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☆ Soaring Treasury yields threaten long-term performance of US stocks
▼ + stars: | 2023-10-26 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

This year’s climb in Treasury yields is changing that calculus, as government bonds offer income that is viewed as risk-free to investors who hold them to term. The 10-year Treasury yield has climbed about a full percentage point since then. The term premium is the added compensation investors expect for owning longer-term debt and is measured using financial models. Stocks have averaged a forward price-to-earnings ratio of 17.8 over the last 10 years, while the term premium has averaged -0.3%. That compares with a historical average forward P/E of 15.6 and a term premium of 1.4% since 1985.

Persons: Brendan McDermid, ”, Quincy Krosby, Elon Musk, John Lynch, Lynch, LSEG, Matthew Miskin, Keith Lerner, ” Lerner, Lewis Krauskopf, Dan Burns, Ira Iosebashvili, Marguerita Choy Organizations: New York Stock Exchange, REUTERS, Soaring U.S, Treasury, U.S . Federal Reserve, . Treasury, BofA Global Research, LPL, Comerica Wealth Management, Reuters Graphics, John Hancock Investment Management, UBS Global Wealth Management, Advisory, Thomson Locations: New York City, U.S

An economic recession can impact retirement savings for current and future retirees in the US. Start savings for your future with the best retirement plans>>How does a recession affect a retired person? 4 ways to protect your retirement savings in a recessionYou can take preventive measures to protect your 401(k) or IRA savings from a recession. On the other hand, current retirees actively withdrawing from their retirement savings should consider getting a part-time job for a while. However, it's generally better to leave your retirement savings alone as much as possible while in a recession.

Persons: Teresa Bailey, Samantha Gorelick, there's, it's, Tessa Campbell, Read Organizations: Waddell & Associates, CFP, Finance

Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Then, know why you're investing, and understand the risk involved in any investment you make. As a certified financial planner, I speak with countless people who are new to investing. Whether you're a beginner or you've been investing for some time, watch out for these common investing mistakes. Before you dive in, be sure to cover the basics, understand the risk, and most importantly, have a plan.

Persons: —, you've, Roth, Roth IRAs, doesn't Organizations: Service

☆ Retirement account withdrawal rules are 'so complicated' for inherited IRAs, expert says. What to know
▼ + stars: | 2023-10-26 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

But the gift comes with mandatory withdrawals for heirs and following the rules can be difficult, experts say. According to the Secure Act of 2019, certain heirs now have less time to deplete inherited accounts due to a change in so-called "required minimum distributions." But there's now a 10-year withdrawal rule for certain heirs, meaning everything must be withdrawn by the 10th year after the original account owner's death. The rule applies to accounts inherited by so-called "non-eligible designated beneficiaries" on Jan. 1, 2020, or later. Ed Slott IRA expertNon-eligible designated beneficiaries are heirs who aren't a spouse, minor child, disabled, chronically ill or certain trusts.

Persons: Ed Slott, Ashton Lawrence, there's, Slott, RMDs Organizations: Istock, Getty, Secure, Mariner Wealth Advisors, IRS Locations: Greenville , South Carolina

☆ Retirement withdrawal rules are 'crazy' this year, IRA expert says. Here's what you need to know
▼ + stars: | 2023-10-25 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

"They're crazy," said IRA expert and certified public accountant Ed Slott, describing the new RMD rules. For 2023, RMDs apply to both pretax and Roth 401(k) accounts, along with other workplace plans. Secure 2.0 bumped the RMD beginning age to 73 from 72 for pretax IRA owners and retirement plan participants. If you turn age 72 in 2023, you can delay RMDs until age 73. But if you turned 72 in 2022, you needed to take your 2022 RMD by April 1, 2023, and your 2023 RMD by year-end.

Persons: RMDs, Ed Slott, pretax, Roth, Slott, Ben Smith Organizations: Sdi, Financial Locations: Milwaukee

Quarterly earnings reports for our industrial stocks begin this week amid an uncertain operating environment. HON YTD mountain Honeywell (HON) year-to-date performance Honeywell and Linde are the first two of the group to report — on Thursday before the bell. This was positive to see and it's reasonable to expect a clean quarter led by aerospace, Honeywell's largest business. Linde has beat and raised for 18 consecutive quarters, and history is likely to repeat itself when the industrial gas company reports. EMR YTD mountain Emerson Electric (EMR) year-to-date performance Emerson Electric is the last of our industrial names to report, on Nov. 7 before the opening bell.

