May 10, 2021

stocks

What Happens to Stocks and Cryptocurrencies When the Fed Stops Raining Money?

To veterans of financial bubbles, there is plenty familiar about the present. Stock valuations are their richest since the dot-com bubble in 2000. Home prices are back to their pre-financial crisis peak. Risky companies can borrow at the lowest rates on record. Individual investors are pouring money into green energy and cryptocurrency.

This boom has some legitimate explanations, from the advances in digital commerce to fiscally greased growth that will likely be the strongest since 1983.

But there is one driver above all: the Federal Reserve. Easy monetary policy has regularly fueled financial booms, and it is exceptionally easy now.

Read More

Meme stocks and Archegos episodes highlight need for greater hedge fund transparency, Fed financial stability report says

Several recent episodes including “meme stocks” and Archegos Capital Management clearly show how risky and opaque transactions among non-banks can transmit stress into the financial system, the Federal Reserve said Thursday.

In its twice-yearly report on the stability of the U.S. financial system, the Fed called for greater transparency at hedge funds and other non-banks. “

The Archegos event illustrates the limited visibility into hedge fund exposures and serves as a reminder that available measures of hedge fund leverage may not be capturing important risks,” said Fed Governor Lael Brainard.

“The potential for material distress at hedge funds to affect

Read More

10 Best Stocks for Beginners with Little Money

In this article we will take a look at the 10 best stocks for beginners with little money. You can skip our comprehensive analysis of these stocks and go directly to the 5 Best Stocks for Beginners with Little Money.

There are many questions and uncertainties that cross the mind of an individual who wants to start investing in stocks. For clarity and a reasonable chance of success, it is important to look at finances, set profit goals, and be wary of market bias when venturing into the world of stocks. According to billionaire Warren Buffett, the leading investment

Read More

Opinion: Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks

Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”

Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P

Read More

A capital gains tax hike might sink stocks. Here’s how financial advisers and their clients can stay a step ahead.

Many financial advisers follow Warren Buffett’s lead, adopting a buy-and-hold mentality and urging jittery clients to shrug off scary headlines to achieve long-term gains. But what if those headlines signal a threat to a long-term investment plan?

Case in point: On April 22, U.S. stock markets reacted poorly to reports that President Joe Biden might propose a capital gains tax increase to 39.6% for Americans earning more than $1 million. That would nearly double the current base rate of 20%.

Whatever proposal is made, Senate lawmakers surely will haggle over it. The outcome remains fuzzy, but it’s entirely possible that

Read More

Have $2,000? 2 Stocks to Buy That Are Absolute Money Machines

Whether you’re new to the world of investing or a seasoned aficionado, focusing on investments that can generate and sustain portfolio growth over the long term rather than the short term is the most effective way to promote real wealth building through the stock market.

While personal trading styles and risk tolerance levels vary from investor to investor, a diversified stock basket should always feature companies with steady growth potential that can help to stimulate these kinds of meaningful shareholder returns for years to come. Long-term investor returns can come in the form of dividends or share price increases, and

Read More