Canada into California, where he jettisoned his sales work and became an auto mechanic. The family later relocated to Gallup, New Mexico, where Ebbers’ parents became teachers on the Navajo Nation Indian reservation.\nThe Ebbers clan was back in Canada when Ebbers was a teenager and Bernie (as he was commonly known) came into adulthood unable to determine a course for his life. He attended Canada’s University of Alberta and Michigan’s Calvin College before accepting a basketball scholarship to Mississippi College. But he was the victim of a robbery prior to his senior year that left him seriously injured and switched his attention from playing to coaching the junior varsity team.\nEbbers graduated in 1967 majoring in physical education and minoring in secondary education. He supported himself during his college years by taking on a variety of odd jobs including a bouncer and milk delivery driver. He married his college sweetheart,Linda Pigott,after graduating and landed work teaching science to middle-school students while coaching high school basketball.\nBut Ebbers didn’t stay very long in the school system. When his wife received a job offer as a teacher in another Mississippi town, the couple relocated and he found work managing a garment factory warehouse. By 1974, he tired of working for others and responded to a newspaper advertisement seeking a buyer for a motel in Columbia, Mississippi.\nEbbers’ approach to running a hospitality establishment sometimes bordered on the eccentric. He would distribute bathroom towels at the front desk and require guests to return them to avoid being charged for taking them. Nonetheless, he found a niche in hospitality management and by the early 1980s he owned and operated eight motels within Mississippi and Texas; he also picked up a car dealership that also proved profitable.\nCalling Out Around The World:Ebbers might have remained in the Mississippi hospitality industry had it not been for the 1982 breakup ofAT&T Inc.'s T 0.41%monopoly on the U.S. telephone system. This created a seismic shift in the telecommunications world by enabling other companies to begin reselling long-distance telephone services.\nIn 1983, Ebbers and three friends met at a diner in Hattiesburg, Mississippi, to consider the feasibility of pursuing this newly opened opportunity. Ebbers theorized that having control of his long-distance calling services could benefit his motel business. In the days before mobile phones, guests in lodging establishments in need of long-distance calling would either have to feed handfuls of quarters into payphones or make calls from their rooms, which usually came with extra fees.\nEbbers and his pals decided to get into the telecommunications business with Long Distance Discount Services, which they established in 1985 with headquarters in Jackson, Mississippi, with Ebbers as CEO.\nCarl J. Aycock,a Mississippi financial advisor who was among the early investors in LDDS, would later laugh at the unlikelihood of Ebbers running a telecom company.\n“The only experience Bernie had before operating a long-distance company was he used the phone,” Aycock quipped in a 1997 interview.\nMaybe Ebbers did not possess an encyclopedic knowledge of telecommunications technology, but the good fortune he enjoyed in the motel business transitioned to this unlikely setting. Within four years of its launch, LDDS was being publicly traded.\nWithin 10 years of its opening, LDDS took on an almost Pac Man-style persona of gobbling up telecom firms in sight of the company, acquiring more than 60 different telecommunications company. By 1995, the company renamed itself LDDS WorldCom.\nMany of the company’s acquisitions were on the small side, and the company was never considered a major player in the telecom industry until its $720 million acquisition of Advanced Telecommunications Corporation in 1992.\nThe unlikely acquisition came with Ebbers’ ability to outbid industry titans AT&T and Sprint Corporation,both considerably larger players in this field.\nThe one unfortunate development during this time was the end of Ebbers’ marriage in 1997. He remarried in 1999 to Kristie Webb.\nIn February 1998, Ebbers’ company launched its acquisition plans for CompuServe from H&R Block Inc.\nThis transaction was followed by an astonishing spin of assets: LDDS sold the CompuServe Information Service portion of its acquisition toAmerica Online,while retaining the CompuServe Network Services portion of the business. AOL simultaneously sold LDDS WorldCom its networking division, Advanced Network Services.\nIn September 1998, LDDS WorldCom sealed a $37 billion union with MCI Communications,which created the largest corporate merger in U.S. history. The combined entity became MCI WorldCom, and for Ebbers it seemed that the sky was the limit — except that Ebbers’ ability to soar in the corporate skies resulted in an Icarus-worthy predicament.\nA Little Out Of Touch:One year after the CompuServe and MCI deals, Ebbers’ company boasted an 80,000-person workforce, a market capitalization of roughly $185 billion and its shares were trading at a peak of nearly $62.\nAt the peak of the company’s success, Ebbers granted an interview to The New York Times aboard his 130-yacht, which he berthed in the resort town of Hilton Head, South Carolina. He claimed that the secret of his success was “not as complicated as people make it out to be,” adding that he surrounded himself with experts who advised him on which moves to make.\n“I’m not an engineer by training,” he said. “I’m not an accountant by training. I’m the coach. I’m not the point guard who shoots the ball.”\nBut as the company grew larger, Ebbers penny-pinching behavior during his early motel management days became more extreme. WorldCom executives would later complain that Ebbers stopped providing free coffee within their offices and directed security guards fill the water coolers with tap water.\nAnd for the head of a telecommunications company, Ebbers was curiously distrustful of cutting-edge tech developments. He refused to communicate via email and would not carry a pager or a cell phone. He would explain his actions internally by repeating “That’s the way we did it at LDDS,” and in a 1997 Business Week interview about this behavior he claimed that “when you come to the table with a (physical education) degree like I do, you don't know a lot about the technical stuff.”\nWhile Ebbers’ arms-length distance from personal technology could have been attributed to a zany quirk, there was another problem that couldn’t be happily shrugged away. As the company expanded, operational problems began to permeate the multiple divisions. Ebbers would become impatient or worse when confronted with problems, to the point that he would angrily demand that he only wanted to be addressed with good news.\nIn retrospect, Ebbers’ refusal to acknowledge that his company was growing too fast and too large proved to be a fatal flaw, especially when the corporate culture began to manufacture good news in lieu of reporting problems. As a result, Ebbers’ XL-sized business empire was sustained by taking on massive amounts of debt and highly improper accounting.\nDetour Off The Cliff:The first cracks in this corporate story began in October 1999 when MCI WorldCom — which had become the second-largest long-distance telephone company in the country — announced a $129 billion merger with Sprint, the third-largest telecom carrier. Within nine months of this announcement, the merger was canceled in the face of pressure from U.S. and European regulators who feared a telecom monopoly would be born from this union. MCI WorldCom walked away from the failure by renaming itself as WorldCom.\nWith the rise of the new millennium came the fall of the dot-com industry, and almost any company that had a tech-related aspect found itself taking a financial tumble. When Ebbers’ company tried to cut corners and save money, it turned into an act of self-immolation.\nWorldcom’s network systems engineering division exhausted its annual capital expenditures budget by November 2000, with a senior manager ordering a halt to processing payments for network systems vendors and suppliers until the beginning of 2001.\nThe company’s chief technical officer,Fred Briggs,then ordered all of the labor associated with the capital projects in the network systems division to be booked as an expense rather than a capital project — and his directive was shared with other divisions in the company.\nA WorldCom budget analyst named Kim Amighin the company’s Richardson, Texas, office recognized the legal ramifications of intentionally mischaracterizing capital expenses and lodged a protest against the order. The directive was canceled and so was Amigh — three months after his action, Amigh was abruptly laid off from the company.\nBut Vice President of Internal Audit Cynthia Cooper learned of Amigh’s findings and picked up his trail. Her department began combing through WorldCom’s accounts and found $2 billion that the company claimed in its public filings was spent on capital expenditures during the first three quarters of 2001 — except that the funds were never authorized for that purpose and were clearly operating costs moved into the capital expenditure accounting as a way to make WorldCom look more profitable.\nCooper could not find anyone in the WorldCom leadership ranks to explain the $2 billion discrepancy. Most executives said it was a “prepaid capacity,” a meaningless term which they couldn’t define when pressed by Cooper.\nAnd Cooper was not alone in her suspicions. The U.S. Securities and Exchange Commission could not fathom how WorldCom continued to claim robust profits during the dot-com period while its competitors were operating at a loss, and it sent forth a “Request for Information” to learn the secret of its success.\nAdding to this chaos were Ebbers’ personal financial woes, which became exacerbated during to dot-com crisis by margin calls on his WorldCom shares, which were tanking as the economy plummeted into a recession.\nTo alleviate his monetary pain, Ebbers borrowed $50 million from WorldCom in September 2000 — and then borrowed again and again. By April 2002, Ebbers was $400 million in debt to WorldCom and the board of directors demanded his resignation, which he provided.\nIn June 2002, WorldCom acknowledged its earnings reports contained $3.9 billion in accounting misstatements, with the figure later adjusted to $11 billion. In July 2002, the company declared bankruptcy and was delisted from public trading. Also during that month, Ebbers was called before the U.S. House of Representatives Committee on Financial Services to explain what happened. He pleaded the Fifth Amendment.\nRoad’s End:The efforts to bring Ebbers to trial got off to a weird start when the State of Oklahoma jumped the gun with a 15-count indictment, only to drop its charges in favor of federal prosecution.\nEbbers was indicted in May 2004 on seven counts of filing false statements with securities regulators plus one count each of conspiracy and securities fraud. Ebbers agreed to testify on his behalf, which many observers later considered to be a major mistake because he came across as evasive and unconvincing when insisting WorldCom’s downfall was solely the fault of his subordinates and that he was ignorant about how his company worked.\n“I know what I don’t know,” Ebbers said during his trial. “To this day, I don’t know technology, and I don’t know finance or accounting.”\nEbbers was found guilty on all counts and was sentenced to 25 years in prison, the longest sentence ever handed down in U.S. history for a financial fraud case against a corporate executive.\nHe remained free on bail while fighting to overturn the verdict, but the conviction was upheld in the U.S. Court of Appeals for the Second Circuit in July 2006. Two months later, he drove himself in his luxury Mercedes-Benz to a low-security Louisiana prison to begin his sentence. Two years later, his wife Kristie successfully filed for divorce.\nAfter 13 years behind bars, Ebbers was granted a compassionate release on Dec. 21, 2019, due to a deteriorating state of health that included macular degeneration that left him legally blind, anemia, a weakened heart condition and the beginnings of dementia. He returned to his home in Brookhaven, Mississippi, and passed away on Feb. 2, 2020.\nIn defining his rise to the top, Ebbers harkened back to his basketball days by insisting, “The coach's job is to get the best players and get them to play together.” But in explaining his fall from grace, Ebbers forgot that the core of coaching is accepting responsibility for the team’s performance and he blamed his “best players” for not being able to “play together” while absolving himself from their errors.\nSaid Ebbers when confronted with his ultimate failure as the corporate equivalent of a coach: “I didn't have anything to apologize for.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":364,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":831893232,"gmtCreate":1629298337526,"gmtModify":1676529996744,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Interesting… Will charitable giving also be a&nbsp;subject&nbsp;of the regulatory framework for internet companies?&nbsp;","listText":"Interesting… Will charitable giving also be a&nbsp;subject&nbsp;of the regulatory framework for internet companies?&nbsp;","text":"Interesting… Will charitable giving also be a subject of the regulatory framework for internet companies?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":10,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/831893232","repostId":"1173987909","repostType":4,"isVote":1,"tweetType":1,"viewCount":637,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":894538146,"gmtCreate":1628837166885,"gmtModify":1676529870409,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"If you catch falling knives you will bleed more.Exercise due diligence before buying falling stocks&nbsp;","listText":"If you catch falling knives you will bleed more.Exercise due diligence before buying falling stocks&nbsp;","text":"If you catch falling knives you will bleed more.Exercise due diligence before buying falling stocks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/894538146","repostId":"2158225219","repostType":4,"isVote":1,"tweetType":1,"viewCount":351,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":895411741,"gmtCreate":1628764699183,"gmtModify":1676529846653,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Good results. Hoping the price will rise&nbsp;","listText":"Good results. Hoping the price will rise&nbsp;","text":"Good results. Hoping the price will rise","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/895411741","repostId":"2158256229","repostType":4,"isVote":1,"tweetType":1,"viewCount":345,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":177711272,"gmtCreate":1627261469096,"gmtModify":1703486141041,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Wonder if the Welcome&nbsp;charity trust made money from its investment in a speculative stock likeDoorDash?&nbsp;","listText":"Wonder if the Welcome&nbsp;charity trust made money from its investment in a speculative stock likeDoorDash?&nbsp;","text":"Wonder if the Welcome charity trust made money from its investment in a speculative stock likeDoorDash?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/177711272","repostId":"1103373914","repostType":4,"isVote":1,"tweetType":1,"viewCount":170,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":147845495,"gmtCreate":1626352988017,"gmtModify":1703758456661,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Only time will tell. Jimmy Dimon is honest enough to say that he doesn’t know how the stock market will pan out. Keep some cash in case….","listText":"Only time will tell. Jimmy Dimon is honest enough to say that he doesn’t know how the stock market will pan out. Keep some cash in case….","text":"Only time will tell. Jimmy Dimon is honest enough to say that he doesn’t know how the stock market will pan out. Keep some cash in case….","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/147845495","repostId":"2151529580","repostType":4,"isVote":1,"tweetType":1,"viewCount":252,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":147129335,"gmtCreate":1626343069327,"gmtModify":1703758274637,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Looks like this is the latest stock market trendProfit goes up, share price drops for a period of time. Then starts to push higher like AAPL, AmD , Qcom…&nbsp;","listText":"Looks like this is the latest stock market trendProfit goes up, share price drops for a period of time. Then starts to push higher like AAPL, AmD , Qcom…&nbsp;","text":"Looks like this is the latest stock market trendProfit goes up, share price drops for a period of time. Then starts to push higher like AAPL, AmD , Qcom…","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/147129335","repostId":"1199986106","repostType":4,"isVote":1,"tweetType":1,"viewCount":244,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":144582289,"gmtCreate":1626306307941,"gmtModify":1703757408675,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Way to go Baba and Tencent!! And about timetoo!!&nbsp;","listText":"Way to go Baba and Tencent!! And about timetoo!!&nbsp;","text":"Way to go Baba and Tencent!! And about timetoo!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/144582289","repostId":"2151548801","repostType":4,"isVote":1,"tweetType":1,"viewCount":252,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":142329221,"gmtCreate":1626133393363,"gmtModify":1703753868623,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Apple has a valid case. If any App developer wants to use Apple’s App Store it’s only fair it pays rent for the use of the store space.&nbsp;","listText":"Apple has a valid case. If any App developer wants to use Apple’s App Store it’s only fair it pays rent for the use of the store space.&nbsp;","text":"Apple has a valid case. If any App developer wants to use Apple’s App Store it’s only fair it pays rent for the use of the store space.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/142329221","repostId":"2151537170","repostType":4,"repost":{"id":"2151537170","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1626123360,"share":"https://ttm.financial/m/news/2151537170?lang=&edition=fundamental","pubTime":"2021-07-13 04:56","market":"us","language":"en","title":"Apple's win in Blix case comes weeks before Epic decision","url":"https://stock-news.laohu8.com/highlight/detail?id=2151537170","media":"Dow Jones","summary":"Apple Inc.'s win in federal court against a developer's antitrust claims against the App Store has e","content":"<span style=\"-webkit-text-size-adjust: 100%; text-align: justify; white-space: pre-wrap; font-family: Arial;\">Apple Inc.'s win in federal court against a developer's antitrust claims against the App Store has erased <a href=\"https://laohu8.com/S/AONE\">one</a> legal headache. Now, it awaits a more high-profile decision on similar grounds. </span>\n<font face=\"Arial\"> <p> On Friday, a federal judge in Delaware dismissed a lawsuit from Blix Inc. because it failed to demonstrate how Apple <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> harmed competition in the mobile operating-system market by requiring developers to offer an Apple-specific log-in function. </p> <p>Blix, which lost to Apple for the second time since December, is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the founding members of Coalition for App Fairness in its antitrust lawsuit vs. Apple and the App Store. </p> <p>\"Apple's current policy of requiring Sign In With Apple whenever any SSO [single sign-on] product is offered permits new competitors and competition (including Blix) because it does not foreclose the use of other SSOs. Allowing competition is the opposite of unlawfully constraining competition, so, again, Blix has failed to state a claim,\" U.S. District Judge Leonard P. Stark wrote in his decision. </p> <p>Blix is likely to appeal the ruling, company co-founder Dan Volach told MarketWatch. </p> <p>The decision underscores fundamental flaws in the coalition members' premise that the App Store is punitive toward developers, according to a person close to Apple's legal team. Other coalition members include Spotify Technology <a href=\"https://laohu8.com/S/SPOT\">$(SPOT)$</a> and Match Group Inc. <a href=\"https://laohu8.com/S/MTCH\">$(MTCH)$</a>. </p> <p> \"Blix, a member of the Coalition for App Fairness and frequent complainer to press and regulators, alleged false conspiracy theories and anti-competitive claims against Apple,\" Apple said of the decision. \"The court correctly rejected these claims and threw out Blix's case. This case demonstrates that Apple has consistently acted legally by introducing its own innovative products and features that promote competition.\" </p> <p>Epic, whose lawsuit centers on the App Store's 30% commission fee for many developers, declined comment on Friday's court dismissal. </p> <p>Apple shares were flat in trading Monday. </p></font>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple's win in Blix case comes weeks before Epic decision</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple's win in Blix case comes weeks before Epic decision\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2021-07-13 04:56</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<span style=\"-webkit-text-size-adjust: 100%; text-align: justify; white-space: pre-wrap; font-family: Arial;\">Apple Inc.'s win in federal court against a developer's antitrust claims against the App Store has erased <a href=\"https://laohu8.com/S/AONE\">one</a> legal headache. Now, it awaits a more high-profile decision on similar grounds. </span>\n<font face=\"Arial\"> <p> On Friday, a federal judge in Delaware dismissed a lawsuit from Blix Inc. because it failed to demonstrate how Apple <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> harmed competition in the mobile operating-system market by requiring developers to offer an Apple-specific log-in function. </p> <p>Blix, which lost to Apple for the second time since December, is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the founding members of Coalition for App Fairness in its antitrust lawsuit vs. Apple and the App Store. </p> <p>\"Apple's current policy of requiring Sign In With Apple whenever any SSO [single sign-on] product is offered permits new competitors and competition (including Blix) because it does not foreclose the use of other SSOs. Allowing competition is the opposite of unlawfully constraining competition, so, again, Blix has failed to state a claim,\" U.S. District Judge Leonard P. Stark wrote in his decision. </p> <p>Blix is likely to appeal the ruling, company co-founder Dan Volach told MarketWatch. </p> <p>The decision underscores fundamental flaws in the coalition members' premise that the App Store is punitive toward developers, according to a person close to Apple's legal team. Other coalition members include Spotify Technology <a href=\"https://laohu8.com/S/SPOT\">$(SPOT)$</a> and Match Group Inc. <a href=\"https://laohu8.com/S/MTCH\">$(MTCH)$</a>. </p> <p> \"Blix, a member of the Coalition for App Fairness and frequent complainer to press and regulators, alleged false conspiracy theories and anti-competitive claims against Apple,\" Apple said of the decision. \"The court correctly rejected these claims and threw out Blix's case. This case demonstrates that Apple has consistently acted legally by introducing its own innovative products and features that promote competition.\" </p> <p>Epic, whose lawsuit centers on the App Store's 30% commission fee for many developers, declined comment on Friday's court dismissal. </p> <p>Apple shares were flat in trading Monday. </p></font>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果","03086":"华夏纳指","09086":"华夏纳指-U"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2151537170","content_text":"Apple Inc.'s win in federal court against a developer's antitrust claims against the App Store has erased one legal headache. Now, it awaits a more high-profile decision on similar grounds. \n  On Friday, a federal judge in Delaware dismissed a lawsuit from Blix Inc. because it failed to demonstrate how Apple $(AAPL)$ harmed competition in the mobile operating-system market by requiring developers to offer an Apple-specific log-in function.  Blix, which lost to Apple for the second time since December, is one of the founding members of Coalition for App Fairness in its antitrust lawsuit vs. Apple and the App Store.  \"Apple's current policy of requiring Sign In With Apple whenever any SSO [single sign-on] product is offered permits new competitors and competition (including Blix) because it does not foreclose the use of other SSOs. Allowing competition is the opposite of unlawfully constraining competition, so, again, Blix has failed to state a claim,\" U.S. District Judge Leonard P. Stark wrote in his decision.  Blix is likely to appeal the ruling, company co-founder Dan Volach told MarketWatch.  The decision underscores fundamental flaws in the coalition members' premise that the App Store is punitive toward developers, according to a person close to Apple's legal team. Other coalition members include Spotify Technology $(SPOT)$ and Match Group Inc. $(MTCH)$.   \"Blix, a member of the Coalition for App Fairness and frequent complainer to press and regulators, alleged false conspiracy theories and anti-competitive claims against Apple,\" Apple said of the decision. \"The court correctly rejected these claims and threw out Blix's case. This case demonstrates that Apple has consistently acted legally by introducing its own innovative products and features that promote competition.\"  Epic, whose lawsuit centers on the App Store's 30% commission fee for many developers, declined comment on Friday's court dismissal.  Apple shares were flat in trading Monday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":233,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":149475159,"gmtCreate":1625746530871,"gmtModify":1703747639916,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"What goes up must come down&nbsp;","listText":"What goes up must come down&nbsp;","text":"What goes up must come down","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/149475159","repostId":"1192592169","repostType":4,"repost":{"id":"1192592169","pubTimestamp":1625728801,"share":"https://ttm.financial/m/news/1192592169?lang=&edition=fundamental","pubTime":"2021-07-08 15:20","market":"us","language":"en","title":"3 Reasons To Stay Bullish On Stocks In The Second Half Of 2021","url":"https://stock-news.laohu8.com/highlight/detail?id=1192592169","media":"Benzinga","summary":"The SPDR S&P 500 ETF(NYSE:SPY) is now up nearly 95% from its March 2020 lows, and it’s understandabl","content":"<p>The&nbsp;<b>SPDR S&amp;P 500 ETF</b>(NYSE:SPY) is now up nearly 95% from its March 2020 lows, and it’s understandable why some investors may be getting a bit uneasy about the big run after the S&amp;P 500 tacked on another 14.4% gain in the first half of 2021.</p>\n<p>Bank of America analyst Stephen Suttmeier took a look back at the S&amp;P 500’s historical performance&nbsp;and found at least three reasons history suggests investors should still feel comfortable buying stocks heading into the second half of the year.</p>\n<p><b>1. Good First-Half Performance A Bullish Second-Half Indicator</b></p>\n<p>Historically, when the S&amp;P 500 has an above-average first-half return, it follows up with an above-average second-half return 77% of the time, Suttmeier said.</p>\n<p>The S&amp;P 500 has averaged a 6.3% second-half return following a strong first-half, well above its 1.7% average second-half return in years with below-average first-half returns. The average peak-to-trough S&amp;P 500 second-half drawdown following above-average first halves is -6.6% compared to an average drawdown of 10% after a below-average first half.</p>\n<p><b>2. First Year Of Presidential Cycle Bodes Well For Returns</b></p>\n<p>Historically, the second half of the first year under a new U.S. president has been underwhelming, generating an average return of just 1%. However, years in which the market performs well in the first half under a new president have produced an average return of 5.9% in the second half of the year.</p>\n<p>Following an above average first-half during year one of a presidential cycle, 67% of second-half drawdowns are in the 0% to 5% range and 78% of drawdowns were less than 10%.</p>\n<p><b>3. Strong First Halves Good News In Bull Markets</b></p>\n<p>During a secular bull market, the S&amp;P 500 has averaged a 9.1% second-half return following an above-average first-half return. In these years, the S&amp;P 500 has generated a positive second-half return 86% of the time. In addition, the S&amp;P has only experienced one historical second-half drawdown of at least 20% in these years, the Crash of 1987.</p>\n<p><b>Benzinga’s Take:</b>Looking back at market history can help investors keep things in perspective and provide some helpful insight into market tendencies. Unfortunately, past performance is not necessarily indicative of the future, and there are countless variables impacting U.S. markets in the near term.</p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Reasons To Stay Bullish On Stocks In The Second Half Of 2021</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Reasons To Stay Bullish On Stocks In The Second Half Of 2021\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-08 15:20 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/analyst-ratings/analyst-color/21/07/21881688/3-reasons-to-stay-bullish-on-stocks-in-the-second-half-of-2021><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The SPDR S&P 500 ETF(NYSE:SPY) is now up nearly 95% from its March 2020 lows, and it’s understandable why some investors may be getting a bit uneasy about the big run after the S&P 500 tacked on ...</p>\n\n<a href=\"https://www.benzinga.com/analyst-ratings/analyst-color/21/07/21881688/3-reasons-to-stay-bullish-on-stocks-in-the-second-half-of-2021\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SPY":"标普500ETF"},"source_url":"https://www.benzinga.com/analyst-ratings/analyst-color/21/07/21881688/3-reasons-to-stay-bullish-on-stocks-in-the-second-half-of-2021","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1192592169","content_text":"The SPDR S&P 500 ETF(NYSE:SPY) is now up nearly 95% from its March 2020 lows, and it’s understandable why some investors may be getting a bit uneasy about the big run after the S&P 500 tacked on another 14.4% gain in the first half of 2021.\nBank of America analyst Stephen Suttmeier took a look back at the S&P 500’s historical performance and found at least three reasons history suggests investors should still feel comfortable buying stocks heading into the second half of the year.\n1. Good First-Half Performance A Bullish Second-Half Indicator\nHistorically, when the S&P 500 has an above-average first-half return, it follows up with an above-average second-half return 77% of the time, Suttmeier said.\nThe S&P 500 has averaged a 6.3% second-half return following a strong first-half, well above its 1.7% average second-half return in years with below-average first-half returns. The average peak-to-trough S&P 500 second-half drawdown following above-average first halves is -6.6% compared to an average drawdown of 10% after a below-average first half.\n2. First Year Of Presidential Cycle Bodes Well For Returns\nHistorically, the second half of the first year under a new U.S. president has been underwhelming, generating an average return of just 1%. However, years in which the market performs well in the first half under a new president have produced an average return of 5.9% in the second half of the year.\nFollowing an above average first-half during year one of a presidential cycle, 67% of second-half drawdowns are in the 0% to 5% range and 78% of drawdowns were less than 10%.\n3. Strong First Halves Good News In Bull Markets\nDuring a secular bull market, the S&P 500 has averaged a 9.1% second-half return following an above-average first-half return. In these years, the S&P 500 has generated a positive second-half return 86% of the time. In addition, the S&P has only experienced one historical second-half drawdown of at least 20% in these years, the Crash of 1987.\nBenzinga’s Take:Looking back at market history can help investors keep things in perspective and provide some helpful insight into market tendencies. Unfortunately, past performance is not necessarily indicative of the future, and there are countless variables impacting U.S. markets in the near term.","news_type":1},"isVote":1,"tweetType":1,"viewCount":118,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":157744878,"gmtCreate":1625617372994,"gmtModify":1703744907079,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"I think it’s good for the US market to come down to earth after flying around&nbsp;space for so long.&nbsp;","listText":"I think it’s good for the US market to come down to earth after flying around&nbsp;space for so long.&nbsp;","text":"I think it’s good for the US market to come down to earth after flying around space for so long.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/157744878","repostId":"1106187901","repostType":4,"repost":{"id":"1106187901","pubTimestamp":1625612872,"share":"https://ttm.financial/m/news/1106187901?lang=&edition=fundamental","pubTime":"2021-07-07 07:07","market":"hk","language":"en","title":"Dow, S&P 500 fall as financials drag; Nasdaq at record","url":"https://stock-news.laohu8.com/highlight/detail?id=1106187901","media":"CNBC","summary":"Stocks stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that ma","content":"<div>\n<p>Stocks stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that maybe the best of the economic recovery from the pandemic is behind us.\nThe Dow Jones Industrial ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/05/stock-market-open-to-close-news.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Dow, S&P 500 fall as financials drag; Nasdaq at record</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDow, S&P 500 fall as financials drag; Nasdaq at record\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/05/stock-market-open-to-close-news.