Russell 2000 Index (RUT) hits an almost one-month high
by ValueWalk - February 13th, 2020 7:04 pm
By Gorilla Trades. Originally published at ValueWalk.
Ad the Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, commenting on today’s trading Gorilla Trades strategist Ken Berman said:
Q4 2019 hedge fund letters, conferences and more
Russell 2000 Index (INDEXRUSSELL: RUT) Outperforms Large-Cap Benchmarks
While the overnight session was nothing short of scary stocks held on to most of yesterday’s gains and small-caps even extended their winning streak. The Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, finishing higher for the fourth day in a row while outperforming the large-cap benchmarks, and since the Volatility Index (INDEXCBOE: VIX) also remains low, investors still seem to be hungry for risk.
The major indices all finished slightly lower following yesterday’s record-breaking session, as the resurfacing coronavirus-related worries halted the bullish stampede on Wall Street. The Dow Jones Industrial Average (INDEXDJX:.DJI) was down 128, or 0.4%, to 29,423, the Nasdaq (INDEXNASDAQ:.IXIC) lost 14, or 0.1%, to 9,712 while the S&P 500 (indexsp:.inx) fell by 6, or 0.2%, to 3,374. Advancing issues outnumbered decliners by a less than 5-to-4 ratio on the NYSE, where volume was slightly above average.
Looking at the key sectors, the signs of the sudden overnight risk-off shift are clear despite the intraday rally. The defensive utilities sector was the strongest while energy-related issues suffered, as it has been the case ever since the start of the outbreak. Industrials and healthcare stocks were also under pressure, with consumer goods, tech stocks, financials, and services breaking even. The dollar continued its relentless rally amid the fears of a deep slowdown in China, and the currency finished in the green for the eights time out of nine sessions.
Stocks Recover From An Overnight Selloff
Although stocks quickly recovered from the overnight selloff on Wall Street, the intraday rally in the RUT ran out of steam in the afternoon. That said, since the major indices all closed at record levels yesterday, today’s flat session left the strong bullish trend intact. While China’s ‘new method’ of reporting coronavirus cases shook investors’ confidence with regards to the containment of the epidemic, there are still only a few cases outside the Asian country.
The market-leading tech sector could get an early boost tomorrow as…
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Retail deposit interest rates show downward trend
by ValueWalk - February 13th, 2020 4:29 pm
By Anna Peel. Originally published at ValueWalk.
The pan-European deposits platform Raisin regularly publishes the Raisin Interest Rate Radar to assess the ongoing effect of the ECB (European Central Bank) rate policy and other factors on depositors throughout Europe. The data released by the ECB in January reflected rates up until two months prior to the release (November 2019). Further, Raisin does its own data collection and analysis to compare the top available rates and top rates from big banks in markets across Europe and the UK.
Q4 2019 hedge fund letters, conferences and more
More banks will pass on negative interest to depositors, following ECB’s decision to leave low rates in place
The European Central Bank will focus over the next year on performing a deep review of ECB policy stances, with a view to shaping a new approach to meet the coming decades. With ECB president Christine Lagarde’s announcement last month that the central bank sees no rate hikes or major policy shift on the immediate horizon, bank heads have begun to speak more forthrightly on the fix they see themselves put in.
This is particularly noticeable in Germany, where rates have been punishingly low on the largest banking market in continental Europe. An increasing number of banks in Germany and the Netherlands have announced that they will be passing negative rates on to retail customers for the first time. Spanish private banking clients have also already begun facing negative rates on their deposit holdings.
Meanwhile 2019 ended with disappointing European economic data and the occurrence at last of Brexit appears to have dampened the UK economy.
Europeans have already lost 350 billion EUR
A new study from German financial news portal Franke Media indicates that since 2011 Europeans have lost upwards of 350 billion EUR due to the sustained period of low interest. In 2019 their data suggest that those in the Benelux countries, Germany, and Austria suffered the most, losing more than 350 EUR per person on average. In Spain, France, and Ireland, the study shows the average saver to have lost between 130 and 180 EUR to low interest rates.
