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☆ A top economist says the stock-market mania reminds him of the dot-com and housing bubbles - and warns consumers are feeling the squeeze
▼ + stars: | 2023-07-20 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

David Rosenberg warned the buzz around stocks today is similar to the mania before past crashes. The economist noted that American consumers are running short of cash and struggling to borrow more. The veteran economist and Rosenberg Research president also rang the alarm on the US economy in a research note on Wednesday. "The balloon does have a lot of hot air in it," Rosenberg noted, suggesting it was hard to say when speculation and emotion would cease trumping fundamentals and rational thought. That has raised borrowing costs for consumers and businesses, and wreaked havoc on debt-fueled industries such as commercial real estate.

Persons: David Rosenberg, Rosenberg, Irving Fisher, Abby Joseph Cohen, Chuck Prince's doozy, you've, Merrill Lynch Organizations: Service, Rosenberg Research, North, Nasdaq, Dow Jones, Big Tech, Consumers, New York, Federal Reserve Locations: Wall, Silicon, North American

☆ Elon Musk touched on Nvidia, Cybertruck, Warren Buffett, and the dangers of debt on Tesla's latest earnings call. Here's his 12 best quotes.
▼ + stars: | 2023-07-20 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

Elon Musk mentioned Warren Buffett, Nvidia, cyborgs, and "Game of Thrones" on Tesla's earnings call. Musk is worried about rising credit-card debt and the bewildering economic backdrop. The Twitter owner and Tesla and SpaceX CEO also warned retail investors about the dangers of margin trading, rang the alarm on rising credit-card debt, and said he's totally confused about the state of the global economy. In fact, if you look at the rise in credit-card debt, they're not breaking even every month. Credit-card debt is freaking scary."

Persons: Elon Musk, Warren Buffett, Tesla's, he's, they're, I'm, They've, That's, we've, I've Organizations: Nvidia, Service, Privacy, SpaceX Locations: Wall, Silicon

☆ Get ready for a historic slowdown in home-price growth, Goldman says
▼ + stars: | 2023-07-19 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +2 min

Goldman Sachs expects minimal growth in home prices over the next few years. Prices are likely to rise less than 2% this year and next, and less than 4% in 2025 and 2026. They may be only 4.5% above their pandemic peak, and 10.1% above their January low, by end-2026. It's worth noting that house prices surged by more than 40% during the pandemic, as the work-from-home boom stoked demand for homes. However, mortgage rates have surged over the last year, making homes less affordable to buyers and putting downward pressure on prices.

Persons: Goldman Sachs, Fortune, Goldman Organizations: Service, Federal Locations: Wall, Silicon

☆ The 'Dean of Valuation' warns inflation and recession risks remain - and stocks may disappoint bulls in the second half
▼ + stars: | 2023-07-18 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +2 min

Aswath Damodaran warned of sticky inflation, recession risks, and a muted second half for stocks. The "Dean of Valuation" said curbing price growth to 2% will be tough, and the economy may falter. Stocks appear fairly valued after their stellar first-half rally, limiting further upside, he said. He also issued a muted outlook for stocks in the second half. "It is unlikely that the market will repeat its success in the second half of 2023," he said.

Persons: Aswath Damodaran, NYU Stern, Damodaran Organizations: Service, NYU, Federal Reserve Locations: Wall, Silicon

☆ Warren Buffett cashed in his monster bet on Microsoft buying Activision Blizzard - but left some money on the table
▼ + stars: | 2023-07-18 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Warren Buffett exited his wager on Microsoft buying Activision Blizzard last quarter, filings show. Buffett built a $5 billion Activision stake, wagering the stock would hit Microsoft's offer of $95. One of Buffett's deputies oversaw Berkshire's purchase of 14.7 million Activision shares in 2021. After Microsoft bid $69 billion for Activision in January 2022, Buffett scooped up nearly 50 million shares as an arbitrage. The good news has sent Activision stock up 11% this month to $93, less than 2% below Microsoft's offer price.

