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When it comes to tax-free municipal bonds, investors who are comfortable with taking more risk are seeing attractive returns. High-yield municipal bonds – issues that are rated below BBB by Standard & Poor's – have greater default risk than their investment-grade counterparts. Muni bonds provide tax-free income on a federal basis – and on a state basis if the investor resides in the same state as the issuer. High-yield muni bond funds have seen estimated net flows of $6.76 billion in 2024 as of June 30, according to Morningstar. Before you step in Investors looking at high-yield muni bonds, be it individual issues or the funds, ought to consider their risk appetite and their goals.
Persons: Morningstar, Beth Foos, munis, you've, Matthew Norton, Norton, Mathew Kiselak, that's, Kiselak, Morningstar's Organizations: Standard, Bank of America . Investment, muni, Morningstar, SEC Locations: corporates
Investors are flocking to small-cap stocks right now, driving this segment of the market to new highs this week. He also noted that the Russell 2000 is outperforming the S & P 500 by the widest margin since November 2021. But according to him, one group of small-cap stocks could do well if rates were to stay higher for longer: regional banks. However, Turnquist cautioned that small-cap growth stocks would find the outlook tougher than small-cap value stocks, as they are more sensitive to economic health. How to play small-caps Investors who have been making a play for small-caps include billionaire Stanley Druckenmiller , who revealed a big bullish position in small-cap stocks last quarter.
Persons: Russell, Adam Turnquist, Turnquist, we've, There's, Trump, Kelvin Wong, Donald Trump, Wong, Stanley Druckenmiller, FactSet, David Dietze, Dietze, Jay Hatfield, Kilroy, Jefferies, Hatfield, , Yun Li Organizations: CNBC, LPL, U.S . Federal, Federal Reserve, Citi, Wealth Management, CNBC Pro, Corp, Jefferies Locations: U.S, America
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFlurry of Labour policies will change the way world looks at UK: MorningstarMike Coop, EMEA chief investment officer at Morningstar Investment Management, discusses the agenda of the U.K.'s new Labour government.
Persons: Morningstar Mike Coop Organizations: Morningstar, Morningstar Investment Management, Labour
Instead of getting a young company with a lot of growth ahead, IPO investors are getting stocks that are already near the top of their valuations, Morgan Stanley argues. Experts say that despite barriers to investment — like high net worth standards and regulatory scrutiny — the shift to private markets is hard to stop. Deepwater offers venture capital funds that provide access to private market companies at early stages. To be sure, novice investors face hurdles exploring private markets, including steep fees and the lack of a public exchange investment vehicle. He added that public markets are still ripe with opportunity and shouldn't be ignored for the sake of private market investing.
Persons: Morgan Stanley, Edward Stanley, That's, Stanley, who's, Gene Munster, Paul Meeks, Meeks, Munster, shouldn't Organizations: Asset Management, Piper, Deepwater, Management, Federal Locations: Snowflake, Airbnb, London, Munster
Weight loss drugs and artificial intelligence have been dominating headlines, with investors betting that stocks in both categories have big potential upside. On Wednesday's Pro Talks , CNBC's Senior Technology Correspondent Arjun Kharpal will ask Tema ETFs' Yuri Khodjamirian how to best invest in these areas and more. Tema ETFs offers actively managed ETFs, with a focus on healthcare and life sciences. Before Tema ETFs, Khodjamirian spent over a decade at Majedie Asset Management, overseeing U.K. and global portfolios. Click here to join CNBC Pro Talks on Wednesday, July 17, at 7 a.m.
Persons: Arjun Kharpal, Yuri Khodjamirian, Eli Lilly, he'll, Khodjamirian Organizations: Tema, Novo Nordisk, pharma, Majedie Asset Management, Income, CNBC, Nvidia, Scotiabank Locations: Tema, , U.S, U.K, India
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSchwartz: Mega-caps are much more expensive than small-caps but aren't in a bubbleJeremy Schwartz, Global Chief Investment Officer at WisdomTree, discusses market breadth, small caps vs. small caps, and interest rates.
