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And so it is with Warren Buffett's Berkshire Hathaway slashing its holdings in Apple and Bank of America in recent months. Buffett himself has indicated in recent years that he doesn't see an abundance of compelling value on offer in the public markets. But this in itself isn't much of a clue about future market prospects or the macroeconomic moment. Borgato says he believes "Buffett wants to leave a Berkshire behind that requires [fewer] future cash allocation decisions, not more." I'm not a buyer of the "cash on the sidelines" case for expecting money market assets to drain into stocks.
Persons: , Warren Buffett's Berkshire Hathaway, Buffett, Ed Borgato, it's, pare Berkshire's, Greg Abel, Berkshire Hathaway, BRK.B QUAL, Ajit Jain, Trump, Borgato, Jared Woodard Organizations: Apple, Bank of America, Bank of, Buffett, Berkshire, Berkshire Hathaway, Washington Locations: Berkshire's, Berkshire, Apple,
Gold is already near the top of the 2024 range of outcomes projected by BlackRock Investment Institute, for example. Emerging market central banks have about 6% of their FX reserves in gold, and developed markets have about 12%. "Weaponizing dollar-based systems, including SWIFT , has led to more people, more countries specifically — more sovereign wealth funds and central banks — not trusting dollar-based assets as much. ETF flows As central banks have been bidding up gold, smaller investors were selling for much of this year. The VanEck Merk Gold ETF (OUNZ) and the Abrdn Physical Gold Shares ETF (SGOL) are the other funds with at least $100 million in net inflows this year, according to FactSet.
Persons: there's, Robert Minter, Minter, SWIFT, Lauren Goodwin, we're, Chris Verrone Organizations: Federal, Nasdaq, BlackRock Investment Institute, Abrdn, World Gold Council, U.S ., FX, United, Russia, New York Life Investments, MiniShares, Federal Reserve Locations: U.S, Abrdn . Central, Central, United States, Ukraine
Analysts are increasingly recommending defensive stocks to blunt the impact of an economic slowdown. The S&P 500's consumer staples sector has risen more than 4% in the last month. AdvertisementAmid fears of a recession and increased market volatility, analysts have been pointing to defensive stocks as a safe bet to hedge macro risk. Among defensive sectors — which include things like real estate and financials — investors recently have been pouring into consumer staples in particular. With the Federal Reserve likely to finally cut rates at its meeting this week, defensive stocks could be poised for further growth.
Persons: , Morgan Stanley's, Mike Wilson, Wilson, that's, Savita Subramanian, Subramanian Organizations: Service, Retailers, Walmart, Target, Bank of America, P Global Semiconductor, Financial Times, Bloomberg, Federal Reserve Locations: cyclicals
The rise comes amid anticipation that the Fed will deliver a half-point rate cut. Investors are anticipating the Federal Reserve's long-awaited rate cut tomorrow, which will be announced at the end of the central bank's two-day policy meeting. Regardless of the size of the cut, investors buying up bitcoin are anticipating the looser lending conditions will lead to more speculative behavior. We could be seeing a recovery of investors' appetite for risk-on assets like crypto, instigating more flows into Bitcoin spot ETFs," said Leena ElDeeb, a research analyst at 21Shares. Seasonal factors weakened the spot bitcoin ETF inflows this summer while deteriorating macro conditions drove investors toward safe, risk-off assets.
Persons: , Morgan Stanley, Tuesday's, Leena ElDeeb, Alex Kuptsikevich, Bill Dudley Organizations: Service, New York
Economists have long called for an overhaul of the nation's retirement age laws, currently among the world's lowest, which was set in an era of lower life expectancies. Raising the retirement age would help ease local governments' pension pool cash crunch, Sheana Yue, an economist from Oxford Economics said. Still, "more needs to be done to improve retirement adequacy," Maybank's Tay said, while stating that China needs a stronger pension plan and diversified investment avenues to ensure sustainable retirement savings. China's Ministry of Human Resources and Social Security has added a few tools for citizens to check their indicated retirement age on its website and mobile app. China may roll out "another round of delay in the late 2030s, especially if China's pension fund balance is tight," Xu cautioned.