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Stocks stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that maybe the best of the economic recovery from the pandemic is behind us.\nThe Dow Jones Industrial ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/05/stock-market-open-to-close-news.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"161125":"标普500","513500":"标普500ETF","QLD":"纳指两倍做多ETF","SDS":"两倍做空标普500ETF","QQQ":"纳指100ETF","SQQQ":"纳指三倍做空ETF","OEX":"标普100","TQQQ":"纳指三倍做多ETF","NDAQ":"纳斯达克OMX交易所","QID":"纳指两倍做空ETF","SH":"标普500反向ETF","SSO":"两倍做多标普500ETF",".IXIC":"NASDAQ Composite","PSQ":"纳指反向ETF","SPXU":"三倍做空标普500ETF","SPY":"标普500ETF","IVV":"标普500指数ETF","OEF":"标普100指数ETF-iShares"},"source_url":"https://www.cnbc.com/2021/07/05/stock-market-open-to-close-news.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1106187901","content_text":"Stocks stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that maybe the best of the economic recovery from the pandemic is behind us.\nThe Dow Jones Industrial Average fell 208.98 points to 34,577.37, dragged down by losses inDow Inc.,Caterpillar,JPMorganandChevron. The S&P 500 dipped 0.2% to 4,343.54 after hitting a record at the open. The 500-stock index snapped a seven-day winning streak, its longest since August. The Nasdaq Composite rose 0.17% to 14,663.64, closing at a new record. U.S. markets were closed for the July 4 Independence Day holiday on Monday.\nAmazonrose 4.7% after the Department of Defensecancelled its $10 billion JEDI cloud contract with Microsoft. Instead, the department is launching a new contract and soliciting proposals from both Amazon and Microsoft. Plus, Andy Jassy officially took over as CEO of Amazon on Monday. Jeff Bezos is now the executive chairman of the board.\nInvestors are juggling several signs that the rapid economic growth from the depths of the pandemic could be peaking. The ISM Services index, a major gauge of the services sector, slowed to 60.1 in June from a record in the prior month, data released Tuesday showed. Economists polled by Dow Jones expected a print of 63.5. This follows Friday’s jobs report, which showed the unemployment raterose back up to 5.9%against the 5.6% expectation.\nBond yields also fell on Monday, with the 10-year Treasury yield below 1.4% — further evidence that investors are doubting the strength of the U.S. economy.\nMany on Wall Street expect smaller and choppier gains from the rest of the year after a strong performance in the first half amid a historic economic reopening. The S&P 500 is up nearly 16% year to date.\n“The U.S. economy is booming, but this is now a known known and asset markets reflect it. What isn’t so clear anymore is at what price this growth will accrue,” Michael Wilson, chief U.S. equity strategist at Morgan Stanley, said in a note. “Higher costs mean lower profits, another reason why the overall equity market has been narrowing... equity markets are likely to take a break this summer as things heat up.”\nWall Street’s consensus year-end target for the S&P 500 stands at 4,276, representing a near 2% loss from the 500-stock average’s current level, according to the CNBC Market Strategist Survey that rounds up 16 top strategists’ forecasts.\n“Everything is perfect and that worries me,” said Sarat Sethi, portfolio manager at DCLA, said on CNBC’s “Squawk Box” on Tuesday. “Since October, we’ve had a 5% correction, that’s it. I do think we’re in a little bit of a euphoria short-term. We do need to be careful and I do think you want to be in secular growth companies, no just chasing the market here because I do think the market’s going to be very picky as to what sectors are going to do well.”\nCiti analysts told clients they are concernedabout central bank policy and see potential that earnings reports, which begin in a few weeks, could fall short of expectations. They suggest July could be “an unsettling month,” due to “loftier inherent expectations” following such strong first-quarter reports.\nU.S. shares of Chinese ride-hailing giantDidi plunged nearly 19.6%after China said new users could not download the app until it conducts a cybersecurity review. The announcement took markets by surprise given that Didi just made its U.S. debut on the NYSE last week.\nWest Texas Intermediate crude rose to asix-year highas a key meeting between oil producer group OPEC and its partners on crude output policyhas been called off. The postponement came as the United Arab Emirates rejected a proposal to extend oil production increase for a second day. At one point on Tuesday, WTI crude hit as high as $76.98, which was the highest price since November 2014, after pulling back before the opening bell. WTI settled at $73.37.\nInvestors await the release of June Federal Open Market Committee meeting minutes due Wednesday for clues about the central bank’s behind-the-scenes discussions on winding down its quantitative easing program.","news_type":1},"isVote":1,"tweetType":1,"viewCount":205,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":152673002,"gmtCreate":1625291599606,"gmtModify":1703740109670,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Mosaic for fertilizer! Goodyear for rubber tyres! The world always needs these.&nbsp;","listText":"Mosaic for fertilizer! Goodyear for rubber tyres! The world always needs these.&nbsp;","text":"Mosaic for fertilizer! Goodyear for rubber tyres! The world always needs these.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":11,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/152673002","repostId":"1122056398","repostType":4,"repost":{"id":"1122056398","pubTimestamp":1625280707,"share":"https://ttm.financial/m/news/1122056398?lang=&edition=fundamental","pubTime":"2021-07-03 10:51","market":"us","language":"en","title":"These 15 stocks -- June's biggest losers -- could become July's winners","url":"https://stock-news.laohu8.com/highlight/detail?id=1122056398","media":"MarketWatch","summary":"‘Short-term reversal strategy’ often does particularly well in July.\n\nJune’s worst stocks are good b","content":"<blockquote>\n <b>‘Short-term reversal strategy’ often does particularly well in July.</b>\n</blockquote>\n<p>June’s worst stocks are good bets to beat the U.S. market in in July.</p>\n<p>That’s because portfolio window-dressing at the end of June will have made that month’s poor performers fall even further than they would have otherwise. It’s likely that once this artificial selling pressure disappears, these stocks will bounce back.</p>\n<p>To be sure, window dressing is a powerful force on several occasions throughout the calendar, not just at this time of year. It should have the biggest impact at the end of December, since more investors look at their portfolio holdings in early January than in any other month of the year. Fund managers therefore go out of their way to sell their losers prior to Dec. 31 in order to avoid the embarrassment of having to report that they had ever owned them.</p>\n<p>Just the opposite is the case for stocks that managers buy for window dressing. These are the stocks that already have been performing well and which managers want to show in their end-of-quarter holdings report. Their cosmetic buying will cause these stocks to perform even better — which, in turn, results in them falling back to earth once the new quarter comes around.</p>\n<p>As expected, January is the month in which the previous month’s worst performers fare best relative to the previous month’s best performers — a pattern known as the “short term reversal effect.” This is illustrated in the chart below, which reflects monthly data back to 1926. July is the second-most powerful month for this pattern. That also makes sense because, after January, July is the next most common time for investors to read through their brokerage statements.</p>\n<p><img src=\"https://static.tigerbbs.com/6ac3a509127efd603df1d98de04774e7\" tg-width=\"620\" tg-height=\"418\" referrerpolicy=\"no-referrer\"></p>\n<p>Also as expected, end-of-quarter window dressing is less of a factor at the end of the first- and third quarters. In fact, as you can see from the chart, the short-term reversal effect is even less dominant in April than in non-quarter-end months.</p>\n<p><b>How to play the short-term reversal in July</b></p>\n<p>As is often the case, an exchange-traded fund has been created to exploit the short-term reversal effect. Vesper US Large Cap Short-Term Reversal Strategy ETFUTRN,“seeks to capitalize on the tendency for stocks that have experienced sharp recent sell-offs to experience near-term rebounds.”</p>\n<p>Because the fund was only recently created, in September 2018, the ETF’s average monthly returns since then are only suggestive of the long-term pattern. But its average return in July has been better (4.1%) than in any other month.</p>\n<p>For anyone interested in the individual stocks that performed the worst in June, I constructed the following list. I started with the 50 stocks in the S&amp;P 1500 index with the worst June returns, and then eliminated ones not currently recommended by any of the top-performing newsletters monitored by my newsletter-performance-tracking service.</p>\n<p>The 15 stocks listed below survived this winnowing process. I note that, on average, these 15 lost 15.4% during the month of June, versus a gain of 2.3% for the S&amp;P 500SPX.</p>\n<ul>\n <li>Adient PLC&nbsp;ADNT</li>\n <li>Alaska Air Group&nbsp;ALK</li>\n <li>Alliance Data Systems&nbsp;ADS</li>\n <li>America’s Car Mart&nbsp;CRMT</li>\n <li>ArcBest&nbsp;ARCB</li>\n <li>Goodyear Tire &amp; Rubber&nbsp;GT</li>\n <li>KB Home&nbsp;KBH</li>\n <li>LCI Industries&nbsp;LCII</li>\n <li>Mosaic &amp; Co&nbsp;.MOS</li>\n <li>Medifast&nbsp;MED</li>\n <li>Newmont Corp.&nbsp;NEM</li>\n <li>Organon &amp; Co.&nbsp;OGN</li>\n <li>Patrick Industries&nbsp;PATK</li>\n <li>Regions Financial&nbsp;RF</li>\n <li>Sabre&nbsp;SABR</li>\n</ul>\n<p>I also note that these stocks have an average price/book value ratio of 3.3, which is well-below the 4.7 ratio for the S&amp;P 500. Having a below-average price/book ratio is the hallmark of a value stock, and it makes sense that value stocks will be favored by the short-term reversal strategy. That’s because value stocks significantly underperformed growth stocks in June — but their fortunes may soon change.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 15 stocks -- June's biggest losers -- could become July's winners</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 15 stocks -- June's biggest losers -- could become July's winners\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-03 10:51 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/these-15-stocks-junes-biggest-losers-could-become-julys-winners-11625238769?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>‘Short-term reversal strategy’ often does particularly well in July.\n\nJune’s worst stocks are good bets to beat the U.S. market in in July.\nThat’s because portfolio window-dressing at the end of June ...</p>\n\n<a href=\"https://www.marketwatch.com/story/these-15-stocks-junes-biggest-losers-could-become-julys-winners-11625238769?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"MED":"快验保","ARCB":"ArcBest Corporation","KBH":"KB Home","CRMT":"美国汽车行","SABR":"Sabre Corporation","GT":"固特异轮胎橡胶公司","PATK":"Patrick Industries","NEM":"纽曼矿业","ALK":"阿拉斯加航空集团有限公司","LCII":"LCI Industries","RF":"地区金融","OGN":"Organon & Co","MOS":"美国美盛","ADNT":"Adient PLC"},"source_url":"https://www.marketwatch.com/story/these-15-stocks-junes-biggest-losers-could-become-julys-winners-11625238769?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1122056398","content_text":"‘Short-term reversal strategy’ often does particularly well in July.\n\nJune’s worst stocks are good bets to beat the U.S. market in in July.\nThat’s because portfolio window-dressing at the end of June will have made that month’s poor performers fall even further than they would have otherwise. It’s likely that once this artificial selling pressure disappears, these stocks will bounce back.\nTo be sure, window dressing is a powerful force on several occasions throughout the calendar, not just at this time of year. It should have the biggest impact at the end of December, since more investors look at their portfolio holdings in early January than in any other month of the year. Fund managers therefore go out of their way to sell their losers prior to Dec. 31 in order to avoid the embarrassment of having to report that they had ever owned them.\nJust the opposite is the case for stocks that managers buy for window dressing. These are the stocks that already have been performing well and which managers want to show in their end-of-quarter holdings report. Their cosmetic buying will cause these stocks to perform even better — which, in turn, results in them falling back to earth once the new quarter comes around.\nAs expected, January is the month in which the previous month’s worst performers fare best relative to the previous month’s best performers — a pattern known as the “short term reversal effect.” This is illustrated in the chart below, which reflects monthly data back to 1926. July is the second-most powerful month for this pattern. That also makes sense because, after January, July is the next most common time for investors to read through their brokerage statements.\n\nAlso as expected, end-of-quarter window dressing is less of a factor at the end of the first- and third quarters. In fact, as you can see from the chart, the short-term reversal effect is even less dominant in April than in non-quarter-end months.\nHow to play the short-term reversal in July\nAs is often the case, an exchange-traded fund has been created to exploit the short-term reversal effect. Vesper US Large Cap Short-Term Reversal Strategy ETFUTRN,“seeks to capitalize on the tendency for stocks that have experienced sharp recent sell-offs to experience near-term rebounds.”\nBecause the fund was only recently created, in September 2018, the ETF’s average monthly returns since then are only suggestive of the long-term pattern. But its average return in July has been better (4.1%) than in any other month.\nFor anyone interested in the individual stocks that performed the worst in June, I constructed the following list. I started with the 50 stocks in the S&P 1500 index with the worst June returns, and then eliminated ones not currently recommended by any of the top-performing newsletters monitored by my newsletter-performance-tracking service.\nThe 15 stocks listed below survived this winnowing process. I note that, on average, these 15 lost 15.4% during the month of June, versus a gain of 2.3% for the S&P 500SPX.\n\nAdient PLC ADNT\nAlaska Air Group ALK\nAlliance Data Systems ADS\nAmerica’s Car Mart CRMT\nArcBest ARCB\nGoodyear Tire & Rubber GT\nKB Home KBH\nLCI Industries LCII\nMosaic & Co .MOS\nMedifast MED\nNewmont Corp. NEM\nOrganon & Co. OGN\nPatrick Industries PATK\nRegions Financial RF\nSabre SABR\n\nI also note that these stocks have an average price/book value ratio of 3.3, which is well-below the 4.7 ratio for the S&P 500. Having a below-average price/book ratio is the hallmark of a value stock, and it makes sense that value stocks will be favored by the short-term reversal strategy. That’s because value stocks significantly underperformed growth stocks in June — but their fortunes may soon change.","news_type":1},"isVote":1,"tweetType":1,"viewCount":321,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":813058431,"gmtCreate":1630115963823,"gmtModify":1676530228321,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Interesting story. Bernard Ebbers was like the Emperor without clothes. A lesson there for allleaders of industry.&nbsp;","listText":"Interesting story. Bernard Ebbers was like the Emperor without clothes. A lesson there for allleaders of industry.&nbsp;","text":"Interesting story. Bernard Ebbers was like the Emperor without clothes. A lesson there for allleaders of industry.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":11,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/813058431","repostId":"1184130616","repostType":4,"repost":{"id":"1184130616","pubTimestamp":1630111537,"share":"https://ttm.financial/m/news/1184130616?lang=&edition=fundamental","pubTime":"2021-08-28 08:45","market":"us","language":"en","title":"Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers","url":"https://stock-news.laohu8.com/highlight/detail?id=1184130616","media":"Benzinga","summary":"Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the head","content":"<p><i>Does crime pay?</i></p>\n<p>Among the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,<b>Bernard Ebbers</b>physically stood out from his peers — the 6-foot-4 head of WorldCom was dubbed the “telecom cowboy” thanks to his sartorial preference for jeans, cowboy boots and a 10-gallon hat.</p>\n<p>Ebbers also stood out from his peers for tightly holding on to Luddite practices as the digital age dawned. He famously refused to communicate with his workforce via email. Even worse, he stood out thanks to a prickly personality that quickly seethed when confronted with unpleasant news. A 2002 profile in The Economist defined him as “parochial, stubborn, preoccupied with penny-pinching … a difficult man to work for.”</p>\n<p><b>But ultimately, Ebbers stood out for being at the center of what was (at the time) the largest accounting fraud in U.S. history, which was followed by the harshest prison sentence ever imposed on a corporate executive for financial crimes.</b></p>\n<p><b>A Man In Search Of Himself:</b>&nbsp;Bernard John Ebbers was born Aug. 27, 1941, in Edmonton, Alberta, the second of five children. His father John was a traveling salesman and his peripatetic profession brought the family down from Canada into California, where he jettisoned his sales work and became an auto mechanic. The family later relocated to Gallup, New Mexico, where Ebbers’ parents became teachers on the Navajo Nation Indian reservation.</p>\n<p>The Ebbers clan was back in Canada when Ebbers was a teenager and Bernie (as he was commonly known) came into adulthood unable to determine a course for his life. He&nbsp;attended Canada’s University of Alberta and Michigan’s Calvin College before accepting a basketball scholarship to Mississippi College. But he was the victim of a robbery prior to his senior year that left him seriously injured and switched his attention from playing to coaching the junior varsity team.</p>\n<p>Ebbers graduated in 1967 majoring in physical education and minoring in secondary education. He supported himself during his college years by taking on a variety of odd jobs including a bouncer and milk delivery driver. He married his college sweetheart,<b>Linda Pigott,</b>after graduating and landed work teaching science to middle-school students while coaching high school basketball.</p>\n<p>But Ebbers didn’t stay very long in the school system. When his wife received a job offer as a teacher in another Mississippi town, the couple relocated and he found work managing a garment factory warehouse. By 1974, he tired of working for others and responded to a newspaper advertisement seeking a buyer for a motel in Columbia, Mississippi.</p>\n<p>Ebbers’ approach to running a hospitality establishment sometimes bordered on the eccentric.&nbsp;He would distribute bathroom towels at the front desk and require guests to return them to avoid being charged for taking them. Nonetheless, he found a niche in hospitality management and by the early 1980s he owned and operated eight motels within Mississippi and Texas; he also picked up a car dealership that also proved profitable.</p>\n<p><b>Calling Out Around The World:</b>Ebbers might have remained in the Mississippi hospitality industry had it not been for the 1982 breakup of<b>AT&amp;T Inc.'s</b>&nbsp;T 0.41%monopoly on the U.S. telephone system. This created a seismic shift in the telecommunications world by enabling other companies to begin reselling long-distance telephone services.</p>\n<p>In 1983, Ebbers and three friends met at a diner in Hattiesburg, Mississippi, to consider the feasibility of pursuing this newly opened opportunity. Ebbers theorized that having control of his long-distance calling services could benefit his motel business. In the days before mobile phones, guests in lodging establishments in need of long-distance calling would either have to feed handfuls of quarters into payphones or make calls from their rooms, which usually came with extra fees.</p>\n<p>Ebbers and his pals decided to get into the telecommunications business with&nbsp;<b>Long Distance Discount Services,</b>&nbsp;which they established in 1985 with headquarters in Jackson, Mississippi, with Ebbers as CEO.</p>\n<p><b>Carl J. Aycock,</b>a Mississippi financial advisor who was among the early investors in LDDS, would later laugh at the unlikelihood of Ebbers running a telecom company.</p>\n<p>“The only experience Bernie had before operating a long-distance company was he used the phone,” Aycock quipped in a 1997 interview.</p>\n<p>Maybe Ebbers did not possess an encyclopedic knowledge of telecommunications technology, but the good fortune he enjoyed in the motel business transitioned to this unlikely setting. Within four years of its launch, LDDS was being publicly traded.</p>\n<p>Within 10 years of its opening, LDDS took on an almost Pac Man-style persona of gobbling up telecom firms in&nbsp;sight of the company, acquiring more than 60 different telecommunications company. By 1995, the company renamed itself LDDS WorldCom.</p>\n<p>Many of the company’s acquisitions were on the small side, and the company was never considered a major player in the telecom industry until its $720 million acquisition of&nbsp;<b>Advanced Telecommunications Corporation</b>&nbsp;in 1992.</p>\n<p>The unlikely acquisition came with Ebbers’ ability to outbid industry titans AT&amp;T and&nbsp;<b>Sprint Corporation,</b>both considerably larger players in this field.</p>\n<p>The one unfortunate development during this time was the end of Ebbers’ marriage in 1997. He remarried in 1999 to&nbsp;<b>Kristie Webb.</b></p>\n<p>In February 1998, Ebbers’ company launched its acquisition plans for&nbsp;<b>CompuServe</b>&nbsp;from&nbsp;<b>H&amp;R Block Inc</b>.</p>\n<p>This transaction was followed by an astonishing spin of assets: LDDS sold the CompuServe Information Service portion of its acquisition to<b>America Online,</b>while retaining the CompuServe Network Services portion of the business. AOL simultaneously sold LDDS WorldCom its networking division, Advanced Network Services.</p>\n<p>In September 1998, LDDS WorldCom sealed a $37 billion union with&nbsp;<b>MCI Communications,</b>which created the largest corporate merger in U.S. history. The combined entity became MCI WorldCom, and for Ebbers it seemed that the sky was the limit —&nbsp;except that Ebbers’ ability to soar in the corporate skies resulted in an Icarus-worthy predicament.</p>\n<p><b>A Little Out Of Touch:</b>One year after the CompuServe and MCI deals, Ebbers’ company boasted an 80,000-person workforce, a market capitalization of roughly $185 billion and its shares were trading at a peak of nearly $62.</p>\n<p>At the peak of the company’s success, Ebbers granted an interview to The New York Times aboard his 130-yacht, which he berthed in the resort town of Hilton Head, South Carolina. He claimed that the secret of his success was “not as complicated as people make it out to be,” adding that he surrounded himself with experts who advised him on which moves to make.</p>\n<p>“I’m not an engineer by training,” he said. “I’m not an accountant by training. I’m the coach. I’m not the point guard who shoots the ball.”</p>\n<p>But as the company grew larger, Ebbers penny-pinching behavior during his early motel management days became more extreme. WorldCom executives would later complain that Ebbers stopped providing free coffee within their offices and directed security guards fill the water coolers with tap water.</p>\n<p>And for the head of a telecommunications company, Ebbers was curiously distrustful of cutting-edge tech developments. He refused to communicate via email and would not carry a pager or a cell phone. He would explain his actions internally by repeating “That’s the way we did it at LDDS,” and in a 1997 Business Week interview about this behavior he claimed that “when you come to the table with a (physical education) degree like I do, you don't know a lot about the technical stuff.”</p>\n<p>While Ebbers’ arms-length distance from personal technology could have been attributed to a zany quirk, there was another problem that couldn’t be happily shrugged away. As the company expanded, operational problems began to permeate the multiple divisions. Ebbers would become impatient or worse when confronted with problems, to the point that he would angrily demand that he only wanted to be addressed with good news.</p>\n<p><b>In retrospect, Ebbers’ refusal to acknowledge that his company was growing too fast and too large proved to be a fatal flaw</b>, especially when the corporate culture began to manufacture good news in lieu of reporting problems. As a result, Ebbers’ XL-sized business empire was sustained by taking on massive amounts of debt and highly improper accounting.</p>\n<p><b>Detour Off The Cliff:</b>The first cracks in this corporate story began in October 1999 when MCI WorldCom —&nbsp;which had become the second-largest long-distance telephone company in the country —&nbsp;announced a $129 billion merger with Sprint, the third-largest telecom carrier. Within nine months of this announcement, the merger was canceled in the face of pressure from U.S. and European regulators who feared a telecom monopoly would be born from this union. MCI WorldCom walked away from the failure by renaming itself as WorldCom.</p>\n<p>With the rise of the new millennium came the fall of the dot-com industry, and almost any company that had a tech-related aspect found itself taking a financial tumble. When Ebbers’ company tried to cut corners and save money, it turned into an act of self-immolation.</p>\n<p>Worldcom’s network systems engineering division exhausted its annual capital expenditures budget by November 2000, with a&nbsp;senior manager ordering&nbsp;a halt to processing payments for network systems vendors and suppliers until the beginning of 2001.</p>\n<p>The company’s chief technical officer,<b>Fred Briggs,</b>then ordered all of the labor associated with the capital projects in the network systems division to be booked as an expense rather than a capital project —&nbsp;and his directive was shared with other divisions in the company.</p>\n<p>A WorldCom budget analyst named&nbsp;<b>Kim Amigh</b>in the company’s Richardson, Texas, office recognized the legal ramifications of intentionally mischaracterizing capital expenses and lodged a protest against the order. The directive was canceled and so was Amigh —&nbsp;three months after his action, Amigh was abruptly laid off from the company.</p>\n<p>But Vice President of Internal Audit&nbsp;<b>Cynthia Cooper</b>&nbsp;learned of Amigh’s findings and picked up his trail. Her department began combing through WorldCom’s accounts and found $2 billion that the company claimed in its public filings was spent on capital expenditures during the first three quarters of 2001 —&nbsp;except that the funds were never authorized for that purpose and were clearly operating costs moved into the capital expenditure accounting as a way to make WorldCom look more profitable.</p>\n<p>Cooper could not find anyone in the WorldCom leadership ranks to explain the $2 billion discrepancy. Most executives said it was a “prepaid capacity,” a meaningless term which they couldn’t define when pressed by Cooper.</p>\n<p>And Cooper was not alone in her suspicions. The U.S. Securities and Exchange Commission could not fathom how WorldCom continued to claim robust profits during the dot-com period while its competitors were operating at a loss, and it sent forth a “Request for Information” to learn the secret of its success.</p>\n<p>Adding to this chaos were Ebbers’ personal financial woes, which became exacerbated during to dot-com crisis by margin calls on his WorldCom shares, which were tanking as the economy plummeted into a recession.</p>\n<p>To alleviate his monetary pain, Ebbers borrowed $50 million from WorldCom in September 2000&nbsp;— and then borrowed again&nbsp;and again. By April 2002, Ebbers was $400 million in debt to WorldCom and the board of directors demanded his resignation, which he provided.</p>\n<p>In June 2002, WorldCom acknowledged its earnings reports contained $3.9 billion in accounting misstatements, with the figure&nbsp;later adjusted to $11 billion. In July 2002, the company declared bankruptcy and was delisted from public trading. Also during that month, Ebbers was called before the U.S. House of Representatives Committee on Financial Services to explain what happened. He pleaded the Fifth Amendment.</p>\n<p><b>Road’s End:</b>The efforts to bring Ebbers to trial got off to a weird start when the State of Oklahoma jumped the gun with a 15-count indictment, only to drop its charges in favor of federal prosecution.</p>\n<p>Ebbers was indicted in May 2004 on seven counts of filing false statements with securities regulators plus one count each of conspiracy and securities fraud. Ebbers agreed to testify on his behalf, which many observers later considered to be a major mistake because he came across as evasive and unconvincing when insisting WorldCom’s downfall was solely the fault of his subordinates and that he was ignorant about how his company worked.</p>\n<p>“I know what I don’t know,” Ebbers said during his trial. “To this day, I don’t know technology, and I don’t know finance or accounting.”</p>\n<p>Ebbers was found guilty on all counts and was sentenced to 25 years in prison, the longest sentence ever handed down in U.S. history for a financial fraud case against a corporate executive.</p>\n<p>He remained free on bail while fighting to overturn the verdict, but the conviction was upheld in the U.S. Court of Appeals for the Second Circuit in July 2006. Two months later, he drove himself in his luxury Mercedes-Benz to a low-security Louisiana prison to begin his sentence. Two years later, his wife Kristie successfully filed for divorce.</p>\n<p>After 13 years behind bars, Ebbers was granted a compassionate release on Dec. 21, 2019, due to a deteriorating state of health that included macular degeneration that left him legally blind, anemia, a weakened heart condition and the beginnings of dementia. He returned to his home in Brookhaven, Mississippi, and passed away on Feb. 2, 2020.</p>\n<p>In defining his rise to the top, Ebbers harkened back to his basketball days by insisting, “The coach's job is to get the best players and get them to play together.” But in explaining his fall from grace, Ebbers forgot that the core of coaching is accepting responsibility for the team’s performance and he blamed his “best players” for not being able to “play together” while absolving himself from their errors.</p>\n<p>Said Ebbers when confronted with his ultimate failure as the corporate equivalent of a coach: “I didn't have anything to apologize for.”</p>\n<p></p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-08-28 08:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/news/21/08/22680432/wall-street-crime-and-punishment-bernard-ebbers-and-worldcoms-seriously-wrong-numbers><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,Bernard Ebbersphysically stood out from his peers — the 6-foot-4 ...</p>\n\n<a href=\"https://www.benzinga.com/news/21/08/22680432/wall-street-crime-and-punishment-bernard-ebbers-and-worldcoms-seriously-wrong-numbers\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"HRB":"H&R布洛克税务"},"source_url":"https://www.benzinga.com/news/21/08/22680432/wall-street-crime-and-punishment-bernard-ebbers-and-worldcoms-seriously-wrong-numbers","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1184130616","content_text":"Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,Bernard Ebbersphysically stood out from his peers — the 6-foot-4 head of WorldCom was dubbed the “telecom cowboy” thanks to his sartorial preference for jeans, cowboy boots and a 10-gallon hat.\nEbbers also stood out from his peers for tightly holding on to Luddite practices as the digital age dawned. He famously refused to communicate with his workforce via email. Even worse, he stood out thanks to a prickly personality that quickly seethed when confronted with unpleasant news. A 2002 profile in The Economist defined him as “parochial, stubborn, preoccupied with penny-pinching … a difficult man to work for.”\nBut ultimately, Ebbers stood out for being at the center of what was (at the time) the largest accounting fraud in U.S. history, which was followed by the harshest prison sentence ever imposed on a corporate executive for financial crimes.\nA Man In Search Of Himself: Bernard John Ebbers was born Aug. 27, 1941, in Edmonton, Alberta, the second of five children. His father John was a traveling salesman and his peripatetic profession brought the family down from Canada into California, where he jettisoned his sales work and became an auto mechanic. The family later relocated to Gallup, New Mexico, where Ebbers’ parents became teachers on the Navajo Nation Indian reservation.\nThe Ebbers clan was back in Canada when Ebbers was a teenager and Bernie (as he was commonly known) came into adulthood unable to determine a course for his life. He attended Canada’s University of Alberta and Michigan’s Calvin College before accepting a basketball scholarship to Mississippi College. But he was the victim of a robbery prior to his senior year that left him seriously injured and switched his attention from playing to coaching the junior varsity team.\nEbbers graduated in 1967 majoring in physical education and minoring in secondary education. He supported himself during his college years by taking on a variety of odd jobs including a bouncer and milk delivery driver. He married his college sweetheart,Linda Pigott,after graduating and landed work teaching science to middle-school students while coaching high school basketball.