Persons: we're, Stanley Black, Decker, —, CNBC's Jim Cramer, it's, Jim, You've, Vimal Kapur, Linde, Jack Umpleby, Emerson, Jim Cramer's, Jim Cramer, Wang Chun Organizations: Caterpillar, Honeywell International, Emerson Electric, Linde, LIN, DuPont De Nemours, Honeywell, LSEG, Aerospace, Electric, GE, Club, U.S, Management, CAT, Act, DuPont, Electronics, Emerson, National Instruments, SWK, CNBC, Future, Getty Locations: North America, China, Lianyungang, East China's Jiangsu

☆ Is a Financial Advisor Worth It?
▼ + stars: | 2023-10-24 | by ( Bernice Napach | ) www.wsj.com time to read: +12 min

The right financial advisor can help you find the right answers to your life’s biggest, most difficult financial decisions. A one-time feeIf all you need is a comprehensive financial plan—a look at how your current savings, including your 401(k) and investments stack up—you don’t need to retain a financial advisor. When a financial advisor may be worth the costA financial advisor is worth paying for if they provide help you need, whether because you don’t have the time or financial acumen or you simply don’t want to deal with your finances. You want reassurancePlenty of investors work with a financial advisor for less tangible reasons too. ”It’s important that you get quality fiduciary advice on all those subjects because they’re irrevocable.”When a financial advisor probably isn’t worth the costThere are several financial areas where paying for a financial advisor may not be worth the cost, especially if you are willing to do a little basic research and have the discipline to stick to your goals.

Persons: Bernice Napach, ”, Rick Ferri, Read, it’s, that’s, won’t, Fee, Micah Hauptman, Peter Palion, —, “ They’re, ” Sheryl Garrett, Eric Amzalag Organizations: Vanguard, Ferri Investment Solutions, Investment, Consumer, Consumer Federation of America, IRS, Advisors, Garrett Planning Network, Peak Financial Locations: Georgetown , Texas, East Norwich, N.Y, Los Angeles

☆ Time is ripe for another push on carbon pricing
▼ + stars: | 2023-10-24 | by ( Hugo Dixon | ) www.reuters.com time to read: +8 min

Other technologies, such as green hydrogen and carbon capture, are still a long way from maturity. Around 50 countries have some form of carbon price, double the number 10 years ago, and another 23 countries are planning to introduce one. The snag is that China’s carbon price is low and the United States doesn’t have a federal levy. Others argue that governments should combine carbon pricing with financial support for the most vulnerable and targeted subsidies for fledgling technologies. To hit climate targets, the carbon price would need to be $135 a tonne in advanced economies and $45 a tonne in large emerging ones by 2030.

Persons: Jin Mao, Aly, Joe Biden’s, There’s, Rishi Sunak, Michael Jacobs, it’s, Peter Thal Larsen, Oliver Taslic, Thomas Shum Organizations: Financial, REUTERS, Reuters, International Energy Agency, European Union, Global, International Monetary Fund, Reuters Graphics Reuters, British, Pew Research, University of Sheffield, IMF, Africa Climate, United, European, Climate Leadership Council, Thomson Locations: Shanghai, Pudong, China, United States, Paris, Africa, European Union, U.S

High-yield savings accounts have seen huge APYs in recent times, but those rates may not last forever. Earn top savings rates and manage it all with a single secure login. But when should you ease up on your savings accounts and consider investing your money instead? That can make investing much more attractive than a savings account — even in a high-yield savings account — if you have a longer time horizon. Alternatives to HYSAsYou don't have to decide between a savings account and investing in a retirement savings account — like a 401(k) or an IRA — or a taxable brokerage.