Persons: Erica Tay, Tay, Bruce Pang, Tianchen Xu, Xu, Yue, Maybank's Tay Organizations: Getty, Maybank Investment Banking Group, CNBC, Economist Intelligence Unit, Oxford Economics, Academy of Social Sciences, China's Ministry of Human Resources, Social Security Locations: Fuyang, China, JLL, Beijing
You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Multi-strategy hedge funds, led by Citadel, Millennium, and Point72, had churned out returns in turbulent markets with limited volatility. In that environment, even the multi-strategy funds not among the sector's top tier were able to demand long lock-ups and high fees. Bobby Jain's new fund launched with $5.3 billion in July after there were whispers of him raising $10 billion six months prior.
Persons: , Michael Gelband, Goldman Sachs, Bobby Jain's, Doug Haynes, Justin Young Organizations: Service, Citadel, Tiger, Business, Millennium, Street, FT, Bloomberg, of Texas, Treasury, Multilateral Endowment Management Company, Oklahoma State Foundation, LinkedIn
Last week, bitcoin tumbled 9% for its worst weekly performance since August 2023. Bitcoin jumped Monday evening and topped $57,000 after Wall Street's rebound from its worst week of the year. The three major averages last week posted their worst weekly performance in 2024. Bitcoin has been trading range bound for most of the year. "This relief in the equity markets could help alleviate selling pressure on bitcoin, providing a conducive environment for a recovery."
Persons: cryptocurrency, bitcoin, Bitcoin, Wall, MicroStrategy Organizations: Metrics, Nasdaq
Assets in money market funds hit $6.3 trillion the week that ended Wednesday, another record high, according to the Investment Company Institute . The annualized 7-day yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.08%. History shows that when investors do move out of money market funds, they move into fixed income over equities, he said. Institutional investors will also continue to move into money market funds as the Fed cuts rates because any cash they have in direct money market investments, such as Treasury bills, will be hit by rate cuts quicker than money market funds, explained Peter Crane, founder of Crane Data, a firm that tracks the industry. Once you have the appropriate cash needs set aside, consider moving any excess funds into fixed income, Jenkin said.
Persons: Mark Cabana, Peter Crane, Crane, Ted Jenkin, Jenkin, Leslie Falconio, Fannie Mae, Freddie Mac, Ginnie Mae, Falconio Organizations: Investment Company Institute, Bank of America, Federal Reserve, Institutional, Crane, CNBC, American Express, Bread Financial, UBS, U.S . Locations: UBS Americas
Much of the initial enthusiasm surrounding bitcoin ETFs has dissipated in the last few months, following a blockbuster debut that broke records for the ETF market. Spot bitcoin funds now hold a total of around $52.6 billion in assets under management, $10 billion off their peak. As of the end of the second quarter, Wall Street banks and hedge funds were buyers of bitcoin ETFs. Goldman Sachs made its debut in the crypto ETF market in the period, purchasing $418 million worth of bitcoin funds. Of the investment bank's $1.5 trillion in assets under management, it held $189 million worth of spot bitcoin ETFs, down from roughly $270 million in the prior period.
Persons: Ark 21Shares, Bitcoin, Wainwright, Goldman Sachs, Morgan Stanley Organizations: outflows, Investors, SEC, Fidelity, JPMorgan Locations: U.S, Wall
Bank of America strategist Michael Hartnett advises buying gold amid record-high prices. Gold's year-to-date rally of about 20% is outperforming US tech stocks. AdvertisementInvestors should buy gold even as the metal hovers around record-high prices, according to Bank of America investment strategist Michael Hartnett. AdvertisementHartnett noted that gold is the only asset that's outperforming US tech shares. AdvertisementThe juxtaposition of record-high gold prices and negative outflows is "explained only by unprecedented central bank buying," Hartnett said, adding China's central bank was the largest buyer of gold in 2023.
Persons: Michael Hartnett, Hartnett, , haven't Organizations: of America, stoke, Service, Bank of America, Federal Reserve, 2nd
What's different for crypto this time around from prior sell-offs is that many more investors are vulnerable due to the newly launched spot crypto ETFs. Bitcoin ETFs started trading in January, followed by ether funds last month. Across all spot bitcoin ETFs, there were net outflows of around $168 million. Monday's outflows are a fraction of the more than $50 billion market cap of the funds. Within spot ether ETFs, more than $48 million was added across all the funds.