\nBut Ebbers didn’t stay very long in the school system. When his wife received a job offer as a teacher in another Mississippi town, the couple relocated and he found work managing a garment factory warehouse. By 1974, he tired of working for others and responded to a newspaper advertisement seeking a buyer for a motel in Columbia, Mississippi.\nEbbers’ approach to running a hospitality establishment sometimes bordered on the eccentric. He would distribute bathroom towels at the front desk and require guests to return them to avoid being charged for taking them. Nonetheless, he found a niche in hospitality management and by the early 1980s he owned and operated eight motels within Mississippi and Texas; he also picked up a car dealership that also proved profitable.\nCalling Out Around The World:Ebbers might have remained in the Mississippi hospitality industry had it not been for the 1982 breakup ofAT&T Inc.'s T 0.41%monopoly on the U.S. telephone system. This created a seismic shift in the telecommunications world by enabling other companies to begin reselling long-distance telephone services.\nIn 1983, Ebbers and three friends met at a diner in Hattiesburg, Mississippi, to consider the feasibility of pursuing this newly opened opportunity. Ebbers theorized that having control of his long-distance calling services could benefit his motel business. In the days before mobile phones, guests in lodging establishments in need of long-distance calling would either have to feed handfuls of quarters into payphones or make calls from their rooms, which usually came with extra fees.\nEbbers and his pals decided to get into the telecommunications business with Long Distance Discount Services, which they established in 1985 with headquarters in Jackson, Mississippi, with Ebbers as CEO.\nCarl J. Aycock,a Mississippi financial advisor who was among the early investors in LDDS, would later laugh at the unlikelihood of Ebbers running a telecom company.\n“The only experience Bernie had before operating a long-distance company was he used the phone,” Aycock quipped in a 1997 interview.\nMaybe Ebbers did not possess an encyclopedic knowledge of telecommunications technology, but the good fortune he enjoyed in the motel business transitioned to this unlikely setting. Within four years of its launch, LDDS was being publicly traded.\nWithin 10 years of its opening, LDDS took on an almost Pac Man-style persona of gobbling up telecom firms in sight of the company, acquiring more than 60 different telecommunications company. By 1995, the company renamed itself LDDS WorldCom.\nMany of the company’s acquisitions were on the small side, and the company was never considered a major player in the telecom industry until its $720 million acquisition of Advanced Telecommunications Corporation in 1992.\nThe unlikely acquisition came with Ebbers’ ability to outbid industry titans AT&T and Sprint Corporation,both considerably larger players in this field.\nThe one unfortunate development during this time was the end of Ebbers’ marriage in 1997. He remarried in 1999 to Kristie Webb.\nIn February 1998, Ebbers’ company launched its acquisition plans for CompuServe from H&R Block Inc.\nThis transaction was followed by an astonishing spin of assets: LDDS sold the CompuServe Information Service portion of its acquisition toAmerica Online,while retaining the CompuServe Network Services portion of the business. AOL simultaneously sold LDDS WorldCom its networking division, Advanced Network Services.\nIn September 1998, LDDS WorldCom sealed a $37 billion union with MCI Communications,which created the largest corporate merger in U.S. history. The combined entity became MCI WorldCom, and for Ebbers it seemed that the sky was the limit — except that Ebbers’ ability to soar in the corporate skies resulted in an Icarus-worthy predicament.\nA Little Out Of Touch:One year after the CompuServe and MCI deals, Ebbers’ company boasted an 80,000-person workforce, a market capitalization of roughly $185 billion and its shares were trading at a peak of nearly $62.\nAt the peak of the company’s success, Ebbers granted an interview to The New York Times aboard his 130-yacht, which he berthed in the resort town of Hilton Head, South Carolina. He claimed that the secret of his success was “not as complicated as people make it out to be,” adding that he surrounded himself with experts who advised him on which moves to make.\n“I’m not an engineer by training,” he said. “I’m not an accountant by training. I’m the coach. I’m not the point guard who shoots the ball.”\nBut as the company grew larger, Ebbers penny-pinching behavior during his early motel management days became more extreme. WorldCom executives would later complain that Ebbers stopped providing free coffee within their offices and directed security guards fill the water coolers with tap water.\nAnd for the head of a telecommunications company, Ebbers was curiously distrustful of cutting-edge tech developments. He refused to communicate via email and would not carry a pager or a cell phone. He would explain his actions internally by repeating “That’s the way we did it at LDDS,” and in a 1997 Business Week interview about this behavior he claimed that “when you come to the table with a (physical education) degree like I do, you don't know a lot about the technical stuff.”\nWhile Ebbers’ arms-length distance from personal technology could have been attributed to a zany quirk, there was another problem that couldn’t be happily shrugged away. As the company expanded, operational problems began to permeate the multiple divisions. Ebbers would become impatient or worse when confronted with problems, to the point that he would angrily demand that he only wanted to be addressed with good news.\nIn retrospect, Ebbers’ refusal to acknowledge that his company was growing too fast and too large proved to be a fatal flaw, especially when the corporate culture began to manufacture good news in lieu of reporting problems. As a result, Ebbers’ XL-sized business empire was sustained by taking on massive amounts of debt and highly improper accounting.\nDetour Off The Cliff:The first cracks in this corporate story began in October 1999 when MCI WorldCom — which had become the second-largest long-distance telephone company in the country — announced a $129 billion merger with Sprint, the third-largest telecom carrier. Within nine months of this announcement, the merger was canceled in the face of pressure from U.S. and European regulators who feared a telecom monopoly would be born from this union. MCI WorldCom walked away from the failure by renaming itself as WorldCom.\nWith the rise of the new millennium came the fall of the dot-com industry, and almost any company that had a tech-related aspect found itself taking a financial tumble. When Ebbers’ company tried to cut corners and save money, it turned into an act of self-immolation.\nWorldcom’s network systems engineering division exhausted its annual capital expenditures budget by November 2000, with a senior manager ordering a halt to processing payments for network systems vendors and suppliers until the beginning of 2001.\nThe company’s chief technical officer,Fred Briggs,then ordered all of the labor associated with the capital projects in the network systems division to be booked as an expense rather than a capital project — and his directive was shared with other divisions in the company.\nA WorldCom budget analyst named Kim Amighin the company’s Richardson, Texas, office recognized the legal ramifications of intentionally mischaracterizing capital expenses and lodged a protest against the order. The directive was canceled and so was Amigh — three months after his action, Amigh was abruptly laid off from the company.\nBut Vice President of Internal Audit Cynthia Cooper learned of Amigh’s findings and picked up his trail. Her department began combing through WorldCom’s accounts and found $2 billion that the company claimed in its public filings was spent on capital expenditures during the first three quarters of 2001 — except that the funds were never authorized for that purpose and were clearly operating costs moved into the capital expenditure accounting as a way to make WorldCom look more profitable.\nCooper could not find anyone in the WorldCom leadership ranks to explain the $2 billion discrepancy. Most executives said it was a “prepaid capacity,” a meaningless term which they couldn’t define when pressed by Cooper.\nAnd Cooper was not alone in her suspicions. The U.S. Securities and Exchange Commission could not fathom how WorldCom continued to claim robust profits during the dot-com period while its competitors were operating at a loss, and it sent forth a “Request for Information” to learn the secret of its success.\nAdding to this chaos were Ebbers’ personal financial woes, which became exacerbated during to dot-com crisis by margin calls on his WorldCom shares, which were tanking as the economy plummeted into a recession.\nTo alleviate his monetary pain, Ebbers borrowed $50 million from WorldCom in September 2000 — and then borrowed again and again. By April 2002, Ebbers was $400 million in debt to WorldCom and the board of directors demanded his resignation, which he provided.\nIn June 2002, WorldCom acknowledged its earnings reports contained $3.9 billion in accounting misstatements, with the figure later adjusted to $11 billion. In July 2002, the company declared bankruptcy and was delisted from public trading. Also during that month, Ebbers was called before the U.S. House of Representatives Committee on Financial Services to explain what happened. He pleaded the Fifth Amendment.\nRoad’s End:The efforts to bring Ebbers to trial got off to a weird start when the State of Oklahoma jumped the gun with a 15-count indictment, only to drop its charges in favor of federal prosecution.\nEbbers was indicted in May 2004 on seven counts of filing false statements with securities regulators plus one count each of conspiracy and securities fraud. Ebbers agreed to testify on his behalf, which many observers later considered to be a major mistake because he came across as evasive and unconvincing when insisting WorldCom’s downfall was solely the fault of his subordinates and that he was ignorant about how his company worked.\n“I know what I don’t know,” Ebbers said during his trial. “To this day, I don’t know technology, and I don’t know finance or accounting.”\nEbbers was found guilty on all counts and was sentenced to 25 years in prison, the longest sentence ever handed down in U.S. history for a financial fraud case against a corporate executive.\nHe remained free on bail while fighting to overturn the verdict, but the conviction was upheld in the U.S. Court of Appeals for the Second Circuit in July 2006. Two months later, he drove himself in his luxury Mercedes-Benz to a low-security Louisiana prison to begin his sentence. Two years later, his wife Kristie successfully filed for divorce.\nAfter 13 years behind bars, Ebbers was granted a compassionate release on Dec. 21, 2019, due to a deteriorating state of health that included macular degeneration that left him legally blind, anemia, a weakened heart condition and the beginnings of dementia. He returned to his home in Brookhaven, Mississippi, and passed away on Feb. 2, 2020.\nIn defining his rise to the top, Ebbers harkened back to his basketball days by insisting, “The coach's job is to get the best players and get them to play together.” But in explaining his fall from grace, Ebbers forgot that the core of coaching is accepting responsibility for the team’s performance and he blamed his “best players” for not being able to “play together” while absolving himself from their errors.\nSaid Ebbers when confronted with his ultimate failure as the corporate equivalent of a coach: “I didn't have anything to apologize for.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":364,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":152673002,"gmtCreate":1625291599606,"gmtModify":1703740109670,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Mosaic for fertilizer! Goodyear for rubber tyres! The world always needs these.&nbsp;","listText":"Mosaic for fertilizer! Goodyear for rubber tyres! The world always needs these.&nbsp;","text":"Mosaic for fertilizer! Goodyear for rubber tyres! The world always needs these.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":11,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/152673002","repostId":"1122056398","repostType":4,"repost":{"id":"1122056398","pubTimestamp":1625280707,"share":"https://ttm.financial/m/news/1122056398?lang=&edition=fundamental","pubTime":"2021-07-03 10:51","market":"us","language":"en","title":"These 15 stocks -- June's biggest losers -- could become July's winners","url":"https://stock-news.laohu8.com/highlight/detail?id=1122056398","media":"MarketWatch","summary":"‘Short-term reversal strategy’ often does particularly well in July.\n\nJune’s worst stocks are good b","content":"<blockquote>\n <b>‘Short-term reversal strategy’ often does particularly well in July.</b>\n</blockquote>\n<p>June’s worst stocks are good bets to beat the U.S. market in in July.</p>\n<p>That’s because portfolio window-dressing at the end of June will have made that month’s poor performers fall even further than they would have otherwise. It’s likely that once this artificial selling pressure disappears, these stocks will bounce back.</p>\n<p>To be sure, window dressing is a powerful force on several occasions throughout the calendar, not just at this time of year. It should have the biggest impact at the end of December, since more investors look at their portfolio holdings in early January than in any other month of the year. Fund managers therefore go out of their way to sell their losers prior to Dec. 31 in order to avoid the embarrassment of having to report that they had ever owned them.</p>\n<p>Just the opposite is the case for stocks that managers buy for window dressing. These are the stocks that already have been performing well and which managers want to show in their end-of-quarter holdings report. Their cosmetic buying will cause these stocks to perform even better — which, in turn, results in them falling back to earth once the new quarter comes around.</p>\n<p>As expected, January is the month in which the previous month’s worst performers fare best relative to the previous month’s best performers — a pattern known as the “short term reversal effect.” This is illustrated in the chart below, which reflects monthly data back to 1926. July is the second-most powerful month for this pattern. That also makes sense because, after January, July is the next most common time for investors to read through their brokerage statements.</p>\n<p><img src=\"https://static.tigerbbs.com/6ac3a509127efd603df1d98de04774e7\" tg-width=\"620\" tg-height=\"418\" referrerpolicy=\"no-referrer\"></p>\n<p>Also as expected, end-of-quarter window dressing is less of a factor at the end of the first- and third quarters. In fact, as you can see from the chart, the short-term reversal effect is even less dominant in April than in non-quarter-end months.</p>\n<p><b>How to play the short-term reversal in July</b></p>\n<p>As is often the case, an exchange-traded fund has been created to exploit the short-term reversal effect. Vesper US Large Cap Short-Term Reversal Strategy ETFUTRN,“seeks to capitalize on the tendency for stocks that have experienced sharp recent sell-offs to experience near-term rebounds.”</p>\n<p>Because the fund was only recently created, in September 2018, the ETF’s average monthly returns since then are only suggestive of the long-term pattern. But its average return in July has been better (4.1%) than in any other month.</p>\n<p>For anyone interested in the individual stocks that performed the worst in June, I constructed the following list. I started with the 50 stocks in the S&amp;P 1500 index with the worst June returns, and then eliminated ones not currently recommended by any of the top-performing newsletters monitored by my newsletter-performance-tracking service.</p>\n<p>The 15 stocks listed below survived this winnowing process. I note that, on average, these 15 lost 15.4% during the month of June, versus a gain of 2.3% for the S&amp;P 500SPX.</p>\n<ul>\n <li>Adient PLC&nbsp;ADNT</li>\n <li>Alaska Air Group&nbsp;ALK</li>\n <li>Alliance Data Systems&nbsp;ADS</li>\n <li>America’s Car Mart&nbsp;CRMT</li>\n <li>ArcBest&nbsp;ARCB</li>\n <li>Goodyear Tire &amp; Rubber&nbsp;GT</li>\n <li>KB Home&nbsp;KBH</li>\n <li>LCI Industries&nbsp;LCII</li>\n <li>Mosaic &amp; Co&nbsp;.MOS</li>\n <li>Medifast&nbsp;MED</li>\n <li>Newmont Corp.&nbsp;NEM</li>\n <li>Organon &amp; Co.&nbsp;OGN</li>\n <li>Patrick Industries&nbsp;PATK</li>\n <li>Regions Financial&nbsp;RF</li>\n <li>Sabre&nbsp;SABR</li>\n</ul>\n<p>I also note that these stocks have an average price/book value ratio of 3.3, which is well-below the 4.7 ratio for the S&amp;P 500. Having a below-average price/book ratio is the hallmark of a value stock, and it makes sense that value stocks will be favored by the short-term reversal strategy. That’s because value stocks significantly underperformed growth stocks in June — but their fortunes may soon change.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 15 stocks -- June's biggest losers -- could become July's winners</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 15 stocks -- June's biggest losers -- could become July's winners\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-03 10:51 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/these-15-stocks-junes-biggest-losers-could-become-julys-winners-11625238769?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>‘Short-term reversal strategy’ often does particularly well in July.\n\nJune’s worst stocks are good bets to beat the U.S. market in in July.\nThat’s because portfolio window-dressing at the end of June ...</p>\n\n<a href=\"https://www.marketwatch.com/story/these-15-stocks-junes-biggest-losers-could-become-julys-winners-11625238769?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"MED":"快验保","ARCB":"ArcBest Corporation","KBH":"KB Home","CRMT":"美国汽车行","SABR":"Sabre Corporation","GT":"固特异轮胎橡胶公司","PATK":"Patrick Industries","NEM":"纽曼矿业","ALK":"阿拉斯加航空集团有限公司","LCII":"LCI Industries","RF":"地区金融","OGN":"Organon & Co","MOS":"美国美盛","ADNT":"Adient PLC"},"source_url":"https://www.marketwatch.com/story/these-15-stocks-junes-biggest-losers-could-become-julys-winners-11625238769?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1122056398","content_text":"‘Short-term reversal strategy’ often does particularly well in July.\n\nJune’s worst stocks are good bets to beat the U.S. market in in July.\nThat’s because portfolio window-dressing at the end of June will have made that month’s poor performers fall even further than they would have otherwise. It’s likely that once this artificial selling pressure disappears, these stocks will bounce back.\nTo be sure, window dressing is a powerful force on several occasions throughout the calendar, not just at this time of year. It should have the biggest impact at the end of December, since more investors look at their portfolio holdings in early January than in any other month of the year. Fund managers therefore go out of their way to sell their losers prior to Dec. 31 in order to avoid the embarrassment of having to report that they had ever owned them.\nJust the opposite is the case for stocks that managers buy for window dressing. These are the stocks that already have been performing well and which managers want to show in their end-of-quarter holdings report. Their cosmetic buying will cause these stocks to perform even better — which, in turn, results in them falling back to earth once the new quarter comes around.\nAs expected, January is the month in which the previous month’s worst performers fare best relative to the previous month’s best performers — a pattern known as the “short term reversal effect.” This is illustrated in the chart below, which reflects monthly data back to 1926. July is the second-most powerful month for this pattern. That also makes sense because, after January, July is the next most common time for investors to read through their brokerage statements.\n\nAlso as expected, end-of-quarter window dressing is less of a factor at the end of the first- and third quarters. In fact, as you can see from the chart, the short-term reversal effect is even less dominant in April than in non-quarter-end months.\nHow to play the short-term reversal in July\nAs is often the case, an exchange-traded fund has been created to exploit the short-term reversal effect. Vesper US Large Cap Short-Term Reversal Strategy ETFUTRN,“seeks to capitalize on the tendency for stocks that have experienced sharp recent sell-offs to experience near-term rebounds.”\nBecause the fund was only recently created, in September 2018, the ETF’s average monthly returns since then are only suggestive of the long-term pattern. But its average return in July has been better (4.1%) than in any other month.\nFor anyone interested in the individual stocks that performed the worst in June, I constructed the following list. I started with the 50 stocks in the S&P 1500 index with the worst June returns, and then eliminated ones not currently recommended by any of the top-performing newsletters monitored by my newsletter-performance-tracking service.\nThe 15 stocks listed below survived this winnowing process. I note that, on average, these 15 lost 15.4% during the month of June, versus a gain of 2.3% for the S&P 500SPX.\n\nAdient PLC ADNT\nAlaska Air Group ALK\nAlliance Data Systems ADS\nAmerica’s Car Mart CRMT\nArcBest ARCB\nGoodyear Tire & Rubber GT\nKB Home KBH\nLCI Industries LCII\nMosaic & Co .MOS\nMedifast MED\nNewmont Corp. NEM\nOrganon & Co. OGN\nPatrick Industries PATK\nRegions Financial RF\nSabre SABR\n\nI also note that these stocks have an average price/book value ratio of 3.3, which is well-below the 4.7 ratio for the S&P 500. Having a below-average price/book ratio is the hallmark of a value stock, and it makes sense that value stocks will be favored by the short-term reversal strategy. That’s because value stocks significantly underperformed growth stocks in June — but their fortunes may soon change.","news_type":1},"isVote":1,"tweetType":1,"viewCount":321,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":831893232,"gmtCreate":1629298337526,"gmtModify":1676529996744,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Interesting… Will charitable giving also be a&nbsp;subject&nbsp;of the regulatory framework for internet companies?&nbsp;","listText":"Interesting… Will charitable giving also be a&nbsp;subject&nbsp;of the regulatory framework for internet companies?&nbsp;","text":"Interesting… Will charitable giving also be a subject of the regulatory framework for internet companies?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":10,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/831893232","repostId":"1173987909","repostType":4,"repost":{"id":"1173987909","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1629297237,"share":"https://ttm.financial/m/news/1173987909?lang=&edition=fundamental","pubTime":"2021-08-18 22:33","market":"hk","language":"en","title":"The Tertiary Distribution – What Can Chinese Tech Companies Learn from Apple?","url":"https://stock-news.laohu8.com/highlight/detail?id=1173987909","media":"Tiger Newspress","summary":"According to the latest policy directives issued in China, “The Tertiary Distribution” is about to b","content":"<p>According to the latest policy directives issued in China, “The Tertiary&nbsp;Distribution” is about to be put into effect. Citing various sources, the so-called “The Tertiary Distribution” refers to the further adjustment of social income distribution through social entities’ (enterprises and individuals) voluntary, charitable donations, which is in the stage of micro-adjustment. In the meantime, the policy also clearly instructs that the country should encourage high-income groups and enterprises to give back to society to a greater extent.</p>\n<p>There are many high-income groups, including celebrities and real estate speculators. And, high-income companies, in terms of financial reports, include leading Internet companies, China’s top five banks, and other state-owned enterprises. Here, we will discuss what Internet companies should do in “The&nbsp;Tertiary Distribution.”</p>\n<p>From the view of current beneficial donations, Internet companies have played an increasingly important role. Let’s take the flood disaster that recently occurred in Henan as an example. <a href=\"https://laohu8.com/S/00700\">TENCENT</a> donated 100 million yuan, <a href=\"https://laohu8.com/S/BABA\">Alibaba</a> donated 100 million yuan, and Xiaomi donated 50 million yuan... But there are problems with the current way of donating by Internet companies.</p>\n<p><b>1. The burden born by Internet companies is heavy.</b> Although the leading Internet companies have made plenty of profits, many companies are not profitable or even in the red. After the flood disaster of Henan province, Pinduoduo, the largest agriculture-focused technology platform in China, also announced a donation of 100 million yuan. It should be noted that the company is at a loss. The large-scale donation will also deliver an illusion to society: These companies are capable of donating more money.</p>\n<p><b>2. There is a phenomenon of unrealistic comparison among Internet companies.</b> The beneficial donations conducted by Internet corporates have entered the stage of comparison, which is related to Chinese cultural traditions. The donation amount of BAT (<a href=\"https://laohu8.com/S/BIDU\">Baidu</a>, Alibaba, and Tencent) is in one echelon, while that of <a href=\"https://laohu8.com/S/01810\">XIAOMI-W</a> and OmniVision is in another echelon. The comparison on donation amount makes companies complain, and it also makes the public feel that Internet companies are flaunting the considerable wealth.</p>\n<p><b>3. Public beneficial donations are not sustainable.</b> Tencent donated 100 million yuan to help people in Henan fight the natural calamity. What should Tencent do if there is another city suffering from disaster? How much should Tencent donate if there are more natural calamities? Global warming will give rise to more and more disasters. Therefore, the immoderate, planless donations will become a big unknown for the future operation of these enterprises.</p>\n<p>The United States is the country that has done the best in public welfare. As a leading conglomerate in the United States, how does <a href=\"https://laohu8.com/S/AAPL\">Apple</a> deal with “The Tertiary Distributions?”</p>\n<p>Apple has partly disclosed the information on its charitable donations. According to the disclosure, charitable donations completed by Apple can be divided into three parts: <b>a. Employee Giving Program; b. Community Investment Team; c. Grant Program</b>.</p>\n<p>The second public welfare plan, namely “Community Investment Team,” is for NGOs across the globe. Since the amount has not been disclosed, it is estimated that the amount of donation is not much. The third plan “Grant Program” is for the locations of Apple/groups, with an annual quota of $1 million. Only the first plan is the focus of Apple’s philanthropy.</p>\n<p>Apple’s Employee Giving Program is based on employee donations, and the company conducts a match rate of 1:1. Beyond that, Apple will also match the time spent by employees in public welfare activities at $25 per hour. Since the implementation of the project in 2011, more than $600 million has been donated by the company and its employees, benefiting 34,000 organizations worldwide, and employees have together contributed 1.6 million hours of work.</p>\n<p>The advantages are listed as follows:</p>\n<p><b>1. The company can be better protected. </b>The company’s move of placing employees on the front line of public welfare undertakings can arouse the enthusiasm of employees and also hide the company behind them. Apple will never get caught up in public opinions like “Why don’t Apple donate as much as <a href=\"https://laohu8.com/S/GOOG\">Alphabet</a>?”.</p>\n<p><b>2. Tax avoidance is best realized.</b> Donations made by enterprises to public welfare undertakings will always be suspected of tax avoidance and will also be questioned by the public. However, if the donation amount of an enterprise is matched by that of employees, the company’s expenditure can be figured in the employee’s expense item (salary) in the company’s financial report, which reduces the tax base.</p>\n<p><b>3. The scope of charity is wider.</b> Apple has a large number of employees spreading widely around the world. The charity projects they seek on their own are far more than those concerned by the media. Apple’s philanthropy spreads to all corners of society, which will be pretty good for the overall image of Apple. Compared with the recently happened disaster in Henan province which attracted countless donations, there are more other public welfare undertakings that have not been reported by media and paid attention to by both individuals and companies. If employees of Tencent, Alibaba, and Xiaomi can be mobilized to explore more public welfare projects, the inclusive work for society will be much better.</p>\n<p>To my point of view, Chinese Internet companies should learn from Apple’s experience and earnestly welcome “The Tertiary Distribution.”</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The Tertiary Distribution – What Can Chinese Tech Companies Learn from Apple?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Tertiary Distribution – What Can Chinese Tech Companies Learn from Apple?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-08-18 22:33</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>According to the latest policy directives issued in China, “The Tertiary&nbsp;Distribution” is about to be put into effect. Citing various sources, the so-called “The Tertiary Distribution” refers to the further adjustment of social income distribution through social entities’ (enterprises and individuals) voluntary, charitable donations, which is in the stage of micro-adjustment. In the meantime, the policy also clearly instructs that the country should encourage high-income groups and enterprises to give back to society to a greater extent.</p>\n<p>There are many high-income groups, including celebrities and real estate speculators. And, high-income companies, in terms of financial reports, include leading Internet companies, China’s top five banks, and other state-owned enterprises. Here, we will discuss what Internet companies should do in “The&nbsp;Tertiary Distribution.”</p>\n<p>From the view of current beneficial donations, Internet companies have played an increasingly important role. Let’s take the flood disaster that recently occurred in Henan as an example. <a href=\"https://laohu8.com/S/00700\">TENCENT</a> donated 100 million yuan, <a href=\"https://laohu8.com/S/BABA\">Alibaba</a> donated 100 million yuan, and Xiaomi donated 50 million yuan... But there are problems with the current way of donating by Internet companies.</p>\n<p><b>1. The burden born by Internet companies is heavy.</b> Although the leading Internet companies have made plenty of profits, many companies are not profitable or even in the red. After the flood disaster of Henan province, Pinduoduo, the largest agriculture-focused technology platform in China, also announced a donation of 100 million yuan. It should be noted that the company is at a loss. The large-scale donation will also deliver an illusion to society: These companies are capable of donating more money.</p>\n<p><b>2. There is a phenomenon of unrealistic comparison among Internet companies.</b> The beneficial donations conducted by Internet corporates have entered the stage of comparison, which is related to Chinese cultural traditions. The donation amount of BAT (<a href=\"https://laohu8.com/S/BIDU\">Baidu</a>, Alibaba, and Tencent) is in one echelon, while that of <a href=\"https://laohu8.com/S/01810\">XIAOMI-W</a> and OmniVision is in another echelon. The comparison on donation amount makes companies complain, and it also makes the public feel that Internet companies are flaunting the considerable wealth.</p>\n<p><b>3. Public beneficial donations are not sustainable.</b> Tencent donated 100 million yuan to help people in Henan fight the natural calamity. What should Tencent do if there is another city suffering from disaster? How much should Tencent donate if there are more natural calamities? Global warming will give rise to more and more disasters. Therefore, the immoderate, planless donations will become a big unknown for the future operation of these enterprises.</p>\n<p>The United States is the country that has done the best in public welfare. As a leading conglomerate in the United States, how does <a href=\"https://laohu8.com/S/AAPL\">Apple</a> deal with “The Tertiary Distributions?”</p>\n<p>Apple has partly disclosed the information on its charitable donations. According to the disclosure, charitable donations completed by Apple can be divided into three parts: <b>a. Employee Giving Program; b. Community Investment Team; c. Grant Program</b>.</p>\n<p>The second public welfare plan, namely “Community Investment Team,” is for NGOs across the globe. Since the amount has not been disclosed, it is estimated that the amount of donation is not much. The third plan “Grant Program” is for the locations of Apple/groups, with an annual quota of $1 million. Only the first plan is the focus of Apple’s philanthropy.</p>\n<p>Apple’s Employee Giving Program is based on employee donations, and the company conducts a match rate of 1:1. Beyond that, Apple will also match the time spent by employees in public welfare activities at $25 per hour. Since the implementation of the project in 2011, more than $600 million has been donated by the company and its employees, benefiting 34,000 organizations worldwide, and employees have together contributed 1.6 million hours of work.