The ECB’s recent data on retail and corporate rates continues…
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Financial Planning When Starting A Family
by ValueWalk - February 13th, 2020 3:48 pm
By Eric Dostal, J.D., CFP® and Grant Ruder, CFP®. Originally published at ValueWalk.
Planning for significant life transitions is central to financial planning. As recent first-time parents, we can say with confidence that there may be no greater transition in life than starting a family.
Like any new phase of life, this transition brings along an infinite number of decisions and items to remember. Both before the baby arrives and, in the weeks, months, and years after, it can be helpful to understand and plan for some of the financial challenges that lie ahead. Coming from the perspective of both financial advisors and new parents, we’ve provided this checklist of some key financial considerations to keep you organized when having a baby.
Q4 2019 hedge fund letters, conferences and more
1. Get Started with Cash Flow Planning
Parents should plan for increased expenses associated with their new child, ideally several months in advance so they can adjust their cash flow and lifestyle before the child is born. For many parents, the most significant new cost will be childcare. Whether planning to use a daycare facility or a nanny, gathering cost estimates from multiple sources will help you plan accordingly.
Parents may also want to see if their employer offers a Dependent-Care Flexible Spending Account (DCFSA), through which you can set aside pre-tax dollars (up to $5,000 per year for those married filing jointly or as head of household) to cover the cost of dependent care. For households that may be considering one working parent, not only should you plan for the reduced income, but also consider the potential impact to employer benefits.
Another important cost to factor into your cash flow plan is healthcare, which will be covered in more detail later. If both parents are working, it is wise to carefully review each of your employer’s benefits, including healthcare plans, to see which plan is most advantageous for the delivery and ongoing care of your child.
With an overall increase in living expenses, an emergency fund is more important than ever, so if you haven’t already established one now is the time to do so. We typically recommend keeping between 3-6 months’ worth of cash reserves on hand in an easily accessible place – this could be in your checking account (if…
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How Much Do Average Users Spend On Marijuana?
by ValueWalk - February 13th, 2020 2:43 pm
By Jacob Wolinsky. Originally published at ValueWalk.
Marijuana legalization in the U.S. has been a gradual process, but in legal states that have already made the jump, its effects on the economy have been anything but slow. Illinois most recently joined the list of legal states, and as more states follow suit, this status is also making them desirable tourist destinations. But, as it turns out, not all legal cannabis states are created equal in the eyes of tourists.
Q4 2019 hedge fund letters, conferences and more
Where The Cannabis Tourists Are Traveling
To shed some light on these trends, AmericanMarijuana.org surveyed people who planned trips to legal states to see where they’re traveling, what consumers are buying during these excursions, and how much they’re spending.
Colorado was the first state to legalize marijuana recreationally, and it holds the title as the most desirable state to visit for marijuana, too. Fifty-two percent of people named Colorado as their most desirable marijuana travel destination. Since legalization, people traveling out of state for recreational marijuana have made an average of 2.5 trips to the Centennial State.
California ranked second with about 33% of respondents dubbing it the most desirable cannabis destination, followed by Washington, Nevada, and Massachusetts.
Legalized cannabis appears to be a novelty for most visitors, as more than half of the 1,003 cannabis tourists surveyed originated from states where it isn’t legal recreationally. About 20% of travelers had a medical marijuana card as well.
Bud and Breakfasts
Dispensaries, tours, and 420-friendly hotels, often dubbed “Bud and Breakfasts,” are some of the more popular items to add to an itinerary during these trips. Thirty-eight percent of cannabis tourists even reported receiving a free sample, and they’ll visit an average of 2.7 dispensaries during their travels.
These trips aren’t cheap; many tourists may find themselves blowing the budget. While most people intended to spend an average of $208.08 at dispensaries, they actually end up spending $264.74.
Daily users usually spend more, buying an average of 31 grams per trip, which would cost about $434. Those who smoke a few times per week weren’t far behind; they buy an average of 30.6 grams per excursion. Even users who smoke only a few times per year still reported purchasing an average of 22.9 grams during…
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Gold price: per ounce, calculator, news and analysis
by ValueWalk - February 13th, 2020 2:28 pm
By Michelle Jones. Originally published at ValueWalk.