Persons: —, Banks, Laura Mattia, Steve Oniya, Oniya, Tony Corsino, Mattia, you'd Organizations: Treasury, Service, Federal Reserve, Advisors, OM Investments, Zen Financial

The logo for Vanguard is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 1, 2022. Despite a "cruel summer for bond investors," long-term bonds continue to remain attractive as the economy will likely enter a shallow recession next year, the world's second-largest asset manager said in a fixed income outlook seen by Reuters. "The relative advantage short-term government bonds have can fade quickly, and investors can fare better when they lock in higher rates for longer," Vanguard said. Vanguard said it expects interest rates will not be cut until at least mid-2024, and that bond yields will not return to the low levels that characterized the U.S. bond market in recent history. "We view high-quality corporates as one of the more attractive places to be in credit," Vanguard said.

Persons: Brendan McDermid, Bill Ackman, Davide Barbuscia, Ira Iosebashvili, Will Dunham Organizations: Vanguard, New York Stock Exchange, REUTERS, Federal, Reuters, U.S, Treasury, Pershing, Capital, Thomson Locations: New York City, U.S

MUMBAI, Oct 21 (Reuters) - India's central bank has approved the appointment of veteran banker Ashok Vaswani as managing director and chief executive of Kotak Mahindra Bank (KTKM.NS), the private lender said in an exchange filing on Saturday. Vaswani's appointment comes after billionaire Uday Kotak, who founded Kotak Mahindra Bank, resigned as the MD and CEO last month in a surprise move, citing personal reasons. Dipak Gupta, currently the managing director and CEO, will carry out the chief executive duties until Dec. 31, the bank had said last month. "I am delighted that the RBI has approved our recommendation, Ashok Vaswani, as the next CEO of Kotak Mahindra Bank," Kotak said in the filing, describing him as a "world class leader" with digital and customer focus. KVS Manian and Shanti Ekambaram, the two most senior bankers at Kotak Mahindra Bank, will remain on the board and keep their current roles, Gupta added.

Persons: Ashok Vaswani, Vaswani, Vaswani's, Uday Kotak, Dipak Gupta, Kotak, Gupta, KVS Manian, Shanti Ekambaram, Siddhi Nayak, Ira Dugal, William Mallard Organizations: Kotak Mahindra Bank, Citigroup Asia Pacific, Barclays, Reserve Bank of India, Kotak, Siddhi, Thomson Locations: MUMBAI

☆ Listen Early to This American Life: The Bear at the End of the Tunnel
▼ + stars: | 2023-10-21 | by ( New York Times Audio | ) www.nytimes.com time to read: 1 min

Our new audio app is home to “This American Life,” the award-winning program hosted by Ira Glass. New episodes debut in our app a day earlier than in the regular podcast feed, and we also have an archive of the show. The app includes a “Best of ‘This American Life’” section with some of our favorite bite-size clips, so you can enjoy the show even if you don’t have a lot of time.

Persons: Ira Glass

☆ Wall St Week Ahead Investors seek shelter as U.S. stocks grow more turbulent
▼ + stars: | 2023-10-20 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

A Wall Street sign is pictured outside the New York Stock Exchange in New York, October 28, 2013. Wall Street’s most closely-watched measure of investor nervousness, the Cboe Volatility Index (.VIX), on Friday hit its highest in nearly seven months, as the S&P 500 slid for the week. That has left investors piling into other traditional safe-haven assets such as the dollar and gold, as well as short-term debt. Rising bond yields have dampened risk appetite, raising the cost of capital for companies and offering investment competition to stocks. Geopolitical uncertainties, climbing bond yields and the risk of more losses in stocks means "investors face fresh uncertainties," they wrote.

Persons: Carlo Allegri, Angelo Kourkafas, Edward Jones, “, Jerome Powell, Brent Kochuba, ”, Rick Meckler, Lewis Krauskopf, Saqib Iqbal Ahmed, Ira Iosebashvili, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Equity, Treasury, Reuters Graphics, Federal, Microsoft, UBS Global Wealth Management, Swiss, Cherry Lane Investments, UBS, Brent, Thomson Locations: New York, Israel, Cherry Lane Investments .

