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☆ Despite Stock Market Hopes, China's Stimulus Plan Won't Fix Economy
▼ + stars: | 2024-09-29 | by ( Linette Lopez | ) www.businessinsider.com time to read: +7 min

Homebuyers can also now put less money down on their purchases — an attempt to breathe life into China's moribund property market. Since the pandemic, China's leader, Xi Jinping, has done little to stop the bleeding in the country's property market or to get China's ailing consumers to start spending money again. Xi's Beijing lacks the will and the power to turn China's economy around. At the heart of its problems is a lack of consumer demand and a property market going through a deep, slow-moving correction. Plus, there's Xi, who seems fairly uninterested in restructuring the property market.

Persons: Gongsheng, Wall, Xi Jinping, China —, Goldman Sachs, —, Sam Altman, Genéralé, Michael Pettis, Xi doesn't, Friedrich Hayek, Xi Organizations: Beijing, People's Bank of China, People's Bank, Shanghai, Chinese Communist Party, Nasdaq, CCP, Peking University, Carnegie Endowment, European Union Locations: China's, China, Beijing, Austrian

☆ Why Nvidia stock could soar over 500% by the end of the decade, former consulting exec says
▼ + stars: | 2024-09-27 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

Nvidia could rocket another 545% by the end of the decade, Phil Panaro predicted. AdvertisementNvidia is headed for a meteoric run-up by the end of the decade, according to one former consulting exec. "Not to sound overconfident — it's actually inevitable provided that they can continue to make these chips," he later added of the firm's upside potential. Some strategists have been skeptical over Nvidia's rally, with the stock up a monster 2,733% over the last five years. "That's actually the best case for why it's actually going to go up.

Persons: Phil Panaro, Blackwell, —, Phil Panaro —, Jensen Huang, Panaro, Goldman Sachs, Morgan Stanley, — it's, That's, it's, haven't Organizations: Nvidia, Service, Boston Consulting Group, Goldman, Citigroup, Schwab Network, Blackwell, Big Tech, Fortune, Analysts, Nasdaq Locations: Web2

☆ Nvidia's days of absolute dominance in AI could be numbered because of this key performance benchmark
▼ + stars: | 2024-09-26 | by ( Emma Cosgrove | ) www.businessinsider.com time to read: +7 min

Liang told Business Insider he expects 90% of AI computing workloads will be in inference in the not-too-distant future. AdvertisementThat's why several startups are charging aggressively into the inference market — emphasizing where they might outperform the goliath in the space. Speed is an important factor when multiple AI models talk to each other and waiting for an answer can dampen the magic of generative AI. The number of tokens per second that can be consumed (when a prompt goes in) and generated (when a response comes out) is a common metric for AI computing speed. AdvertisementCerebras's AI chip is roughly size of a dinner plate.

Persons: —, Rodrigo Liang, Colleen Kress, workloads, Liang, Andrew Feldman, Bernstein, Colette Kress, Kress, Nvidia's, SambaNova, Anthropic's Claude, Nvidia isn't, Jensen, Dylan Patel, Patel Organizations: Service, Business, SambaNova Systems, Nvidia, ARM, AMD, o1, BI Locations: Artificialanalysis.ai, TCO

☆ Astronomers spot the most massive black hole jets ever observed
▼ + stars: | 2024-09-24 | by ( Ashley Strickland | ) edition.cnn.com time to read: +10 min

CNN —Astronomers have observed a massive pair of jets releasing from a supermassive black hole 7.5 billion light-years from Earth. The megastructure spans 23 million light-years in length, making these black hole jets the largest ever seen, according to new research. Black hole jets can accelerate radiation and particles close to the speed of light, causing them to glow in wavelengths visible to radio telescopes. The massive black hole jets could help answer both. Martijn Oei (pictured), lead author of the new study, and his colleagues will continue their search for massive black hole jets.