Persons: Warren Buffett, Buffett, He's, Berkshire Hathaway, he'd, Charlie Munger, Charlie, Munger, Warren Organizations: Microsoft, Activision Blizzard, Activision, Service, Securities and Exchange Commission, SEC, US Federal Trade Commission Locations: Wall, Silicon, British

☆ Warren Buffett's wife balked at paying $4 for a cup of coffee. That won't surprise the investor's close followers.
▼ + stars: | 2023-07-15 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Warren Buffett's wife reportedly balked at the $4 cost of a coffee at Sun Valley. Buffett lives simply, seeks value as an investor, and strikes a hard bargain when he cuts deals. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Her reaction won't surprise close followers of Buffett, or shareholders of his Berkshire Hathaway conglomerate. Indeed, Buffett still lives in the same house in Omaha, Nebraska that he purchased for $31,500 in 1958.

Persons: Warren Buffett's, Astrid Menks, Buffett, Warren Buffett, He's, Charlie Munger, —, Munger, They're, Alleghany, Goldman Sachs Organizations: Service, New York Post, Berkshire Hathaway, Berkshire, Alleghany Locations: Sun, Wall, Silicon, Berkshire, Omaha , Nebraska, Munger, Los Angeles, Omaha

☆ JPMorgan's Jamie Dimon reels off a list of dangers to the US economy - and warns they could inflict serious damage
▼ + stars: | 2023-07-14 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Jamie Dimon flagged a long list of threats facing the US economy on Friday. He's worried about consumer spending, inflation, quantitative tightening, fiscal deficits, and war. "The war in Ukraine continues, which in addition to the huge humanitarian crisis for Ukrainians, has large potential effects on geopolitics and the global economy," he added. If any of those dangers hit the US economy, it's unclear whether they would cause a "soft landing, a mild recession, or a hard recession," he added. Dimon shared similar concerns in an interview with The Economist released earlier this week, and has previously warned there are myriad threats facing the global economy.

Persons: Jamie Dimon, He's, Dimon Organizations: JPMorgan, Service, AlphaSense, Federal Reserve Locations: Wall, Silicon, JPMorgan's, Ukraine

☆ The Biden administration says it will forgive $39 billion in student debt for more than 800,000 borrowers
▼ + stars: | 2023-07-14 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +1 min

The Biden administration will forgive $39 billion in student debt for 804,000 borrowers, it said on Friday. The announcement comes weeks after the Supreme Court blocked a wider plan to forgive student debts. "For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," Education Secretary Miguel Cardona said. "Administrative failures" led to borrowers being denied the relief they were eligible for under their repayment plans, the Education Department said. "For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," Education Secretary Miguel Cardona said in a written statement.

Persons: Biden, Miguel Cardona, they've Organizations: Service, Education Department Locations: Wall, Silicon

☆ America's inflation headache is gone, top economist Steve Hanke says. Paul Krugman and Mohamed El-Erian aren't so sure.
▼ + stars: | 2023-07-13 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

US inflation fell to a two-year low of 3% in June, dividing experts on whether the threat is over. Top economist Steve Hanke said the headache is gone and the Fed has things under control. Paul Krugman was less convinced, while Mohamed El-Erian noted a recession could still hit. Even if inflation is on the retreat, interest rates may need to remain high to prevent a resurgence, Krugman continued. El-Erian's comment raises the prospect that inflation could rear its head again, forcing the Fed to keep hiking rates and trigger a recession.

Persons: Steve Hanke, Paul Krugman, Mohamed El, Erian, stoked, aren't, Johns Hopkins, Ronald Reagan, Hanke, Krugman Organizations: Service, Reserve, CNBC, Princeton, MIT, Phillips, Fed Locations: Wall, Silicon

☆ Jamie Dimon predicts consumers will exhaust their pandemic savings by Christmas - and warns of much greater threats than recession
▼ + stars: | 2023-07-12 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +2 min

Jamie Dimon is far more concerned about global threats than a US recession. The JPMorgan CEO expects consumers to exhaust their pandemic savings around the end of this year. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. "Even if we go into recession, consumer's in great shape," Dimon said, adding that was broadly true for businesses too. The JPMorgan boss first sounded the alarm on the global economic outlook more than a year ago.

Persons: Jamie Dimon, Dimon Organizations: JPMorgan, Service Locations: Russia, Ukraine, Wall, Silicon, Africa

☆ 'Shark Tank' investor Kevin O'Leary warns small businesses are battling a cash crunch - and a funding crisis is looming
▼ + stars: | 2023-07-12 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Kevin O'Leary warned the Fed's rate hikes are hammering America's small businesses. "We've got a real crisis coming here, there's no cash for small businesses," O'Leary said. "You can't say that about small business anymore. "I'm here on the hill today in Washington talking to everybody I can about the problems I've got in just getting working capital for small businesses," he said. "I have never, ever seen anything like this," O'Leary told CNBC after Meta's new social-media platform racked up 100 million sign-ups in five days.

