Although inflation has come down the Federal Reserve is still not totally finished with interest rate hikes. Thus the risk of a recession later this year or in 2024 remains. A common investing strategy when a recession looms is to buy defensive stocks like Procter & Gamble, McDonalds, or Coca Cola. The rationale is that these companies are generally not hurt by a recession as much as other companies. Investors know this and tend to rotate their investments into defensive stocks when they fear a recession. Very often such stocks go up in price while the rest of the market falls. What are the pros and cons of defensive stocks?
The Bitcoin world rejoiced when an appeals court vacated an SEC ruling that had denied the petition by Grayscale Investments LLC to launch a spot Bitcoin ETF. The burden is now on the SEC to show why it OK’d two ETFs that track Bitcoin futures while rejecting Grayscale’s bid for an ETF to track the spot price of Bitcoin. As noted by the appeals court, they do not make the rules but are empowered to overturn rulings that are, among other things, arbitrary and capricious. That is how they characterized the SEC ruling regarding Grayscale’s ETF application. Thus an arbitrary Bitcoin ETF ruling was vacated and the issue sent back to the SEC. Discover the Doji Sandwich Chart Signal Here What is Grayscale and
Men lie but numbers don’t. If you are going to invest in a stock, a cryptocurrency, or maybe a financial tech company, it is generally a good idea to demand to see performance numbers. Don’t just listen to the hype. Sadly, all a new cryptocurrency seems to have needed this year is AI (for artificial intelligence) in its name in order for the price to go up! On the other hand, sometimes the numbers lie too. We suggest that an investor should beware of hypothetical fintech performance after reading about how the SEC charged Titan Global Capital Management USA LLC with using totally hypothetical performance data in its advertising to promote fintech companies.
Retirement accounts like IRAs and 401(k)s allow a person to accumulate savings free of taxes. Money put in such a retirement account is not taxed until it is taken out. This is hopefully only done when the person has retired and their tax rate on regular income is at its lowest in years. Many kinds of investments are allowed in an IRA. These include stocks, bonds, annuities, mutual funds, exchange traded funds (ETFs), unit investment trusts (UITs), and real estate. Which are the best investments for your retirement account? Video: The Three Types of Trend Channels You Must Properly Identify Dividend Stocks for Your IRA The point of having a retirement account is to shelter your investments from ta
Some of the best results when investing in stocks come from picking the right growth stocks. Companies that dominate the news may have grown several percent in the last year and may be paying a healthy dividend. But the best growth stocks will have doubled or tripled in value over the same time frame. Knowing how to choose a growth stock is the first step along the way to taking advantage of one of these investment opportunities. FREE: BENZINGA Pro - Register for a FREE, Two-Week Trial What Is a Growth Stock? Basically, a growth stock is one whose stock price increases rapidly. This is opposed to a stable and slowly growing company that pays dividends to its investors. A growth stock is one that generates sustainable cash flow
Many people have made a lot of money in cryptocurrencies. Unfortunately, a lot of people have lost a lot of money as well. Some of the losses during crypto winter were so bad that many investors have turned their backs on Bitcoin and the rest forever, or at least until the next impressive rally. If you are going to stay invested in this sector, you need to learn how to avoid crypto losses. How you do this will depend to a great degree on what you are doing in cryptocurrencies to begin with.Discover the Doji Sandwich Chart Signal HereWhy Are You In Crypto?The original idea behind Bitcoin was to have an efficient way to send money via the internet. Decentralized finance businesses work in this space
There are several things to think about these days when investing in ADRs of Chinese companies. The Chinese economy is slowing down. The Chinese population has shrunk a bit. The US and its allies are cutting off China from the highest tech in the computer realm due to security concerns. China’s public and private debts have risen to high levels. The Chinese real estate sector is in trouble. An interesting investment opportunity may have arisen in regard to the Chinese real estate sector’s problems. There could be profit potential in a Chinese bankruptcy! Claim Your Complimentary Moving Averages Training Investing in Country Garden Country Garden is the biggest real estate developer in China. It has lost
Several applications for spot Bitcoin ETFs are up for decisions in the first days of September 2023. Will the SEC allow spot Bitcoin ETFs? If not, what would be their reasons? The Securities and Exchange Commission recently declined to rule on the Bitwise Bitcoin ETP Trust which upset folks in the crypto world. However, they are obliged to come to a decision as of September 1 and a host of applications including a Blackrock Bitcoin ETF and ones by Inesco, Wisdom Tree, and VanEck are due the following day. Will the SEC allow spot Bitcoin ETFs this time around or will they make the crypto world wait longer for an efficient way to trade Bitcoin for those who are not interested in owning a Bitcoin wallet. [VIDEO] Ho
Why Should US Investors Worry About China’s Economy?
Who would have though decades ago that China would become the world’s manufacturing powerhouse? Anyone who invested in the Chinese company Alibaba near the start of 2016 for $60 a share made a five-fold profit by October of 2020 when the share price hit $309. Many other investments in Chinese stocks gathered similar profits. Then the effects of Covid-19, security concerns in the West, a real estate bubble, and excessive debt have dragged the Chinese economy down. Unemployment in the 16–24 year-old age group now runs about 25% as college graduates are not finding jobs. As noted with Alibaba whose share price is down to $94 a share, investment in China has not done so well of late. But why else should US investors worry about China’s economy?
A few months ago we warned our readers to beware of hype in the crypto world. People were creating new crypto tokens and adding AI to the name. Others were bidding up the prices of these tokens in the mistaken belief that these were anything other than new altcoins seeking a foothold in the competitive crypto realm. But once you get past the AI hype there is another issue in regard to how AI will affect crypto. It has to do with artificial intelligence apps becoming dominant in the investing and trading world. No one is discussing this issue in crypto right now but the head of Securities and Exchange Commission has brough this in regard to the wider world of finance and investm