Fresh coronavirus fears boost the gold price
Feb. 13, 2020 Update: The flight to safety has begun a new as fears of the coronavirus have returned. Chinese health officials in Hubei province have changed the way they diagnose the illness, which has resulted in revised coronavirus numbers from the epicenter of the outbreak.
The number of new cases of the virus has increased sevenfold because of the change, reigniting concerns about the economic impact from it. The number of confirmed coronavirus cases increased 14,840, compared to an increase of only 1,638 the day before.
Chinese officials were requiring a positive lab test to confirm a patient as having the coronavirus. However, they have now expanded the definition to include a positive clinical test like via medical imaging. Data from a Hubei government website reveals that more than 13,000 of the new cases reported today in Hubei province were due to this loosening of the definition.
Other safe-haven assets, including the 10-year Treasury and the yen, all saw flows as sentiment shifted to risk-off. Edward Moya of OANDA also said some are concerned the trade war between the U.S. and China could flare up again if China fails to live up to its purchase commitments.
“Recession fears for China are likely to keep gold supported and wreak havoc with industrial metals,” he said in an email. “Copper prices are likely to fall under pressure and could remain stuck in at $5720-$5775 range until scientists are confident that the virus peak is nearing.”
Gold rises with equities
Feb. 10, 2020 Update: Gold prices ticked higher in morning trading today despite continued increases in the stock market. Fears about the coronavirus remain at the forefront of the markets today, supporting gold prices, although they aren’t quite serious enough to weigh on stocks yet.
The yellow metal continued to move higher, although data from the Commodity Futures Trading Commission shows that large speculators slashed their bullish positioning 17%. This could be good news for the gold market, however. According to Kitco, one bank said the lower level of bullish positioning means gold prices are less vulnerable to a large downside decline, which would happen if all the speculators started dumping the previous metal at the same time.
Saxo Bank strategists warned in a report on Friday that stock investors are underpricing the coronavirus risk…
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Senate Banking Committee move forward with banking reform: Activist
by ValueWalk - February 13th, 2020 2:17 pm
By Jacob Wolinsky. Originally published at ValueWalk.
Cannabis Industry Professionals Call on Senate Banking Committee Chairman to Move Forward with House-Approved Banking Reform
More than 1300 cannabis business owners, executives, and employees co-signed a letter to Sen. Mike Crapo urging him to support the SAFE Banking Act and hold a markup in the Senate Banking Committee
Q4 2019 hedge fund letters, conferences and more
Cannabis Industry Activist Send A Letter To Senate Banking Committee
WASHINGTON — A group of more than 1300 businesses and individuals involved in the state-regulated cannabis industry sent a letter to Senate Banking Committee Chairman Mike Crapo (R-ID) and key lawmakers with banking oversight urging him to hold a markup on the Secure And Fair Enforcement (SAFE) Banking Act and support the legislation as approved in the House last year. The bill would provide safe harbor for financial institutions to work with regulated cannabis businesses that are in compliance with state laws, addressing a number of public safety concerns and lack of access to capital for small businesses created by current federal restrictions. It currently has 33 cosponsors in the Senate, including five Republicans.
The House of Representatives passed the SAFE Banking Act by a vote of 321-103 in September, with 91 Republicans voting in favor. Chairman Crapo said he intended to have the bill considered in his committee, but also expressed concerns about the bill and other aspects of cannabis policy not related to banking. Those concerns were reflected in a memo he released in December that outlined proposed changes to the bill and requested public comment to inform his decision-making.
Awaiting For The Passage Of The SAFE Banking Act
“We are entrepreneurs who work in the cannabis industry or work in industries that support the cannabis industry,” the letter reads. “And we are writing because of the crucial importance of the passage of a bill that works for the small businesses that are helping this industry flourish in 33 states. We know from our personal experiences, and those of our customers, suppliers, and employees, that the SAFE Banking Act as passed by the House of Representatives is the right approach to secure banking and payment processing services. This is not a partisan issue, or a regional issue. We are…
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Wisdom From Charlie Munger’s 2020 Daily Journal Annual Meeting
by ValueWalk - February 13th, 2020 1:53 pm
By Jacob Wolinsky. Originally published at ValueWalk.
