Finance

Amidst warnings, bitcoin reaches new heights

(FinancialPress) —Bitcon has broken yet another psychological barrier, as it reached the $18,000 mark on the Bitstamp exchange on Friday. The new record-high came after a 9% gain in value, and is reached among ever-growing warnings of volatility and the speculative nature of the exchange instrument. The 1,700% rise in the cryptocurrency during this year alone has made many financial industry stalwarts to raise their red flags in alarm – fearing a market bubble that could burst in devastating fashion. In December alone, bitcoin‘s gained 80% on its own value for the prior month. This is its best month in percentage gains since December 2013. Bitcoin‘s gained 20% on its value since Monday. Trading has slowed down considerably, though, thus pouring cold water on the heartstopping price s...

S&P expected to reach 3,000 mark in 2018

(FinancialPress) — JP Morgan strategists have revealed their significantly bullish outlook for the stock market in 2018. The Dubravko Lakos-Bujas-led equity strategy firm that the firm runs said Thursday that the positive investment environment will carry on well into 2018, supporting further gains in the stock market. Easy monetary policy, low inflation and global growth were labeled as responsible for the strong economic year in 2017. These factors are expected to remain in place in 2018, with additional boosts coming from the Trump administration. “We believe progress on GOP/Trump policy initiatives (i.e. lower corporate taxes, reduction in regulatory burden) should be a significant source of upside for equities and drive further rotation from Growth to Value styles and across sectors,”...

Stocks strengthen on back of Bitcoin futures launch

(FinancialPress) —Stocks rose and volatility for equities inched close to a new record low on Monday, as the launch of bitcoin futures fed into the cryptocurrency craze and investors look at the battery of incoming central bank rate decisions with good eyes, based on signs of strong economic growth. The European market fed off of the strong session experienced in Asia for early trading, closing in on a new four-week high. MSCI‘s main index for Europe gained 0.1%, while the STOXX 50 rose 0.2%. The British FTSE gained 0.6% thanks to a depreciation of the sterling. The darling of the day, however, is the introduction of bitcoin futures contracts – which will allow investors to bet on the price for bitcoin in up to 3 months ahead of their purchase. The one-month contract, which was the m...

Yahoo co-founder: Bitcoin can play a role in our society

(FinancialPress) — Bitcoin has gained another strong voice in its favor. According to Jerry Yang, co-founder of Yahoo and current head of AME Cloud Ventures, bitcoin is likely to become a wold-class force once it gets treated as transaction currency. “Bitcoin as a digital currency is not quite there yet,“ he said to CNBC on Thursday. While speaking at the Fortune Global Forum in Guangzhou, China, he added: “Personally, I am a believer in how digital currency can play a role in our society… but for now, it seems like it’s more driven by the hype of investing and getting a return rather than using it as a transaction currency,” Thursday marked another record day for the cryptocurrency, which blasted through the psychological value barrier of $15,000 on the Coinbase ex...

Wall Street tech rally begins to slow down

(FinancialPress) — Tuesday saw Wall Street stumble, as Walt Disney Co. (DIS.N) shares took a dip and the tech sector rebound started losing intensity. Another factor at play was the reaction of investors towards effects on corporate earnings to come from the  recently-approved Republican U.S. tax overhaul . The session close marked the third in a row in the negative for the S&P 500. This had not happened since the beginning of August. Overall, this adjusts the index’s rise for the year to 17%. The S&P 500 technology index saw a 0.21% rise, mostly propelled by a 2,53% increase in Electronic Arts Inc (EA.O) stock. Over the past week, the hottest sector of 2017 has dropped about 4% in value. Investors are moving their money to banks, retailers and other hopeful-to-be-benefitted ...

Yale Expert: Bitcoin a ‘dangerous speculative bubble‘

(FinancialPress) — While many in the market remain bullish on Bitcoin as it rallies towards the $12,000 mark, a top economist said on Tuesday that investors must remain wary as the cryptocurrency is in “dangerous speculative bubble.” Stephen Roach, a Yale University Senior and former Morgan Stanley chairman and chief economist for Asia, said that “This is a toxic concept for investors.“ Roach is revered as one of the most influential economists in Wall Street, and spent the entirety of his 30-year tenure in Morgan Stanley as head of the pack of a cream-of-the-crop team of economists from around the world. His take on the explosion of the most blossoming cryptocurrency in the world is nothing short of hot. On an interview for CNBC‘s “The Rundown“, he stated: “This is a dan...

