Investment Learning

  • July 18, 2024

Argentina Implements Tax Amnesty for Crypto Assets

According to Odaily, the Argentine government has signed a fiscal plan this week that includes a tax amnesty for individuals declaring assets worth $100,000, including registered crypto assets. Roberto Silva, Chairman of the National Securities Commission of Argentina, stated that this amnesty could alleviate pressure from the Financial Action Task Force (FATF). An analysis report from the International Monetary Fund (IMF) indicated that FATF has threatened to place Argentina on a grey list, which would increase monitoring of the country, potentially stifle foreign direct investment, raise international interest rates, and possibly lead to a decline in GDP.Silva mentioned that the registration of crypto assets is the first step towards regulation, hinting that these rules might follow those implemented in the United States. Experts believe this move could help Argentina regulate its cryptocurrency market. In May and June of this year, Argentina intensified its crackdown on crypto-related crimes. The prosecutor's office conducted 64 raids, resulting in the arrest of 20 domestic and 10 international criminals involved in smuggling, money laundering, and illegal gambling. Argentine leaders are scheduled to meet with FATF in Paris in October, where the task force will continue to assess Argentina's risks related to money laundering and terrorist financing.

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  • July 18, 2024

South Korea Implements Comprehensive Cryptocurrency Regulation

According to PANews, South Korea's first comprehensive cryptocurrency regulatory framework has come into full effect, focusing on investor protection. The new law, known as the Virtual Asset User Protection Act, was officially approved on July 18, 2024, and includes a one-year grace period to finalize regulatory details. This legislation imposes stricter requirements on digital asset exchanges, mandating that South Korean crypto exchanges store at least 80% of user deposits in cold wallets to separate user funds from the exchange's own assets. Additionally, exchanges must entrust user cash deposits to local licensed banks and maintain cryptocurrency reserves equivalent to the quantity and type of customer deposits. Furthermore, South Korean crypto services are now required to purchase adequate insurance or establish reserve funds to address potential hacking incidents or liquidity crises. Besides measures to protect user funds, the law also mandates exchanges to implement real-time monitoring systems to report suspicious transactions that may be illegal. Companies failing to comply with the new regulations may face penalties from the Financial Services Commission (FSC) or have their services suspended.

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  • July 18, 2024

Investors Shift Focus Amid Speculation Of Fed Rate Cuts

According to Bloomberg, a weeklong decline in almost every major group has led to speculation that the central bank may ease its efforts to control inflation. This has prompted a shift in investor focus. While data suggesting the Federal Reserve is close to cutting rates would typically support this trend, Thursday's market surge did not fully align with that expectation.Investors have moved away from 'over-crowded' megacap leaders and are now exploring 'down-cap' opportunities. In late trading hours, Treasury yields also experienced significant changes. Analysts caution that while there is enthusiasm about the broadening of US equity markets, there is also a risk of potential bull traps. The rotation into smaller-cap stocks is still in its early stages and cannot yet be confirmed as a long-term investment trend.Some digestion of this rotation is necessary after the significant market movements of the past week. Although the rotation could persist for weeks, driven by favorable economic data and an over-owned tech sector, some experts advise against aggressive allocations to cyclicals for anything other than tactical capital. Concerns about economic growth remain, with corporate earnings and Federal Reserve commentary suggesting that investors may be too complacent about slowdown risks.As the Federal Reserve begins a rate-cutting cycle, markets often react positively initially and for a short period afterward. However, the Fed typically cuts rates late in the economic cycle, not early when small-cap stocks usually gain attention. In the near term, the rotation into smaller stocks may continue as markets anticipate easier monetary conditions this fall. The key question is whether this will lead to a gradual cooling of inflation and job markets or a more abrupt and painful adjustment.

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  • July 18, 2024

Jobless claims rise, Bud Light struggles: Asking for a Trend

On today's episode of Asking for a Trend, Host Josh Lipton breaks down some of the biggest stories hitting the market, from Donald Trump choosing Ohio Senator JD Vance as his vice president to Bud Light struggling to regain consumer favor. Former President Donald Trump has picked Senator JD Vance (R-Oh.) as his 2024 running mate. Axios chief economics correspondent Neil Irwin explains that while Trump likes to tout populist ideas on the campaign trail, he has had a different view in the White House. While Vance has his own ideas, it is unknown if his sentiments will translate into policy in his vice president role. He says, "[Trump] also loves talking to CEOs and loves talking about how he's so great for business. He just floated cutting the corporate income tax rate again. He cut it from 38% to 21% when he was in office, he wants to go down to 15% now, he says. So look, there's a lot of things Trump would like to do that are certainly business priorities and things that big business would like to see. And Vance as vice president would just be one voice at the table, kind of trying to shape those policies." Yahoo Finance markets reporter Josh Schafer analyzes the latest market trends for July 18, as US weekly jobless claims rose more than expected, the healthcare sector (XLV) slumped, and the small-cap (^RUT) rally has begun to stall. More than a year after a boycott against the brand, Bud Light continues to struggle to regain consumer favor. The Anheuser-Busch InBev (BUD) fell to third place in sales, trailing behind competitors Modelo Especial and Michelob Ultra when it comes to dollar share, according to Bump Williams Consulting and NielsenIQ data. Yahoo Finance senior reporter Brooke DiPalma breaks down the movement. Meanwhile, Domino's (DPZ) reported its second quarter results, missing same-store sales expectations and revealing a stunt in international growth. Placer.ai head of analytical research R.J. Hottovy explains how companies have been rolling back prices and offering value meals, calling it the "summer of value wars." He adds, "I think it really speaks to the idea that consumers are looking for value, and that's front and center for them." Finally, Market Domination Host Julie Hyman breaks down the latest chart from Apollo Global Management chief economist Torsten Slok and how increasing CEO confidence could weigh on the Federal Reserve's interest rate cuts. This post was written by Melanie Riehl

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  • July 18, 2024

SCOTUS overturned Chevron Doctrine last month. What it means

In late June, the Supreme Court overturned the Chevron Deference, a powerful doctrine that dictated the interpretation and adherence to laws set by federal regulators. This move could enable large businesses to ignore certain regulatory guidelines as it pulls back the influence of various government agencies. Yahoo Finance legal reporter Alexis Keenan explains the history of the 40-year-old law and how this overruling could affect both civil rights and the investment landscape. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan.

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  • July 18, 2024

Jobless claims, healthcare, small caps: Trading Takeaways

US weekly jobless claims rose more than expected as leadership from the Federal Reserve has expressed confidence in bringing inflation down. The healthcare sector (XLV) slumped today, leading in sector losses and dropping by over 2%. Lastly, the run that small caps (^RUT) has seen in the past few days has begun to stall out, erasing much of the gains from earlier in the week. Yahoo Finance markets reporter Josh Schafer joins Asking For A Trend to break down the latest market trends for July 18. For more expert insight and the latest market action, click here to watch this full episode. This post was written by Nicholas Jacobino

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