Persons: Schwartz, Jeremy Schwartz Organizations: Global Chief
With the S & P 500 surging more than 18% in 2024, it might be time for investors to make a few defensive moves in their portfolios. But that surge is spurring some financial advisors to reassess their clients' exposure to large-cap tech and turn toward currently unloved asset categories that could be poised to rise. "It might take a little longer to manifest but we think [health care] is an interesting combination of offense and defense, and it provides meaningful cash flows for investors," Saccocia said. Checking in on risk and cash Investors reviewing their 2024 gains should also reassess their risk profile and consider whether their asset allocation reflects their long-term goals. Tom Balcom, CFP and founder of 1650 Wealth Management in Lighthouse Point, Florida, has used custom market-linked notes to hedge clients' exposure to the market.
Persons: Nvidia —, Shon Anderson, Russell, Jerome Powell's, Shannon Saccocia, Neuberger Berman, Saccocia, Colin Gerrety, Gerrety, Tom Balcom, Balcom, Morningstar Organizations: Nvidia, Anderson Financial, Federal, Big Tech, Investors, JPMorgan Chase, UnitedHealth, Wealth Services Locations: Dayton , Ohio, REITs, North Bethesda , Maryland, Lighthouse Point , Florida
Jumia Technologies , a pan-African e-commerce company listed on the New York Stock Exchange, could see its value increase tenfold or more in the coming years, according to hedge fund manager Josh Koren. The company's stock has surged over 270% year-to-date, but Koren, a portfolio manager and chief investment officer of Musketeer Capital , believes it still has significant room to run. Jumia's stock has experienced significant volatility since its initial public offering in 2019. "This company right now is only a $1.2 billion company. "The U.S. has a trillion [dollar e-commerce market cap company].
Persons: Josh Koren, Jumia, Koren, They're, Elon Musk's Starlink, Fawne Jiang Organizations: Technologies, New York Stock Exchange, Musketeer, CNBC Pro, Jumia, Benchmark Locations: Africa, China, Asia, tailwinds
The risk-sensitive Australian dollar fell 0.18% to $0.6771, while the New Zealand dollar slid 0.35% to $0.6097. Under a Trump presidency, market analysts expect a more hawkish trade policy, less regulation and looser climate change regulations. Against the dollar, the yen was last 0.3% lower at 158.36, having strengthened to a roughly one-month high of 157.30 per dollar on Friday. "The confirmed FX intervention undertaken by the MOF in April and May proved that policymakers are prepared to be canny about choosing the timing of their moves," said Jane Foley, head of FX strategy at Rabobank. "In order to make more 'bang for their buck', FX intervention in quiet conditions or after the release of softer U.S. economic data seems like a sensible move.
Persons: Donald Trump, Jack Ablin, It's, Trump, Rong Ren Goh, Jane Foley Organizations: Trump, Cresset, New Zealand, Eastspring Investments, Cash U.S, Investors, . Bank of Japan, Finance, Analysts, Rabobank Locations: Asia, Japan, U.S, Tokyo
New York CNN —US markets rose Monday as investors processed the assassination attempt on former President Donald Trump over the weekend. The Dow rose 169 points, or 0.4%, paring its gains after hitting a fresh all-time high earlier in the session. The Republican Party’s campaign platform promises to “end Democrats’ unlawful and un-American crypto crackdown.”Shares of Trump Media & Technology Group, the former president’s social media company, popped 35.6%. A Trump win in November likely means the preservation or expansion of tax cuts and increased tariffs. While economic growth sounds positive for the US, some investors worry that it could reaccelerate inflation.
Persons: Donald Trump, Bettors, Joe Biden, Morgan Stanley, , Trump, , Mark Malek Organizations: New, New York CNN, Dow, Nasdaq, Trump, Republican Party’s, Trump Media & Technology Group, CNN, Federal Reserve, Siebert Financial Locations: New York
Bitcoin hit a two-week high Monday, as betting markets suggested an increased chance of victory for crypto-friendly candidate Donald Trump in the U.S. presidential election. The value of the world's biggest cryptocurrency, bitcoin, was up around 5% at 1:40 p.m. London time, to $62,781.48, according to CoinGecko. The rally follows the dramatic failed assassination attempt on former President Trump on Saturday. Investors said over the weekend they expected so-called "Trump victory trades" to receive a boost. The Trump campaign began accepting donations from the crypto industry in May and his messaging has become increasingly positive on the future of such digital assets.