Tax Cuts and Jobs Act passes in Senate

(FinancialPress) — The Republican tax bill was passed through Senate over the weekend – with a notorious abstention from voting from all democrat representatives. Mitch McConnell, the Republican Senate Majority Leader, lauded the GOP‘s victory – calling the bill “the most extensive tax reform in 31 years“. The Committee on Joint Taxation was not as warm on the outcome, though – claiming that it will add a trillion dollars to the USA‘s deficit. Democrats criticized the top-of-the-hour addons to the bill – some of which were not pertinent to tax reform or law – a key reason for the Liberals to restrain from voting. Chuck Schumer, a democrat Senator, voiced the concerns on the Senate floor. “Some of the pages were completely crossed off and text had been re...

JPMorgan CEO: Trump likely a “one-term president“.

(FinancialPress) — JPMorgan & Chase & Co (JPM.N) Jamie Dimon said this Wednesday that he expects a new person in the White House come 2021 – and gave his insight into how the Democrats can fill that space. He feels that the Democratic Party must come up with a  “pro-free enterprise“ agenda for jobs and economic growth in order to secure the presidential seat, or risk Trump beating them once more. During a luncheon hosted by the Economic Club of Chicago, he responded to the question of how many years he saw President Trump holding the White House by saying “If I had to bet, I’d bet three and half. But the Democrats have to come up with a reasonable candidate … or Trump will win again.” Dimon, a self-described “barely“ Democrat, has been lobbying with mo...

Yellen submits Fed resignation

3-decade veteran Federal Reserve Chair Janet Yellen set to exit the central bank entirely in 2018. (FinancialPress) — President Trump was notified of the resignation in a letter submitted on Monday. Yellen said that she will be leaving the Fed‘s Board of Governors when her successor in the Fed chair is appointed. Trump‘s nomination for the coveted position is Jerome Powell Organically, her term would have come to an end in 2024 via expiration. Governors have a vote on monetary policy. Rather than holding onto the position until said timeframe, she follows the footsteps of predecessor Ben Bernanke, who stepped off when Yellen was appointed as governor in 2014. Yellen, the first female to helm the renowned financial institution, wrote in her letter to the  President :”It has been my gr...

Wall St. feels Wal-Mart is “playing offense“ vs. Amazon

(FinancialPress) — Wall Street feels that Wal-Mart (WMT) has taken the offensive on Amazon (AMZN), and shares are rebounding to reach record highs. Shares of Wal-Mart had its single best day in nine years on Thursday, as they surged 11% to close at a record high. This follows a big earnings beat and strong online sales growth. As a response to the positive data, analysts are modifying their forecasts for the company. Baird analyst Peter Benedict feels that, despite Amazon‘s worrisome dominance in the retail market. Wal-Mart may still have a fighting chance. He said, in a note to clientas that “with a solid foundation in place, Wal-Mart is increasingly playing offense. Efforts to broaden the online assortment, improve the customer value proposition (free two-day shipping, pick-up disc...

Gorman – Morgan Stanley chief: bitcoin ‘doesn’t deserve the attention it’s getting’

(FinancialPress) — James Gorman, CEO and Chairman for Morgan Stanley (MS), feels that the bitcoin craze is getting more spotlight than it warrants – even if the phenomenon won‘t be vanishing overnight. On a Thursday interview with CNBC, Gorman said cryptocurrency owners should not expect bitcoin to suddenly become a safe investment when, in essence, it‘s a speculative asset. He stated that “something that goes up 700 percent in a year — it’s by definition speculative. So anybody who thinks they’re buying something that it’s a stable investment is deluding themselves.” He added that “it might go up another 700 percent, but it could easily not.“ Gorman‘s perspective can be seen as far more conciliatory than some other big names of Wall Street. BlackRock CE...

Bull market will carry on for a decade thanks to millennials – Analyst

(FinancialPress) — While the older generations usually don‘t show much love for millennials, their tune will have to change 10 years from now when, largely thanks to younger workers, the bull market is still running strong, according to Federated Investors portfolio manager Steve Chiavarone. Chiavarone told CNBC that the current rally will carry on at least for another ten years, thanks to a very significant demographic change that‘s incoming. During the interview, he delved deeper into the subject: “Millennials are entering the workforce, but their wages are going to be under pressure their whole career. They won’t make enough money to pay down their debt, fund their life and fund retirement where there is no pension. So, they’re going to need equities.” On the topic of the bull market, h...

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