</p>\n<p>The advantages are listed as follows:</p>\n<p><b>1. The company can be better protected. </b>The company’s move of placing employees on the front line of public welfare undertakings can arouse the enthusiasm of employees and also hide the company behind them. Apple will never get caught up in public opinions like “Why don’t Apple donate as much as <a href=\"https://laohu8.com/S/GOOG\">Alphabet</a>?”.</p>\n<p><b>2. Tax avoidance is best realized.</b> Donations made by enterprises to public welfare undertakings will always be suspected of tax avoidance and will also be questioned by the public. However, if the donation amount of an enterprise is matched by that of employees, the company’s expenditure can be figured in the employee’s expense item (salary) in the company’s financial report, which reduces the tax base.</p>\n<p><b>3. The scope of charity is wider.</b> Apple has a large number of employees spreading widely around the world. The charity projects they seek on their own are far more than those concerned by the media. Apple’s philanthropy spreads to all corners of society, which will be pretty good for the overall image of Apple. Compared with the recently happened disaster in Henan province which attracted countless donations, there are more other public welfare undertakings that have not been reported by media and paid attention to by both individuals and companies. If employees of Tencent, Alibaba, and Xiaomi can be mobilized to explore more public welfare projects, the inclusive work for society will be much better.</p>\n<p>To my point of view, Chinese Internet companies should learn from Apple’s experience and earnestly welcome “The Tertiary Distribution.”</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"00700":"腾讯控股","BIDU":"百度","PDD":"拼多多","AAPL":"苹果","01810":"小米集团-W","BABA":"阿里巴巴"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1173987909","content_text":"According to the latest policy directives issued in China, “The Tertiary Distribution” is about to be put into effect. Citing various sources, the so-called “The Tertiary Distribution” refers to the further adjustment of social income distribution through social entities’ (enterprises and individuals) voluntary, charitable donations, which is in the stage of micro-adjustment. In the meantime, the policy also clearly instructs that the country should encourage high-income groups and enterprises to give back to society to a greater extent.\nThere are many high-income groups, including celebrities and real estate speculators. And, high-income companies, in terms of financial reports, include leading Internet companies, China’s top five banks, and other state-owned enterprises. Here, we will discuss what Internet companies should do in “The Tertiary Distribution.”\nFrom the view of current beneficial donations, Internet companies have played an increasingly important role. Let’s take the flood disaster that recently occurred in Henan as an example. TENCENT donated 100 million yuan, Alibaba donated 100 million yuan, and Xiaomi donated 50 million yuan... But there are problems with the current way of donating by Internet companies.\n1. The burden born by Internet companies is heavy. Although the leading Internet companies have made plenty of profits, many companies are not profitable or even in the red. After the flood disaster of Henan province, Pinduoduo, the largest agriculture-focused technology platform in China, also announced a donation of 100 million yuan. It should be noted that the company is at a loss. The large-scale donation will also deliver an illusion to society: These companies are capable of donating more money.\n2. There is a phenomenon of unrealistic comparison among Internet companies. The beneficial donations conducted by Internet corporates have entered the stage of comparison, which is related to Chinese cultural traditions. The donation amount of BAT (Baidu, Alibaba, and Tencent) is in one echelon, while that of XIAOMI-W and OmniVision is in another echelon. The comparison on donation amount makes companies complain, and it also makes the public feel that Internet companies are flaunting the considerable wealth.\n3. Public beneficial donations are not sustainable. Tencent donated 100 million yuan to help people in Henan fight the natural calamity. What should Tencent do if there is another city suffering from disaster? How much should Tencent donate if there are more natural calamities? Global warming will give rise to more and more disasters. Therefore, the immoderate, planless donations will become a big unknown for the future operation of these enterprises.\nThe United States is the country that has done the best in public welfare. As a leading conglomerate in the United States, how does Apple deal with “The Tertiary Distributions?”\nApple has partly disclosed the information on its charitable donations. According to the disclosure, charitable donations completed by Apple can be divided into three parts: a. Employee Giving Program; b. Community Investment Team; c. Grant Program.\nThe second public welfare plan, namely “Community Investment Team,” is for NGOs across the globe. Since the amount has not been disclosed, it is estimated that the amount of donation is not much. The third plan “Grant Program” is for the locations of Apple/groups, with an annual quota of $1 million. Only the first plan is the focus of Apple’s philanthropy.\nApple’s Employee Giving Program is based on employee donations, and the company conducts a match rate of 1:1. Beyond that, Apple will also match the time spent by employees in public welfare activities at $25 per hour. Since the implementation of the project in 2011, more than $600 million has been donated by the company and its employees, benefiting 34,000 organizations worldwide, and employees have together contributed 1.6 million hours of work.\nThe advantages are listed as follows:\n1. The company can be better protected. The company’s move of placing employees on the front line of public welfare undertakings can arouse the enthusiasm of employees and also hide the company behind them. Apple will never get caught up in public opinions like “Why don’t Apple donate as much as Alphabet?”.\n2. Tax avoidance is best realized. Donations made by enterprises to public welfare undertakings will always be suspected of tax avoidance and will also be questioned by the public. However, if the donation amount of an enterprise is matched by that of employees, the company’s expenditure can be figured in the employee’s expense item (salary) in the company’s financial report, which reduces the tax base.\n3. The scope of charity is wider. Apple has a large number of employees spreading widely around the world. The charity projects they seek on their own are far more than those concerned by the media. Apple’s philanthropy spreads to all corners of society, which will be pretty good for the overall image of Apple. Compared with the recently happened disaster in Henan province which attracted countless donations, there are more other public welfare undertakings that have not been reported by media and paid attention to by both individuals and companies. If employees of Tencent, Alibaba, and Xiaomi can be mobilized to explore more public welfare projects, the inclusive work for society will be much better.\nTo my point of view, Chinese Internet companies should learn from Apple’s experience and earnestly welcome “The Tertiary Distribution.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":637,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":115544933,"gmtCreate":1623024773122,"gmtModify":1704194409837,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Need to be nimble with Inflation lurking in the corner !&nbsp;","listText":"Need to be nimble with Inflation lurking in the corner !&nbsp;","text":"Need to be nimble with Inflation lurking in the corner !","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/115544933","repostId":"1149058445","repostType":4,"repost":{"id":"1149058445","pubTimestamp":1623023100,"share":"https://ttm.financial/m/news/1149058445?lang=&edition=fundamental","pubTime":"2021-06-07 07:45","market":"us","language":"en","title":"Market bull lists inflation as top risk, warns investors may get a ‘wake-up call’ this summer","url":"https://stock-news.laohu8.com/highlight/detail?id=1149058445","media":"cnbc","summary":"There’s an overwhelming risk that’s concerning long-time bull Phil Orlando right now.\nInflation, acc","content":"<div>\n<p>There’s an overwhelming risk that’s concerning long-time bull Phil Orlando right now.\nInflation, according to the Federated Hermes chief market strategist, could be stickier than the Federal Reserve ...</p>\n\n<a href=\"https://www.cnbc.com/2021/06/06/market-bull-lists-inflation-as-top-risk-warns-wake-up-call-is-ahead.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Market bull lists inflation as top risk, warns investors may get a ‘wake-up call’ this summer</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMarket bull lists inflation as top risk, warns investors may get a ‘wake-up call’ this summer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-07 07:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/06/06/market-bull-lists-inflation-as-top-risk-warns-wake-up-call-is-ahead.html><strong>cnbc</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>There’s an overwhelming risk that’s concerning long-time bull Phil Orlando right now.\nInflation, according to the Federated Hermes chief market strategist, could be stickier than the Federal Reserve ...</p>\n\n<a href=\"https://www.cnbc.com/2021/06/06/market-bull-lists-inflation-as-top-risk-warns-wake-up-call-is-ahead.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index",".DJI":"道琼斯",".IXIC":"NASDAQ Composite"},"source_url":"https://www.cnbc.com/2021/06/06/market-bull-lists-inflation-as-top-risk-warns-wake-up-call-is-ahead.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1149058445","content_text":"There’s an overwhelming risk that’s concerning long-time bull Phil Orlando right now.\nInflation, according to the Federated Hermes chief market strategist, could be stickier than the Federal Reserve anticipates. He warns it could spook Wall Street and put investors in the crosshairs of a turbulent summer.\n\"Inflation levels are going to keep rising,\" he told CNBC's \"Trading Nation\" on Friday. \"That's going to raise some questions. Is the Fed going to make a policy adjustment at an FOMC meeting or perhaps at Jackson Hole?\"\nOrlando cited a significant spike in labor costs over the last two months, commodity costs and consumers' willingness to spend more as reasons to be on alert.\n\"We're happy to do it because we've got plenty of money burning a hole on our pocket,\" Orlando said. \"But those levels of inflation are rising, perhaps at a level a little more aggressive than the Federal Reserve expected.\"\nAccording to Orlando, it may push the Federal Reserve and chair Jerome Powell out of the transitory inflation camp by the end of summer and pave the way to tapering sooner than expected. Orlando said he regards it as the biggest market threat.\n\"That's the potential risk for the market that interest rates rise because of inflation, and that impacts the discount rate in terms of valuation for stocks,\" he said.\nOrlando also sees tax uncertainty creating jitters among investors this summer.\n\"All of those issues are going to sort of come together and... maybe serve as a wake-up call to the market in sort of this late July-early August time frame,\" he said.\nYet Orlando,who predicted herd immunity from Covid-19 by July, still considers himselfconstructive on stocks.\n\"GDP growth in the second quarter, we think, is going to be very strong: 9.2%. And, as strong as corporate earnings were in the first quarter, up about 48%, we think earnings in the second quarter are going to be up about 60% or 70%,\" he added. \"So, the numbers right in front of us are terrific.\"\nOrlando, whose firm has $625 billion in assets under management, is confident the S&P 500 will end the year on a high note. HisS&P 500year-end forecast is 4,500, a 6% gain from Friday's close.","news_type":1},"isVote":1,"tweetType":1,"viewCount":28,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":895411741,"gmtCreate":1628764699183,"gmtModify":1676529846653,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Good results. Hoping the price will rise&nbsp;","listText":"Good results. Hoping the price will rise&nbsp;","text":"Good results. Hoping the price will rise","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/895411741","repostId":"2158256229","repostType":4,"repost":{"id":"2158256229","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1628762054,"share":"https://ttm.financial/m/news/2158256229?lang=&edition=fundamental","pubTime":"2021-08-12 17:54","market":"us","language":"en","title":"Baidu revenue tops estimates on ad sales rebound","url":"https://stock-news.laohu8.com/highlight/detail?id=2158256229","media":"Reuters","summary":"(Reuters) -China's Baidu Inc reported quarterly revenue above Wall Street estimates on Thursday, buo","content":"<p>(Reuters) -China's Baidu Inc reported quarterly revenue above Wall Street estimates on Thursday, buoyed by a rebound in advertising sales and higher demand for its artificial intelligence and cloud products.</p>\n<p>Baidu also said Chief Financial Officer (CFO) Herman Yu has been appointed as the company's chief strategy officer and will continue to serve as CFO until a successor is appointed.</p>\n<p>Demand for the company's rapidly growing autonomous driving service and artificial intelligence-powered cloud products has helped diversify its revenue sources and offset competition from giants like Alibaba and ByteDance in its core search platform.</p>\n<p>The company, also known as China's Google, said total revenue rose to 31.35 billion yuan ($4.84 billion) from 26.03 billion yuan in the second quarter ended June 30, topping analysts' average estimate of 30.96 billion yuan, according to IBES data from Refinitiv.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Baidu revenue tops estimates on ad sales rebound</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBaidu revenue tops estimates on ad sales rebound\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2021-08-12 17:54</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>(Reuters) -China's Baidu Inc reported quarterly revenue above Wall Street estimates on Thursday, buoyed by a rebound in advertising sales and higher demand for its artificial intelligence and cloud products.</p>\n<p>Baidu also said Chief Financial Officer (CFO) Herman Yu has been appointed as the company's chief strategy officer and will continue to serve as CFO until a successor is appointed.</p>\n<p>Demand for the company's rapidly growing autonomous driving service and artificial intelligence-powered cloud products has helped diversify its revenue sources and offset competition from giants like Alibaba and ByteDance in its core search platform.</p>\n<p>The company, also known as China's Google, said total revenue rose to 31.35 billion yuan ($4.84 billion) from 26.03 billion yuan in the second quarter ended June 30, topping analysts' average estimate of 30.96 billion yuan, according to IBES data from Refinitiv.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"09888":"百度集团-SW","BIDU":"百度"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2158256229","content_text":"(Reuters) -China's Baidu Inc reported quarterly revenue above Wall Street estimates on Thursday, buoyed by a rebound in advertising sales and higher demand for its artificial intelligence and cloud products.\nBaidu also said Chief Financial Officer (CFO) Herman Yu has been appointed as the company's chief strategy officer and will continue to serve as CFO until a successor is appointed.\nDemand for the company's rapidly growing autonomous driving service and artificial intelligence-powered cloud products has helped diversify its revenue sources and offset competition from giants like Alibaba and ByteDance in its core search platform.\nThe company, also known as China's Google, said total revenue rose to 31.35 billion yuan ($4.84 billion) from 26.03 billion yuan in the second quarter ended June 30, topping analysts' average estimate of 30.96 billion yuan, according to IBES data from Refinitiv.","news_type":1},"isVote":1,"tweetType":1,"viewCount":345,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":894538146,"gmtCreate":1628837166885,"gmtModify":1676529870409,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"If you catch falling knives you will bleed more.Exercise due diligence before buying falling stocks&nbsp;","listText":"If you catch falling knives you will bleed more.Exercise due diligence before buying falling stocks&nbsp;","text":"If you catch falling knives you will bleed more.Exercise due diligence before buying falling stocks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/894538146","repostId":"2158225219","repostType":4,"repost":{"id":"2158225219","pubTimestamp":1628819431,"share":"https://ttm.financial/m/news/2158225219?lang=&edition=fundamental","pubTime":"2021-08-13 09:50","market":"us","language":"en","title":"Is It Time to Buy 5 of the Nasdaq's Worst-Performing Stocks of 2021?","url":"https://stock-news.laohu8.com/highlight/detail?id=2158225219","media":"Motley Fool","summary":"One particular group of stocks is overrepresented among the exchange's biggest losers this year. That's an important detail.","content":"<p>If you're like many other investors, your search for bargain stocks starts with names that have been severely sold off. As well it should. The market is capable of going to extremes at times, devaluing names only to revalue them again just a short time later. You know the practice by its more familiar name, \"buying the dip.\" The bigger the dip, the better the bargain.</p>\n<p>As veteran investors can attest, however, a stock that's been up-ended isn't inherently a stock that's ready for a recovery. Sometimes, a steep sell-off is exactly what's implied.</p>\n<p>It's the dilemma anyone looking at this year's biggest losers among Nasdaq-listed stocks is facing, as usual. This time around though, there's an additional curious nuance. Most of these losers are in the exact same industry, and have been crushed for the exact same reasons.</p>\n<h2>One too many headwinds</h2>\n<p>For the record, excluding always-volatile small caps and micro caps, the five biggest losers on the Nasdag this year are (with losses respectively ranging from -65% to -56%) <a href=\"https://laohu8.com/S/POSH\">Poshmark, Inc.</a>, <a href=\"https://laohu8.com/S/ACAD\">ACADIA Pharmaceuticals</a>, <a href=\"https://laohu8.com/S/ABCL\">AbCellera Biologics</a>, <a href=\"https://laohu8.com/S/ARVL\">Arrival</a>, and <a href=\"https://laohu8.com/S/FOLD\">Amicus Therapeutics</a>.</p>\n<p><b>It's difficult to ignore that biotech stocks feature prominently among these most severe laggards.</b></p>\n<p>And this theme only solidifies as you look deeper into 2021's worst-to-date performers among the Nasdaq's larger listings. Biotech names <a href=\"https://laohu8.com/S/SRPT\">Sarepta Therapeutics</a> and <a href=\"https://laohu8.com/S/TGTX\">TG Therapeutics</a> claim the sixth and seventh spots from the bottom, down 54% and 53% so far this year.</p>\n<p><b>Can there be a rebound for biotech stocks?</b></p>\n<p>It's a detail worth noting as odds are good that any recovery any of them manage to make from here is likely going to be part of a groupwide rebound. Such a rebound won't be particularly easy to come by, however, for a handful of reasons.</p>\n<p>Chief among reasons it will be hard to recover is sheer circumstance.</p>\n<p><img src=\"https://static.tigerbbs.com/7c680dca85708f2eaaee3bcb174a2eff\" tg-width=\"700\" tg-height=\"466\" referrerpolicy=\"no-referrer\"></p>\n<p>Image source: Getty Images.</p>\n<p><b>Vaccine race:</b> You may recall a bunch of biotech stocks logged stellar performance around the middle of last year, shortly after the COVID-19 contagion turned into a global pandemic. The world didn't know which player would come up with a vaccine or treatment (or even a test) first, so investors simply made bets on a variety of names in the business... including many of the ones listed above. Once <a href=\"https://laohu8.com/S/PFE\">Pfizer</a>, <a href=\"https://laohu8.com/S/MRNA\">Moderna, Inc.</a>, and&nbsp;<a href=\"https://laohu8.com/S/JNJ\">Johnson &amp; Johnson</a> essentially won that race though, investors lost the will to stick with other entries.</p>\n<p>The dynamic has been particularly painful for shareholders of <a href=\"https://laohu8.com/S/ABCL\">AbCellera Biologics</a>, which just went public in December, seemingly to capitalize on the vaccine mania that had already peaked. Its shares are now below their IPO price of $17, and well below the stock's December peak near $72.</p>\n<p><b>Recent FTC stance on pharmaceutical mergers</b>: That's not the only thing working against the industry, however, and smaller biotech names in particular. Much of the entire sector's recent weakness also coincides with the Federal Trade Commission's (FTC) creation of a global task force assembled in March to \"build a new approach to pharmaceutical mergers.\"</p>\n<p>It's not clear how much authority this working group will wield. But, in that the announcement made a point of mentioning \"skyrocketing drug prices and ongoing concerns about anticompetitive conduct in the industry,\" it is clear there's a brewing risk to the entire business of drug development.</p>\n<p>It's also worth mentioning that more than a few biotech start-ups are tacitly hoping to get bought out at their inception, with investors quietly hoping for the same. This is going to be a more difficult, less rewarding prospect if the FTC-led efforts are effective.</p>\n<p><b>Legislative changes and regulations:</b> Then there's the even-more philosophical argument that the entire industry is on the verge of running back into the legislative and regulatory buzz saw.</p>\n<p>It's a recurring story. The business usually emerges from such scrutiny unscathed. Indeed, the fact that not many people balked at the $56,000 price tag for <a href=\"https://laohu8.com/S/BIIB\">Biogen</a> recently approved Alzheimer's drug Aduhelm tacitly says drugmakers remain completely in control of their pricing policies... even prices charged to Medicare.</p>\n<p>With a new presidential administration in place, though, proposed legislation like the bills Senator Bernie Sanders and other Democrats unveiled in March -- aimed at lowering drug prices for the government as well as for individuals -- are given another fighting chance.</p>\n<p>Sooner or later, one of these will slip through. And then another. And then another. It's a risk to many smaller biotech developers, which frequently count on high prices for relatively unique therapies.</p>\n<h2>To buy, or not to buy?</h2>\n<p>Fine, but don't these huge pullbacks still make these particular biotech names compelling prospects despite all their challenges?</p>\n<p>Not really.</p>\n<p>To be fair, there's nothing about any cost-curbing prospect or a now-meaningless coronavirus vaccine race that supersedes any of these aforementioned companies' stories. And in the world of biotech, stories about a drug's potential readily substitute for sales and earnings.</p>\n<p>Identifying winning drug developments and looking past misguided research and development is still a key part of the biotech investing game. As of right now, however, the collective overhang is just too much for even the very best biotech stories to break through.</p>\n<p>Some breakthroughs will happen, mind you. We just don't know which names will be the ones best positioned to overcome the headwind and adequately reward shareholders for the risk being taken. It's a headwind that could blow for a few more weeks, if not a few more months.</p>\n<p>The bigger takeaway: Always keep tabs on the market environment and its key themes.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Time to Buy 5 of the Nasdaq's Worst-Performing Stocks of 2021?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Time to Buy 5 of the Nasdaq's Worst-Performing Stocks of 2021?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-08-13 09:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/08/12/is-it-time-to-buy-5-of-the-nasdaqs-worst-performin/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you're like many other investors, your search for bargain stocks starts with names that have been severely sold off. As well it should. The market is capable of going to extremes at times, ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/08/12/is-it-time-to-buy-5-of-the-nasdaqs-worst-performin/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"POSH":"Poshmark, Inc.","ACAD":"阿卡迪亚","FOLD":"爱美医疗","ABCL":"AbCellera Biologics"},"source_url":"https://www.fool.com/investing/2021/08/12/is-it-time-to-buy-5-of-the-nasdaqs-worst-performin/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2158225219","content_text":"If you're like many other investors, your search for bargain stocks starts with names that have been severely sold off. As well it should. The market is capable of going to extremes at times, devaluing names only to revalue them again just a short time later. You know the practice by its more familiar name, \"buying the dip.\" The bigger the dip, the better the bargain.\nAs veteran investors can attest, however, a stock that's been up-ended isn't inherently a stock that's ready for a recovery. Sometimes, a steep sell-off is exactly what's implied.\nIt's the dilemma anyone looking at this year's biggest losers among Nasdaq-listed stocks is facing, as usual. This time around though, there's an additional curious nuance. Most of these losers are in the exact same industry, and have been crushed for the exact same reasons.\nOne too many headwinds\nFor the record, excluding always-volatile small caps and micro caps, the five biggest losers on the Nasdag this year are (with losses respectively ranging from -65% to -56%) Poshmark, Inc., ACADIA Pharmaceuticals, AbCellera Biologics, Arrival, and Amicus Therapeutics.\nIt's difficult to ignore that biotech stocks feature prominently among these most severe laggards.\nAnd this theme only solidifies as you look deeper into 2021's worst-to-date performers among the Nasdaq's larger listings. Biotech names Sarepta Therapeutics and TG Therapeutics claim the sixth and seventh spots from the bottom, down 54% and 53% so far this year.\nCan there be a rebound for biotech stocks?\nIt's a detail worth noting as odds are good that any recovery any of them manage to make from here is likely going to be part of a groupwide rebound. Such a rebound won't be particularly easy to come by, however, for a handful of reasons.\nChief among reasons it will be hard to recover is sheer circumstance.\n\nImage source: Getty Images.\nVaccine race: You may recall a bunch of biotech stocks logged stellar performance around the middle of last year, shortly after the COVID-19 contagion turned into a global pandemic. The world didn't know which player would come up with a vaccine or treatment (or even a test) first, so investors simply made bets on a variety of names in the business... including many of the ones listed above. Once Pfizer, Moderna, Inc., and Johnson & Johnson essentially won that race though, investors lost the will to stick with other entries.\nThe dynamic has been particularly painful for shareholders of AbCellera Biologics, which just went public in December, seemingly to capitalize on the vaccine mania that had already peaked. Its shares are now below their IPO price of $17, and well below the stock's December peak near $72.\nRecent FTC stance on pharmaceutical mergers: That's not the only thing working against the industry, however, and smaller biotech names in particular. Much of the entire sector's recent weakness also coincides with the Federal Trade Commission's (FTC) creation of a global task force assembled in March to \"build a new approach to pharmaceutical mergers.\"\nIt's not clear how much authority this working group will wield. But, in that the announcement made a point of mentioning \"skyrocketing drug prices and ongoing concerns about anticompetitive conduct in the industry,\" it is clear there's a brewing risk to the entire business of drug development.\nIt's also worth mentioning that more than a few biotech start-ups are tacitly hoping to get bought out at their inception, with investors quietly hoping for the same. This is going to be a more difficult, less rewarding prospect if the FTC-led efforts are effective.\nLegislative changes and regulations: Then there's the even-more philosophical argument that the entire industry is on the verge of running back into the legislative and regulatory buzz saw.\nIt's a recurring story. The business usually emerges from such scrutiny unscathed. Indeed, the fact that not many people balked at the $56,000 price tag for Biogen recently approved Alzheimer's drug Aduhelm tacitly says drugmakers remain completely in control of their pricing policies... even prices charged to Medicare.\nWith a new presidential administration in place, though, proposed legislation like the bills Senator Bernie Sanders and other Democrats unveiled in March -- aimed at lowering drug prices for the government as well as for individuals -- are given another fighting chance.\nSooner or later, one of these will slip through. And then another. And then another. It's a risk to many smaller biotech developers, which frequently count on high prices for relatively unique therapies.\nTo buy, or not to buy?\nFine, but don't these huge pullbacks still make these particular biotech names compelling prospects despite all their challenges?\nNot really.\nTo be fair, there's nothing about any cost-curbing prospect or a now-meaningless coronavirus vaccine race that supersedes any of these aforementioned companies' stories. And in the world of biotech, stories about a drug's potential readily substitute for sales and earnings.\nIdentifying winning drug developments and looking past misguided research and development is still a key part of the biotech investing game. As of right now, however, the collective overhang is just too much for even the very best biotech stories to break through.\nSome breakthroughs will happen, mind you. We just don't know which names will be the ones best positioned to overcome the headwind and adequately reward shareholders for the risk being taken. It's a headwind that could blow for a few more weeks, if not a few more months.\nThe bigger takeaway: Always keep tabs on the market environment and its key themes.","news_type":1},"isVote":1,"tweetType":1,"viewCount":351,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":147845495,"gmtCreate":1626352988017,"gmtModify":1703758456661,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Only time will tell. Jimmy Dimon is honest enough to say that he doesn’t know how the stock market will pan out. Keep some cash in case….","listText":"Only time will tell. Jimmy Dimon is honest enough to say that he doesn’t know how the stock market will pan out. Keep some cash in case….","text":"Only time will tell. Jimmy Dimon is honest enough to say that he doesn’t know how the stock market will pan out. Keep some cash in case….","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/147845495","repostId":"2151529580","repostType":4,"repost":{"id":"2151529580","pubTimestamp":1626349715,"share":"https://ttm.financial/m/news/2151529580?lang=&edition=fundamental","pubTime":"2021-07-15 19:48","market":"us","language":"en","title":"JPMorgan hoards cash as Dimon expects rates to rise","url":"https://stock-news.laohu8.com/highlight/detail?id=2151529580","media":"Reuters","summary":"NEW YORK (Reuters) - Jamie Dimon's optimism about the economy is costing JPMorgan Chase & Co money, ","content":"<p>NEW YORK (Reuters) - Jamie Dimon's optimism about the economy is costing JPMorgan Chase &amp; Co money, the bank's latest financials show.</p>\n<p>The CEO said this week the country's largest lender continues to stockpile cash instead of investing it in securities, such as U.S. Treasuries and mortgage-backed bonds, which pay more than cash deposits.</p>\n<p>How the country's largest lenders manage an unprecedented glut of cash weighing down their balance sheets will be important in separating winners from losers in coming quarters as uncertainty grows over the inflation and interest rate outlook, according to analysts.</p>\n<p>\"The balance sheet mix will be a key driver for the stocks as we move into 2022,\" David Konrad, an analyst at Keefe, Bruyette &amp; Woods, wrote in a recent report to clients.</p>\n<p>\"In our view, the risk/reward favors holding cash and under- earning in this environment.\"</p>\n<p>JPMorgan is waiting for the chance to buy securities with higher yields once exceptionally strong economic growth kicks in and drives up inflation and interest rates, Dimon and Chief Financial Officer Jeremy Barnum told analysts on Tuesday.</p>\n<p>\"You may have growth in the second half this year that's stronger than it's ever been in the United States of America,\" Dimon said in a call with analysts on Tuesday.</p>\n<p>The yield on 10-year Treasury notes, at around 1.35% versus 1.75% in March, could climb to 3%, Dimon added.</p>\n<p>Dimon's comments came after JPMorgan posted quarterly financials on Tuesday that showed its average cash balance held on deposit at central and other banks increased by $89.6 billion while it added only $2.6 billion of investment securities.</p>\n<p>JPMorgan made 0.06% on its cash while its securities paid 1.31%, its reports showed.</p>\n<p>In contrast, $Bank of America Corp(BAC-N)$'s results released on Wednesday showed it has let its cash decline by $31 billion while it added $107.3 billion to its securities holdings.</p>\n<p>\"The reality is that we generated $80 billion deposit growth, and we've got to put it to work,\" CEO Brian Moynihan told analysts. \"We're not timing the market or betting.\"</p>\n<p>JPMorgan's deposits grew by nearly $100 billion during the quarter.</p>\n<p>TRADE-OFFS</p>\n<p>Cash from government stimulus and Federal Reserve programs continues to pour into the financial system, dampening demand for bank loans.</p>\n<p>U.S. financial markets are also wrestling with a spike in inflation, which they believe could prompt the U.S. Federal Reserve to raise interest rates.