Persons: Kevin O'Leary, O'Leary, We've, that's, I've Organizations: Service, Fox Business, Capitol, CAC, CNBC Locations: Wall, Silicon, Washington

☆ Legendary investor Jeremy Grantham revealed how the AI craze has changed the odds of an epic market crash. Here are the 8 best quotes.
▼ + stars: | 2023-07-08 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

Grantham said AI was unlikely to interfere with the bubble bursting, but could limit the fallout. "I'm a little bit disturbed by the emergence of the kind of mini-bubble in artificial intelligence. We have a year or two to have a fairly traditional bubble losing air, recession, decline in profit margins, and some grief in the stock market. "Artificial intelligence has the biggest scrambling of opinions of the future that one has ever seen. They've played right into the strong speculation around artificial intelligence, they've made an unprecedented 25% over anything.

Persons: Jeremy Grantham, Grantham, who've, They've, they've Organizations: Service, Big Tech, Wall Street, Nasdaq Locations: Wall, Silicon, Grantham

☆ 'Big Short' investor Michael Burry predicted inflation would plunge - but his calls of a stock-market crash and recession are yet to come true
▼ + stars: | 2023-07-06 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

When inflation was at its peak last summer, Michael Burry predicted it would fall within months. The "Big Short" investor was right, as price growth has slowed from 9.1% last June to 4% in May. In contrast, Burry's warnings of a historic stock-market crash and a recession are yet to pan out. The bold call from the investor of "The Big Short" fame is looking mightily prescient, but a few of his other forecasts are yet to come true. The investor highlighted some of his greatest hits in a now-deleted tweet last summer:"Just getting one thing right is hard.

Persons: Michael Burry, —, Burry, disinflation, He's, of Labor Statistics Burry Organizations: Service, Index, Twitter, of Labor Statistics, Scion

☆ The Fed's own economists don't know if the US will escape a recession or not. They say it's basically a coin toss.
▼ + stars: | 2023-07-06 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

The Fed's own economists aren't sure if the US economy will suffer a recession or not. They believe it's a virtual coin toss whether there's a mild downturn or none at all. Even the Federal Reserve's own economists say it's basically a coin toss, the minutes from the Fed's June meeting show. The central bank's staff predicted that banks would keep pulling back on lending, tightening financial conditions and causing real gross domestic product (GDP) to decline modestly for the next two quarters. They also tend to damp demand, lift unemployment, and pull down asset prices, increasing the risk of a recession.

Persons: —, it's, Jerome Powell Organizations: Service, Silicon Valley Bank, Signature Bank, Fed Locations: Silicon

☆ Bed Bath & Beyond went bankrupt and sold its brand. That hasn't stopped meme-stock fans from trading over $200 million of its shares in recent weeks.
▼ + stars: | 2023-07-05 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +2 min

Bed Bath & Beyond went bankrupt and sold its brand, but people are still placing bets on its stock. Investors have traded over $200 million worth of its likely worthless shares since early May. They've traded over $200 million worth of the homewares retailer's shares since early May, Yahoo Finance data shows, even though they're most likely worthless. Investors have traded an average of 24 million shares a day since then, per Yahoo Finance. Moreover, Overstock.com recently purchased BBBY's intellectual property for $22 million, and plans to rebrand itself under the Bed Bath & Beyond name.

Persons: —, They've, they're, Anthony Chukumba, that's, Overstock.com, Chukumba Organizations: Investors, Financial Times, Service, Yahoo Finance, New York Stock Exchange, Tesla, GameStop, Bed

☆ Elon Musk's massive ego explains why he doubts government data and believes a recession is underway, Nobel laureate Paul Krugman says
▼ + stars: | 2023-07-05 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Elon Musk is a "recession truther" who buys into conspiracies because of his ego, Paul Krugman says. Musk and other tech leaders think they're geniuses so they're happy to doubt experts, Krugman says. However, as Krugman notes in his latest New York Times column, official data show the US economy is still growing. "Between Tesla, Starlink & Twitter, I may have more real-time global economic data in one head than anyone ever," he tweeted in April. The columnist acknowledged a recession could eventually strike, but he firmly dismissed the idea that one is already underway.