Persons: BlackRock didn't, Monday's, Bernstein Organizations: bitcoin, Digital
Cash has poured into money market funds since the Federal Reserve began its rate hiking cycle. Short-term debt has been a popular investment over the past few years, and money market funds are a top example. For perspective, there was roughly $4 trillion in total money market funds as of the fourth quarter of 2019, according to the St. Louis Fed . Money market funds hold very short-term debt, and many currently offer a yield above 5%. "Historically, you don't tend to see money market inflows stop or convert to outflows until you get below say 3% on those rates.
Persons: Cash, Louis Fed, Sam Huszczo, Huszczo, Todd Sohn, Ken Brodkowitz, weren't, Brodkowitz, Strategas, Sohn, " Sohn, Callie Cox, Cox Organizations: Federal Reserve, Investment Company Institute, SGH Wealth Management, Federal, Bond, SEC, Gries Financial Partners, Fidelity, Income, Morningstar, US Treasury, Ritholtz Wealth Management, Ritholtz Locations: Detroit , Michigan, BlackRock
I want to retire early, so I asked a financial planner what mistakes I should watch out for. In an effort to get on track, I chatted with certified public accountant and certified financial planner Ryan Nelson about the most common mistakes people make when they attempt to retire early. He advised people to proactively calculate the cost of health insurance during early retirement before reaching Medicare age, which is currently 65. "Look into private marketplace options, whether individual health insurance plans, health sharing ministries, or short-term health insurance plans to see how much these could cost." Not maximizing health savings account contributionsFor those planning to retire early, Nelson also recommend that they maximize their health savings account contributions.
Persons: , Ryan Nelson, Nelson, Roth, I've Organizations: Service, Roth IRA, IRA
Bread Financial , once home of the 5.25% yield on a 1-year certificate of deposit, has dialed back its rate. The financial institution recently dialed back its annual percentage yield for its 1-year CD to 5.15%. See below for current APYs on select high-yielding 1-year CDs. Popular Direct has a 1-year CD with an APY of 5.2%, while Goldman Sachs ' Marcus and Sallie Mae still offer APY of 5.15% on their instruments. BMO Alto's 1-year CD weighs in at an APY of 5.05%.
Persons: Vincent Caintic, Banks, Goldman Sachs, Marcus, Sallie Mae Organizations: Federal, BMO
Ark Invest's Cathie Wood snapped up beaten-down shares of Tesla and CrowdStrike after their recent pullbacks as the innovation investor doubled down on her favorite tech stocks. The widely followed investor added 33,143 shares of Tesla on Wednesday for ARK Next Generation Internet ETF (ARKW) . That would value Tesla at more than $8 trillion. Ark Invest purchased 38,595 shares of the cybersecurity software company on Friday and another 20,219 shares on Monday. Her flagship Ark Innovation ETF (ARKK ) has fallen more than 14% this year and experienced more than $2 billion in outflows, according to FactSet.
Persons: Wood, Tesla, Elon, underperformance Organizations: Tesla, Microsoft, Ark Invest, Innovation Locations: outflows
Cryptocurrencies fell one day after a reversal in technology stocks pushed the S&P 500 and Nasdaq Composite to their worst day since 2022. Disappointing quarterly earnings from from Alphabet and Tesla late Tuesday weighed on the rest of the tech sector as investors rotated out of high-risk assets, including cryptocurrencies. Gox repayment schedule that has resulted in a persistent round of bitcoin selling pressure this month, he added. Meanwhile, ether fell 6% to $3,172.59 as newly-launched ether exchange-trade funds traded for a third day. "What is happening is the same as when spot bitcoin ETFs were launched back in January," said Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank.