☆ Falling stocks, climbing mortgage rates: how 5% Treasury yields could roil markets
▼ + stars: | 2023-10-20 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

Expectations that the Federal Reserve will keep interest rates elevated and mounting U.S. fiscal concerns are among the factors driving the move. Because the $25-trillion Treasury market is considered the bedrock of the global financial system, soaring yields on U.S. government bonds have had wide-ranging effects. "The longer we remain at higher interest rates, the more likely something is to break." Elon Musk warned that high interest rates could sap electric-vehicle demand, which knocked shares of the sector on Thursday. Reuters GraphicsThe U.S. dollar has advanced an average of about 6.4% against its G10 peers since the rise in Treasury yields accelerated in mid-July.

Persons: Brendan McDermid, Gennadiy Goldberg, Jerome Powell, Powell, Elon Musk, Tesla’s, gravitating, Athanasios Vamvakidis, Saqib Iqbal Ahmed, Ira Iosebashvili, Stephen Coates Organizations: New York Stock Exchange, REUTERS, Treasury, Federal Reserve, TD Securities, Reuters, Global Research, Reuters Graphics, ICE, Fed, Thomson Locations: New York City, U.S, New York, Treasuries

☆ UBS upgrades this biopharma giant with an underappreciated treatment pipeline
▼ + stars: | 2023-10-20 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +2 min

Investors may not be fully pricing in Merck 's strong treatment pipeline, according to UBS. Analyst Trung Huynh expects that "underappreciated pipeline readouts" will be the primary contributor to multiple expansion for the company. Huynh also noted that investors continue to underestimate the value of two key Merck treatments: Keytruda — used in cancer immunotherapy — and Gardasil, a vaccine targeting HPV. The analyst added that these two treatments and other underappreciated catalysts have all contributed to Merck's above-peer growth profile. The upgrade comes after the Food and Drug Administration approved the use of Keytruda for treatment with "platinum-containing chemotherapy as neoadjuvant treatment " on Monday.

Persons: Trung Huynh, Huynh, —, Michael Bloom Organizations: Merck, UBS, Food and Drug Administration Locations: China

The Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL.O), the largest single-stock ETF for bullish bets on Tesla's shares, saw net daily inflows of $24.9 million on Thursday, according to Lipper data. Tesla's shares are up 72.3% this year. Tesla was also the most-bought stock among retail traders on Thursday, with net buys of $159.5 million, according to data from Vanda Research. On the other side, two ETFs bearish on Tesla, the $58 million Direxion Daily TSLA Bear 1X Shares ETF (TSLS.O) and the $109.6 million AXS TSLA Bear Daily ETF (TSLQ.O), saw net outflows of over $1 million each. Rex Shares and Tuttle Capital Management launched a suite of hyper-levered single-stock exposure funds on Thursday, including the T-REX 2X Long Tesla Daily Target ETF (TSLT.O), the T-REX 2X Inverse Tesla Daily Target ETF (TSLZ.O).

Persons: Elon Musk, Tesla, Todd Sohn, Rex Shares, Bansari Mayur, Ira Iosebashvili, Leslie Adler Organizations: REUTERS, Strategas Securities, Vanda Research, Tuttle Capital Management, Tesla, Target, Thomson Locations: Oslo, Norway, Victoria, Bengaluru

☆ EU, US could agree on critical minerals despite steel failure, says France
▼ + stars: | 2023-10-20 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Francois Lenoir/File photo Acquire Licensing RightsVALENCIA, Spain, Oct 20 (Reuters) - The European Union and the United States could reach a deal on critical minerals over the coming weeks or months despite their failure to agree an accord on steel and aluminium, French Trade Minister Olivier Becht said on Friday. The discussions were intense and I hope they will restart as soon as possible," Becht said before an EU ministers' meeting on trade in Valencia, Spain. "It's in both the interest of Europe and the United States to have this agreement," Becht said. The United States has suspended import tariffs on EU steel and aluminium imposed by then-President Donald Trump in 2018, but on condition both sides agree measures to address overcapacity in non-market economies such as China, and promote greener steel. Reporting by Belén Carreño; editing by Philip Blenkinsop and Barbara LewisOur Standards: The Thomson Reuters Trust Principles.