Persons: Elon, Paul Krugman, Krugman, —, Elon Musk, Musk, hasn't, Biden Organizations: Service, Privacy, Twitter, SpaceX, New York Times, Technology Locations: Covid, Ukraine

☆ The pain is just starting for commercial real estate - and plunging prices could reignite the banking crisis and choke the US economy, Columbia professor says
▼ + stars: | 2023-07-04 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

A Columbia professor has issued a bleak outlook for commercial real estate in the US. Office values are plunging and threaten to cause an "urban doom loop," Stijn Van Nieuwerburgh said. If cities become more expensive and less appealing, people are likely to move out, cutting real estate values even more and causing a downward spiral, he said. Pension funds, real estate investment trusts (REITS), and other entities have invested significant sums in CRE, and the office segment specifically. "I do worry that there is potential for a spillover here, that we haven't seen the end of the banking crisis yet," Van Nieuwerburgh said.

Persons: Van Nieuwerburgh, —, Stijn Van Nieuwerburgh Organizations: Service, Columbia Business School, Bank, Signature Bank Locations: Columbia, CRE, Silicon

☆ The US economy is in a tough spot but may still escape a recession, ex-Goldman CEO Lloyd Blankfein says
▼ + stars: | 2023-06-29 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +2 min

The US economy might still escape a recession, former Goldman Sachs CEO Lloyd Blankfein says. Slowing inflation and resilient growth and employment may enable a soft landing, he says. Blankfein has previously touted the rude health of the US economy as a defense against disaster. The disconnect could mean a downturn is coming, but it won't be a severe one, Lloyd Blankfein says. Economy and payroll growing, yet economists (and the yield curve) say recession is coming," Goldman Sachs' senior chairman and former CEO tweeted on Wednesday.

Persons: Goldman Sachs, Lloyd Blankfein, Blankfein, —, Goldman Organizations: Service, Federal Reserve, Bureau of Labor Statistics

☆ Warren Buffett's TikTok fans devour his advice about stocks, crypto, and simple living. Here are 7 Buffett quotes that are popular on the platform.
▼ + stars: | 2023-06-24 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Warren Buffett isn't a TikTok user, but his past comments are popular on the platform. I'm happy in a pair of khakis and a sweater so I don't need fancy clothes. "You don't need to be a genius in what I do. 90% of the people that buy stocks don't think of them in the right way. "The average person will not know enough to know which stocks to buy, they won't know enough to know when to buy it.

Persons: Warren Buffett, Berkshire Hathaway, Here's, Buffett, —, Alexander Graham Bell, I've, that's Organizations: Berkshire, Service Locations: United States, America

☆ Warren Buffett just donated about $5 billion of Berkshire Hathaway shares - and has now given up 54% of his stockpile
▼ + stars: | 2023-06-22 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Buffett would likely be worth an unmatched $250 billion if he hadn't donated any shares. Tally up the shares he's given away over the past 17 years, and they would be worth an astounding $132 billion today. He gave about 10.5 million of those shares to the Bill & Melinda Gates Foundation, just over 1 million shares to the Susan Thompson Buffett Foundation, and about 732,000 shares to each of the Sherwood Foundation, Howard G. Buffett Foundation, and Novo Foundation. The Susan Thompson Buffett Foundation is named after Buffett's late wife, while Buffett's three children each run one of the other three foundations. Buffett has given away 54% of his Berkshire shares so far, and has pledged that over 99% of his personal wealth will go toward good causes.

Persons: Warren Buffett, Buffett, hadn't, —, Tally, Melinda Gates, Susan Thompson Buffett, Howard G, Bill Gates, Buffett's, He's, hasn't, Elon Musk, he's Organizations: Berkshire Hathaway, Service, Berkshire, Melinda Gates Foundation, Susan Thompson Buffett Foundation, Sherwood Foundation, Buffett Foundation, Novo Foundation, Microsoft, SpaceX, Bloomberg Locations: Berkshire

☆ 'Shark Tank' star Barbara Corcoran praises Donald Trump's selling skills, shrugs off recession fears, and warns of AI fallout in a new interview. Here are the 12 best quotes.
▼ + stars: | 2023-06-17 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +5 min

Barbara Corcoran praised Donald Trump's selling skills and championed real-estate investing. The "Shark Tank" star advised young people to try employment before starting a company. (Corcoran said that besides her Shark Tank investments, she puts all of her money into real estate, and that's why she's become rich.) "Investing in real estate is a wonderful magic trick. "On 'Shark Tank,' I never invest in kids that have money.