Persons: Martijn Oei, ” Oei, Europe’s, Oei, “, Aivin Gast, Gast, LOFAR, “ Aivin, Porphyrion, NASA's, Powell, Nelson, Martin Hardcastle, Sasha Tchekhovskoy, ”, Tchekhovskoy Organizations: CNN —, California Institute of Technology, Astrophysics, University of Oxford, NASA, JPL, Caltech, CNN, Keck, NASA's Goddard, University of Hertfordshire, Northwestern University Locations: India, Hawaii, England

☆ The US' top supplement expert takes 3 —but only when he's busy. They boost his health and help him recover post-workout.
▼ + stars: | 2024-09-24 | by ( Kim Schewitz | ) www.businessinsider.com time to read: +5 min

He told Business Insider he's not anti-supplement, but takes a food-first approach to his health. "I do feel that my diet provides an adequate amount of the important nutrients in order to meet requirements and maintain my health. So I don't see a need right now for dietary supplements," Pasiakos said. PIXNIOFiber supplementPasiakos sometimes takes a fiber supplement, such as psyllium husk or inulin, when he's traveling. He's not picky about the type of protein supplement and said that whey protein, pea protein, plant protein, and even a glass of milk will suffice.

Persons: —, Stefan Pasiakos, Pasiakos, there's, he's, He's Organizations: Service, National Institutes of Health, Business, Columbia University and Brigham, Women's, US Preventive Services Task Force, National Cancer Institute, Mayo Clinic

☆ Why Nvidia stock is surging, and the lesson to be learned from Home Depot's rally
▼ + stars: | 2024-09-24 | by ( Jeff Marks | ) www.cnbc.com time to read: +5 min

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.

Persons: Jim Cramer, we've, Jensen Huang, Huang, Oppenheimer, –, We've, Cintas, Jim Cramer's, Jim Organizations: CNBC, China, Tech, Nvidia, Devices, Broadcom, Jim Cramer's Charitable

☆ Park your cash in these 3 places to get higher yields than money-market funds as interest rates fall, according to Goldman Sachs
▼ + stars: | 2024-09-22 | by ( Christine Ji | ) www.businessinsider.com time to read: +6 min

3 trades for falling interest ratesFor investors concerned about the yield on their cash, one solution might be ultrashort bond funds. In the last 12 months, ultrashort bond funds have materially outperformed taxable money market funds, returning an average of 6.36% compared to 5.09% for money markets, according to Morningstar. McCarthy recommends investing in a mix of ultrashort securities such as investment-grade corporates, asset-backed securities, and government securities for diversification purposes. AdvertisementThe Nuveen Ultrashort Income ETF (NUSB) and the Goldman Sachs Access Ultrashort Bond ETF (GSST) are examples of ultrashort bond funds. Investors can gain exposure to premium income funds through the SPDR SSGA US Equity Premium Income ETF (SPIN) and JPMorgan Equity Premium Income ETF(JEPI).

Persons: —, Scott Diamond, Brendan McCarthy, Goldman Sachs, Morningstar, McCarthy, Diamond Organizations: Service, Federal Reserve, Equity, Business, Goldman Sachs Asset Management, Bond, Bond ETF, JPMorgan Ultrashort, Investors, JPMorgan Equity Locations: Treasurys

☆ Warren Buffett's death plan dodges taxes and will make his kids 'philanthropic titans,' says wealth inequality guru
▼ + stars: | 2024-09-19 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

This story is available exclusively to Business Insider subscribers. On the positive side, he's not creating private wealth dynasties. But his children will become philanthropic titans by wielding taxpayer-subsidized private power through enormous charitable foundations upon his death. A progressive annual wealth tax, with rates becoming steeper as wealth goes above $1 billion. A cap on the charitable deduction so that wealthy people, like Buffett, don't get to opt out entirely of paying taxes.