Persons: Cryptocurrencies, Bitcoin, Joel Kruger, Yuya Hasegawa, bitcoin Organizations: Nasdaq, Metrics, LMAX, ETH Locations: outflows
AdvertisementETF enthusiasmInstead of single stocks, clients across the board are putting their money into ETFs. Bank of AmericaEven though clients sold off individual small-cap stocks, they're not shying away from that size segment of the market at all. Clients invested more money in small-cap ETFs than large-cap ones, providing small-caps with the biggest boost since May of this year. Similarly, while individual tech stocks experienced a sell-off, tech ETFs saw the largest capital inflow out of all sectors last week. Small-cap ETFs include Vanguard Small-Cap Index (VSCIX) and Invesco S&P SmallCap 600 Revenue ETF (RWJ).
Persons: , Jill Carey, Goldman Sachs Organizations: Service, Bank of America's, Bank of America, Equity, Business, JPMorgan, Citigroup, Big Tech, Health, Bank of America Investors, Communication, Fidelity MSCI Information Tech, NYSE Technology, Vanguard Infomation Technology, Vanguard
With the SEC clearing the path for ETFs, Grayscale will have a boatload of rivals, and investors can go hunting for the lowest fees. Large financial firms, including Fidelity Investments, Franklin Templeton, BlackRock and Invesco, are already on the market with their own spot ether ETFs. In their first day of trading on Tuesday, spot ether ETFs collectively saw over $1 billion in volume, with JPMorgan analysts estimating net sales of $104 million. While money poured into the new offerings, the Grayscale Ethereum Trust (ETHE) saw redemptions of $485 million. watch nowIn the bitcoin ETF market, Grayscale has been struggling to handle the flood of competition.
Persons: Jakub Porzycki, Barry Silbert's, Franklin Templeton, Morningstar's Bryan Armour, Grayscale's David LaValle, LaValle Organizations: Nurphoto, U.S, Digital Currency Group, SEC, Fidelity Investments, BlackRock, JPMorgan, CNBC Locations: Invesco, U.S
The four best-performing stocks in the S & P 500 year to date were down an average of 13.5% last week. .SPX 5D mountain The S & P 500's performance in the past five trading days. The anchoring effect of a persistently strong half-dozen $1-trillion to $3-trillion companies atop the S & P 500 while most stocks wallowed had the effect of suppressing index volatility. The S & P 500 is now about 3% off its record, and the Nasdaq 100 is in a roughly 5% retreat from its high. History says when the S & P 500 has been up more than 10% in the first half of a year , as in 2024, it has gone to further highs by year's end nearly every time.
Persons: Russell, Donald Trump, Cash, Parag Thatte, Thatte, Goldman Sachs, wallowed, Cantor Fitzgerald Organizations: Axonic Capital, Deutsche Bank, Nasdaq
While it offered few clues on how to tackle economic difficulties, the meeting did provide further insight into a shake-up of high-level personnel over the past year. If past sessions are a guide, a more detailed report may be released in the following days, but for now, “the plenum communique is light on specifics,” Evans-Pritchard added. That came days after China released disappointing economic data for the second quarter of this year. Analysts say that the coming months could offer more details on how Xi plans to revive the economy. Emphasizing short-term economic policies is rare in the history of the third plenums, said Larry Hu, chief China economist for Macquarie Group.
Persons: Hong Kong CNN — China’s, Xi Jinping, Xi, , Julian Evans, Pritchard, Qin, Li Shangfu, Li Yuchao, Jinming, Evans, , ” Evans, Mao, Larry Hu Organizations: Hong Kong CNN, Communist Party, Capital Economics, Central, Defense, Liberation Army Rocket Force, of America, National Bureau, Statistics, Analysts, Macquarie Group Locations: Hong Kong, party’s, Beijing, China, policymaking, outflows, United States, Mao China
Morgan Stanley raised its price target on Rivian to $17 from $13. Analyst Frank Lee did raise his price target to $200 from $190, although he added that "the risk-reward is less attractive now." Guggenheim hiked the price target to $735 per share from $700. He did raise his price target for the stock to $225 from $180, although this price hike still implies that Tesla stock could fall 12%. Analyst Adam Jonas raised his price target on the stock to $17 from $13.