</p>\n<p>During this quarter, analysts have pressed bank executives about their cash and securities mix because of how important it is for profits. Banks often hedge their positions with derivatives, making the analysis more difficult.</p>\n<p>Executives have warned of tradeoffs in the decision on how much cash to accumulate until rates rise, and how much to invest in securities now.</p>\n<p>Considerations include ensuring liquidity for customers who take deposits back and guarding against hits to regulatory capital from declines in the value of purchased securities.</p>\n<p>Speaking before Congress on Wednesday, Fed Chair Jerome Powell said recent price spikes were associated with the post-pandemic reopening and will fade.</p>\n<p>The central bank is staying the course, he said, with an inflation target of 2% and some time before it will be in a position to tighten monetary policy. Last month, Fed policy makers on balance projected inflation would climb to 3.4% this year and then fall back to 2.1% next year.</p>\n<p>JPMorgan's decision to stockpile cash was \"purely discretionary,\" Dimon said at a conference last month. \"You'll find out <a href=\"https://laohu8.com/S/AONE.U\">one</a> day whether we made the right decision or not.\"</p>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>JPMorgan hoards cash as Dimon expects rates to rise</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nJPMorgan hoards cash as Dimon expects rates to rise\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-15 19:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/analysis-jpmorgan-hoards-cash-dimon-110235498.html><strong>Reuters</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>NEW YORK (Reuters) - Jamie Dimon's optimism about the economy is costing JPMorgan Chase & Co money, the bank's latest financials show.\nThe CEO said this week the country's largest lender continues to ...</p>\n\n<a href=\"https://finance.yahoo.com/news/analysis-jpmorgan-hoards-cash-dimon-110235498.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"JPM":"摩根大通"},"source_url":"https://finance.yahoo.com/news/analysis-jpmorgan-hoards-cash-dimon-110235498.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2151529580","content_text":"NEW YORK (Reuters) - Jamie Dimon's optimism about the economy is costing JPMorgan Chase & Co money, the bank's latest financials show.\nThe CEO said this week the country's largest lender continues to stockpile cash instead of investing it in securities, such as U.S. Treasuries and mortgage-backed bonds, which pay more than cash deposits.\nHow the country's largest lenders manage an unprecedented glut of cash weighing down their balance sheets will be important in separating winners from losers in coming quarters as uncertainty grows over the inflation and interest rate outlook, according to analysts.\n\"The balance sheet mix will be a key driver for the stocks as we move into 2022,\" David Konrad, an analyst at Keefe, Bruyette & Woods, wrote in a recent report to clients.\n\"In our view, the risk/reward favors holding cash and under- earning in this environment.\"\nJPMorgan is waiting for the chance to buy securities with higher yields once exceptionally strong economic growth kicks in and drives up inflation and interest rates, Dimon and Chief Financial Officer Jeremy Barnum told analysts on Tuesday.\n\"You may have growth in the second half this year that's stronger than it's ever been in the United States of America,\" Dimon said in a call with analysts on Tuesday.\nThe yield on 10-year Treasury notes, at around 1.35% versus 1.75% in March, could climb to 3%, Dimon added.\nDimon's comments came after JPMorgan posted quarterly financials on Tuesday that showed its average cash balance held on deposit at central and other banks increased by $89.6 billion while it added only $2.6 billion of investment securities.\nJPMorgan made 0.06% on its cash while its securities paid 1.31%, its reports showed.\nIn contrast, $Bank of America Corp(BAC-N)$'s results released on Wednesday showed it has let its cash decline by $31 billion while it added $107.3 billion to its securities holdings.\n\"The reality is that we generated $80 billion deposit growth, and we've got to put it to work,\" CEO Brian Moynihan told analysts. \"We're not timing the market or betting.\"\nJPMorgan's deposits grew by nearly $100 billion during the quarter.\nTRADE-OFFS\nCash from government stimulus and Federal Reserve programs continues to pour into the financial system, dampening demand for bank loans.\nU.S. financial markets are also wrestling with a spike in inflation, which they believe could prompt the U.S. Federal Reserve to raise interest rates.\nDuring this quarter, analysts have pressed bank executives about their cash and securities mix because of how important it is for profits. Banks often hedge their positions with derivatives, making the analysis more difficult.\nExecutives have warned of tradeoffs in the decision on how much cash to accumulate until rates rise, and how much to invest in securities now.\nConsiderations include ensuring liquidity for customers who take deposits back and guarding against hits to regulatory capital from declines in the value of purchased securities.\nSpeaking before Congress on Wednesday, Fed Chair Jerome Powell said recent price spikes were associated with the post-pandemic reopening and will fade.\nThe central bank is staying the course, he said, with an inflation target of 2% and some time before it will be in a position to tighten monetary policy. Last month, Fed policy makers on balance projected inflation would climb to 3.4% this year and then fall back to 2.1% next year.\nJPMorgan's decision to stockpile cash was \"purely discretionary,\" Dimon said at a conference last month. \"You'll find out one day whether we made the right decision or not.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":252,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":144582289,"gmtCreate":1626306307941,"gmtModify":1703757408675,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Way to go Baba and Tencent!! And about timetoo!!&nbsp;","listText":"Way to go Baba and Tencent!! And about timetoo!!&nbsp;","text":"Way to go Baba and Tencent!! And about timetoo!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/144582289","repostId":"2151548801","repostType":4,"isVote":1,"tweetType":1,"viewCount":252,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9018574372,"gmtCreate":1649073412150,"gmtModify":1676534445061,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Looks like Elon can move anything on earth, mountains, twitter …&nbsp;","listText":"Looks like Elon can move anything on earth, mountains, twitter …&nbsp;","text":"Looks like Elon can move anything on earth, mountains, twitter …","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9018574372","repostId":"1166573354","repostType":4,"repost":{"id":"1166573354","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1649067720,"share":"https://ttm.financial/m/news/1166573354?lang=&edition=fundamental","pubTime":"2022-04-04 18:22","market":"us","language":"en","title":"Twitter Shares Soar More Than 25% after Elon Musk Takes 9% Stake in It","url":"https://stock-news.laohu8.com/highlight/detail?id=1166573354","media":"Tiger Newspress","summary":"Twitter shares soar more than 25% after Elon Musk takes 9% stake in it.Musk owns 73,486,938 shares o","content":"<html><head></head><body><p>Twitter shares soar more than 25% after Elon Musk takes 9% stake in it.<img src=\"https://static.tigerbbs.com/cd2c43c961af5ab3897095b5affaf2c9\" tg-width=\"866\" tg-height=\"875\" referrerpolicy=\"no-referrer\"/>Musk owns 73,486,938 shares of Twitter, which represents a 9.2% stake in the company, according to the Securities and Exchange Commission filing.</p><p>The stake is worth more than $2.8 billion, based Twitter’s closing price on Friday.</p><p>Musk is a frequent user of Twitter and has more than 80 million followers on the platform. However, some of his tweets have gotten the Tesla chief into hot water over the years.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Twitter Shares Soar More Than 25% after Elon Musk Takes 9% Stake in It</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTwitter Shares Soar More Than 25% after Elon Musk Takes 9% Stake in It\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2022-04-04 18:22</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Twitter shares soar more than 25% after Elon Musk takes 9% stake in it.<img src=\"https://static.tigerbbs.com/cd2c43c961af5ab3897095b5affaf2c9\" tg-width=\"866\" tg-height=\"875\" referrerpolicy=\"no-referrer\"/>Musk owns 73,486,938 shares of Twitter, which represents a 9.2% stake in the company, according to the Securities and Exchange Commission filing.</p><p>The stake is worth more than $2.8 billion, based Twitter’s closing price on Friday.</p><p>Musk is a frequent user of Twitter and has more than 80 million followers on the platform. However, some of his tweets have gotten the Tesla chief into hot water over the years.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1166573354","content_text":"Twitter shares soar more than 25% after Elon Musk takes 9% stake in it.Musk owns 73,486,938 shares of Twitter, which represents a 9.2% stake in the company, according to the Securities and Exchange Commission filing.The stake is worth more than $2.8 billion, based Twitter’s closing price on Friday.Musk is a frequent user of Twitter and has more than 80 million followers on the platform. However, some of his tweets have gotten the Tesla chief into hot water over the years.","news_type":1},"isVote":1,"tweetType":1,"viewCount":604,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":157744878,"gmtCreate":1625617372994,"gmtModify":1703744907079,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"I think it’s good for the US market to come down to earth after flying around&nbsp;space for so long.&nbsp;","listText":"I think it’s good for the US market to come down to earth after flying around&nbsp;space for so long.&nbsp;","text":"I think it’s good for the US market to come down to earth after flying around space for so long.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/157744878","repostId":"1106187901","repostType":4,"repost":{"id":"1106187901","pubTimestamp":1625612872,"share":"https://ttm.financial/m/news/1106187901?lang=&edition=fundamental","pubTime":"2021-07-07 07:07","market":"hk","language":"en","title":"Dow, S&P 500 fall as financials drag; Nasdaq at record","url":"https://stock-news.laohu8.com/highlight/detail?id=1106187901","media":"CNBC","summary":"Stocks stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that ma","content":"<div>\n<p>Stocks stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that maybe the best of the economic recovery from the pandemic is behind us.\nThe Dow Jones Industrial ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/05/stock-market-open-to-close-news.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Dow, S&P 500 fall as financials drag; Nasdaq at record</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDow, S&P 500 fall as financials drag; Nasdaq at record\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/05/stock-market-open-to-close-news.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Stocks stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that maybe the best of the economic recovery from the pandemic is behind us.\nThe Dow Jones Industrial ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/05/stock-market-open-to-close-news.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"161125":"标普500","513500":"标普500ETF","QLD":"纳指两倍做多ETF","SDS":"两倍做空标普500ETF","QQQ":"纳指100ETF","SQQQ":"纳指三倍做空ETF","OEX":"标普100","TQQQ":"纳指三倍做多ETF","NDAQ":"纳斯达克OMX交易所","QID":"纳指两倍做空ETF","SH":"标普500反向ETF","SSO":"两倍做多标普500ETF",".IXIC":"NASDAQ Composite","PSQ":"纳指反向ETF","SPXU":"三倍做空标普500ETF","SPY":"标普500ETF","IVV":"标普500指数ETF","OEF":"标普100指数ETF-iShares"},"source_url":"https://www.cnbc.com/2021/07/05/stock-market-open-to-close-news.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1106187901","content_text":"Stocks stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that maybe the best of the economic recovery from the pandemic is behind us.\nThe Dow Jones Industrial Average fell 208.98 points to 34,577.37, dragged down by losses inDow Inc.,Caterpillar,JPMorganandChevron. The S&P 500 dipped 0.2% to 4,343.54 after hitting a record at the open. The 500-stock index snapped a seven-day winning streak, its longest since August. The Nasdaq Composite rose 0.17% to 14,663.64, closing at a new record. U.S. markets were closed for the July 4 Independence Day holiday on Monday.\nAmazonrose 4.7% after the Department of Defensecancelled its $10 billion JEDI cloud contract with Microsoft. Instead, the department is launching a new contract and soliciting proposals from both Amazon and Microsoft. Plus, Andy Jassy officially took over as CEO of Amazon on Monday. Jeff Bezos is now the executive chairman of the board.\nInvestors are juggling several signs that the rapid economic growth from the depths of the pandemic could be peaking. The ISM Services index, a major gauge of the services sector, slowed to 60.1 in June from a record in the prior month, data released Tuesday showed. Economists polled by Dow Jones expected a print of 63.5. This follows Friday’s jobs report, which showed the unemployment raterose back up to 5.9%against the 5.6% expectation.\nBond yields also fell on Monday, with the 10-year Treasury yield below 1.4% — further evidence that investors are doubting the strength of the U.S. economy.\nMany on Wall Street expect smaller and choppier gains from the rest of the year after a strong performance in the first half amid a historic economic reopening. The S&P 500 is up nearly 16% year to date.\n“The U.S. economy is booming, but this is now a known known and asset markets reflect it. What isn’t so clear anymore is at what price this growth will accrue,” Michael Wilson, chief U.S. equity strategist at Morgan Stanley, said in a note. “Higher costs mean lower profits, another reason why the overall equity market has been narrowing... equity markets are likely to take a break this summer as things heat up.”\nWall Street’s consensus year-end target for the S&P 500 stands at 4,276, representing a near 2% loss from the 500-stock average’s current level, according to the CNBC Market Strategist Survey that rounds up 16 top strategists’ forecasts.\n“Everything is perfect and that worries me,” said Sarat Sethi, portfolio manager at DCLA, said on CNBC’s “Squawk Box” on Tuesday. “Since October, we’ve had a 5% correction, that’s it. I do think we’re in a little bit of a euphoria short-term. We do need to be careful and I do think you want to be in secular growth companies, no just chasing the market here because I do think the market’s going to be very picky as to what sectors are going to do well.”\nCiti analysts told clients they are concernedabout central bank policy and see potential that earnings reports, which begin in a few weeks, could fall short of expectations. They suggest July could be “an unsettling month,” due to “loftier inherent expectations” following such strong first-quarter reports.\nU.S. shares of Chinese ride-hailing giantDidi plunged nearly 19.6%after China said new users could not download the app until it conducts a cybersecurity review. The announcement took markets by surprise given that Didi just made its U.S. debut on the NYSE last week.\nWest Texas Intermediate crude rose to asix-year highas a key meeting between oil producer group OPEC and its partners on crude output policyhas been called off. The postponement came as the United Arab Emirates rejected a proposal to extend oil production increase for a second day. At one point on Tuesday, WTI crude hit as high as $76.98, which was the highest price since November 2014, after pulling back before the opening bell. WTI settled at $73.37.\nInvestors await the release of June Federal Open Market Committee meeting minutes due Wednesday for clues about the central bank’s behind-the-scenes discussions on winding down its quantitative easing program.","news_type":1},"isVote":1,"tweetType":1,"viewCount":205,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":153335090,"gmtCreate":1625009665310,"gmtModify":1703849872967,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"I agree that Nio has a bright future but the valuation is indeed sky high now.&nbsp;Wondering what is a down to earth valuation for Nio","listText":"I agree that Nio has a bright future but the valuation is indeed sky high now.&nbsp;Wondering what is a down to earth valuation for Nio","text":"I agree that Nio has a bright future but the valuation is indeed sky high now. Wondering what is a down to earth valuation for Nio","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/153335090","repostId":"1124372919","repostType":4,"repost":{"id":"1124372919","pubTimestamp":1624869783,"share":"https://ttm.financial/m/news/1124372919?lang=&edition=fundamental","pubTime":"2021-06-28 16:43","market":"us","language":"en","title":"NIO: The Path To A $1 Trillion Valuation","url":"https://stock-news.laohu8.com/highlight/detail?id=1124372919","media":"seekingalpha","summary":"NIO is known by many as a large cap Chinese electric vehicle company.However, it is actually much more than that and possesses several key competitive advantages.We discuss how these factors could combine with its focus on China to transform it into a $1 trillion mega cap.NIO also has a strong foothold on autonomous mobility technology thanks to filing nearly 50 patents in the area and boasts AI-powered smart \"cockpits.\". Given that the mobility industry is becoming increasingly software-driven,","content":"<p><b>Summary</b></p>\n<ul>\n <li>NIO is known by many as a large cap Chinese electric vehicle company.</li>\n <li>However, it is actually much more than that and possesses several key competitive advantages.</li>\n <li>We discuss how these factors could combine with its focus on China to transform it into a $1 trillion mega cap.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/17cdcfe41a4b886c29dad01d4512e84e\" tg-width=\"1536\" tg-height=\"1024\" referrerpolicy=\"no-referrer\"><span>Lintao Zhang/Getty Images News</span></p>\n<p>Similar to how we analyzed Palantir(NYSE:PLTR)in our recent piece<i>Palantir: The Path To A $1 Trillion Valuation</i>, NIO Inc.(NYSE:NIO)is unique in that it is already a large cap stock, but has a massive growth runway that could quite conceivably make it a mega-cap stock and eventually even approach a valuation of $1 Trillion. Here are five reasons why it could successfully achieve that valuation:</p>\n<p><b>#1. \"Gas Station\" Of The Future</b></p>\n<p>NIO is a major designer and manufacturer of high-tech electric vehicles in China and as a result competes with the likes of Tesla(NASDAQ:TSLA)in innovative technologies like connectivity, batteries, autonomous mobility, and artificial intelligence.</p>\n<p>NIO's status as an emerging leader in these innovative technologies is perhaps the biggest reason to believe that they could become a multi-bagger from today's already lofty valuation and become a true mega cap.</p>\n<p>For example, its Battery-as-a-Service (BaaS) potential is immense. The company has already begun building out the infrastructure for this business through its&nbsp;recent partnership&nbsp;with Sinopec(NYSE:SHI)through which they aspire to create a 5,000 battery swap station network by 2024. This will give NIO a decisive network advantage in this space just as it begins to really take off in the world's largest electric vehicle market, enabling it to form partnerships with other automakers in the country and drive strong revenue growth from this business alone. Essentially, this would make NIO the number one \"gas station\" company in China as the country and world enter the age of electrification.</p>\n<p>Given that they possess hundreds of patents in battery swap technology, NIO seems to already have the intellectual property moat necessary to transform this potential into reality. It appears to be merely a matter of time for them to implement and scale now.</p>\n<p><b>#2. Autonomous Mobility &amp; AI Technology</b></p>\n<p>NIO also has a strong foothold on autonomous mobility technology thanks to filing nearly 50 patents in the area and boasts AI-powered smart \"cockpits.\"</p>\n<p>Given that the mobility industry is becoming increasingly software-driven, its intellectual property portfolio here is important as well. Even more important, though, is its competitive positioning to emerge as a long-term leader in the electric vehicle space in China, not only because of the vehicle sales potential it offers, but much more importantly because it is the largest source of consumer data in the world. As a result, NIO will have access to a vast amount of data with which it can improve its A.I. and build one of the best mobility software platforms in the world.</p>\n<p><b>#3. Government Support</b></p>\n<p>Another big reason to believe in NIO's long-term potential stems from the simple fact that it is a leading local company in China in high-priority technology fields. As a result, it will likely enjoy significant support from the Chinese government so that it can serve as a vehicle whereby China can advance its goals towards becoming the pre-eminent global technological superpower.</p>\n<p>This principle has already played out several times to NIO's benefit.</p>\n<p>For example, the&nbsp;government recently gave&nbsp;NIO a RMB7 billion (US$1b) bailout to give it the cash it needed to sustain and scale operations.</p>\n<p>Additionally, government-owned auto manufacturer - Anhui Jianghuai Automobile Group Corp - has also assisted NIO by providing it with manufacturing services, enabling it to scale with minimal additional capital investment.</p>\n<p>Perhaps the most glaring example of this was how the Chinese state media&nbsp;recently successfully harmed&nbsp;the reputation of TSLA - NIO's top foreign rival - to the point where the Elon Musk-led company had to issue an apology.</p>\n<p>Furthermore, the Chinese government is making a major push to transition the automotive market towards electric vehicles in an effort to battle its huge pollution problem. It is achieving these aims by offering purchase rebates and tax exemptions for the industry, while also placing restrictions on new gasoline and diesel powered vehicle permits.</p>\n<p><b>#4. Global Expansion</b></p>\n<p>NIO is also poised to begin expanding its sales into global markets, beginning with Norway. Not only will the company be selling its cars there, but it will be building out local physical and digital infrastructure to create a high quality user-friendly ecosystem to add value to its brand and bolster its competitive positioning. Once it has built significant scale in Norway, it will then have a greater position of strength from which to infiltrate the rest of the European market. Given the geopolitical tensions with the United States at the moment as well as Tesla's dominance in the U.S. electric vehicle market, Europe seems like a much more logical choice to begin global expansion.</p>\n<p><b>#5. Crunching The Numbers</b></p>\n<p>Electric Vehicle sales are already growing exponentially - especially in China - and we expect that number to explode much higher in the years to come.</p>\n<p><img src=\"https://static.tigerbbs.com/00cdeb70c618caeddbbd16df936194ad\" tg-width=\"960\" tg-height=\"572\"></p>\n<p>In fact, while just barely over 1.2 million electric vehicles were sold worldwide in 2017,Bloomberg New Energy Finance&nbsp;expects that number to soar to 60 million by 2040. Not only that, but battery and battery charging infrastructure demand will soar as well.</p>\n<p>If NIO can seize on its early leadership in China in both the electric vehicle and battery charging infrastructure businesses and also successfully scale its business internationally, there is certainly room for it to achieve a $1 trillion valuation by 2040. For example, its gross margin is expected to be nearly 20% in 2021 and 2022. TSLA's gross, meanwhile, is around 23% and its net margin is roughly half of that, or ~11.5%.</p>\n<p>NIO's BaaS business should also be higher margin given that it could be entirely automated and the actual real estate could be leased instead of owned in order to free up capital for higher return investment elsewhere. With continued scaling in both businesses and overall positive trends in the business with reduced costs across the board through automation and enhanced data analytics, we think gross margins of 25% and net margins of 15% by 2040 are entirely feasible.</p>\n<p>If NIO were to grab just 7.5% of the global EV market (TSLA's is currently 11%) by 2040, it would be selling ~4.5 million cars per year. We think this share is actually very feasible when you consider that the majority of electric vehicle sales are expected to be in China and that NIO has an inside track on that market given the support it is receiving from the government.</p>\n<p>If the average sale were for $40,000 per electric vehicle, its profit would be ~$6,000 per vehicle, translating to $27 billion in annual profit from auto sales alone. At a 30x price-to-earnings multiple, that would put the automotive business at a $810 billion valuation.</p>\n<p>Meanwhile, its BaaS business could likely generate $150 in profits per year per vehicle in its sphere in China. By 2030,it is estimated&nbsp;that there will be 50 million electric vehicles on the road in China and that EVs will account for 40% of total auto sales. A very conservative estimate is that the number of EVs on the road in China will double to 100 million by 2040. If NIO's BaaS business serves 20% of the electric vehicles in China by 2040, that would equate to an additional $3+ billion in annual net income. Once again applying a 30x price-to-earnings multiple, that would equate to roughly another $100 billion in market valuation.</p>\n<p>Meanwhile, the potential for using its data and autonomous vehicle technology as well as vast BaaS infrastructure to launch an autonomous taxi business network is also immense. While it is hard to know exactly what sort of value this would command as it is hard to project how it would be regulated by the Chinese government and how well consumers would adopt it, it is not a stretch that NIO's scale and capabilities by this point in such a potentially massive market as is offered in China would put the valuation for this business at $100 billion.</p>\n<p>Combining all three businesses gets us to a $1 trillion total valuation under a bullish, but not entirely implausible scenario.</p>\n<p><b>Risk Analysis</b></p>\n<p>While the path to $1 trillion certainly looks viable, there are numerous risks to consider along the way.</p>\n<p>First and foremost, NIO faces a lot of competition from both foreign and domestic companies. TSLA has a large presence in China and overseas and sports a premium brand to go along with an extremely driven and innovative CEO and engineering team. While the Chinese government has helped NIO some already with surviving the TSLA threat, it is unknown the depths that it will have to and be willing to go to continue giving NIO a boost to sustain its competitive standing in its domestic market.</p>\n<p>Of course, NIO also faces competitive pressures from fellow Chinese electric vehicle manufacturers including Baidu(NASDAQ:BIDU), which already has a&nbsp;partnership&nbsp;with a government-owned automaker (BAIC Group) to put 1,000 driverless cars on the roads over the next 3 years as a prelude to establishing an autonomous taxi service in China. Facing off against fellow major domestic players who also have government backing poses another threat to NIO because it means that it cannot solely rely on government assistance to survive and thrive.</p>\n<p>On that same note, it also increases the political risk for NIO. Given that it is not the only horse that China is betting on in the mobility space, if their leadership were to run afoul of the Chinese Communist Party and/or they were to simply lag behind in performance, they could quickly be \"dropped\" by the government and the business could fall into a downward spiral. If Alibaba(NYSE:BABA)&nbsp;could face this, NIO certainly could too. If nothing else, the Chinese government could easily seize some or all of NIO's physical or intellectual property for state use, depriving NIO shareholders of much of their equity value.</p>\n<p>Furthermore, expanding overseas could also be complicated by the fact that China is currently dealing with growing geopolitical tensions with other Asia-Pacific nations, Europe, and the United States. As a result, trade barriers may go up, especially in such high-priority technologies as mobility and autonomous technology. The U.S., Europe, Japan, Korea, and even India have well-established automobile industries and if they feel threatened by a Chinese competitor, they may well decide to throw up barriers to entry in their markets.</p>\n<p>Of course, as the China hustle pointed out, many Chinese companies have a troubling track record of fudging accounting numbers. As a result, investors should always view Chinese company - to include NIO's - financial numbers with a healthy dose of skepticism. While it is very possible - if not likely - that NIO's numbers are completely accurate, it is still a risk that needs to be considered.</p>\n<p>Last, but not least, NIO is currently priced quite expensively as it is still running up massive losses and trades at 71 times expected 2021 gross income. Therefore, the range of potential future outcomes is quite wide and investors could very well be dramatically overpaying by purchasing at today's prices. It should be viewed as a highly speculative investment accordingly.</p>\n<p><b>Investor Takeaway</b></p>\n<p>NIO is currently struggling to turn a profit and has had to be bailed out by the Chinese government. At the same time, its valuation is sky-high. While this might steer many investors away and the stock is indeed a very speculative investment, there is also a plausible path for the company to become a $1 trillion mega cap by 2040 and generate attractive long-term returns for investors as a result.</p>\n<p>While not for the faint of heart and certainly not without risks, NIO could continue on its path towards becoming one of the world's pre-eminent mobility companies.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>NIO: The Path To A $1 Trillion Valuation</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNIO: The Path To A $1 Trillion Valuation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-28 16:43 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4436753-nio-the-path-to-a-1-trillion-valuation><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nNIO is known by many as a large cap Chinese electric vehicle company.\nHowever, it is actually much more than that and possesses several key competitive advantages.\nWe discuss how these ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436753-nio-the-path-to-a-1-trillion-valuation\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NIO":"蔚来"},"source_url":"https://seekingalpha.com/article/4436753-nio-the-path-to-a-1-trillion-valuation","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1124372919","content_text":"Summary\n\nNIO is known by many as a large cap Chinese electric vehicle company.\nHowever, it is actually much more than that and possesses several key competitive advantages.\nWe discuss how these factors could combine with its focus on China to transform it into a $1 trillion mega cap.\n\nLintao Zhang/Getty Images News\nSimilar to how we analyzed Palantir(NYSE:PLTR)in our recent piecePalantir: The Path To A $1 Trillion Valuation, NIO Inc.(NYSE:NIO)is unique in that it is already a large cap stock, but has a massive growth runway that could quite conceivably make it a mega-cap stock and eventually even approach a valuation of $1 Trillion. Here are five reasons why it could successfully achieve that valuation:\n#1. \"Gas Station\" Of The Future\nNIO is a major designer and manufacturer of high-tech electric vehicles in China and as a result competes with the likes of Tesla(NASDAQ:TSLA)in innovative technologies like connectivity, batteries, autonomous mobility, and artificial intelligence.\nNIO's status as an emerging leader in these innovative technologies is perhaps the biggest reason to believe that they could become a multi-bagger from today's already lofty valuation and become a true mega cap.\nFor example, its Battery-as-a-Service (BaaS) potential is immense. The company has already begun building out the infrastructure for this business through its recent partnership with Sinopec(NYSE:SHI)through which they aspire to create a 5,000 battery swap station network by 2024. This will give NIO a decisive network advantage in this space just as it begins to really take off in the world's largest electric vehicle market, enabling it to form partnerships with other automakers in the country and drive strong revenue growth from this business alone. Essentially, this would make NIO the number one \"gas station\" company in China as the country and world enter the age of electrification.\nGiven that they possess hundreds of patents in battery swap technology, NIO seems to already have the intellectual property moat necessary to transform this potential into reality. It appears to be merely a matter of time for them to implement and scale now.\n#2. Autonomous Mobility & AI Technology\nNIO also has a strong foothold on autonomous mobility technology thanks to filing nearly 50 patents in the area and boasts AI-powered smart \"cockpits.\"\nGiven that the mobility industry is becoming increasingly software-driven, its intellectual property portfolio here is important as well. Even more important, though, is its competitive positioning to emerge as a long-term leader in the electric vehicle space in China, not only because of the vehicle sales potential it offers, but much more importantly because it is the largest source of consumer data in the world. As a result, NIO will have access to a vast amount of data with which it can improve its A.I. and build one of the best mobility software platforms in the world.