Persons: —, Warren Buffett, Berkshire Hathaway, he's, Chuck Collins, Buffett, Collins, Bill Gates, don't Organizations: Service, Business, Institute for Policy Studies, Berkshire Locations: Berkshire

☆ The Fed’s long-awaited rate cut is colliding with presidential politics
▼ + stars: | 2024-09-18 | by ( Kayla Tausche | ) edition.cnn.com time to read: +7 min

Vice President Kamala Harris called the rate cut “welcome news,” while former President Donald Trump suggested, without evidence, that the decision could be politically motivated. With less than 50 days until Election Day, another question has emerged: Will the rate cut matter to voters? In fact, they already have – mortgages are based on bond yields, which have fallen in recent weeks in anticipation of a rate cut. Harris responded to the rate cut by saying she’s focused on bringing down prices. This story has been updated with reaction to the Fed’s rate cut announcement.

Persons: Biden, Joe Biden, Ukraine —, ’, —, “, ” Biden, Kamala Harris, ”, Donald Trump, Zoila Sanchez, CNN’s John King, ” Sanchez, King, ” Homebuyers, Powell, Jason Furman, Barack Obama’s, “ It’s, ” Furman, George H, Bush, Bill Clinton’s “, –, Clinton, Aaron Klein, ” Klein, Harris, she’s, Trump, they’re, ” Trump, Steve Moore, Powell sanctimoniously, ” Moore, ” Powell, Moore Organizations: CNN, Reserve, White House, Economic, of Washington, Financial, St, Louis Federal Reserve, Brookings Institution, “, Biden, Fed, SPAN Locations: trillions, Ukraine, Nevada, New York

☆ Harris wants to limit child care costs to 7% of family income
▼ + stars: | 2024-09-18 | by ( Tami Luhby | ) edition.cnn.com time to read: +5 min

Harris responded that she’d cap child care costs at 7% of working families’ income, following the Biden administration playbook that she was heavily involved in writing. “My plan is that no family, no working family, should pay more than 7% of their household income in child care,” Harris said Tuesday at a National Association of Black Journalists event, noting that steep child care expenses make it difficult for many parents to work. Child care advocates were buoyed by Harris’ answer on Tuesday. Parents with two kids in a child care center paid on average at least twice as much for that care as they did for the typical rent in 11 states and the District of Columbia in 2023, according to a Child Care Aware of America report released in May. That equates to 10% of median household income for a married couple with children and 32% of median income for a single parent with children, Child Care Aware found.

Persons: Donald Trump, Sen, JD Vance, Kamala Harris, Harris, Biden, playbook, ” Harris, Joe Biden’s, ”, Harris ’, Melissa Boteach, ” Boteach, Trump, Vance, Charlie Kirk, you’re Organizations: CNN, National Association of Black Journalists, Congressional, Office, Department of Health, Human Services, National Women’s Law, District of Columbia, Nationwide, Economic, of New Locations: trillions, of New York, Arizona

☆ Why Trump’s trade hero turned against tariffs
▼ + stars: | 2024-09-14 | by ( Zachary B. Wolf | ) edition.cnn.com time to read: +15 min

Vice President Kamala Harris has lambasted Trump’s tariff plan as a tax, but President Joe Biden has maintained tariffs Trump put in place during his presidency. We used trade policy, or tariffs, as a form of reciprocity, where we said, OK, our tariffs are pretty high. So that’s what led to all these trade agreements, the General Agreement on Tariffs and Trade, GATT, which became the WTO (World Trade Organization), NAFTA (North American Free Trade Agreement) and other free trade agreements that we’ve reached. He began to entertain this idea of reciprocity, of trying to reduce foreign tariffs by offering cuts in our tariffs. How do those tariffs compare with the late 19th century tariffs?