Whitney Tilson’s email to investors discussing notes from Charlie Munger‘s Daily Journal annual meeting; deep survival: who lives, who dies, and why.
2020 Daily Journal Annual Meeting
1) For more than 20 years, I’ve been attending the Berkshire Hathaway (BRK-B), Wesco, and Daily Journal (DJCO) meetings to hear Warren Buffett and Charlie Munger speak. I have never once regretted making the trip. These two are so wise and unique – and I love meeting and catching up with my friends and readers.
Q4 2019 hedge fund letters, conferences and more
Yesterday, I attended Munger’s Daily Journal annual meeting in Los Angeles, along with my analysts Alex Griese and Kevin DeCamp. We live-blogged it – read our notes here. In addition, CNBC livestreamed the event and posted it here.
Much of what Munger says is old-school – but, as he likes to joke, “If it’s trite, it’s right!” It’s truly amazing that, at 96 years old, he’s getting better with age. I cannot detect any sign that he’s slowing down mentally.
Since I’m now climbing in Yosemite (see further below), I asked Alex and Kevin to share their thoughts and highlights of the meeting. Take it away, gentlemen!
Alex Griese’s Comments
Yesterday was my first Daily Journal annual meeting, Wesco, or Berkshire meeting. I wish I had gone to one of these sooner, but I’m happy that I attended my first one at just 24 years old!
I had high expectations for the meeting, and yet I was totally blown away by Munger’s ability to field questions on a wide variety of topics – ranging from macroeconomics to psychology to value investing – for two hours. He hasn’t lost a step and continues to learn at a rapid rate at the spry age of 96. I really hope I’m as lucky as Munger, who has been able to work on his passion day in and day out for most of his career.
One of my favorite things about Munger is that he harps on the importance of being a multi-disciplinarian. This is one of the major reasons why I chose to attend a liberal arts college (coincidentally, the same school as two of Whitney’s daughters, Carleton College), and ultimately…
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Lawmaker targets California public pension fund CalPERS’ CIO
by ValueWalk - February 13th, 2020 1:42 pm
By Michelle Jones. Originally published at ValueWalk.
The CIO of California’s public pension fund, the largest in the U.S., is under fire for alleged ties with blacklisted Chinese companies. An Indiana congressman sent a letter about Meng to California Gov. Gavin Newsom about Yu Ben Meng, who heads up the California Public Employees Retirement System (CalPERS).
Lawmaker targets California public pension fund
In an interview with Fox Business’ Mornings with Maria, Rep. Jim Banks of Indiana said CalPERS has invested $3.1 billion in Chinese companies. The U.S. government has blacklisted some of those companies the fund has invested in, he added. He called Meng’s ties to these Chinese companies “suspicious.”
In his letter to Newsom, Banks said if it were up to him, he “would fire Mr. Meng immediately.” He also called for a “thorough investigation” of the California public pension fund CIO’s “relationship to the Chinese Communist Party.” He also suggested that the state compare CalPERS’ current investments in Chinese companies with the investments the fund held before Meng was hired in 2008.
Banks isn’t the only U.S. official to target Meng. U.S. Secretary of State Mike Pompeo told state governors on Saturday that California’s public pension fund “is invested in companies that supply the People’s Liberation Army that puts our soldiers, sailors, airmen and Marines at risk.”
Banks specifically mentioned Hikvision, which is one of CalPERS’ holdings. The company’s surveillance equipment is used in detention camps for Uighurs, a Muslim minority group in China. In his letter, he mentioned China Communications Construction Company, another CalPERS holding. The company has worked on the naval bases China has built in the South China Sea.
Meng’s history with CalPERS
Meng is a U.S. citizen, although he was born in China. He has worked for California’s public pension fund on two separate occasions. His first stint at CalPERS started in 2008, and his most recent time there began in January 2019 when he started serving as chief investment officer. He now manages $400 billion worth of investments, according to the pension fund’s website.
Between the two times he has worked at CalPERS, he spent three years as deputy chief investment officer for China’s State Administration of Foreign Exchange (SAFE). Banks cited an article from the People’s Daily newspaper’s website which stated that Meng was recruited to work at SAFE through China’s Thousand Talents Program (TTP).