\n#3. Government Support\nAnother big reason to believe in NIO's long-term potential stems from the simple fact that it is a leading local company in China in high-priority technology fields. As a result, it will likely enjoy significant support from the Chinese government so that it can serve as a vehicle whereby China can advance its goals towards becoming the pre-eminent global technological superpower.\nThis principle has already played out several times to NIO's benefit.\nFor example, the government recently gave NIO a RMB7 billion (US$1b) bailout to give it the cash it needed to sustain and scale operations.\nAdditionally, government-owned auto manufacturer - Anhui Jianghuai Automobile Group Corp - has also assisted NIO by providing it with manufacturing services, enabling it to scale with minimal additional capital investment.\nPerhaps the most glaring example of this was how the Chinese state media recently successfully harmed the reputation of TSLA - NIO's top foreign rival - to the point where the Elon Musk-led company had to issue an apology.\nFurthermore, the Chinese government is making a major push to transition the automotive market towards electric vehicles in an effort to battle its huge pollution problem. It is achieving these aims by offering purchase rebates and tax exemptions for the industry, while also placing restrictions on new gasoline and diesel powered vehicle permits.\n#4. Global Expansion\nNIO is also poised to begin expanding its sales into global markets, beginning with Norway. Not only will the company be selling its cars there, but it will be building out local physical and digital infrastructure to create a high quality user-friendly ecosystem to add value to its brand and bolster its competitive positioning. Once it has built significant scale in Norway, it will then have a greater position of strength from which to infiltrate the rest of the European market. Given the geopolitical tensions with the United States at the moment as well as Tesla's dominance in the U.S. electric vehicle market, Europe seems like a much more logical choice to begin global expansion.\n#5. Crunching The Numbers\nElectric Vehicle sales are already growing exponentially - especially in China - and we expect that number to explode much higher in the years to come.\n\nIn fact, while just barely over 1.2 million electric vehicles were sold worldwide in 2017,Bloomberg New Energy Finance expects that number to soar to 60 million by 2040. Not only that, but battery and battery charging infrastructure demand will soar as well.\nIf NIO can seize on its early leadership in China in both the electric vehicle and battery charging infrastructure businesses and also successfully scale its business internationally, there is certainly room for it to achieve a $1 trillion valuation by 2040. For example, its gross margin is expected to be nearly 20% in 2021 and 2022. TSLA's gross, meanwhile, is around 23% and its net margin is roughly half of that, or ~11.5%.\nNIO's BaaS business should also be higher margin given that it could be entirely automated and the actual real estate could be leased instead of owned in order to free up capital for higher return investment elsewhere. With continued scaling in both businesses and overall positive trends in the business with reduced costs across the board through automation and enhanced data analytics, we think gross margins of 25% and net margins of 15% by 2040 are entirely feasible.\nIf NIO were to grab just 7.5% of the global EV market (TSLA's is currently 11%) by 2040, it would be selling ~4.5 million cars per year. We think this share is actually very feasible when you consider that the majority of electric vehicle sales are expected to be in China and that NIO has an inside track on that market given the support it is receiving from the government.\nIf the average sale were for $40,000 per electric vehicle, its profit would be ~$6,000 per vehicle, translating to $27 billion in annual profit from auto sales alone. At a 30x price-to-earnings multiple, that would put the automotive business at a $810 billion valuation.\nMeanwhile, its BaaS business could likely generate $150 in profits per year per vehicle in its sphere in China. By 2030,it is estimated that there will be 50 million electric vehicles on the road in China and that EVs will account for 40% of total auto sales. A very conservative estimate is that the number of EVs on the road in China will double to 100 million by 2040. If NIO's BaaS business serves 20% of the electric vehicles in China by 2040, that would equate to an additional $3+ billion in annual net income. Once again applying a 30x price-to-earnings multiple, that would equate to roughly another $100 billion in market valuation.\nMeanwhile, the potential for using its data and autonomous vehicle technology as well as vast BaaS infrastructure to launch an autonomous taxi business network is also immense. While it is hard to know exactly what sort of value this would command as it is hard to project how it would be regulated by the Chinese government and how well consumers would adopt it, it is not a stretch that NIO's scale and capabilities by this point in such a potentially massive market as is offered in China would put the valuation for this business at $100 billion.\nCombining all three businesses gets us to a $1 trillion total valuation under a bullish, but not entirely implausible scenario.\nRisk Analysis\nWhile the path to $1 trillion certainly looks viable, there are numerous risks to consider along the way.\nFirst and foremost, NIO faces a lot of competition from both foreign and domestic companies. TSLA has a large presence in China and overseas and sports a premium brand to go along with an extremely driven and innovative CEO and engineering team. While the Chinese government has helped NIO some already with surviving the TSLA threat, it is unknown the depths that it will have to and be willing to go to continue giving NIO a boost to sustain its competitive standing in its domestic market.\nOf course, NIO also faces competitive pressures from fellow Chinese electric vehicle manufacturers including Baidu(NASDAQ:BIDU), which already has a partnership with a government-owned automaker (BAIC Group) to put 1,000 driverless cars on the roads over the next 3 years as a prelude to establishing an autonomous taxi service in China. Facing off against fellow major domestic players who also have government backing poses another threat to NIO because it means that it cannot solely rely on government assistance to survive and thrive.\nOn that same note, it also increases the political risk for NIO. Given that it is not the only horse that China is betting on in the mobility space, if their leadership were to run afoul of the Chinese Communist Party and/or they were to simply lag behind in performance, they could quickly be \"dropped\" by the government and the business could fall into a downward spiral. If Alibaba(NYSE:BABA) could face this, NIO certainly could too. If nothing else, the Chinese government could easily seize some or all of NIO's physical or intellectual property for state use, depriving NIO shareholders of much of their equity value.\nFurthermore, expanding overseas could also be complicated by the fact that China is currently dealing with growing geopolitical tensions with other Asia-Pacific nations, Europe, and the United States. As a result, trade barriers may go up, especially in such high-priority technologies as mobility and autonomous technology. The U.S., Europe, Japan, Korea, and even India have well-established automobile industries and if they feel threatened by a Chinese competitor, they may well decide to throw up barriers to entry in their markets.\nOf course, as the China hustle pointed out, many Chinese companies have a troubling track record of fudging accounting numbers. As a result, investors should always view Chinese company - to include NIO's - financial numbers with a healthy dose of skepticism. While it is very possible - if not likely - that NIO's numbers are completely accurate, it is still a risk that needs to be considered.\nLast, but not least, NIO is currently priced quite expensively as it is still running up massive losses and trades at 71 times expected 2021 gross income. Therefore, the range of potential future outcomes is quite wide and investors could very well be dramatically overpaying by purchasing at today's prices. It should be viewed as a highly speculative investment accordingly.\nInvestor Takeaway\nNIO is currently struggling to turn a profit and has had to be bailed out by the Chinese government. At the same time, its valuation is sky-high. While this might steer many investors away and the stock is indeed a very speculative investment, there is also a plausible path for the company to become a $1 trillion mega cap by 2040 and generate attractive long-term returns for investors as a result.\nWhile not for the faint of heart and certainly not without risks, NIO could continue on its path towards becoming one of the world's pre-eminent mobility companies.","news_type":1},"isVote":1,"tweetType":1,"viewCount":162,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":883427546,"gmtCreate":1631265538385,"gmtModify":1676530513531,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"I am Tiger! Hear me Roarrrr. By far the easiestand most informative platform. Better, cheaper, and more efficient than ifast or the local banks’ trading platform. Well done Tiger!&nbsp;","listText":"I am Tiger! Hear me Roarrrr. By far the easiestand most informative platform. Better, cheaper, and more efficient than ifast or the local banks’ trading platform. Well done Tiger!&nbsp;","text":"I am Tiger! Hear me Roarrrr. By far the easiestand most informative platform. Better, cheaper, and more efficient than ifast or the local banks’ trading platform. Well done Tiger!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/883427546","repostId":"1108076835","repostType":4,"repost":{"id":"1108076835","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1631260909,"share":"https://ttm.financial/m/news/1108076835?lang=&edition=fundamental","pubTime":"2021-09-10 16:01","market":"us","language":"en","title":"UP Fintech Reports More Than 60% of Newly Funded Accounts Acquired From International Markets","url":"https://stock-news.laohu8.com/highlight/detail?id=1108076835","media":"Tiger Newspress","summary":"$Leading$ online brokerage firm, UP Fintech Holding Limited  , today reported revenues of US$60.2 million for the second quarter ended June 30, 2021 compared to revenue of US$30.3 million in the second quarter of 2020. Notably, more than 60% of the Company’s newly funded accounts were derived from international markets in the quarter. Growth was driven by enhanced platform capabilities and rising demand for convenient access to global brokerage services.UP Fintech Holding Limited Reports Unaudit","content":"<p><a href=\"https://laohu8.com/S/LBIX\">Leading</a> online brokerage firm, UP Fintech Holding Limited (<a href=\"https://laohu8.com/S/NDAQ\">Nasdaq</a>: TIGR) (“UP Fintech” or the “Company”), today reported revenues of US$60.2 million for the second quarter ended June 30, 2021 compared to revenue of US$30.3 million in the second quarter of 2020. Notably, more than 60% of the Company’s newly funded accounts were derived from international markets in the quarter. Growth was driven by enhanced platform capabilities and rising demand for convenient access to global brokerage services.</p>\n<p><a href=\"https://ir.itiger.com/news-releases/news-release-details/fintech-holding-limited-reports-unaudited-second-quarter-2021\" target=\"_blank\"><b>UP Fintech Holding Limited Reports Unaudited Second Quarter 2021 Financial Results</b></a></p>\n<p>“We maintained our solid business momentum with a high client retention rate and increased operational synergies, ”commented Mr. Wu Tianhua, founder and CEO of UP Fintech. “I am confident in the positive outlook for our Company and our industry. Our singular focus is to employ technology to make investing more efficient and we are committed to increasing the breadth and diversity of our product offerings, as well as leveraging our leading position in underwriting and ESOP (Employee Share Ownership Plans) to attract new clients.”</p>\n<p>During the second quarter, the total number of funded accounts increased to 529,100. The Company added more funded accounts in the first six months of 2021 than it did in its entire cumulative operating history. The total account balance increased 188.9% year-over-year to US$23.9 billion as the Company continued to attract new clients from multiple international markets. In Singapore, UP Fintech’s local subsidiary, <a href=\"https://laohu8.com/S/TIGR\">Tiger Brokers</a> (Singapore) Pte. Ltd., launched new products and in-APP functions such as an industry heatmap, Mini USD/CNH futures, and OSE futures, supplementing the wide range of analytical tools and securities trading functions available on the Company’s platform.</p>\n<p>The Company also recently announced that it has received approval-in-principle to be admitted as a Clearing Member of The Central Depository (Pte) Limited (CDP), and a trading member of Singapore Exchange Securities Trading Limited (SGX) and Singapore Exchange Derivatives Trading Limited. These partnerships aim to improve the user experience and further strengthen the Company’s presence in the Singaporean market.</p>\n<p>The Company’s ESOP business continued to exhibit healthy growth with 51 new clients, up from 41 new clients in the previous quarter；ESOP adoption is accelerating and in the first six months of 2021 the Company added more new clients than it did in all of 2020. The Company is a leader in providing extensive expertise and guidance for start-ups at every stage of their ESOP from initial establishment through to execution and reporting. In addition, the Company is now offering its ESOP service to A-Share companies, further expanding its prospective client base.</p>\n<p>The Company served as an underwriter or member of the selling group in 17 IPOs, and in total provided subscriptions to 29 IPOs, including several high profile Hong Kong IPOs such as those of Angelalign (HK:6699) and Nayuki (HK:2150). In addition, The Company completed its own follow-on offering of 6.5 million <a href=\"https://laohu8.com/S/AFG\">American</a> Depository Shares in the second quarter and even&nbsp;offered retail investors the opportunity to subscribe through its flagship mobile trading APP, Tiger Trade.</p>\n<p>“While the market will have its ups and downs and competition will remain intense, our innovative platform and technology have been built to create long term value for our clients,” Wu stated. “User experience has always been our top priority and we see significant room for growth as we continue to broaden our global footprint in the near-term.”</p>\n<p></p>\n<p>Safe Harbor Statement</p>\n<p>This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other statements, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. <a href=\"https://laohu8.com/S/FORD\">Forward</a>-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; trends and competition in global financial markets; the effects of the global COVID-19 pandemic; and governmental policies relating to the Company’s industry and general economic conditions in <a href=\"https://laohu8.com/S/CAAS\">China</a> and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.</p>\n<p></p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>UP Fintech Reports More Than 60% of Newly Funded Accounts Acquired From International Markets</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUP Fintech Reports More Than 60% of Newly Funded Accounts Acquired From International Markets\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-09-10 16:01</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p><a href=\"https://laohu8.com/S/LBIX\">Leading</a> online brokerage firm, UP Fintech Holding Limited (<a href=\"https://laohu8.com/S/NDAQ\">Nasdaq</a>: TIGR) (“UP Fintech” or the “Company”), today reported revenues of US$60.2 million for the second quarter ended June 30, 2021 compared to revenue of US$30.3 million in the second quarter of 2020. Notably, more than 60% of the Company’s newly funded accounts were derived from international markets in the quarter. Growth was driven by enhanced platform capabilities and rising demand for convenient access to global brokerage services.</p>\n<p><a href=\"https://ir.itiger.com/news-releases/news-release-details/fintech-holding-limited-reports-unaudited-second-quarter-2021\" target=\"_blank\"><b>UP Fintech Holding Limited Reports Unaudited Second Quarter 2021 Financial Results</b></a></p>\n<p>“We maintained our solid business momentum with a high client retention rate and increased operational synergies, ”commented Mr. Wu Tianhua, founder and CEO of UP Fintech. “I am confident in the positive outlook for our Company and our industry. Our singular focus is to employ technology to make investing more efficient and we are committed to increasing the breadth and diversity of our product offerings, as well as leveraging our leading position in underwriting and ESOP (Employee Share Ownership Plans) to attract new clients.”</p>\n<p>During the second quarter, the total number of funded accounts increased to 529,100. The Company added more funded accounts in the first six months of 2021 than it did in its entire cumulative operating history. The total account balance increased 188.9% year-over-year to US$23.9 billion as the Company continued to attract new clients from multiple international markets. In Singapore, UP Fintech’s local subsidiary, <a href=\"https://laohu8.com/S/TIGR\">Tiger Brokers</a> (Singapore) Pte. Ltd., launched new products and in-APP functions such as an industry heatmap, Mini USD/CNH futures, and OSE futures, supplementing the wide range of analytical tools and securities trading functions available on the Company’s platform.</p>\n<p>The Company also recently announced that it has received approval-in-principle to be admitted as a Clearing Member of The Central Depository (Pte) Limited (CDP), and a trading member of Singapore Exchange Securities Trading Limited (SGX) and Singapore Exchange Derivatives Trading Limited. These partnerships aim to improve the user experience and further strengthen the Company’s presence in the Singaporean market.</p>\n<p>The Company’s ESOP business continued to exhibit healthy growth with 51 new clients, up from 41 new clients in the previous quarter；ESOP adoption is accelerating and in the first six months of 2021 the Company added more new clients than it did in all of 2020. The Company is a leader in providing extensive expertise and guidance for start-ups at every stage of their ESOP from initial establishment through to execution and reporting. In addition, the Company is now offering its ESOP service to A-Share companies, further expanding its prospective client base.</p>\n<p>The Company served as an underwriter or member of the selling group in 17 IPOs, and in total provided subscriptions to 29 IPOs, including several high profile Hong Kong IPOs such as those of Angelalign (HK:6699) and Nayuki (HK:2150). In addition, The Company completed its own follow-on offering of 6.5 million <a href=\"https://laohu8.com/S/AFG\">American</a> Depository Shares in the second quarter and even&nbsp;offered retail investors the opportunity to subscribe through its flagship mobile trading APP, Tiger Trade.</p>\n<p>“While the market will have its ups and downs and competition will remain intense, our innovative platform and technology have been built to create long term value for our clients,” Wu stated. “User experience has always been our top priority and we see significant room for growth as we continue to broaden our global footprint in the near-term.”</p>\n<p></p>\n<p>Safe Harbor Statement</p>\n<p>This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other statements, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. <a href=\"https://laohu8.com/S/FORD\">Forward</a>-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; trends and competition in global financial markets; the effects of the global COVID-19 pandemic; and governmental policies relating to the Company’s industry and general economic conditions in <a href=\"https://laohu8.com/S/CAAS\">China</a> and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.</p>\n<p></p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TIGR":"老虎证券"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1108076835","content_text":"Leading online brokerage firm, UP Fintech Holding Limited (Nasdaq: TIGR) (“UP Fintech” or the “Company”), today reported revenues of US$60.2 million for the second quarter ended June 30, 2021 compared to revenue of US$30.3 million in the second quarter of 2020. Notably, more than 60% of the Company’s newly funded accounts were derived from international markets in the quarter. Growth was driven by enhanced platform capabilities and rising demand for convenient access to global brokerage services.\nUP Fintech Holding Limited Reports Unaudited Second Quarter 2021 Financial Results\n“We maintained our solid business momentum with a high client retention rate and increased operational synergies, ”commented Mr. Wu Tianhua, founder and CEO of UP Fintech. “I am confident in the positive outlook for our Company and our industry. Our singular focus is to employ technology to make investing more efficient and we are committed to increasing the breadth and diversity of our product offerings, as well as leveraging our leading position in underwriting and ESOP (Employee Share Ownership Plans) to attract new clients.”\nDuring the second quarter, the total number of funded accounts increased to 529,100. The Company added more funded accounts in the first six months of 2021 than it did in its entire cumulative operating history. The total account balance increased 188.9% year-over-year to US$23.9 billion as the Company continued to attract new clients from multiple international markets. In Singapore, UP Fintech’s local subsidiary, Tiger Brokers (Singapore) Pte. Ltd., launched new products and in-APP functions such as an industry heatmap, Mini USD/CNH futures, and OSE futures, supplementing the wide range of analytical tools and securities trading functions available on the Company’s platform.\nThe Company also recently announced that it has received approval-in-principle to be admitted as a Clearing Member of The Central Depository (Pte) Limited (CDP), and a trading member of Singapore Exchange Securities Trading Limited (SGX) and Singapore Exchange Derivatives Trading Limited. These partnerships aim to improve the user experience and further strengthen the Company’s presence in the Singaporean market.\nThe Company’s ESOP business continued to exhibit healthy growth with 51 new clients, up from 41 new clients in the previous quarter；ESOP adoption is accelerating and in the first six months of 2021 the Company added more new clients than it did in all of 2020. The Company is a leader in providing extensive expertise and guidance for start-ups at every stage of their ESOP from initial establishment through to execution and reporting. In addition, the Company is now offering its ESOP service to A-Share companies, further expanding its prospective client base.\nThe Company served as an underwriter or member of the selling group in 17 IPOs, and in total provided subscriptions to 29 IPOs, including several high profile Hong Kong IPOs such as those of Angelalign (HK:6699) and Nayuki (HK:2150). In addition, The Company completed its own follow-on offering of 6.5 million American Depository Shares in the second quarter and even offered retail investors the opportunity to subscribe through its flagship mobile trading APP, Tiger Trade.\n“While the market will have its ups and downs and competition will remain intense, our innovative platform and technology have been built to create long term value for our clients,” Wu stated. “User experience has always been our top priority and we see significant room for growth as we continue to broaden our global footprint in the near-term.”\n\nSafe Harbor Statement\nThis announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other statements, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; trends and competition in global financial markets; the effects of the global COVID-19 pandemic; and governmental policies relating to the Company’s industry and general economic conditions in China and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.","news_type":1},"isVote":1,"tweetType":1,"viewCount":329,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":177711272,"gmtCreate":1627261469096,"gmtModify":1703486141041,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Wonder if the Welcome&nbsp;charity trust made money from its investment in a speculative stock likeDoorDash?&nbsp;","listText":"Wonder if the Welcome&nbsp;charity trust made money from its investment in a speculative stock likeDoorDash?&nbsp;","text":"Wonder if the Welcome charity trust made money from its investment in a speculative stock likeDoorDash?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/177711272","repostId":"1103373914","repostType":4,"repost":{"id":"1103373914","pubTimestamp":1627259726,"share":"https://ttm.financial/m/news/1103373914?lang=&edition=fundamental","pubTime":"2021-07-26 08:35","market":"us","language":"en","title":"A British Trust Managing $39M In Assets Sells DoorDash And VMware Holdings","url":"https://stock-news.laohu8.com/highlight/detail?id=1103373914","media":"Benzinga","summary":"What happened:A British medical charity that manages $39 billion in assets has disclosed changes to ","content":"<p><b>What happened:</b>A British medical charity that manages $39 billion in assets has disclosed changes to its U.S. traded stock holdings during the second quarter.</p>\n<p>A filing with the Securities and Exchange Commission shows&nbsp;<b>Wellcome Trust</b>&nbsp;significantly reduced its investment&nbsp;in&nbsp;<b>DoorDash</b>&nbsp;, and sold off holdings in&nbsp;<b>VMware</b>&nbsp;, while buying more&nbsp;<b>Linde</b>&nbsp;shares, and taking a new position in&nbsp;<b>ServiceNow</b>&nbsp;, according toBarron's.</p>\n<p><b>Why it’s important:</b>London-based Wellcome Trust is one of the largest foundations in the world and is known for its investment expertise, and insight into the healthcare industry. The director of the trust, Jeremy Farrar, provided a warning to a group of money managers in January of 2020 that the coronavirus would have a dramatic impact world markets.</p>\n<p>Wellcome sold 2.8 million shares of&nbsp;<b>DoorDash</b>&nbsp;shares in the second quarter, and now holds 7.3 million shares of the company's stock.</p>\n<p>The trust also sold all 1.7 million&nbsp;<b>VMware</b>&nbsp;shares it had owned at the end of March.&nbsp;<b>Dell Technologies Inc</b>&nbsp;owns 80.6% of the cloud-software firm, and plans to spin off those shares to its shareholders in the fourth quarter.</p>\n<p><b>What’s next:</b>The filing indicates Wellcome purchased 2.8 million more shares of&nbsp;<b>Linde</b>for a total investment of 3.3 million shares. The foundation also initiated a stake of 456,927&nbsp;<b>ServiceNow</b>shares in the second quarter. The company is a provider of workflow-management software.</p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A British Trust Managing $39M In Assets Sells DoorDash And VMware Holdings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA British Trust Managing $39M In Assets Sells DoorDash And VMware Holdings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-26 08:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/news/21/07/22140442/a-british-trust-managing-39m-in-assets-sells-doordash-and-vmware-holdings><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>What happened:A British medical charity that manages $39 billion in assets has disclosed changes to its U.S. traded stock holdings during the second quarter.\nA filing with the Securities and Exchange ...</p>\n\n<a href=\"https://www.benzinga.com/news/21/07/22140442/a-british-trust-managing-39m-in-assets-sells-doordash-and-vmware-holdings\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NOW":"ServiceNow","VMW":"威睿","DASH":"DoorDash, Inc.","LIN":"Linde PLC"},"source_url":"https://www.benzinga.com/news/21/07/22140442/a-british-trust-managing-39m-in-assets-sells-doordash-and-vmware-holdings","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1103373914","content_text":"What happened:A British medical charity that manages $39 billion in assets has disclosed changes to its U.S. traded stock holdings during the second quarter.\nA filing with the Securities and Exchange Commission shows Wellcome Trust significantly reduced its investment in DoorDash , and sold off holdings in VMware , while buying more Linde shares, and taking a new position in ServiceNow , according toBarron's.\nWhy it’s important:London-based Wellcome Trust is one of the largest foundations in the world and is known for its investment expertise, and insight into the healthcare industry. The director of the trust, Jeremy Farrar, provided a warning to a group of money managers in January of 2020 that the coronavirus would have a dramatic impact world markets.\nWellcome sold 2.8 million shares of DoorDash shares in the second quarter, and now holds 7.3 million shares of the company's stock.\nThe trust also sold all 1.7 million VMware shares it had owned at the end of March. Dell Technologies Inc owns 80.6% of the cloud-software firm, and plans to spin off those shares to its shareholders in the fourth quarter.\nWhat’s next:The filing indicates Wellcome purchased 2.8 million more shares of Lindefor a total investment of 3.3 million shares. The foundation also initiated a stake of 456,927 ServiceNowshares in the second quarter. The company is a provider of workflow-management software.","news_type":1},"isVote":1,"tweetType":1,"viewCount":170,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129080696,"gmtCreate":1624343923115,"gmtModify":1703834016905,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Good to have some&nbsp;accountability in the stock market.&nbsp;","listText":"Good to have some&nbsp;accountability in the stock market.&nbsp;","text":"Good to have some accountability in the stock market.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/129080696","repostId":"2145032477","repostType":4,"repost":{"id":"2145032477","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1624327535,"share":"https://ttm.financial/m/news/2145032477?lang=&edition=fundamental","pubTime":"2021-06-22 10:05","market":"us","language":"en","title":"'I regret any harm:' Short seller compensates target in rare move","url":"https://stock-news.laohu8.com/highlight/detail?id=2145032477","media":"Reuters","summary":"BOSTON, June 21 (Reuters) - A small Texas investor who caused shares of a real estate investment tru","content":"<p>BOSTON, June 21 (Reuters) - A small Texas investor who caused shares of a real estate investment trust to plunge 39 percent in a day has agreed to pay the company restitution to settle a lawsuit against him, a rare development that could embolden other companies to pursue such claims.</p>\n<p>Quinton Mathews, who published his research on companies online under the pseudonym Rota Fortunae, will pay <a href=\"https://laohu8.com/S/FPI\">Farmland Partners Inc</a> \"a multiple\" of the profits on his short bet in 2018, according to the terms of the legal settlement announced&nbsp;late Sunday. His research had helped wipe as much as $115 million off Farmland's market value.</p>\n<p>The parties declined requests for comment on the exact value of the settlement.</p>\n<p>Mathews conceded that \"many of the key statements\" in a report&nbsp;he published on website Seeking Alpha targeting Farmland - including allegations of dubious related-party transactions and the risk of insolvency - were wrong.</p>\n<p>\"I regret any harm the article and its inaccuracies caused,\" Mathews said in the announcement, which was posted on <a href=\"https://laohu8.com/S/TWTR\">Twitter</a> and Seeking Alpha.</p>\n<p>Paul Pittman, Farmland's chief executive officer, said in a statement that \"investors already recognize that the company was the victim of a short and distort scheme.\"</p>\n<p>Farmland shares traded around $12.50 on Monday afternoon, up from around $5 after the short campaign. The company has produced trailing total returns of 12.5% over the last three years, about 10 percentage points lower than the specialty REIT sector, according to a Morningstar tracker.</p>\n<p>Jacob Frenkel, an attorney with Dickinson Wright who has defended companies against allegations of stock manipulation and was not involved in the Farmland case, said Mathews' apology and payment could build company confidence to pursue similar claims against short sellers.</p>\n<p>\"It's highly unusual and refreshing to see a company take on this fight, because most will take the short term blow of the attack without pursuing legal vindication,\" Frenkel said.</p>\n<p>George Moriarty, the former executive editor of Seeking Alpha, told Reuters in 2019 that courts had respected the website’s status as a neutral platform, and that its staff vetted all posts (Read more ).</p>\n<p>After the retraction, Seeking Alpha on Monday took down all articles by Mathews, including the original post on Farmland, and blocked his account, according to website representative Abby Estikangi-Carmel.</p>\n<p>Seeking Alpha's policies include author certification that they were not paid to post and, for short reports, that the assertion was run by the target company.</p>\n<p>\"Regardless of the steps you take, a bad actor may decide to defraud us by violating our policies, as evidently happened here,\" Estikangi-Carmel said. \"Thankfully, it appears to be an isolated incident.\"</p>\n<p>Mathews runs a <a href=\"https://laohu8.com/S/AONE\">one</a>-person investigative research business, Dallas area-based QKM LLC, and has published more than a dozen articles on Seeking Alpha.