Persons: CNN —, Donald Trump, Kamala Harris, Joe Biden, Biden, Read, Douglas Irwin, Irwin, William McKinley —, Trump, IRWIN, there’s, It’s, we’ve, William McKinley WOLF, William McKinley, McKinley, they’ve, Bush, H.C ., William Jennings Bryan, that’s, they’re, it’s, Britain WOLF Organizations: CNN, Republicans, Democrats, Trump, Dartmouth College, Commerce, US Trade, Trade, WTO, World Trade Organization, American Free Trade, of Congress, University, Virginia’s, Federal, WOLF, Peterson Institute for International, Republican Party Locations: China, Ohio, Pennsylvania, Homestead , Pennsylvania, H.C, Buffalo, trillions, United States, it’s China, Britain, Japan

☆ Harris' rise in polls sparks wave of wealth transfers to kids
▼ + stars: | 2024-09-13 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

If it expires, the estate and gift tax exemption will fall by about half. The tightening presidential race has touched off a wave of tax planning by ultra-wealthy investors, especially given fears of a higher estate tax, according to advisors and tax attorneys. With Harris and Trump essentially tied in the polls, the odds have increased that the estate tax benefits will expire — either through gridlock or tax hikes. The biggest question facing wealthy families is how much to give, and when, in advance of any estate tax change. If they do nothing, and the estate exemption drops, they risk owing taxes on estates over $14 million if they die.

Persons: Robert Frank, Donald Trump, Kamala Harris, Harris, Trump, Pam Lucina, Lucina, Mark Parthemer, it's, Parthemer Organizations: Democratic, Republican, Northern Trust Locations: Florida, Glenmede

☆ The US will enter a mild recession as the economy deflates after its boost from unproductive stimulus cash, former Commerce Secretary says
▼ + stars: | 2024-09-13 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Read previewThe US is moving toward a recession, as the economy is feeling the comedown after trillions of "unproductive" cash was pumped in during the pandemic, according to former Commerce Secretary Wilbur Ross. AdvertisementBut most of the stimulus cash wasn't deployed productively, Ross said, pointing to Americans who "immediately spent" their checks in a wild shopping spree. Related storiesStrength in the labor market was also partly distorted by stimulus cash, he suggested. Hiring has steadily slowed over the past year, with the unemployment rate triggering one long-running recession indicator with a perfect track record. Most economists still agree that the economy remains on solid footing, given the rapid pace of growth and historically low unemployment rate.

Persons: —, Wilbur Ross, Trump, Ross Organizations: Service, Commerce, Bloomberg, Business, Conference, Investor

☆ Senate debates taxes ahead of Trump’s 2025 expirations. It's a ‘make-or-break moment,' lawmaker says
▼ + stars: | 2024-09-12 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

With trillions in tax breaks scheduled to expire after 2025, lawmakers are debating policy priorities that could impact millions of families and small businesses. Enacted by former President Donald Trump in 2017, the Tax Cuts and Jobs Act, or TCJA, made sweeping tax changes, including temporary provisions that will sunset after 2025 without action from Congress. Some of the expiring TCJA provisions include lower federal income tax brackets, bigger standard deductions, a more generous child tax credit, higher gift and estate tax exemptions and a 20% tax break for pass-through businesses, among others. "This will be a make-or-break moment for the federal budget and for America's middle class," Senate Finance Committee Chairman Ron Wyden, D-Ore., said in a prepared statement at a Senate hearing on Thursday. In the meantime, lawmakers and organizations are voicing support for certain tax issues before the 2025 deadline.

Persons: Donald Trump, Ron Wyden, — Organizations: Finance, Tax, White House

☆ Saudi Arabia's Neom project devolved into a wrestling match between bosses, report says
▼ + stars: | 2024-09-11 | by ( Tom Porter | ) www.businessinsider.com time to read: +1 min

A new report details chaos and feuds among bosses working on the Saudi Arabian Neom project. The Wall Street Journal said two people working on the project got into a physical fight. Saudi Arabia is plowing trillions of dollars into building the Neom megacity. Go to newsletter preferences Thanks for signing up! AdvertisementA dispute between a Neom executive and construction manager degenerated into a physical brawl, according to a report by The Wall Street Journal.