According…
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Rotunno, Havery Weinstein attorney attacked for “victim blaming”
by ValueWalk - February 13th, 2020 1:21 pm
By JOHN F. BANZHAF. Originally published at ValueWalk.
Weinstein Attorney Donna Rotunno Attacked Unfairly for “Victim Blaming”; But Reprehensible Conduct Isn’t Rape, and Questioning Motives is Fair
WASHINGTON, D.C. (February 13, 2020) – Donna Rotunno, the attorney representing Harvey Weinstein in his criminal trial in New York, has been attacked by many for “blaming the victim” over the alleged sexual assaults to which they testified because of her vigorous cross examination, and also because of her answer to an interview question, notes public interest law professor John Banzhaf, who has won more than 100 legal actions protecting the rights of women, and is a leading analyst regarding alleged date rape claims.
Q4 2019 hedge fund letters, conferences and more
Asked by an reporter whether she herself had ever experienced a sexual assault, Rotunno replied: “I have not . . . because I would never put myself in that position.”
Rotunno On If She Had Never Been Assaulted
Asked as a followup whether she had never been assaulted “because you would never put yourself in the position of being sexually assaulted?” Rotunno replied, “No, I’ve always made choices from college-age on where I never drank too much, I never went home with someone I didn’t know, I just never put myself in any vulnerable circumstance.”
But in many rape trials, judges will provide the jury with mandatory instructions which essentially say that: (1) rape is a charge that is easily made by the victim, (2) rape is a charge that is difficult for the defendant to disprove, and (3) the testimony of the victim requires more careful scrutiny by the jury than the testimony of the other witnesses in the trial.
So when there is no direct evidence of the alleged rape, and especially whether the complainant in fact clearly conveyed her lack of consent at the time, it is entirely appropriate – indeed, probably a professional obligation – for a defense attorney to carefully cross examine complainants’ claims with vigorous cross examination questioning their motives, and the veracity of their testimony, and also by introducing other evidence suggesting that the alleged victims may not have resisted the claimed sexual acts.
The Crime Of Rape And Criminal Sexual Assault
Banzhaf notes that, in New York, the crime of rape in the first…
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Tesla stock shrugs off the latest equity offering
by ValueWalk - February 13th, 2020 12:37 pm
By Michelle Jones. Originally published at ValueWalk.
Tesla Inc. (NASDAQ:TSLA) announced plans for a $2 billion stock offering today — only two weeks after CEO Elon Musk said they had no plans for another capital raise any time soon. Initially, Tesla stock tumbled as much as 7% before opening bell, but after the markets opened, it shrugged off the new offering and climbed nearly 3% by midday.
New capital raise announced
Two weeks ago with their fourth-quarter earnings report, Musk said it wouldn’t be practical for the automaker to raise funds. Tesla has become profitable, and even more than what analysts had been predicting.
He also said two weeks ago that the company could fund itself without needing any help from Wall Street. Musk also said they had been sensible with their spending without holding back on expenditures that were needed to make continued progress on their targets.
The company didn’t offer many details about what it will use the proceeds from the capital raise for. Tesla said it will use it to strengthen its balance sheet and for “general corporate purposes.” It’s generally assumed that the equity offering will be used to help fund the company’s capital expenditures for this year.
The news about the Tesla stock offering came less than an hour after a regulatory filing in which the company revealed plans for as much as $3.5 billion in capital expenditures for 2020. At the high end of the automaker’s projection for expenditures this year, the increase would be 164% from what the company spent on capital expenditures last year. Tesla spent $1.33 billion last year, which was far below its early plan for about $2.5 billion.
Analysts praise Tesla’s stock offering
Analysts praised Tesla’s stock offering as a way to beef up the company’s balance sheet and push its expansion plans further along. Cathie Wood of ARK Invest has been bullish on Tesla for a long time, and she has an astonishing $7,000 price target on the stock.
She tweeted that the Tesla stock offering increases their confidence that the company will gain share in the EV market over the next five years. She also said it increases “the probability that our bull case for the stock is correct.”
.#Tesla’s capital raise increases our confidence that it will gain market share in the #EV market during the next 5 years,
…
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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
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