Persons: Bitcoin, Donald Trump, Trump, Reagan, Ben Emons, Trump's favorability, Zach Pandl, Sen, Elizabeth Warren Organizations: U.S, FedWatch Advisors, Investors, Trump, CNBC, Republican Locations: London
Trump victory trades to swell after shooting, investors say
  + stars: | 2024-07-14 | by ( ) www.cnbc.com   time to read: +4 min
Saturday's shooting at U.S. former President Donald Trump's election rally raises his odds of winning back the White House, and trades betting on his victory will increase this coming week, investors said on Sunday. Trump was shot in the ear during the rally in Pennsylvania on Saturday in what the authorities were treating as an assassination attempt. The first shooting of a U.S. president or major party candidate since a 1981 assassination attempt on Republican President Ronald Reagan could upend the Nov. 5 rematch between Republican Trump and President Joe Biden, a Democrat, which has been tight in opinion polls. World leaders and U.S. politicians condemned the shooting, while some industry executives, including Tesla chief Elon Musk, declared their support for Trump. Investors also expect an extension of corporate and personal tax cuts expiring next year, fuelling concerns about rising budget deficits under Trump.
Persons: BUTLER, Donald Trump, Donald Trump's, Trump, Rong Ren Goh, Ronald Reagan, Joe Biden, Reagan, Nick Ferres, Elon Musk, Biden, Jerome Powell, Goldman Sachs, Bill Ackman, Musk Organizations: Republican, Secret, U.S, Treasury, Eastspring Investments, Republican Trump, Democrat, Asset Management, Tesla, Trump, Reuters, Investors, Federal, Biden, Dow Jones, Democratic, Goldman Locations: PENNSYLVANIA, Butler , Pennsylvania, Pennsylvania, Singapore
Heading into November's U.S. presidential election, professional investors agree on one strategy — diversification remains key. Diversification to hedge tax rate risk FBB Capital Partners' Mike Bailey said that should former President Donald Trump win, his tax cuts might mean better overall prospects for equities. Bailey emphasized that while his investment strategy avoids predicting macroeconomic events and timing the market, Depending on the election's outcome, there could obviously be different results for investors, investors could find it helpful to look at the extreme outcomes of the election. He recommended diversifying across different asset classes, since higher tax rates could lead to downside in the equity market. "If tax rates change, I don't think bonds are going to move that much, so you're pretty safe on that side," he said.
Persons: Mike Bailey, Donald Trump, Bailey, Tesla, John Davi, we're, Davi, You've, it's, Kumar Organizations: November's U.S, Nasdaq, Federal Reserve, Dow Jones, CNBC Pro, Wall, Capital Partners, CNBC, Astoria, Komal, Sri, Kumar Locations: U.S, , China, Mexico
Experts hold drastically different views, creating a new hot-button topic that will continue to be debated up until the election in November. The camp staunchly opposed to Trump's policiesThe base argument against Trump's fiscal platform is that tariffs are, by nature, inflationary. AdvertisementIn a recent op-ed for the Financial Times, he cited the "benign" impact Trump's first-term tariffs had on the US economy. Looking ahead to a new term, Yardeni thinks Trump's most extreme pursuits will likely be watered down by Congress. AdvertisementRepublican donor Kyle Bass — who serves as the chief investment officer of Hayman Capital Management — has taken a different tact in his support of Trump's fiscal agenda.
Persons: , Donald Trump, Trump's, Trump, he's, David Kelly, Larry Summers, Paul Krugman, Goldman Sachs, Ed Yardeni, Yardeni, Steve Eisman, Kyle Bass —, Hayman Capital Management —, Joseph Stiglitz, Biden Organizations: Service, Donald Trump White House, Business, Trump, House Republicans, Foundation, New York Times, Peterson Institute, Yardeni Research, Financial Times, Congress, CNBC, Hayman Capital Management, Oxford Economics Locations: China, It's
"Buying because the stock price has gone down without knowing some of the underlying issues or without understanding some of the underlying activities, could be problematic," says Clark Bellin, president and chief investment officer at Bellwether Wealth. After all, a stock could take major losses and then soar to new heights à la Apple. But what about that same markdown in the price of that company's stock? You'll just have to figure some things out before you buy, says Sam Stovall, chief investment strategist at CFRA. Rather than scrambling to do research, he says, keep a watchlist of stocks you'd be interested in buying at the right price.