Persons: Morgan Stanley, Jefferies, Frank Lee, Lee, Lisa Kailai Han, Michael Morris, Morris, Guggenheim, — Jesse Pound, Morgan Stanley's Simeon Gutman, Gutman, Seth Sigman, Truist, – Samantha Subin, TD Cowen downgrades Charles Schwab, Charles Schwab's, TD Cowen, Bill Katz, Charles Schwab, Katz, mgmt, — Lisa Kailai Han, Wells, Bank of America Wells, Mike Mayo, Mayo, Goliath, Dan Levy, Levy, Dennis Geiger, Geiger, Thomas Fitzgerald, Fitzgerald, David Windley, UnitedHealth's, Windley, UNH, Adam Jonas, Rivian, Jonas, Fred Imbert Organizations: CNBC, HSBC, Qualcomm, Microsoft, Netflix, Guggenheim, Barclays, ISI, Citi, Mizuho, Bank of America, of America, Tesla, UBS, Sweetgreen, sss, IK, TD Cowen downgrades, Airlines, American Airlines, Delta, Jefferies, Presidential, Chevron, Volkswagen Locations: China, Tuesday's, Mayo, U.S, Tesla's, UnitedHealth, UNH's
The West could spur Russian inflation by easing sanctions on capital flows, Sergey Aleksashenko says. "Make it easier to depress the value of the ruble, make imports more expensive, and put pressure on Russian bank balance sheets." Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . In a collection of policy briefs the think tank put out this month, author Sergey Aleksashenko argued that the West should ease restrictions on Russian capital outflows.
Persons: Sergey Aleksashenko, Organizations: Service, Kremlin, Brookings, outflows, Business Locations: depreciating, Russian, Russia
Financial institutions snapping up Chinese government bonds are basically shorting the Chinese economy, China's central bank-backed Financial News reported on Saturday, citing what it said were the views of industry sources and experts. It came after the paper said late on Friday that China's central bank is determined to maintain a normal upward-sloping yield curve and correct bond-market risks. The move shows the central bank's desire to stabilise exchange rate and economic expectations, Financial News reported, citing unnamed experts. "Financial institutions frantically snapping up government bonds equals to expecting that interest rates will get lower and lower in the future," the paper said. "They are basically shorting China's yuan and the Chinese economy, increasing the pressure for capital outflows."
Persons: PBOC Organizations: Financial, People's Bank of China Locations: outflows
The IMF said in the report that emerging markets have seen a decline in the more volatile net portfolio inflows, but net inflows of foreign direct investment (FDI) has been more stable. At the same time, the report said that China saw net capital outflows over the 2022-2023 period, including net negative FDI inflows. Overall, global gross capital inflows declined to 4.4% of global GDP, or $4.2 trillion, in the 2022-2023 period, from 5.8 percent of global GDP, or $4.5 trillion, in 2017-2019. But the U.S. benefited strongly from the shifts, accounting for 41% of global gross inflows during the 2022-2023 period, nearly double its 23% share in 2017-2019. The U.S. share of global gross outflows also increased, to 21% from 14% during the same periods.
Persons: Christine Lagarde, Nicolas Dujovne, Yuri Gripas, David Lawder, Franklin Paul, Alistair Bell Organizations: Monetary Fund, Argentine, REUTERS, China, IMF, Thomson Locations: Washington , U.S, WASHINGTON, China, U.S
LONDON — The number of global millionaires is set to keep rising over the next five years — with the U.K. a stark outlier, according to the 2024 Global Wealth Report from UBS. Gains will be led by tech powerhouse Taiwan, where the number of millionaires is set to jump 47% on the back of the booming microchip industry and a rise in immigration by wealthy foreigners. The two hubs in which the most global millionaires are based, the U.S. and mainland China, are set to see their figures rise 16% and 8% respectively. Another country where the number of dollar millionaires is forecast to decline was the Netherlands, which is estimated to see a 4% drop in such wealthy individuals. The report meanwhile sees the number of U.S. dollar millionaires in Russia growing by 21%.
Persons: Paul Donovan, Donovan Organizations: UBS, Taiwan, UBS Global Wealth Management, Russia, Labour Party, Conservative Locations: Turkey, Kazakhstan, Indonesia, Japan, U.S, China, France, Italy, London, Dubai, Singapore, Netherlands, Russia
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