Persons: Barbara Corcoran, Donald Trump's, —, Corcoran, Kevin, he's, Donald Trump, she's, It's, I've, They've Organizations: Service, The Corcoran, YouTube

☆ The stock rally will end soon, recession will hit, and the Fed won't hike interest rates again, markets guru Jeremy Siegel predicts
▼ + stars: | 2023-06-14 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Jeremy Siegel is wary of stocks, expecting a recession, and predicting the Fed won't hike again. The retired Wharton professor doubts the stock market will keep surging or hit a new low. Siegel sees a mild recession and the Fed ending its war on inflation to minimize job losses. While the Fed is widely expected to lift rates next month, Siegel suggested it might refrain fom tightening its monetary policy anymore. The markets guru also suggested the Fed might raise its inflation target from 2% to 3% once the current threat fades.

Persons: Jeremy Siegel, Wharton, Siegel, —, WisdomTree Organizations: Service, Federal, Federal Reserve

☆ Jeff Bezos bought Amazon stock for the first time in more than 2 decades. He may be engaging in Elon Musk-style trolling.
▼ + stars: | 2023-06-12 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

In a surprising move, Jeff Bezos bought a single share of Amazon for about $115 in late May. Amazon stock has surged 47% this year, boosting the market capitalization of the ecommerce and cloud-services giant to $1.3 trillion. Bezos' recent purchase is notable because he's overwhelmingly been a seller of Amazon stock in the past 20 years. A broader rally of Big Tech stocks has lifted Amazon shares this year, as investors wagered that leading US tech companies would profit from the artificial-intelligence boom. Bezos' stock purchase was disclosed in an SEC filing on May 26 but has attracted fresh attention in recent days following a Bloomberg report.

Persons: Jeff Bezos, Bezos, hasn't, —, Elon, Elon Musk, Musk, he's Organizations: Elon, Service, Securities and Exchange, SpaceX, Weed, Twitter, Bloomberg, Origin, Big Tech, SEC

☆ Ray Dalio shares career lessons, big mistakes, and key investing principles in a new MasterClass. Here are the 16 best quotes.
▼ + stars: | 2023-06-10 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +6 min

Ray Dalio reflects on his career and lays out his investing philosophy in a new MasterClass episode. Dalio is the billionaire founder of the world's largest hedge fund, Bridgewater Associates, and the author of "Principles" and "Principles for Dealing with the Changing World Order." Here are Dalio's 16 best quotes from his MasterClass episode, lightly edited for length and clarity:1. (Dalio was describing how much money an everyday investor should keep in the safest of their portfolios." "The way that you play the game is first to know what you know, and know what you don't know.

Persons: Ray Dalio, —, he's, Dalio, Nixon, Roosevelt, it's, we've, you've, they've Organizations: Bridgewater, Olympics, Navy, Service, Bridgewater Associates Locations: Mexico

☆ Taylor Swift, Warren Buffett, and Elon Musk: an elite investor isn't shy of name-dropping to promote a niche type of fund
▼ + stars: | 2023-06-09 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Discounted closed-end funds aren't exactly the most headline-grabbing part of Wall Street. The elite investor also mentioned Elon Musk while explaining his fondness for these niche funds. "The majority of Warren Buffett's holdings when he was about to enter that class were discounted closed-end funds," Weinstein said. "In closed-end fund arbitrage, you can actually control your destiny," he said. Weinstein's firm takes activist positions in closed-end funds run by BlackRock and other big asset managers.

Persons: Boaz Weinstein, Taylor Swift, Warren Buffett, Elon Musk, —, Scott, Weinstein, Benjamin Graham's, Warren Buffett's, Elon, Buffett, Ed Thorp, Warren Organizations: Service, Saba Capital Management, Bloomberg, Berkshire Hathaway, SpaceX, Twitter, BlackRock Locations: Wall

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