Investment Learning

  • June 25, 2024

'Weaponized FOMO' has been a theme of market rally, Nvidia

Shares of Nvidia (NVDA) are rebounding in Tuesday's session after a three-day sell-off. Interactive Brokers Chief Strategist Steve Sosnick joins Market Domination to discuss Nvidia's stock movement and the broader tech rally. "It's Nvidia's market and we're all just trading in it," Sosnick explains. He notes how Nvidia has been spearheading the tech sector's growth (XLK) and the broader market rally (^DJI, ^IXIC, ^GSPC). While the tech sector's rally may spark concerns, he notes that its recent dip isn't a problem "because of end-of-the-quarter factors making it more of a rotation." "These companies do earn very good money. And someone asked me today, 'Would you buy Nvidia at these levels?' And my comment was kind of neither here nor there because it's not cheap, but it's not expensive either, because they do earn ridiculous amounts of money. It's just how much growth is priced in," Sosnick explains. He points to "weaponized FOMO" as one of the themes driving the market rally: "For institutional portfolio managers, it's the real deal. And the reason being is they can't be behind their peers. So, if that guy over there is making a ton of money in Nvidia or that guy's making it in GameStop (GME), I may not have put all my chips on the table. That's fine. But if I'm an institutional investor, I can't professionally be in that bottom quartile. I can't miss this rally," he explains. Sosnick adds that this creates a "piling effect" where stocks become very heavily weighted. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl

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  • June 25, 2024

US SEC Chairman Discusses Cryptocurrency and Securities Law Overlap

According to Odaily, Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), recently spoke about the intersection of cryptocurrency and securities law, the political implications of crypto regulation, and his priorities at the SEC during an interview at the Bloomberg Investment Summit on June 25. Gensler emphasized that there is no inconsistency between crypto securities and existing securities laws. He pointed out that the rules governing securities are clear and can protect investors, ensuring fair, orderly, and efficient markets. Despite this, he believes that many entities within the cryptocurrency field do not comply with these laws. This non-compliance is a key issue that the SEC aims to address through its regulatory oversight. Regarding the growing political significance of the cryptocurrency industry, Gensler stated that his primary responsibility is to protect investors and supervise issuers, ensuring access to fair, orderly, and efficient markets. He added that while others can participate in political discussions, his duty is to maintain the integrity of the capital markets.

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  • June 25, 2024

Tech stocks' market concentration isn't necessarily a 'flaw'

Big tech companies like the "Magnificent Seven" have seen significant gains in the last year, increasing their weight on US Indexes (^GSPC, ^DJI, ^IXIC). Yahoo Finance Reporter Josh Schafer joins Catalysts to discuss whether the trend is a flaw or a feature of the current market. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino

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  • June 25, 2024

UBS Economists Reiterate Soft Landing Outlook for US Economy, Expect Fed to Cut Rates in September

According to BlockBeats, on June 25, UBS economists reiterated their outlook for a soft landing of the US economy. They predict that the Federal Reserve will begin to cut interest rates in September and believe that the market may have misjudged the extent of the Fed's future rate cuts.UBS pointed out that although there have been abnormal fluctuations in economic data since the outbreak of the pandemic, certain trends now seem to have been established. The US labor market, which was severely overheated two years ago, has returned to a state close to pre-pandemic levels, driven by strong growth in labor supply.In addition, there are signs of a slowdown in retail sales and inflation. In May, the core CPI, excluding food and energy prices, only rose by 0.16%, marking the smallest increase since August 2021. Although the core inflation rate is showing a downward trend, it is still much higher than pre-pandemic levels.

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  • June 25, 2024

Wall Street Favorites: 3 ETFs With Strong Buy Ratings for June 2024

In an era of market crashes and booms, strong buy ETFs are now a go-to option for many investors. Exchange-traded funds offer a compelling case to combat market risks by investing in a broad range of stocks instead of an individual asset. This, in turn, provides diversification, liquidity and cost-efficiency for risk-averse investors. In recent years, we’ve witnessed substantial growth in the ETF market. In 2023, the ETF industry managed $11 trillion in assets globally with a five-year compound

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  • June 25, 2024

Paraguay's Bitcoin Mining Industry Responds To Shutdown Of Illegal Mines

According to Odaily, the Bitcoin mining industry in Paraguay has responded to the National Electricity Administration's (ANDE) involvement in shutting down several illegal Bitcoin mines. Bruno Vaccotti, the public affairs director of Bitcoin mining company Penguin, revealed the existence of three 'vulture contracts' that have slowed the development of Bitcoin mining operations in Paraguay. In a radio interview, Vaccotti admitted that illegal mining activities have damaged ANDE's revenue. However, he criticized the agency's statements about Bitcoin mining activities. He stated that Penguin pays $850,000 in electricity bills each month, which is almost 50% of the $2 million loss claimed by ANDE due to illegal cryptocurrency mining. The 'vulture contracts' are agreements signed by ANDE with other undisclosed Bitcoin mining third parties. These contracts have affected the power supply for new mines and caused losses to the country. Vaccotti said that these contracts, which involve a large amount of energy, are usually signed by foreign investors seeking speculation. The energy allocated to these parties is prevented from being used for these operations, thereby damaging the potential for real Bitcoin mining investors to utilize the involved energy. Vaccotti emphasized that this could have a greater impact than the illegal activities ANDE is investigating.

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