</p>\n<p>Farmland's litigation against a hedge fund firm that paid Mathews for research, Sabrepoint Capital Management LP, continues. Sabrepoint founder George Baxter said his firm had nothing to do with the Seeking Alpha article and that it would \"defend itself and its employees vigorously against Farmland's frivolous claims.\"</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>'I regret any harm:' Short seller compensates target in rare move</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n'I regret any harm:' Short seller compensates target in rare move\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2021-06-22 10:05</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>BOSTON, June 21 (Reuters) - A small Texas investor who caused shares of a real estate investment trust to plunge 39 percent in a day has agreed to pay the company restitution to settle a lawsuit against him, a rare development that could embolden other companies to pursue such claims.</p>\n<p>Quinton Mathews, who published his research on companies online under the pseudonym Rota Fortunae, will pay <a href=\"https://laohu8.com/S/FPI\">Farmland Partners Inc</a> \"a multiple\" of the profits on his short bet in 2018, according to the terms of the legal settlement announced&nbsp;late Sunday. His research had helped wipe as much as $115 million off Farmland's market value.</p>\n<p>The parties declined requests for comment on the exact value of the settlement.</p>\n<p>Mathews conceded that \"many of the key statements\" in a report&nbsp;he published on website Seeking Alpha targeting Farmland - including allegations of dubious related-party transactions and the risk of insolvency - were wrong.</p>\n<p>\"I regret any harm the article and its inaccuracies caused,\" Mathews said in the announcement, which was posted on <a href=\"https://laohu8.com/S/TWTR\">Twitter</a> and Seeking Alpha.</p>\n<p>Paul Pittman, Farmland's chief executive officer, said in a statement that \"investors already recognize that the company was the victim of a short and distort scheme.\"</p>\n<p>Farmland shares traded around $12.50 on Monday afternoon, up from around $5 after the short campaign. The company has produced trailing total returns of 12.5% over the last three years, about 10 percentage points lower than the specialty REIT sector, according to a Morningstar tracker.</p>\n<p>Jacob Frenkel, an attorney with Dickinson Wright who has defended companies against allegations of stock manipulation and was not involved in the Farmland case, said Mathews' apology and payment could build company confidence to pursue similar claims against short sellers.</p>\n<p>\"It's highly unusual and refreshing to see a company take on this fight, because most will take the short term blow of the attack without pursuing legal vindication,\" Frenkel said.</p>\n<p>George Moriarty, the former executive editor of Seeking Alpha, told Reuters in 2019 that courts had respected the website’s status as a neutral platform, and that its staff vetted all posts (Read more ).</p>\n<p>After the retraction, Seeking Alpha on Monday took down all articles by Mathews, including the original post on Farmland, and blocked his account, according to website representative Abby Estikangi-Carmel.</p>\n<p>Seeking Alpha's policies include author certification that they were not paid to post and, for short reports, that the assertion was run by the target company.</p>\n<p>\"Regardless of the steps you take, a bad actor may decide to defraud us by violating our policies, as evidently happened here,\" Estikangi-Carmel said. \"Thankfully, it appears to be an isolated incident.\"</p>\n<p>Mathews runs a <a href=\"https://laohu8.com/S/AONE\">one</a>-person investigative research business, Dallas area-based QKM LLC, and has published more than a dozen articles on Seeking Alpha.</p>\n<p>Farmland's litigation against a hedge fund firm that paid Mathews for research, Sabrepoint Capital Management LP, continues. Sabrepoint founder George Baxter said his firm had nothing to do with the Seeking Alpha article and that it would \"defend itself and its employees vigorously against Farmland's frivolous claims.\"</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"FPI":"Farmland Partners Inc"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2145032477","content_text":"BOSTON, June 21 (Reuters) - A small Texas investor who caused shares of a real estate investment trust to plunge 39 percent in a day has agreed to pay the company restitution to settle a lawsuit against him, a rare development that could embolden other companies to pursue such claims.\nQuinton Mathews, who published his research on companies online under the pseudonym Rota Fortunae, will pay Farmland Partners Inc \"a multiple\" of the profits on his short bet in 2018, according to the terms of the legal settlement announced late Sunday. His research had helped wipe as much as $115 million off Farmland's market value.\nThe parties declined requests for comment on the exact value of the settlement.\nMathews conceded that \"many of the key statements\" in a report he published on website Seeking Alpha targeting Farmland - including allegations of dubious related-party transactions and the risk of insolvency - were wrong.\n\"I regret any harm the article and its inaccuracies caused,\" Mathews said in the announcement, which was posted on Twitter and Seeking Alpha.\nPaul Pittman, Farmland's chief executive officer, said in a statement that \"investors already recognize that the company was the victim of a short and distort scheme.\"\nFarmland shares traded around $12.50 on Monday afternoon, up from around $5 after the short campaign. The company has produced trailing total returns of 12.5% over the last three years, about 10 percentage points lower than the specialty REIT sector, according to a Morningstar tracker.\nJacob Frenkel, an attorney with Dickinson Wright who has defended companies against allegations of stock manipulation and was not involved in the Farmland case, said Mathews' apology and payment could build company confidence to pursue similar claims against short sellers.\n\"It's highly unusual and refreshing to see a company take on this fight, because most will take the short term blow of the attack without pursuing legal vindication,\" Frenkel said.\nGeorge Moriarty, the former executive editor of Seeking Alpha, told Reuters in 2019 that courts had respected the website’s status as a neutral platform, and that its staff vetted all posts (Read more ).\nAfter the retraction, Seeking Alpha on Monday took down all articles by Mathews, including the original post on Farmland, and blocked his account, according to website representative Abby Estikangi-Carmel.\nSeeking Alpha's policies include author certification that they were not paid to post and, for short reports, that the assertion was run by the target company.\n\"Regardless of the steps you take, a bad actor may decide to defraud us by violating our policies, as evidently happened here,\" Estikangi-Carmel said. \"Thankfully, it appears to be an isolated incident.\"\nMathews runs a one-person investigative research business, Dallas area-based QKM LLC, and has published more than a dozen articles on Seeking Alpha.\nFarmland's litigation against a hedge fund firm that paid Mathews for research, Sabrepoint Capital Management LP, continues. Sabrepoint founder George Baxter said his firm had nothing to do with the Seeking Alpha article and that it would \"defend itself and its employees vigorously against Farmland's frivolous claims.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":118,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":167271425,"gmtCreate":1624274158167,"gmtModify":1703832126571,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Food for serious thought. Will 2021/22 be a replay of the liquidity crisis of 2008/2009? Frightening thought.&nbsp;","listText":"Food for serious thought. Will 2021/22 be a replay of the liquidity crisis of 2008/2009? Frightening thought.&nbsp;","text":"Food for serious thought. Will 2021/22 be a replay of the liquidity crisis of 2008/2009? Frightening thought.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/167271425","repostId":"1146982088","repostType":4,"repost":{"id":"1146982088","pubTimestamp":1624259620,"share":"https://ttm.financial/m/news/1146982088?lang=&edition=fundamental","pubTime":"2021-06-21 15:13","market":"us","language":"en","title":"Powell Just Launched $2 Trillion In \"Heat-Seeking Missiles\": Zoltan Explains How The Fed Started The Next Repo Crisis","url":"https://stock-news.laohu8.com/highlight/detail?id=1146982088","media":"zerohedge","summary":"Last week, amid thefire and brimstone surroundingthe market's shocked response to the Fed's unexpect","content":"<p>Last week, amid thefire and brimstone surroundingthe market's shocked response to the Fed's unexpected hawkish pivot, we noted that there were two tangible, if less noted changes: the Fed adjusted the two key \"administered\" rates, raising both the IOER and RRP rates by 5 basis points (as correctly predicted by Bank of America, JPMorgan, Wrightson, Deutsche Bank and Wells Fargo while Citi, Oxford Economics, Jefferies, Credit Suisse, Standard Chartered, BMO were wrong in predicting no rate change), in an effort to push the Effective Fed Funds rate higher and away from its imminent rendezvous with 0%.</p>\n<p><img src=\"https://static.tigerbbs.com/31e3c93e7ae558cd9f2fdb7e4a2769f1\" tg-width=\"500\" tg-height=\"377\">What does this mean? As Curvature Securities repo guru,Scott Skyrm wrote last week, \"clearly the Fed intends to move overnight rates above zero and drain the RRP&nbsp; facility of cash.\" Unfortunately, the end result would be precisely the opposite of what the Fed had wanted to achieve.</p>\n<p>But what does this really mean for overnight rates and RRP volume? As Skyrm further noted, the increase in the IOER should pull the daily fed funds rate 5 basis points higher and, in turn, put upward pressure on Repo GC. Combined with the 5 basis point increase in RRP, GC should move a solid 5 basis points higher, which it has.</p>\n<p><img src=\"https://static.tigerbbs.com/e8b99df7af1731b4bdcbcf072dcf39ce\" tg-width=\"500\" tg-height=\"272\">The problem, as Skyrm warned, is that the Fed's technical adjustment would do nothing to ease the RRP volume:</p>\n<blockquote>\n When market Repo rates were at 0% and the RRP rate was at zero, ~$500 billion went into the RRP. Well, if both market Repo rates and the RRP rate are 5 basis points higher, there's no reason to pull cash out of the RRP. For example, if GC rates moved to .05% and the RRP rate stayed at zero, investor preferences to invest at a higher rate would remove cash from the RRP.\n</blockquote>\n<p>Bottom line: with both market rates and RRP at .05%, there's really no economic incentive for cash investors to move cash to the Repo market. Or, as we summarized, \"<i>the Fed's rate change may have zero impact on the Fed's reverse repo facility, or the record half a trillion in cash parked there.\"</i></p>\n<p>In retrospect, boy was that an understatement, because just one day later the already record usage of the Fed's Reverse Repo facility spiked by a record 50%, exploding to a staggering $756 billion (it closed Friday at $747 billion) as the GSEs.</p>\n<p><img src=\"https://static.tigerbbs.com/0fba18d7808300abc3bdf4ffaa3d5fb6\" tg-width=\"500\" tg-height=\"273\">Needless to say, flooding the Fed's RRP facility and sterilizing reserves is hardly what the Fed had intended, and as Credit Suisse's own repo guru (and former NY Fed staffer) Zoltan Pozsar wrote in his post-mortem, \"<b>the re-priced RRP facility will become a problem for the banking system fast:</b><b><u>the banking system is going from being asset constrained (deposits flooding in, but nowhere to lend them but to the Fed), to being liability constrained (deposits slipping away and nowhere to replace them but in the money market</u></b><b>).\"</b></p>\n<p>What he means by that is that whereas previously the RRP rate of 0.00% did not<i>reward</i>allocation of inert, excess reserves but merely provided a place to park them, now that the Fed is providing a generous yield pick up compared to rates offered by trillions in Bills, we are about to see a sea-change in the overnight, money-market, as trillions in capital reallocate away from traditional investments and into the the Fed's RRP.</p>\n<p>In other words, as Pozsar puts it, \"the RRP facility started to sterilize reserves... with more to come.\" And just as Deutsche Bank explained why the Fed's signaling was an r* policy error, to Pozsar, the Fed<i><b>also</b></i>made a policy error - only this time with its technical rates - by steriling reserves because \"it’s one thing to raise the rate on the RRP facility when an increase was not strictly speaking necessary, and it’s another to raise it “unduly” high – as one money fund manager put it, “<b>yesterday we could not even get a basis points a year; to get endless paper at five basis points from the most trusted counterparty is a dream come true.\"</b></p>\n<p>He's right: while 0bps may have been viewed by many as too low, it was hardly catastrophic for now (Credit Suisse was one of those predicting no administered rate hike),<b>5bps is too generous</b>, according to Pozsar who warns that the new reverse repo rate<b>will upset the state of \"singularity\"</b>and \"like heat-seeking missiles, money market investors move hundreds of billions, making sharp, 90º turns hunting for even a basis point of yield at the zero bound –<b>at 5 bps, money funds have an incentive to trade out of all their Treasury bills and park cash at the RRP facility.\"</b></p>\n<p>Indeed, as shown below, bills yield less than 5 bps out to 6 months,<b>and money funds have over $2 trillion of bills.</b>They got an the incentive to sell, while others have the incentive to buy: institutions whose deposits have been “tolerated” by banks until now earning zero interest have an incentive to harvest the 0-5 bps range the bill curve has to offer. Putting your cash at a basis point in bills is better than deposits at zero.<b>So the sterilization of reserves begins, and so the o/n RRP facility turns from a largely passive tool that provided an interest rate floor to the deposits that large banks have been pushing away, into an active tool that \"sucks\" the deposits away that banks decided to retain.</b></p>\n<p><img src=\"https://static.tigerbbs.com/bf593f7b1d2d665f39384ed6a998d3bf\" tg-width=\"500\" tg-height=\"403\">To help readers visualize what is going on, the Credit Suisse strategist suggest the following \"extreme\" thought experiment: most of the “Covid-19” deposits currently with banks go into the bill market where rates are better. Money funds sell bills to institutional investors that currently keep their cash at banks, and money funds swap bills for o/n RRPs. Said (somewhat) simply, while previously the Fed provided banks with a convenient place to park reserves, it now will actively drain reserves to the point where we may end up with another 2019-style repo crisis, as most financial institutions suddenly find themsleves with<i><b>too few</b></i>intraday reserves, forcing them to use the Fed's other funding facilities (such as FX swap lines) to remain consistently solvent.</p>\n<p>This process is not overnight. It will take a few weeks to observe the fallout from the Fed's reserve sterilization.</p>\n<p>And here is why the problem is similar to the repo crisis of 2019: soon we will find that while cash-rich banks can handle the outflows,<b>some bond-heavy banks cannot.</b>As a result, Zoltan predicts that next \"we will notice that some banks (those who can<i><b>not</b></i>handle outflows) are borrowing advances from FHLBs, and cash-rich banks stop lending in the FX swap market as the RRP facility pulled reserves away from them and the Fed has to re-start the FX swap lines to offset.\"</p>\n<p>Bottom line:<i><b>whereas previously we saw Libor-OIS collapse, this key funding spread will have to widen from here, unless the Fed lowers the o/n RRP rate again back to where it was before.</b></i></p>\n<p>Or, as Zoltan summarizes, \"It’s either quantities or prices\" - indeed,<b>in 2019 the Fed chose prices over quantities, which backfired, and led to the repo crisis which ended the Fed's hiking cycle and started \"NOT QE.\"</b>While the Fed redeemed itself in February, when it expanded the usage of the RRP without making it liability-constrained as it chose quantities over prices - which worked well - last Wednesday,<b>the Fed turned “unlimited” quantities into “money for free” and started to sterilize reserves.</b></p>\n<p>Bottom line: \"we are witnessing the dealer of last resort (DoLR) learning the art of dealing, making unforced errors – if the Fed sterilizes with an overpriced o/n RRP facility, it has to be ready to add liquidity via the swap lines…\"</p>\n<p>Translation:&nbsp;<b>by paying trillions in reserves 5bps, the Fed just planted the seeds of the next liquidity crisis.</b></p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Powell Just Launched $2 Trillion In \"Heat-Seeking Missiles\": Zoltan Explains How The Fed Started The Next Repo Crisis</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPowell Just Launched $2 Trillion In \"Heat-Seeking Missiles\": Zoltan Explains How The Fed Started The Next Repo Crisis\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 15:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/powell-just-launched-2-trillion-heat-seeking-missiles-zoltan-explains-how-fed-started-next><strong>zerohedge</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Last week, amid thefire and brimstone surroundingthe market's shocked response to the Fed's unexpected hawkish pivot, we noted that there were two tangible, if less noted changes: the Fed adjusted the...</p>\n\n<a href=\"https://www.zerohedge.com/markets/powell-just-launched-2-trillion-heat-seeking-missiles-zoltan-explains-how-fed-started-next\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite",".DJI":"道琼斯","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/powell-just-launched-2-trillion-heat-seeking-missiles-zoltan-explains-how-fed-started-next","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1146982088","content_text":"Last week, amid thefire and brimstone surroundingthe market's shocked response to the Fed's unexpected hawkish pivot, we noted that there were two tangible, if less noted changes: the Fed adjusted the two key \"administered\" rates, raising both the IOER and RRP rates by 5 basis points (as correctly predicted by Bank of America, JPMorgan, Wrightson, Deutsche Bank and Wells Fargo while Citi, Oxford Economics, Jefferies, Credit Suisse, Standard Chartered, BMO were wrong in predicting no rate change), in an effort to push the Effective Fed Funds rate higher and away from its imminent rendezvous with 0%.\nWhat does this mean? As Curvature Securities repo guru,Scott Skyrm wrote last week, \"clearly the Fed intends to move overnight rates above zero and drain the RRP  facility of cash.\" Unfortunately, the end result would be precisely the opposite of what the Fed had wanted to achieve.\nBut what does this really mean for overnight rates and RRP volume? As Skyrm further noted, the increase in the IOER should pull the daily fed funds rate 5 basis points higher and, in turn, put upward pressure on Repo GC. Combined with the 5 basis point increase in RRP, GC should move a solid 5 basis points higher, which it has.\nThe problem, as Skyrm warned, is that the Fed's technical adjustment would do nothing to ease the RRP volume:\n\n When market Repo rates were at 0% and the RRP rate was at zero, ~$500 billion went into the RRP. Well, if both market Repo rates and the RRP rate are 5 basis points higher, there's no reason to pull cash out of the RRP. For example, if GC rates moved to .05% and the RRP rate stayed at zero, investor preferences to invest at a higher rate would remove cash from the RRP.\n\nBottom line: with both market rates and RRP at .05%, there's really no economic incentive for cash investors to move cash to the Repo market. Or, as we summarized, \"the Fed's rate change may have zero impact on the Fed's reverse repo facility, or the record half a trillion in cash parked there.\"\nIn retrospect, boy was that an understatement, because just one day later the already record usage of the Fed's Reverse Repo facility spiked by a record 50%, exploding to a staggering $756 billion (it closed Friday at $747 billion) as the GSEs.\nNeedless to say, flooding the Fed's RRP facility and sterilizing reserves is hardly what the Fed had intended, and as Credit Suisse's own repo guru (and former NY Fed staffer) Zoltan Pozsar wrote in his post-mortem, \"the re-priced RRP facility will become a problem for the banking system fast:the banking system is going from being asset constrained (deposits flooding in, but nowhere to lend them but to the Fed), to being liability constrained (deposits slipping away and nowhere to replace them but in the money market).\"\nWhat he means by that is that whereas previously the RRP rate of 0.00% did notrewardallocation of inert, excess reserves but merely provided a place to park them, now that the Fed is providing a generous yield pick up compared to rates offered by trillions in Bills, we are about to see a sea-change in the overnight, money-market, as trillions in capital reallocate away from traditional investments and into the the Fed's RRP.\nIn other words, as Pozsar puts it, \"the RRP facility started to sterilize reserves... with more to come.\" And just as Deutsche Bank explained why the Fed's signaling was an r* policy error, to Pozsar, the Fedalsomade a policy error - only this time with its technical rates - by steriling reserves because \"it’s one thing to raise the rate on the RRP facility when an increase was not strictly speaking necessary, and it’s another to raise it “unduly” high – as one money fund manager put it, “yesterday we could not even get a basis points a year; to get endless paper at five basis points from the most trusted counterparty is a dream come true.\"\nHe's right: while 0bps may have been viewed by many as too low, it was hardly catastrophic for now (Credit Suisse was one of those predicting no administered rate hike),5bps is too generous, according to Pozsar who warns that the new reverse repo ratewill upset the state of \"singularity\"and \"like heat-seeking missiles, money market investors move hundreds of billions, making sharp, 90º turns hunting for even a basis point of yield at the zero bound –at 5 bps, money funds have an incentive to trade out of all their Treasury bills and park cash at the RRP facility.\"\nIndeed, as shown below, bills yield less than 5 bps out to 6 months,and money funds have over $2 trillion of bills.They got an the incentive to sell, while others have the incentive to buy: institutions whose deposits have been “tolerated” by banks until now earning zero interest have an incentive to harvest the 0-5 bps range the bill curve has to offer. Putting your cash at a basis point in bills is better than deposits at zero.So the sterilization of reserves begins, and so the o/n RRP facility turns from a largely passive tool that provided an interest rate floor to the deposits that large banks have been pushing away, into an active tool that \"sucks\" the deposits away that banks decided to retain.\nTo help readers visualize what is going on, the Credit Suisse strategist suggest the following \"extreme\" thought experiment: most of the “Covid-19” deposits currently with banks go into the bill market where rates are better. Money funds sell bills to institutional investors that currently keep their cash at banks, and money funds swap bills for o/n RRPs. Said (somewhat) simply, while previously the Fed provided banks with a convenient place to park reserves, it now will actively drain reserves to the point where we may end up with another 2019-style repo crisis, as most financial institutions suddenly find themsleves withtoo fewintraday reserves, forcing them to use the Fed's other funding facilities (such as FX swap lines) to remain consistently solvent.\nThis process is not overnight. It will take a few weeks to observe the fallout from the Fed's reserve sterilization.\nAnd here is why the problem is similar to the repo crisis of 2019: soon we will find that while cash-rich banks can handle the outflows,some bond-heavy banks cannot.As a result, Zoltan predicts that next \"we will notice that some banks (those who cannothandle outflows) are borrowing advances from FHLBs, and cash-rich banks stop lending in the FX swap market as the RRP facility pulled reserves away from them and the Fed has to re-start the FX swap lines to offset.\"\nBottom line:whereas previously we saw Libor-OIS collapse, this key funding spread will have to widen from here, unless the Fed lowers the o/n RRP rate again back to where it was before.\nOr, as Zoltan summarizes, \"It’s either quantities or prices\" - indeed,in 2019 the Fed chose prices over quantities, which backfired, and led to the repo crisis which ended the Fed's hiking cycle and started \"NOT QE.\"While the Fed redeemed itself in February, when it expanded the usage of the RRP without making it liability-constrained as it chose quantities over prices - which worked well - last Wednesday,the Fed turned “unlimited” quantities into “money for free” and started to sterilize reserves.\nBottom line: \"we are witnessing the dealer of last resort (DoLR) learning the art of dealing, making unforced errors – if the Fed sterilizes with an overpriced o/n RRP facility, it has to be ready to add liquidity via the swap lines…\"\nTranslation: by paying trillions in reserves 5bps, the Fed just planted the seeds of the next liquidity crisis.","news_type":1},"isVote":1,"tweetType":1,"viewCount":52,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"3581937910767045","authorId":"3581937910767045","name":"Pluto891","avatar":"https://static.tigerbbs.com/c9963f2ef3d3ad2aff28340461d3d6d0","crmLevel":2,"crmLevelSwitch":1,"idStr":"3581937910767045","authorIdStr":"3581937910767045"},"content":"it might not be a bad idea if it happens..","text":"it might not be a bad idea if it happens..","html":"it might not be a bad idea if it happens.."}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":181071108,"gmtCreate":1623369084804,"gmtModify":1704201714701,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Grab or Didi? Which is more overvalued?&nbsp;","listText":"Grab or Didi? Which is more overvalued?&nbsp;","text":"Grab or Didi? Which is more overvalued?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/181071108","repostId":"1152704038","repostType":4,"isVote":1,"tweetType":1,"viewCount":265,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":147129335,"gmtCreate":1626343069327,"gmtModify":1703758274637,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Looks like this is the latest stock market trendProfit goes up, share price drops for a period of time. Then starts to push higher like AAPL, AmD , Qcom…&nbsp;","listText":"Looks like this is the latest stock market trendProfit goes up, share price drops for a period of time. Then starts to push higher like AAPL, AmD , Qcom…&nbsp;","text":"Looks like this is the latest stock market trendProfit goes up, share price drops for a period of time. Then starts to push higher like AAPL, AmD , Qcom…","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/147129335","repostId":"1199986106","repostType":4,"repost":{"id":"1199986106","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1626336201,"share":"https://ttm.financial/m/news/1199986106?lang=&edition=fundamental","pubTime":"2021-07-15 16:03","market":"us","language":"en","title":"TSMC shares fell nearly 3% in premarket trading.","url":"https://stock-news.laohu8.com/highlight/detail?id=1199986106","media":"Tiger Newspress","summary":"TSMC shares fell nearly 3% in premarket trading.\nTaiwan Semiconductor Manufacturing Co. reported an ","content":"<p>TSMC&nbsp;shares fell&nbsp;nearly 3% in premarket&nbsp;trading.</p>\n<p><img src=\"https://static.tigerbbs.com/39144cc7b27d38adf552b552e51d9eb2\" tg-width=\"1293\" tg-height=\"621\" referrerpolicy=\"no-referrer\"><a href=\"https://laohu8.com/S/TSM\">Taiwan Semiconductor Manufacturing</a> Co. reported an 11% increase in quarterly profit, underscoring how the company has benefited from a global chip shortage that’s driven up orders from the automotive and other industries.</p>\n<p>Net income for the quarter ended in June rose to NT$134.4 billion ($4.8 billion), slightly below the average analyst estimate of NT$136.15 billion. Revenue came in at NT$372.15 billion based on previously released monthly sales figures.</p>\n<p>On Thursday, TSMC said on an analyst call that the auto chip shortage will gradually reduce for its customers from this quarter but expects overall semiconductor capacity tightness to extend possibly into next year.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>TSMC shares fell nearly 3% in premarket trading.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTSMC shares fell nearly 3% in premarket trading.\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-07-15 16:03</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>TSMC&nbsp;shares fell&nbsp;nearly 3% in premarket&nbsp;trading.</p>\n<p><img src=\"https://static.tigerbbs.com/39144cc7b27d38adf552b552e51d9eb2\" tg-width=\"1293\" tg-height=\"621\" referrerpolicy=\"no-referrer\"><a href=\"https://laohu8.com/S/TSM\">Taiwan Semiconductor Manufacturing</a> Co. reported an 11% increase in quarterly profit, underscoring how the company has benefited from a global chip shortage that’s driven up orders from the automotive and other industries.</p>\n<p>Net income for the quarter ended in June rose to NT$134.4 billion ($4.8 billion), slightly below the average analyst estimate of NT$136.15 billion. Revenue came in at NT$372.15 billion based on previously released monthly sales figures.</p>\n<p>On Thursday, TSMC said on an analyst call that the auto chip shortage will gradually reduce for its customers from this quarter but expects overall semiconductor capacity tightness to extend possibly into next year.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSM":"台积电"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1199986106","content_text":"TSMC shares fell nearly 3% in premarket trading.\nTaiwan Semiconductor Manufacturing Co. reported an 11% increase in quarterly profit, underscoring how the company has benefited from a global chip shortage that’s driven up orders from the automotive and other industries.\nNet income for the quarter ended in June rose to NT$134.4 billion ($4.8 billion), slightly below the average analyst estimate of NT$136.15 billion. Revenue came in at NT$372.15 billion based on previously released monthly sales figures.\nOn Thursday, TSMC said on an analyst call that the auto chip shortage will gradually reduce for its customers from this quarter but expects overall semiconductor capacity tightness to extend possibly into next year.","news_type":1},"isVote":1,"tweetType":1,"viewCount":244,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":123980830,"gmtCreate":1624406556620,"gmtModify":1703835575599,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"GameStop?? Really?? Isn’t AMC a safer bet with real estate space and free popcorn to celebrate vaccination and the eventual end to the virus??&nbsp;","listText":"GameStop?? Really?? Isn’t AMC a safer bet with real estate space and free popcorn to celebrate vaccination and the eventual end to the virus??&nbsp;","text":"GameStop?? Really?? Isn’t AMC a safer bet with real estate space and free popcorn to celebrate vaccination and the eventual end to the virus??","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/123980830","repostId":"2145052095","repostType":4,"repost":{"id":"2145052095","pubTimestamp":1624375500,"share":"https://ttm.financial/m/news/2145052095?lang=&edition=fundamental","pubTime":"2021-06-22 23:25","market":"us","language":"en","title":"Forget AMC: These 3 Meme Stocks Actually Have a Future","url":"https://stock-news.laohu8.com/highlight/detail?id=2145052095","media":"Motley Fool","summary":"Not all meme stocks are alike.","content":"<p>Having a long-term outlook has always been an investor's greatest hidden asset. The stock market has been a massive wealth creator over the decades if you had the patience to just sit tight. It's a fairly incredible feat that whether you look back over the last 100 years or just the past few decades, the average total return of the <b>S&amp;P 500</b> is around 10% annually.</p>\n<p>While traders have always jumped in and out of stocks, trying to pick the right entry and exit points, this year in particular has seen a tremendous influx of investors looking to ride the meme stock trend.</p>\n<p>No stock represents that phenomenon better than <b>AMC Entertainment Holdings</b> (NYSE:AMC), which is the best-performing stock in the market by far with gains of nearly 3,000% since the start of 2021.</p>\n<p><img src=\"https://static.tigerbbs.com/e52f3c866905316452fa461447bc7057\" tg-width=\"700\" tg-height=\"466\" referrerpolicy=\"no-referrer\"></p>\n<p>Image source: Getty Images.</p>\n<h3>Bringing down the curtain on AMC</h3>\n<p>Beyond just beating back hedge funds attacking the theater operator with short sales, investors have piled into AMC Entertainment because a vaccinated population can go to the movies once more to see all the films that studios banked during the pandemic. The influx of moviegoers will lift both admission revenue and the highly profitable concession sales, with business getting back to pre-COVID-19 levels.</p>\n<p>The problem is that AMC was a business in decline before the coronavirus outbreak. It's not just the theater operator's problem, it's an affliction the entire industry is suffering from.</p>\n<p>Theater ticket sales peaked at 1.57 billion in 2002 and have steadily fallen from there. In 2019, fewer than 1.23 billion tickets were sold.</p>\n<p>Theaters have masked the decline by charging more for a ticket, so despite falling sales, box office receipts have actually grown. The $9.1 billion generated 19 years ago became $11.2 billion just before the pandemic closed everything down.</p>\n<p>That may seem beneficial, but continuously rising prices, particularly with the advent of streaming video, have cut into the need to go to the box office, and all the major studios have committed to supporting their streaming services even as they send films to theaters.