Persons: Clark Bellin, Sam Stovall, Bellin, Charles Rotblut, Stovall, It's, Raife Giovinazzo, Giovinazzo Organizations: Blockbuster, Nike, American Association of, Fuller, Thaler Asset Management, Nasdaq, Yahoo Finance, CNBC
CNN —Wholesale price inflation unexpectedly accelerated in June to its highest rate since March 2023. That’s an unwelcome development for the US economy one day after the government announced that consumer prices declined on a monthly basis for the first time in four years. On a monthly basis, prices rose 0.2% after holding flat in May. Economists had expected that prices would increase 0.1% on a monthly basis and hold steady at 2.2% annually. Prices dropped on a monthly basis for the first time since May 2020, and annual inflation slowed to 3%, its slowest rate since June 2023.
Persons: That’s, Price, ” Clark Bellin, Bellin Organizations: CNN —, of Labor Statistics, PPI, Federal Reserve
Wall Street’s expectations for a September rate cut rose to roughly 93% on Thursday from 73% the day before, according to the CME FedWatch Tool. “A September rate cut should be a done deal at this point,” wrote Ron Temple, chief market strategist at Lazard, in a Thursday note. Some economists worry that if the Fed doesn’t cut rates by then, cracks could begin to deepen in the labor market. A September rate cut “may not be the magic elixir some investors are seeking,” wrote Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, in a Monday note. On an annual basis, consumer prices are increasing at their slowest pace since June 2023, matching the lowest annual rate since early 2021.
Persons: , Ron Temple, Jerome Powell didn’t, Brent Schutte, Alicia Wallace, , Elisabeth Buchwald, McDonald’s, Read Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Lazard, Northwestern Mutual Wealth Management, Bureau of Labor Statistics ’, Taco Bell Locations: New York, Burger
This strategy can offer double-digit yields — at a cost
  + stars: | 2024-07-12 | by ( Michelle Fox | ) www.cnbc.com   time to read: +7 min
With tantalizing yields that can reach 10% or more, covered-call exchange-traded funds have become a popular investment. The result is income for investors, based on the option's premium, in return for capped upside if the option is exercised. The derivative income Morningstar category, dominated by covered-call ETFs, saw inflows of $24.3 billion over the past year, as of June. The largest actively-managed, covered-call ETF is the JPMorgan Equity Premium Income ETF , which has a 6.88% 30-day yield and an adjusted expense ratio of 0.35%. Investors should also be aware of the strategy being used by the fund managers, which will affect the upside potential and call premium.
Persons: Morningstar, Lan Anh Tran, Tran, JEPI, Rohan Reddy, Reddy, QYLD, XYLD, Rick Wedell, It's, Wedell, X's Reddy, erferring, Morningstar's Tran Organizations: Nasdaq, JPMorgan
The outlook for stocks is becoming more favorable as inflation slows and the Federal Reserve looks to cut interest rates by yearend, according to UBS. Against that backdrop, UBS thinks investors should maintain a neutral view and remain strategic in their stock allocations. Here are some of the stocks on the UBS list: One of the stocks added to the list was San Diego-based, medical device maker Dexcom . Despite growth in the continuous glucose monitoring (CGM) segment of the diabetes market over the past few years, the sizable diabetes market has a "relatively low" penetration rate, according to UBS. "We expect DXCM to remain a leading player within the very concentrated CGM market."
Persons: Eric Potoker, that's, Ralph Lauren Organizations: Federal, yearend, UBS, San, MGM Resorts, Super, Las Vegas, Samsung Locations: Swiss, San Diego, Las Vegas, Las
Rich Weiss wouldn't be surprised if the Federal Reserve cuts rates twice this year — and potentially before the November election. The comments from Weiss come as Wall Street continues to weigh whether the Federal Reserve will cut rates before year-end. But Weiss urges investors to diversify in this concentrated market. Although a riskier bet, Weiss is also finding opportunities in the real estate sector, which he expects should recover as rates fall. Bonds also look attractive should yields continue to come down, and could outperform stocks through the end of 2024, he added.