Persons: Mike Pence, Francois Lenoir, Olivier Becht, Joe Biden's, Becht, Donald Trump, Belén, Philip Blenkinsop, Barbara Lewis Organizations: European Commission, REUTERS, Rights, European Union, French Trade, EU, Trump, U.S, United, Washington, World Trade Organization, Thomson Locations: Brussels, Belgium, Rights VALENCIA, Spain, United States, Valencia, Europe, China

Still, some traders interpreted his comments as an endorsement of keeping rates around current levels through most of next year. Yields on the benchmark 10-year Treasury, which move inversely to bond prices, rose briefly to 5% late on Thursday, a closely watched level not seen since 2007. "That gives people the go ahead to take rates above 5%.”Whiteley said that he sees 10-year yields moving as high as 5.5% before peaking. An extended climb in Treasury yields risks exacerbating the pressures that have dogged a broad array of assets in recent months. Still, even if the Fed cuts rates over the next few years, yields could stay above 5% if inflation and growth remain high, he said.

Persons: Jerome Powell, Brendan McDermid, Stocks, ”, Greg Whiteley, ” Whiteley, Gennadiy Goldberg, Goldberg, Powell, Sameer Samana, Alan Rechtschaffen, Rechtschaffen, Robert Tipp, Davide Barbuscia, David Randall, Saqib Iqbal Ahmed, Ira Iosebashvili, Megan Davies Organizations: Economic, of New, REUTERS, Treasury, Federal Reserve, New York Economic, Fed, TD Securities, Wells, Investment Institute, UBS Global Wealth Management, Tipp, Thomson Locations: of New York, New York City, U.S, DoubleLine

☆ Deductions for megamansions and Ferraris: The IRS details tax dodges by the ultra-wealthy and says it recently squeezed 100 millionaires for $122 million in missing taxes
▼ + stars: | 2023-10-20 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

There's more enforcement to come, thanks to the Inflation Reduction Act. The passage of the Inflation Reduction Act infused billions of dollars into the previously perpetually underfunded and paper-laden IRS. "Inflation Reduction Act funding gives us the ability to take swift and aggressive action to improve compliance and close the tax gap." Since the passage of the IRA, the IRS has closed several cases of high-earning taxpayers getting creative with their business expenses and deductions. The IRS is specifically taking aim at Americans who earn over $1 million, and have over $250,000 in tax debt.

Persons: it's, —, Daniel Werfel, That's, Werfel Organizations: IRS, Service, dodgers, Ferrari, Bentley, Lamborghini Locations: COVID

Jim White retired with a net worth of over $1 million at age 43. He also realized that buying new cars and spending too much on food hurt his saving plan. Jim White retired at age 43 in 2018 with a net worth of over $1 million. Buying more house than you can afford can make it hard to save, invest, and meet other financial goals. He bought new carsWhite says that one of his big mistakes was buying brand-new cars when he was saving for FIRE.

Persons: Jim White, —, didn't, White, Lisa, it's, we'd, Robinhood, that's Organizations: Service, Walmart Locations: Cleveland, Panama

☆ The bill to arm Israel and Ukraine could be the last great fight of Biden's political life
▼ + stars: | 2023-10-20 | by ( Walt Hickey | ) www.businessinsider.com time to read: +8 min

Biden has little chance of passing ambitious legislation given the state of Congress, and faces a tough election. After decades of service in Washington, much of it on the Senate Foreign Relations Committee, Israel and Ukraine will define his legacy. In this July 13, 1982, file photo Secretary of State designate George Shultz, right, speaks with members of the Senate Foreign Relations Committee. AP Photo/Ira Schwarz, FileBiden's legacy was already strongly linked to foreign policy. If there is a bipartisan coalition that exists within the US Congress, Israel policy and Ukraine policy might very well be it.