</p>\n<p>AMC also had to take on significant amounts of debt to survive the COVID outbreak. It ended the most recent quarter with $5.4 billion in long-term debt; $1.6 billion in current liabilities; and $4.9 billion in operating-lease expenses, of which $800 million is due this year, followed by another $1 billion next year.</p>\n<p>While it raised over $1 billion this year, it posted a loss of $567 million and burned through $313 million in cash.</p>\n<p>AMC Entertainment is not a place for long-term investors to park their money.</p>\n<h3>Forget AMC and consider these meme stocks instead</h3>\n<p>Movie theaters aren't going away, but there are better places for your money, even among other so-called meme stocks. That's because they have a stronger business or better growth prospects than AMC. The following three stocks could all give you the excitement of the meme stock craze while offering long-term potential, as long as you don't get caught up in the excitement and overpay.</p>\n<p><img src=\"https://static.tigerbbs.com/a5c7d1564239ae8b7f0599f43d88f184\" tg-width=\"700\" tg-height=\"466\" referrerpolicy=\"no-referrer\"></p>\n<p>Image source: Getty Images.</p>\n<h3>1. Bed Bath &amp; Beyond</h3>\n<p>I had pretty much written off home furnishings retailer <b>Bed Bath &amp; Beyond</b> (NASDAQ:BBBY) when it was still in the clutches of an entrenched management team with a sclerotic board of directors that failed to challenge leadership to make the changes necessary in an altered retail environment.</p>\n<p>Yet showing that hedge funds can be a force for good, activist investors cleaned house at the retailer, clearing out the C-suite and the board, and embarked on dismantling the sprawling collection of businesses that Bed Bath &amp; Beyond had amassed.</p>\n<p>The pandemic struck at the worst possible time, just as the home goods store was going to focus on its narrowed core businesses. But now, as the economy is reopening, Bed Bath &amp; Beyond has the chance to shine.</p>\n<p>One of the unique aspects of the retailer's business was its ability to generate inordinate amounts of cash. It used to regularly produce in excess of $1 billion of free cash flow (FCF), and just prior to the outbreak it was still generating $750 million worth. Then it was forced to close its stores, and the economy was upended. Yet even as it emerges from the wreckage, Bed Bath &amp; Beyond reported it was already FCF positive, producing $62 million last quarter. Expect that to grow in the coming quarters.</p>\n<p>It has invested heavily in its e-commerce platform and its supply chain, and the narrower focus should allow it to return to its pre-eminent position atop the home goods industry.</p>\n<p><img src=\"https://static.tigerbbs.com/2b9b0706e36e2038b277532e6820963d\" tg-width=\"700\" tg-height=\"482\" referrerpolicy=\"no-referrer\"></p>\n<p>Image source: Getty Images.</p>\n<h3>2. Corsair Gaming</h3>\n<p><b>Corsair Gaming</b> (NASDAQ:CRSR) is something of a more-recent phenomenon, as it only just went public last September. But the esports and live-streaming trend has so much potential for growth that Corsair -- an equipment and accessories maker -- should see tremendous lift in the years ahead.</p>\n<p>Unlike many other meme stocks, it wasn't hurt by the pandemic, but rather helped as people were forced to stay home and turned to gaming for their entertainment. Corsair has been around for years and has developed a reputation as a quality manufacturer, so its products were in high demand. Last quarter, it reported record results with revenue soaring 71% over the year-ago period to $529 million, and earnings surging to $0.41 per share from just $0.01 a year ago.</p>\n<p>The company is also new to the meme stock mania, only just joining the ranks as nearly 22% of its outstanding shares are sold short. The Reddit crowd obviously sees this stock as <a href=\"https://laohu8.com/S/AONE\">one</a> to flip, and the price jumped 13% this week. But that's not the reason you want to buy it.</p>\n<p>Corsair makes high-end, high-performance headsets, keyboards, mice, controllers, and gear for live-streaming gamers and content creators. It also sells computer components including memory cards, cooling systems, and power supplies, and has two proprietary platforms, iCUE for gamers and the Elgato streaming suite for creators.</p>\n<p>The company points out that data from gaming and esports market researcher Newzoo shows an estimated 825 million console gamers globally in 2020, and over 40 million active gaming channels on <b>Alphabet</b>'s YouTube. There are also millions of active streamers across Twitch and <b><a href=\"https://laohu8.com/S/FB\">Facebook</a></b> Gaming, as well as on platforms of Chinese gaming sites <b>Huya</b> and <b>DouYu</b>, to drive sales of gaming and content-creation gear.</p>\n<p>There's a substantial growth trajectory still ahead for Corsair Gaming, <a href=\"https://laohu8.com/S/AONE.U\">one</a> that shouldn't be obscured by having become a meme stock favorite.</p>\n<p><img src=\"https://static.tigerbbs.com/8c01389388c3306ea6e9b152ac7e7f05\" tg-width=\"700\" tg-height=\"465\" referrerpolicy=\"no-referrer\"></p>\n<p>Image source: Getty Images.</p>\n<h3>3. GameStop</h3>\n<p>As the original meme stock investment, <b>GameStop</b> (NYSE:GME) might be a surprising choice, particularly in light of the stock trading north of $220 per share, a 1,050% gain year to date. But that's where having patience and waiting for the momentum crowd to move on can reward you. GameStop actually has a turnaround-investment quality that could allow handsome profits.</p>\n<p>If theaters are on the decline, then video-game retail stores are sure to follow the same path as Blockbuster Video.</p>\n<p>Which is exactly why the new management team, almost wholly brought over from <b>Amazon</b> and Google, seeks to remake the video game retailer into a consumer-focused, online-oriented gaming company. Chairman Ryan Cohen envisions turning it into the \"Amazon of gaming.\"</p>\n<p>It's starting from a solid foundation, having used the meme stock trading frenzy that boosted its share price to raise new capital to completely pay off its debt. While that diluted existing shareholders, not something to be taken lightly, it did allow the company to replenish its coffers and position itself to implement its strategy.</p>\n<p>Since gaming is increasingly moving toward digital downloads and online play, it's essential GameStop move in that direction as well. Theaters can't really respond effectively to how viewers are watching movies today; GameStop has a chance to reinvent itself in a way few businesses can.</p>\n<p>There's no doubt GameStop is the riskiest of these three because it's a bet on an essentially untried transition. But the pandemic did show people turning to GameStop's e-commerce platform in record numbers, which indicates its well-known brand could be a beacon for customers seeking gaming media, equipment, reviews, and more from the retailer.</p>\n<p>Instead of betting on AMC's declining business and industry, GameStop is a stock that could pay off handsomely if you wait for it to offer attractive valuations.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Forget AMC: These 3 Meme Stocks Actually Have a Future</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nForget AMC: These 3 Meme Stocks Actually Have a Future\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-22 23:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/22/forget-amc-these-3-meme-stocks-actually-have-a-fut/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Having a long-term outlook has always been an investor's greatest hidden asset. The stock market has been a massive wealth creator over the decades if you had the patience to just sit tight. It's a ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/22/forget-amc-these-3-meme-stocks-actually-have-a-fut/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GME":"游戏驿站","CRSR":"Corsair Gaming, Inc.","FUTR.UK":"FUTURE","BBBY":"3B家居"},"source_url":"https://www.fool.com/investing/2021/06/22/forget-amc-these-3-meme-stocks-actually-have-a-fut/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2145052095","content_text":"Having a long-term outlook has always been an investor's greatest hidden asset. The stock market has been a massive wealth creator over the decades if you had the patience to just sit tight. It's a fairly incredible feat that whether you look back over the last 100 years or just the past few decades, the average total return of the S&P 500 is around 10% annually.\nWhile traders have always jumped in and out of stocks, trying to pick the right entry and exit points, this year in particular has seen a tremendous influx of investors looking to ride the meme stock trend.\nNo stock represents that phenomenon better than AMC Entertainment Holdings (NYSE:AMC), which is the best-performing stock in the market by far with gains of nearly 3,000% since the start of 2021.\n\nImage source: Getty Images.\nBringing down the curtain on AMC\nBeyond just beating back hedge funds attacking the theater operator with short sales, investors have piled into AMC Entertainment because a vaccinated population can go to the movies once more to see all the films that studios banked during the pandemic. The influx of moviegoers will lift both admission revenue and the highly profitable concession sales, with business getting back to pre-COVID-19 levels.\nThe problem is that AMC was a business in decline before the coronavirus outbreak. It's not just the theater operator's problem, it's an affliction the entire industry is suffering from.\nTheater ticket sales peaked at 1.57 billion in 2002 and have steadily fallen from there. In 2019, fewer than 1.23 billion tickets were sold.\nTheaters have masked the decline by charging more for a ticket, so despite falling sales, box office receipts have actually grown. The $9.1 billion generated 19 years ago became $11.2 billion just before the pandemic closed everything down.\nThat may seem beneficial, but continuously rising prices, particularly with the advent of streaming video, have cut into the need to go to the box office, and all the major studios have committed to supporting their streaming services even as they send films to theaters.\nAMC also had to take on significant amounts of debt to survive the COVID outbreak. It ended the most recent quarter with $5.4 billion in long-term debt; $1.6 billion in current liabilities; and $4.9 billion in operating-lease expenses, of which $800 million is due this year, followed by another $1 billion next year.\nWhile it raised over $1 billion this year, it posted a loss of $567 million and burned through $313 million in cash.\nAMC Entertainment is not a place for long-term investors to park their money.\nForget AMC and consider these meme stocks instead\nMovie theaters aren't going away, but there are better places for your money, even among other so-called meme stocks. That's because they have a stronger business or better growth prospects than AMC. The following three stocks could all give you the excitement of the meme stock craze while offering long-term potential, as long as you don't get caught up in the excitement and overpay.\n\nImage source: Getty Images.\n1. Bed Bath & Beyond\nI had pretty much written off home furnishings retailer Bed Bath & Beyond (NASDAQ:BBBY) when it was still in the clutches of an entrenched management team with a sclerotic board of directors that failed to challenge leadership to make the changes necessary in an altered retail environment.\nYet showing that hedge funds can be a force for good, activist investors cleaned house at the retailer, clearing out the C-suite and the board, and embarked on dismantling the sprawling collection of businesses that Bed Bath & Beyond had amassed.\nThe pandemic struck at the worst possible time, just as the home goods store was going to focus on its narrowed core businesses. But now, as the economy is reopening, Bed Bath & Beyond has the chance to shine.\nOne of the unique aspects of the retailer's business was its ability to generate inordinate amounts of cash. It used to regularly produce in excess of $1 billion of free cash flow (FCF), and just prior to the outbreak it was still generating $750 million worth. Then it was forced to close its stores, and the economy was upended. Yet even as it emerges from the wreckage, Bed Bath & Beyond reported it was already FCF positive, producing $62 million last quarter. Expect that to grow in the coming quarters.\nIt has invested heavily in its e-commerce platform and its supply chain, and the narrower focus should allow it to return to its pre-eminent position atop the home goods industry.\n\nImage source: Getty Images.\n2. Corsair Gaming\nCorsair Gaming (NASDAQ:CRSR) is something of a more-recent phenomenon, as it only just went public last September. But the esports and live-streaming trend has so much potential for growth that Corsair -- an equipment and accessories maker -- should see tremendous lift in the years ahead.\nUnlike many other meme stocks, it wasn't hurt by the pandemic, but rather helped as people were forced to stay home and turned to gaming for their entertainment. Corsair has been around for years and has developed a reputation as a quality manufacturer, so its products were in high demand. Last quarter, it reported record results with revenue soaring 71% over the year-ago period to $529 million, and earnings surging to $0.41 per share from just $0.01 a year ago.\nThe company is also new to the meme stock mania, only just joining the ranks as nearly 22% of its outstanding shares are sold short. The Reddit crowd obviously sees this stock as one to flip, and the price jumped 13% this week. But that's not the reason you want to buy it.\nCorsair makes high-end, high-performance headsets, keyboards, mice, controllers, and gear for live-streaming gamers and content creators. It also sells computer components including memory cards, cooling systems, and power supplies, and has two proprietary platforms, iCUE for gamers and the Elgato streaming suite for creators.\nThe company points out that data from gaming and esports market researcher Newzoo shows an estimated 825 million console gamers globally in 2020, and over 40 million active gaming channels on Alphabet's YouTube. There are also millions of active streamers across Twitch and Facebook Gaming, as well as on platforms of Chinese gaming sites Huya and DouYu, to drive sales of gaming and content-creation gear.\nThere's a substantial growth trajectory still ahead for Corsair Gaming, one that shouldn't be obscured by having become a meme stock favorite.\n\nImage source: Getty Images.\n3. GameStop\nAs the original meme stock investment, GameStop (NYSE:GME) might be a surprising choice, particularly in light of the stock trading north of $220 per share, a 1,050% gain year to date. But that's where having patience and waiting for the momentum crowd to move on can reward you. GameStop actually has a turnaround-investment quality that could allow handsome profits.\nIf theaters are on the decline, then video-game retail stores are sure to follow the same path as Blockbuster Video.\nWhich is exactly why the new management team, almost wholly brought over from Amazon and Google, seeks to remake the video game retailer into a consumer-focused, online-oriented gaming company. Chairman Ryan Cohen envisions turning it into the \"Amazon of gaming.\"\nIt's starting from a solid foundation, having used the meme stock trading frenzy that boosted its share price to raise new capital to completely pay off its debt. While that diluted existing shareholders, not something to be taken lightly, it did allow the company to replenish its coffers and position itself to implement its strategy.\nSince gaming is increasingly moving toward digital downloads and online play, it's essential GameStop move in that direction as well. Theaters can't really respond effectively to how viewers are watching movies today; GameStop has a chance to reinvent itself in a way few businesses can.\nThere's no doubt GameStop is the riskiest of these three because it's a bet on an essentially untried transition. But the pandemic did show people turning to GameStop's e-commerce platform in record numbers, which indicates its well-known brand could be a beacon for customers seeking gaming media, equipment, reviews, and more from the retailer.\nInstead of betting on AMC's declining business and industry, GameStop is a stock that could pay off handsomely if you wait for it to offer attractive valuations.","news_type":1},"isVote":1,"tweetType":1,"viewCount":105,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"3581980965309451","authorId":"3581980965309451","name":"Eded","avatar":"https://static.tigerbbs.com/41a629a3014601072ee8dc2d151d1796","crmLevel":2,"crmLevelSwitch":0,"idStr":"3581980965309451","authorIdStr":"3581980965309451"},"content":"I rather go for wendy , nokia , Palantir….","text":"I rather go for wendy , nokia , Palantir….","html":"I rather go for wendy , nokia , Palantir…."}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":185629014,"gmtCreate":1623646849038,"gmtModify":1704207771756,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Be quick or dead when dealing with meme stocks!&nbsp;","listText":"Be quick or dead when dealing with meme stocks!&nbsp;","text":"Be quick or dead when dealing with meme stocks!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/185629014","repostId":"1105297799","repostType":4,"repost":{"id":"1105297799","pubTimestamp":1623626792,"share":"https://ttm.financial/m/news/1105297799?lang=&edition=fundamental","pubTime":"2021-06-14 07:26","market":"us","language":"en","title":"A Meme Stock Is Born: How to Spot the Next Reddit Favorite","url":"https://stock-news.laohu8.com/highlight/detail?id=1105297799","media":"Bloomberg","summary":"Heavily shorted shares are a common theme among the group. The big stock-price gains often come alongside big drops. While there’s no steadfast definition of what constitutes a meme stock, one common thread across the many names being pitched on social media is a focus on heavily shorted companies. Shares of Reddit iconGameStop Corp.jumped as much as 2,500% in January after day traders noticed its short interest had ballooned to record levels.“I can’t imagine this is going to continue in the sam","content":"<ul>\n <li>Heavily shorted shares are a common theme among the group</li>\n <li>The big stock-price gains often come alongside big drops</li>\n</ul>\n<p>Trying to keep up with the frenzied rise of so-called meme stocks mightfeela bit like playing a game of whack-a-mole, bewildering analysts and investors alike.</p>\n<p>While there’s no steadfast definition of what constitutes a meme stock, one common thread across the many names being pitched on social media is a focus on heavily shorted companies. Shares of Reddit iconGameStop Corp.jumped as much as 2,500% in January after day traders noticed its short interest had ballooned to record levels.</p>\n<p>Investors looking for other stocks that might fit that mold will find nearly 230 firms with a market capitalization of at least $100 million and short interest of 15% or more, according to S3 Partners data compiled by Bloomberg. More than 80% of those names have managed positive returns over the last month with the average gain sitting at about 18%, while the S&amp;P 500 Index rose 2.3%.</p>\n<p><img src=\"https://static.tigerbbs.com/3cc5569937ba7f5b5c78898800cdfdfc\" tg-width=\"773\" tg-height=\"717\"></p>\n<p>Among the most heavily shorted stocks are names like&nbsp;Clover Health Investments Corp.,Workhorse Group Inc.&nbsp;and&nbsp;Geo Group Inc., which have already caught the attention of retail traders in recent days.</p>\n<p>Meanwhile,Bumble Inc.&nbsp;and&nbsp;Petco Health and Wellness Co., both fresh off initial public offerings this year, find themselves on the outside looking in as part of the few companies on the list that haven’t seen outsized gains over the last month. Joining them is ad-tech firmPubMatic Inc., which boasts the highest short interest at 54%, recreational boat retailer MarineMax Inc. and biotech companyBlack Diamond Therapeutics Inc., which has plunged more than 50% over the last month.</p>\n<p><img src=\"https://static.tigerbbs.com/dd6a19a4330894a2f8dfe602f1f76c6a\" tg-width=\"773\" tg-height=\"737\"></p>\n<p>While these sudden rallies can create lucrative returns for investors in the blink of an eye, the extreme volatility that accompanies them can quickly catch traders offside, leaving them holding the bag as shares plunge back to earth.</p>\n<p>After opening the week with a 32% gain, Clover Health’s shares jumped by as much as 142% over the next two days. But, by the close of trading Thursday, anyone who had bought and held shares after Monday’s pop was now underwater.</p>\n<p><img src=\"https://static.tigerbbs.com/bb51208dc3df58cd52f6d1a876bdf594\" tg-width=\"1200\" tg-height=\"675\"></p>\n<p>“I can’t imagine this is going to continue in the same form or fashion for much longer,” said Barry Schwartz, chief investment officer at Baskin Wealth Management. “Just because something is shorted doesn’t mean buying it is going to work out for you,” he added. “You’re playing with fire.”</p>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Meme Stock Is Born: How to Spot the Next Reddit Favorite</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Meme Stock Is Born: How to Spot the Next Reddit Favorite\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-14 07:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2021-06-13/a-meme-stock-is-born-how-to-spot-the-next-reddit-favorite?srnd=markets-vp><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Heavily shorted shares are a common theme among the group\nThe big stock-price gains often come alongside big drops\n\nTrying to keep up with the frenzied rise of so-called meme stocks mightfeela bit ...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2021-06-13/a-meme-stock-is-born-how-to-spot-the-next-reddit-favorite?srnd=markets-vp\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BMBL":"Bumble Inc.","KWITD":"Wellness Matrix Group, Inc.",".DJI":"道琼斯","WOOF":"Petco Health and Wellness Company, Inc.",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index","GEO":"GEO惩教集团","WKHS":"Workhorse Group, Inc.","CLOV":"Clover Health Corp"},"source_url":"https://www.bloomberg.com/news/articles/2021-06-13/a-meme-stock-is-born-how-to-spot-the-next-reddit-favorite?srnd=markets-vp","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105297799","content_text":"Heavily shorted shares are a common theme among the group\nThe big stock-price gains often come alongside big drops\n\nTrying to keep up with the frenzied rise of so-called meme stocks mightfeela bit like playing a game of whack-a-mole, bewildering analysts and investors alike.\nWhile there’s no steadfast definition of what constitutes a meme stock, one common thread across the many names being pitched on social media is a focus on heavily shorted companies. Shares of Reddit iconGameStop Corp.jumped as much as 2,500% in January after day traders noticed its short interest had ballooned to record levels.\nInvestors looking for other stocks that might fit that mold will find nearly 230 firms with a market capitalization of at least $100 million and short interest of 15% or more, according to S3 Partners data compiled by Bloomberg. More than 80% of those names have managed positive returns over the last month with the average gain sitting at about 18%, while the S&P 500 Index rose 2.3%.\n\nAmong the most heavily shorted stocks are names like Clover Health Investments Corp.,Workhorse Group Inc. and Geo Group Inc., which have already caught the attention of retail traders in recent days.\nMeanwhile,Bumble Inc. and Petco Health and Wellness Co., both fresh off initial public offerings this year, find themselves on the outside looking in as part of the few companies on the list that haven’t seen outsized gains over the last month. Joining them is ad-tech firmPubMatic Inc., which boasts the highest short interest at 54%, recreational boat retailer MarineMax Inc. and biotech companyBlack Diamond Therapeutics Inc., which has plunged more than 50% over the last month.\n\nWhile these sudden rallies can create lucrative returns for investors in the blink of an eye, the extreme volatility that accompanies them can quickly catch traders offside, leaving them holding the bag as shares plunge back to earth.\nAfter opening the week with a 32% gain, Clover Health’s shares jumped by as much as 142% over the next two days. But, by the close of trading Thursday, anyone who had bought and held shares after Monday’s pop was now underwater.\n\n“I can’t imagine this is going to continue in the same form or fashion for much longer,” said Barry Schwartz, chief investment officer at Baskin Wealth Management. “Just because something is shorted doesn’t mean buying it is going to work out for you,” he added. “You’re playing with fire.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":153,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":180183272,"gmtCreate":1623194835296,"gmtModify":1704197924927,"author":{"id":"3585101491648845","authorId":"3585101491648845","name":"Jade78","avatar":"https://static.tigerbbs.com/f26e58f5bba53d1668344992fa948f50","crmLevel":4,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3585101491648845","authorIdStr":"3585101491648845"},"themes":[],"htmlText":"Buy Wendy’s. Meat burgers are good&nbsp;","listText":"Buy Wendy’s. Meat burgers are good&nbsp;","text":"Buy Wendy’s. Meat burgers are good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/180183272","repostId":"1128909306","repostType":4,"repost":{"id":"1128909306","pubTimestamp":1623193560,"share":"https://ttm.financial/m/news/1128909306?lang=&edition=fundamental","pubTime":"2021-06-09 07:06","market":"us","language":"en","title":"S&P 500 closes little changed as \"meme stocks\" extend rally","url":"https://stock-news.laohu8.com/highlight/detail?id=1128909306","media":"reuters","summary":"NEW YORK (Reuters) - Wall Street stocks struggled to eke out closing gains on Tuesday as a lack of c","content":"<p>NEW YORK (Reuters) - Wall Street stocks struggled to eke out closing gains on Tuesday as a lack of clear market catalysts kept institutional investors on the sidelines, while retail traders fueled the ongoing meme stocks rally.</p><p>All three major U.S. stock indexes ended the range-bound session near flat or higher, with the S&amp;P 500 and the Dow closing within about 0.5% of record highs.</p><p>The tech-laded Nasdaq Composite fared best, with Amazon.com Inc and Apple Inc providing the biggest boost.</p><p>“We’re waiting for inflation numbers, waiting for more from the (Federal Reserve), waiting for earnings season,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “There’s not a lot motivating the market today.”</p><p>“We’re in this twilight zone until probably right after the Fourth of July, when we see earnings season kick in,” Nolte added.</p><p>The CBOE volatility index, a measure of investor anxiety, touched its lowest level in over a year.</p><p>Smallcaps, once again buoyed by the ongoing meme stock retail frenzy, were outperforming their larger counterparts.</p><p>Clover Health Investments seized top billing among meme stocks, surging 85.8%, the biggest percentage winner in the Nasdaq.</p><p>Other stocks whose recent explosive trading volumes have been attributed to social media buzz, including GameStop Corp, Bed Bath &amp; Beyond Inc, Workhorse Group and others, ended the session between 7% and 12% higher.</p><p>“(Meme stocks) are where the action is, but you flip it over and look crypto and that’s a mess,” Nolte said. “Now the meme stocks are taking over from crypto as the place to be and it’s all a consequence of very easy monetary policy.”</p><p>Reports from the U.S. Labor Department and National Federation of Independent Business appeared to confirm a labor shortage even as demand roars back to life, which could put upward pressure on wages, a precursor to wider inflation.</p><p>Market participants look to Thursday’s consumer price index data for further clues regarding inflation, and how it could influence the Federal Reserve’s timetable for tightening its monetary policy.</p><p>The Dow Jones Industrial Average fell 30.42 points, or 0.09%, to 34,599.82; the S&amp;P 500 gained 0.74 points, or 0.02%, at 4,227.26; and the Nasdaq Composite added 43.19 points, or 0.31%, at 13,924.91.</p><p>Of the 11 major sectors in the S&amp;P 500, consumer discretionary enjoyed the biggest percentage gain, and utilities suffered the largest loss.</p><p>Sales of Tesla Inc’s China-made electric cars jumped in May by 29%, marking a 177% year-on-year increase, according to the China Passenger Car Association. The stock erased initial gains on the news to close down 0.3%.</p><p>Boeing Co shares were boosted by Southwest Airlines’ announcement that it had ordered 34 new 737 MAX aircraft, but the planemaker’s shares pared gains to end the session flat.</p><p>GameStop, the company most closely associated with the Reddit-driven short squeeze phenomenon, is expected to report quarterly results after markets close on Wednesday.</p><p>Advancing issues outnumbered decliners on the NYSE by a 1.74-to-1 ratio; on Nasdaq, a 1.66-to-1 ratio favored advancers.</p><p>The S&amp;P 500 posted 54 new 52-week highs and one new low; the Nasdaq Composite recorded 172 new highs and 16 new lows.</p><p>Volume on U.S. exchanges was 11.82 billion shares, compared with the 10.75 billion average over the last 20 trading days.</p>","source":"lsy1601381805984","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>S&P 500 closes little changed as \"meme stocks\" extend rally</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nS&P 500 closes little changed as \"meme stocks\" extend rally\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-09 07:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.reuters.com/article/usa-stocks/us-stocks-sp-500-closes-little-changed-as-meme-stocks-extend-rally-idUSL2N2NQ2NX><strong>reuters</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>NEW YORK (Reuters) - Wall Street stocks struggled to eke out closing gains on Tuesday as a lack of clear market catalysts kept institutional investors on the sidelines, while retail traders fueled the...</p>\n\n<a href=\"https://www.reuters.com/article/usa-stocks/us-stocks-sp-500-closes-little-changed-as-meme-stocks-extend-rally-idUSL2N2NQ2NX\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","CLOV":"Clover Health Corp",".DJI":"道琼斯"},"source_url":"https://www.reuters.com/article/usa-stocks/us-stocks-sp-500-closes-little-changed-as-meme-stocks-extend-rally-idUSL2N2NQ2NX","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1128909306","content_text":"NEW YORK (Reuters) - Wall Street stocks struggled to eke out closing gains on Tuesday as a lack of clear market catalysts kept institutional investors on the sidelines, while retail traders fueled the ongoing meme stocks rally.All three major U.S. stock indexes ended the range-bound session near flat or higher, with the S&P 500 and the Dow closing within about 0.5% of record highs.The tech-laded Nasdaq Composite fared best, with Amazon.com Inc and Apple Inc providing the biggest boost.“We’re waiting for inflation numbers, waiting for more from the (Federal Reserve), waiting for earnings season,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “There’s not a lot motivating the market today.”“We’re in this twilight zone until probably right after the Fourth of July, when we see earnings season kick in,” Nolte added.The CBOE volatility index, a measure of investor anxiety, touched its lowest level in over a year.Smallcaps, once again buoyed by the ongoing meme stock retail frenzy, were outperforming their larger counterparts.Clover Health Investments seized top billing among meme stocks, surging 85.8%, the biggest percentage winner in the Nasdaq.Other stocks whose recent explosive trading volumes have been attributed to social media buzz, including GameStop Corp, Bed Bath & Beyond Inc, Workhorse Group and others, ended the session between 7% and 12% higher.“(Meme stocks) are where the action is, but you flip it over and look crypto and that’s a mess,” Nolte said. “Now the meme stocks are taking over from crypto as the place to be and it’s all a consequence of very easy monetary policy.”Reports from the U.S. Labor Department and National Federation of Independent Business appeared to confirm a labor shortage even as demand roars back to life, which could put upward pressure on wages, a precursor to wider inflation.Market participants look to Thursday’s consumer price index data for further clues regarding inflation, and how it could influence the Federal Reserve’s timetable for tightening its monetary policy.The Dow Jones Industrial Average fell 30.42 points, or 0.09%, to 34,599.82; the S&P 500 gained 0.74 points, or 0.02%, at 4,227.26; and the Nasdaq Composite added 43.19 points, or 0.31%, at 13,924.91.Of the 11 major sectors in the S&P 500, consumer discretionary enjoyed the biggest percentage gain, and utilities suffered the largest loss.Sales of Tesla Inc’s China-made electric cars jumped in May by 29%, marking a 177% year-on-year increase, according to the China Passenger Car Association. The stock erased initial gains on the news to close down 0.3%.Boeing Co shares were boosted by Southwest Airlines’ announcement that it had ordered 34 new 737 MAX aircraft, but the planemaker’s shares pared gains to end the session flat.GameStop, the company most closely associated with the Reddit-driven short squeeze phenomenon, is expected to report quarterly results after markets close on Wednesday.Advancing issues outnumbered decliners on the NYSE by a 1.74-to-1 ratio; on Nasdaq, a 1.66-to-1 ratio favored advancers.The S&P 500 posted 54 new 52-week highs and one new low; the Nasdaq Composite recorded 172 new highs and 16 new lows.Volume on U.S. exchanges was 11.82 billion shares, compared with the 10.75 billion average over the last 20 trading days.","news_type":1},"isVote":1,"tweetType":1,"viewCount":179,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}