Corporate pre-tax profits in non-financial domestic industries (excluding banks and financial companies) surged by 5.6% in Q4 from Q3, and by 10.7% year-over-year, reaching a record $2.69 trillion. The inflation surge led to increased profits, especially in durable-goods manufacturing and retail trade, reflecting companies’ ability to raise prices without losing customers.
Category: Investment
Lululemon: Price Pullback Gives Another Chance To Buy
In the final two months of 2023, Lululemon (NASDAQ:LULU) surged more than 25%, from $393 to over $500. Before last week’s 4Q23 earnings release by
Evaxion: An Intriguing AI Vaccine Company With Big Pharma Collaboration
Evaxion (EVAX) utilizes AI to design cancer and infectious disease vaccines, boasting 15 years of model refinement. With multiple collaborations, including MSD, and POC data, EVAX aims to achieve milestones by 2024. The company’s AI models, such as EDEN and RAVEN, have shown potential in identifying protective antigens. However, the need for additional funding poses a major risk.
How to Choose Great ETFs for the Long Term
Exchange-traded funds (ETFs) have multiplied, offering a dizzying array of options. Too many choices can lead to decision paralysis, as seen in a jam display experiment. Many new ETFs have uncertain futures. Applying simple screens can help identify long-term investments. Taking steps to eliminate smaller, riskier ETFs leaves just a fraction of the initial choices.
International Companies Drive Diabesity Innovation
The GLP-1 market, aimed at treating diabetes and obesity, is expanding rapidly, offering substantial investment potential. Novo Nordisk and Eli Lilly are leading the way in this market, with numerous new treatments gaining approval. Other companies, such as Zealand Pharma and DexCom, are also involved in providing innovative solutions for diabetes and obesity.
VanEck Launches Wide Moat ETFs for Value and Growth
VanEck has introduced two new ETFs, MVAL and MGRO, prioritizing value and growth investments respectively. These funds aim to invest in companies with sustainable competitive advantages and attractive valuations, as recognized by Morningstar. Both funds are passively managed with a 0.49% net expense ratio, further enhancing VanEck’s suite of wide moat ETFs.
Snapchat: Potiental TikTok Ban And Snapchat+ Offer Hidden Upside
Snap Inc. (NYSE:SNAP) reported a lukewarm Q4 2023 with increased daily active users but investors’ concerns remain. Despite slowing revenue growth, the company’s focus on driving user engagement and the growth of Snapchat+ subscription service signal potential. Furthermore, a potential TikTok ban in the US could benefit Snapchat. SNAP is seen as a strong buy.
Snowflake: New CEO, Big AI Megatrend Opportunity
Snowflake, a big data and AI-focused company, recently appointed a new CEO, Sridhar Ramaswamy, an AI expert. The company’s revenue grows rapidly, but it faces challenges in turning a profit. Despite high expectations, Ramaswamy’s leadership and market opportunity may lead to future success. However, Snowflake must address data security, innovation, and competition risks.
Robinhood Crypto Wallet: How It Works
The Robinhood Crypto Wallet is a self-custody solution for managing cryptocurrencies independently. It allows users to store and manage their crypto holdings directly on various networks, providing complete ownership of digital assets. The wallet supports popular cryptocurrencies, offers funding options, and emphasizes security measures. Users can set up the wallet easily and anticipate further functionalities.
How to Realistically Save for Retirement
To save for retirement realistically, automate transfers to a 401(k) or IRA to develop disciplined saving habits. Instead of focusing on specific retirement expenses, aim to save 10-20% of your income. Leverage employer matching in a 401(k) and consider rolling over 401(k) funds into an IRA for more control and lower fees.
3 Tricky Decisions for Every Retirement Plan
Retirement planning is becoming more complex as fewer retirees have pensions. This article discusses three challenging decisions retirees face: determining withdrawal rates, considering long-term-care insurance, and purchasing annuities. While there’s no universal solution, experts recommend adjusting withdrawal rates, evaluating long-term-care expenses, and maximizing Social Security before considering annuities.
Fed Still Expects To Cut Rates Despite Sticky Inflation
The Federal Reserve revised its outlook for core PCE inflation in 2024, while maintaining expectations for a potential interest rate cut by year-end. Market response was positive, with bond prices rising and yield expectations for rate cuts firming. The Fed’s cautious approach was evident in revised projections, despite a persistent bias for rate cuts.
Negative Rates No More
The Bank of Japan raised its policy rate by 0.1% after 12 years of negative rates, marking the end of the era. While BOJ ceased yield curve control and ETF purchases, its policy remains loose. Other central banks are also adjusting policies in response to inflation and economic conditions. A period of global monetary policy easing is anticipated.
An ETF to Ponder as History Supports Emerging Market Bonds
Fixed income investors should consider emerging market (EM) bonds for their potential outperformance compared to stocks. A 30-year analysis reveals that EM bonds have triumphed over stocks, with a limited impact from a strong dollar. The Vanguard Emerging Markets Government Bond ETF (VWOB) offers broad exposure to EM debt, appealing to yield seekers with a 6.81% 30-day SEC yield and diversified holdings.