Persons: Biden, —, Joe Biden, he'll, there's, George Shultz, Sen, Joseph Biden, Charles Percy, Edward Zorinsky, Ira Schwarz, Madeline Albright's, he'd, Vladimir Putin, Kevin McCarthy, J, Scott Applewhite, he's, Bob Menendez, it's, Susan Walsh, That's, what's, Benjamin Netanyahu, Miriam Alster, Obama, Harris Organizations: Senate Foreign Relations Committee, Service, Senate Foreign Relations, AP, Senate Foreign, State, Senate, Capitol, Republican, Democratic, Republicans, GOP, White House, Israeli, Hamas, Biden, Ukraine Locations: Washington, Israel, Ukraine, Eastern Europe, Russia, Arizona, United States, Republican, Democratic, Tel Aviv

Felipe Villarroel, portfolio manager at TwentyFour Asset Management, said he recently swapped some 10-year Treasuries for higher yielding 30-year Treasuries. At these levels, yields give “a massive cushion in your total returns" to protect against bond prices falling further, he said. Yields on the benchmark 10-year U.S. Treasury were over 4.95% in Asia trade on Thursday, their highest level in more than 16 years, and 30-year yields breached 5% this month for the first time since 2007. An auction of 30-year U.S. Treasuries showed weak demand last week, sending yields higher. "The tightness that (bond yields) are imposing on the economy and markets is rising ... this caps the extra work the Fed needs to do," said Smith.

Persons: Jerome Powell, David Rubenstein, Amanda Andrade, Rhoades, Felipe Villarroel, Treasuries, Matt Smith, Ruffer, Buyers, Leslie Falconio, Ruffer's Smith, Smith, Davide Barbuscia, Michelle Price, Ira Iosebashvili, Nick Zieminski Organizations: Federal, Economic, of Washington, Washington , D.C, REUTERS, Treasuries, TwentyFour Asset Management, Bank of America Global Research, Treasury, UBS Global Wealth Management, BlackRock Investment Institute, Thomson Locations: Washington ,, Asia

"The UAW is holding the deal hostage over battery plants," said Ford Chief Executive Jim Farley on Sept. 29. Since then, the union has not announced an agreement on battery plant issues with GM or the other automakers. Stellantis and Samsung SDI (006400.KS) have announced plans to build two EV battery plants in Kokomo, Indiana, employing up to 2,800 workers in total. Ford officials have not disclosed details of their proposals for battery plant wages or unionization. Yet, we are very open to working with them on a way forward on the battery plants," Ford executive Kumar Galhotra said on Oct. 12 of talks with the UAW.

Persons: Shawn Fain, bargainers, Jim Farley, Fain, Ultium, Joe Biden's, CATL, Tesla, Stellantis, haven't, Kumar Galhotra, Joe White, Nick Zieminski Organizations: DETROIT, United Auto Workers, Detroit Three, General Motors, Ford, Chrysler, UAW, Detroit, GM, Ultium, Tesla, Samsung SDI, Thomson Locations: Northeast Ohio, Detroit, U.S, Michigan, Belvidere , Illinois, KS, Kokomo , Indiana

☆ Tesla story 'broken?' Analysts cut their price targets on the electric car maker after disappointing third-quarter earnings
▼ + stars: | 2023-10-19 | by ( Hakyung Kim | ) www.cnbc.com time to read: +6 min

TSLA 1D mountain Tesla shares Many analysts covering Tesla had already forecast margin pressures due to lagging sales and just reiterated their ratings on the company's shares following Wednesday's release. Goldman Sachs reduced its price target to $235 from $265, which implies 3.2% downside. He reiterated his underperform rating and $150 price target on shares, which implies 38% downside from Wednesday's close. The bank reiterated its neutral rating, while bringing down its price target to $255 from $271. Even Morgan Stanley's Adam Jonas trimmed his price target to $380 from $400, though the new forecast still implies more than 56% upside.

Persons: weren't, Elon Musk, Tesla, Goldman Sachs, Mark Delaney, Delaney, Toni Sacconaghi, Bernstein, Wells Fargo, Wells, Colin Langan, Langan, Musk's, Phillippe Houchois, Itay Michaeli, Michaeli, Morgan Stanley's Adam Jonas, Jonas, — CNBC's Michael Bloom Organizations: Jefferies, Citi, U.S, EV, Tesla, Network Services, Mobility, Party, Energy, Insurance Locations: Mexico, Wells, Musk's Cybertruck

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