Persons: —, Antoni Vives Organizations: Street Journal, Service, Wall Street, Business Locations: Saudi Arabian, Saudi Arabia, Spain

☆ How Saudi Arabia's ruler used chaos in the Middle East to get what he wants from the US
▼ + stars: | 2024-09-10 | by ( Tom Porter | ) www.businessinsider.com time to read: +8 min

Read previewPresident Joe Biden came to power having pledged to make Saudi Arabia's maverick new ruler, Mohammed bin Salman, a global pariah. Analysts say that MBS has navigated increasing regional and global chaos to emphasize Saudi Arabia's importance to Washington. Related storiesUS President Joe Biden gives a fist bump to Saudi Crown Prince Mohammed bin Salman in 2022. AdvertisementSaudi Arabia's importanceBut global instability, economic change, and the war in Gaza have made clear to the White House Saudi Arabia's indispensability. Crown Prince Mohammed has condemned Israel's attack on Gaza but has not ruled out a normalization deal with Israel.

Persons: —, Joe Biden, Mohammed bin Salman, Biden, Kamala Harris, Prince Mohammed, Crown Prince, Jamal Khashoggi, Giorgio Cafiero, Prince Mohammed bin Salman, Mohammed bin Salman's, Saad Hariri, Khashoggi, He's, Mohammed Hamoud, Trump, Abraham, Israel, Jon Alterman Organizations: Service, Business, Crown, Democratic, MBS, Saudi, Gulf, Analytics, Saudi Arabia's, Royal, Anadolu Agency, White, White House Saudi, Abraham Accords, Israel, Center for Strategic, International Studies Locations: Saudi, November's, Saudi Arabia, Yemen, Istanbul, Washington, Gaza, Israel, Iran, West, Riyadh, Lebanese, Russia, China, Beijing, Ukraine, UAE, Bahrain, Palestinian, United States, Red, Jeddah

☆ Trump tax cuts expire after 2025. Here's how the presidential election could affect your taxes
▼ + stars: | 2024-09-09 | by ( Charlotte Morabito | In Charlottemorabito | ) www.cnbc.com time to read: +1 min

With the presidential election approaching, experts are sounding alarms about the upcoming expiration of the 2017 Tax Cuts and Jobs Act, or TCJA. Without action from Congress, trillions in tax breaks enacted by former President Donald Trump via the TCJA will expire after 2025. "If the 2017 tax cuts are allowed to expire after 2025, about 62% of taxpayers would see their tax bills go up," said Erica York, senior economist and research director at the Tax Foundation. "That's because the TCJA provided tax cuts for the vast majority of taxpayers." Both Trump, the Republican presidential candidate, and Vice President Kamala Harris, the Democratic candidate, have called for tax changes that could affect millions of Americans.

Persons: Donald Trump, Erica York, Kamala Harris, Stephen Moore, Trump, Harris Organizations: Tax, AP, Trump, Republican, Democratic, CNBC, White

☆ The Trump policy that freaks out economists the most
▼ + stars: | 2024-09-05 | by ( Matt Egan | ) edition.cnn.com time to read: +9 min

New York CNN —Former President Donald Trump wants to spend trillions of dollars on tax cuts. “It’s enormously protectionist and terrible economic policy,” said Holtz-Eakin, who served as an economic adviser to former President George H.W. The cost of the Trump tax cutsTrump has called for extending his signature 2017 tax cuts, which expire next year if no action is taken by Congress. Trump has argued that extending the tax cuts will boost the economy, create jobs and help families. The Trump campaign has not detailed significant spending cuts or tax hikes to offset these tax cuts.

