Investment Learning

  • October 4, 2024

Federal Reserve's Losses Surpass $200 Billion

According to Odaily, the Federal Reserve's losses have exceeded the $200 billion mark this week, as reported by data released on Thursday. The Fed's report indicates that as of Wednesday, its so-called remittances to the Treasury stood at a negative $201.2 billion. This figure represents a book loss, but Fed officials have emphasized that it will not impair their ability to conduct monetary policy.Chicago Fed President Austan Goolsbee reiterated on Thursday that interest rates need to be 'significantly' lowered next year. With the Fed's recent 50 basis point rate cut and the prospect of further easing, the pace of future losses may slow, as the interest expenses required to maintain the rate target will decrease. However, before the Fed can resume returning cash to the Treasury, it must effectively repay deferred assets, a process that could take several years.

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  • October 4, 2024

Active U.S. Funds Underperform Market Due to Low Nvidia Allocation

According to Odaily, active U.S. funds have not outperformed the market this year, with a key factor being their underweight position in Nvidia. Despite Nvidia's popularity on Wall Street, many large investors remain cautiously optimistic about the stock. Bank of America Global Research analyst Vivek Arya and his team recently conducted a quarterly review of semiconductor stock holdings in active funds. The findings revealed that although Nvidia is the most held semiconductor stock in active funds, with a holding rate of approximately 70%, its relative weight is still considered 'low.' Arya noted that Nvidia's relative weight is 0.99 times, significantly lower than the top 16 peers in the information technology and communication services sectors, even though Nvidia's sales growth potential could be more than five times that of these companies. Companies with higher relative weights than Nvidia include Meta, Salesforce, Microsoft, and Alphabet. In the semiconductor industry, companies like Applied Materials, KLA, and Micron Technology also have higher relative weights.

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  • October 3, 2024

HBO Documentary Explores Bitcoin Creator's Identity

According to Cointelegraph, documentary filmmaker Cullen Hoback and HBO have announced the debut of their upcoming film “Money Electric: The Bitcoin Mystery,” which hints at potentially revealing the true identity of Bitcoin creator Satoshi Nakamoto.Cullen Hoback, known for his HBO miniseries “Q: Into the Storm,” where he claimed to have identified several authors of the QAnon conspiracy theory, has now turned his investigative efforts towards the origins of Bitcoin (BTC). In this latest project, Hoback attempts to uncover the true identity of the engineer known as “Satoshi Nakamoto,” credited with inventing Bitcoin and its underlying technology.Hoback has teased the documentary, stating, “A few of you might have wondered why I disappeared. Well, I was tracking down someone else who disappeared. Curious who's behind Bitcoin? MoneyElectric: The Bitcoin Mystery drops next Tuesday. It's going to be a rollercoaster.” However, he stopped short of declaring that he had definitively determined Nakamoto’s identity, instead suggesting that the film would be an exciting journey.While Hoback and HBO imply that a revelation might occur, the film’s official trailer and Hoback’s statements do not explicitly confirm that an individual has been identified. The possibility remains open that Nakamoto could be an individual, a group of people, or someone previously overlooked by investigations.The mystery surrounding Bitcoin’s creator has intrigued the cryptocurrency community since Nakamoto went dormant in December 2010. Over the years, several candidates have been considered, and as Cointelegraph recently reported, even the FBI has not confirmed or denied whether it possesses information on Nakamoto’s identity. At one point, computer scientist Craig Wright claimed to be Satoshi Nakamoto but later rescinded his claims in sworn statements.“MoneyElectric: The Bitcoin Mystery” is set to air on HBO on Oct. 8. While the rumored revelation of Nakamoto’s identity might be speculative, if Hoback has indeed managed to uncover the truth, the implications could have significant impacts on the financial world.

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  • October 3, 2024

Utilities, oil, jobs report: Market takeaways

All three of the major indexes (^DJI,^GSPC, ^IXIC) closed lower on Thursday. It comes ahead of the key September jobs report, which will give investors new insights into the health of the economy.  One sector that has been doing well, though, is utilities (XLU). Yahoo Finance Senior Reporter Alexandra Canal explains why in the video above. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Stephanie Mikulich.

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