Persons: Rich Weiss wouldn't, CNBC's Dominic Chu, Weiss, that's, Bonds Organizations: Federal Reserve, Century Investments, American
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe expect up to two rate cuts this year, says American Century's Rich WeissRich Weiss, chief investment officer of multi-asset strategies for American Century Investments, joins CNBC's Dominic Chu from the American Century Championship golf tournament. They discuss Weiss' outlook for the current investing environment and macroeconomic trends.
Persons: Rich Weiss Rich Weiss, Dominic Chu, Weiss Organizations: American Century Investments, American
Read previewBalyasny Asset Management has cut back the portfolio of its Asia equities head, but not because of poor performance. This story is available exclusively to Business Insider subscribers. Related storiesBalyasny, the $20 billion multistrategy firm based in Chicago, parted ways with its global equities head, Jeff Runnfeldt, last October. AdvertisementBalyasny, the founder, has been running the equities unit since Runnfeldt's departure, adding talent — such as Point72's Peter Goodwin — and reviewing existing books. The firm has made 5.5% through the first half of the year, Business Insider recently reported, trailing peers like Citadel, Point72, and Millennium.
Persons: , Archana Parekh, Dmitry Balyasny, Parekh, Jeff Runnfeldt, Runnfeldt, Peter Goodwin —, Andrew O'Connor, Weiss, David Lohman, Marco Minoli, Anil Gondi, Balyasny, Stephen Schurr, She's, Will Brant, Robert Tau Organizations: Service, Management, Balyasny, Business, Fortress Investment, Citadel, Walleye, Bloomberg Locations: Asia, Chicago, Schonfeld, LMR, — Singapore, Hong Kong, Tokyo, Balyasny's Hong Kong, Point72
Spot ether ETFs could hit the market as soon as this week, pending U.S. Securities and Exchange Commission approval, and Bitwise Asset Management's Matthew Hougan plans to get in on the action. Hougan's firm is applying for spot ether ETFs. Hougan is referring to the first spot bitcoin ETFs that launched in January. Spot bitcoin ETFs have attracted about $15 billion since their launch and currently hold two of the top ETF inflows this year, according to FactSet. Hougan views bitcoin's recent success as unprecedented and sees it as a bullish indicator for spot ether ETFs.
Persons: Matthew Hougan, CNBC's, Hougan Organizations: U.S . Securities, Exchange Commission
REUTERS/Tom Bateman/File Photo Purchase Licensing Rights New Tab , opens new tabJuly 10 (Reuters) - Costco Wholesale (COST.O) New Tab , opens new tab said on Wednesday it would hike annual membership fees for the first time in seven years for its U.S. and Canada customers, effective Sept. 1. Costco said the maximum annual 2% reward associated with executive membership will also increase to $1,250 from $1,000. "The market has been expecting (discussion of) a membership fee hike for a couple years ... management historically tends to raise membership rates every 5 to 6 years," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors. For fiscal 2023, membership fee revenue accounted for 1.9% of the company's total revenue. New Tab , opens new tabSave Share XFacebookLinkedinEmailLink Purchase Licensing Rights
Persons: Tom Bateman, Costco, Michael Ashley Schulman, Schulman, Granth, Mohammed Safi Shamsi Organizations: Costco, REUTERS, Costco Wholesale, Running, Capital Advisors, Thomson Locations: Meiwa, Gunma Prefecture, Japan, Canada, Bengaluru
Bill Gross says Tesla is the new meme stock
  + stars: | 2024-07-10 | by ( Yun Li | ) www.cnbc.com   time to read: 1 min
Bill Gross' Janus Henderson Global Unconstrained Bond Fund suffered more than $200 million in redemptions last month, lowering assets to $1.25 billion from over $2.24 billion in February. Longtime investor Bill Gross believes Elon Musk's Tesla is behaving like a speculative play among retail investors. "Tesla acting like a meme stock — sagging fundamentals, straight up price action," the former chief investment officer and co-founder of Pimco said in a post on X Tuesday afternoon. "But then there seems to be a new meme stock every other day now. Tesla is on a stunning 10-day winning streak, up a whopping 43.6% since June 24.
Persons: Bill Gross, Janus Henderson, Elon Musk's Tesla, Tesla, Pimco, Tesla's Organizations: Bond Locations: redemptions
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