Persons: Donald Trump, Trump, Goldman Sachs, Kamala Harris, Goldman, “, ” David Kelly, Kelly, “ It’s, ”, ’ Trump, Douglas Holtz, Eakin, Holtz, George H.W, Bush, GOP Sen, John McCain, Mark Zandi, ” Zandi, Karoline Leavitt, they’ll, ” Leavitt, Trump’s, ” Harris, “ Donald Trump, ” Brian Nelson, Harris, Kimberly Clausing, Mary Lovely, ” Trump, Joe Biden, Penn, Penn Wharton, The Trump, CNN’s Katie Lobosco Organizations: New, New York CNN, Asset Management, CNN, America, New York Economic Club, American, GOP, Moody’s, Trump, Peterson Institute for International Economics, Peterson Institute, US Customs, Louis Federal Reserve, Biden, Congress, Princeton University, University of Chicago, Harvard University, US Treasury Department, Penn Wharton Model, Social Security Locations: New York, United States, China, America

☆ Meet the 'silver squatters': Adults in their mid-50s who are woefully unprepared for retirement
▼ + stars: | 2024-08-24 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +7 min

Thomas is among what retirement experts are calling "silver squatters" — adults in their mid-50s who are even more woefully unprepared than some boomers, despite being about a decade away from retirement. This group of Gen Xers — the generation of Americans aged 43 to 59 — largely expects to postpone or work past their retirement. AdvertisementA majority also don't expect to receive any inheritance, despite their boomer predecessors holding onto trillions in wealth. The gap in retirement readiness could be due to the "unique" challenges of Gen Xers, according to Dylan Tyson, the head of retirement strategies at Prudential. Around half of Gen Xers are saving without a general plan for retirement, Prudential found.

Persons: Jim Thomas, he's, Thomas, He's, Pete Welch, Gen Xers, they'll, René, We're, Xers, Dylan Tyson, Inspira's Welch, there's, Welch, Tyson, expectancies, undersaved — Organizations: Service, Business, Social Security, Prudential Financial, Inspira, Prudential Locations: Austin , Texas

☆ With ‘Cancer Moonshot’ announcement, Biden turns to causes most important to him in final months in office
▼ + stars: | 2024-08-13 | by ( Kayla Tausche | ) edition.cnn.com time to read: +8 min

On Tuesday, Biden highlighted $150 million in new research awards to eight organizations, including $23 million to Tulane University, the backdrop for the announcement. I know we can, but it’s not just personal — it’s about what’s possible,” Biden said Tuesday. And the White House will also look to ramp up its diplomatic engagement with India, an ally that has become a critical partner to the US in countering China’s aggression in the region. “We want to create a more prosperous and secure Indo-Pacific and the world,” White House press secretary Karine Jean-Pierre said. Implementation awaitsDomestically, the White House remains focused, first and foremost, on getting money out the door and shovels in the ground on Biden’s signature legislative measures.

Persons: Joe Biden’s, Beau Biden’s, Biden, “, it’s, ” Biden, Kamala Harris –, Harris, Moonshot, Beau Biden he’d, ’, you’ll, ”, –, Jeff Zients, Russia’s Vladimir Putin, Xi, Karine Jean, Pierre said, Zients, Natalie Quillian, Tom Vilsack, ” Vilsack, CNN’s Samantha Waldenberg Organizations: CNN, Tulane University, Biden, CBS News, White, US, Infrastructure Investment, Jobs, The Commerce Department, Treasury Department, Agriculture, Department of Agriculture Locations: Pennsylvania, North Carolina, United States, Brazil, India

In the United States the atomic bombs signaled military victory. In the United States the atomic bombs signaled military victory. They are the surviving victims of the American atomic bomb attack 79 years ago. A view across the Motoyasu River of the Atomic Bomb Dome in Hiroshima. Countries like the United States, China and Russia are spending trillions of dollars to modernize their stockpiles.

Persons: Gallup, — Organizations: Red, Smithsonian Locations: United States, Japan, Hiroshima, Nagasaki, United, China, Russia

☆ At a Mountain Retreat, Wine, Lamb Kebabs and Lots of Climate Talk
▼ + stars: | 2024-08-02 | by ( Max Bearak | Nanna Heitmann | ) www.nytimes.com time to read: 1 min

A few days ago, at an ornate hilltop hotel in Azerbaijan’s wine country with panoramic views of the Caucasus foothills, the world’s top climate diplomats debated how to marshal whopping amounts of money to fight global warming and compensate poor and vulnerable countries that suffer its worst effects. “Some say single-digit trillions. Some say double-digit,” said Yalchin Rafiyev, Azerbaijan’s chief climate negotiator. The meeting was a pre-meeting, of sorts, for the main event: November’s United Nations sponsored climate negotiations, known as COP29, to be held in the seaside capital, Baku, a few hours away. At previous summits, the world’s nations had struggled to agree on a seemingly basic premise in the fight against climate change, namely that humanity’s reliance on fossil fuels must be curbed as quickly as possible.

Persons: ”, Yalchin Rafiyev Organizations: November’s United Locations: Azerbaijan’s, Caucasus, November’s United Nations, Baku

☆ To woo investors, hedge funds are reviving a strategy left for dead post-crisis — supercharged index investing
▼ + stars: | 2024-08-01 | by ( Alex Morrell | ) www.businessinsider.com time to read: +12 min

Read previewFaced with higher rates and a daunting fundraising climate, hedge funds are wooing investors with a seemingly antithetical pitch: index investing with a twist. Hedge fund industry insiders are abuzz right now about "portable alpha," a blast-from-the-past strategy that's undergoing a revival. According to the Morgan Stanley white paper, it can take on a variety of forms, including "dedicated portable alpha funds, portable alpha share classes, portable alpha feeder funds and other solutions." Advertisement"It's a nice way of smuggling hedge funds into your portfolio if you're an allocator," said Jon Caplis, CEO of hedge fund research firm PivotalPath. He said much of the industry still hasn't woken up to the appetite for portable alpha solutions and the potential boon to hedge funds.

Persons: —, punchier, Kim Shaw, Morgan Stanley, There's, Shaw, Penny Novick, Morgan, Novick, Bill Gross, Myron Scholes, PIMCO's, Roark Stahler, Jon Caplis, Russell, PIMCO, Sabrina Callin, Brian Payne, Payne, Caplis, hasn't Organizations: Service, Trading, Business, Man, CME Group, BlackRock, Barclays, Russell Investments, Institutional, State, Investor, BCA Research, Teachers, Investors Locations: Winton, American, Illinois

Elijah Nouvelage | Afp | Getty ImagesHow the LIFT Act could look todaySince the LIFT Act was first proposed in 2018, the cost of living has only skyrocketed, hitting working-class Americans especially hard. However, funding such a tax credit now could be tough amid growing concerns over the federal budget deficit. The advantage of the LIFT tax credit, said D'Acunto, is that it doesn't create the same market distortions the rent cap would ignite. Child tax credit is a 'huge priority' for DemocratsLIFT was first proposed years before Congress temporarily expanded the child tax credit during the Covid-19 pandemic, which could now be a bigger priority, experts say. Harris described the child tax credit changes as one of the "most important" and "most impactful" parts of the legislation in a 2021 speech.

Persons: Kamala Harris, Elijah Nouvelage, Tomas Philipson, Joe Biden's, Laura Veldkamp, Harris, Donald Trump, Francesco D'Acunto, Biden, Karl Widerquist, Jacob Channel Organizations: Democratic, Afp, Getty, White House Council, Economic Advisers, CNBC, Columbia University Business School, Georgetown University, D'Acunto, Federal, Plus, American Rescue Plan, Columbia University, . Census Locations: Atlanta , Georgia, Atlanta

☆ These income plays could do better than money market funds when the Fed cuts rates
▼ + stars: | 2024-07-31 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +5 min

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

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