A word of caution, dear investor, about money market funds: they’re not all created equal. In fact, when it comes to your lazy cash, you want to treat it with kid gloves. There’s a reason it’s on your couch. The world’s a dangerous place. Yes, you want to get it into the big wide world to do something productive with its life. But you also don’t want it coming home one day saying: “I gambled, and I owe Mr. Big $20k. Can you help?” Back when the financial crisis unfolded, Lehman Brothers failed, panic set in, and money markets “broke the buck” (trading below a net asset value of $1). But … [Read more...]
Archives for February 2023
Industry Races to Diversify Away from China
A trend in manufacturing companies diversifying their operations away from China has been accelerating, and now Apple suppliers are joining the exodus. Nguyen Xuan Quynh and John Boudreau report for Bloomberg, writing: Apple Inc.’s Chinese suppliers are likely to move capacity out of the country far faster than many observers anticipate to pre-empt fallout from escalating Beijing-Washington tensions, according to one of the US company’s most important partners. AirPods maker GoerTek Inc. is one of the many manufacturers exploring locations beyond its native China, which today cranks out … [Read more...]
Cash, Money, Green: How Will You Feel in Retirement?
How will you feel in retirement? Good question. I don’t know. And you don’t either. It’s one of those mysteries in life you don’t get to understand until you’re in it. You can do the mental math, make detailed spreadsheets, meet with CPAs, CFAs, or any other acronym out there, review glossy reports, and still be left without a clue if it will all work out. Will the sun come out tomorrow? When you’re working, at least you have some control. You get up every day for what seems like a lifetime, raise the kids, send ‘em off to college, and then it hits you. You think: “Self, do we have enough … [Read more...]
Is That an Echo You Hear in the Market?
The recent rally in tech shares has given hope to investors who have made money in them for the last decade, but Ruchir Sharma suggests in the Financial Times that the rally is just an echo. He writes: The recent surge in tech stocks has true believers buzzing that the downturn of late last year is over and the boom of the past decade is back. But the opposite case is more likely. This surge had all the hallmarks of an echo bubble — a brief rebound of the kind that has punctuated the long decline of every major bubble in the past century. Over the past decade, driven by record-low interest … [Read more...]
Is Your Good for Nothing Cash Doing Anything with Its Life?
Is your good-for-nothing cash doing anything with its life? Please don’t tell me it’s sitting around eating all your food and drinking all your wine. That’s no way to go through life. Maybe it’s time your cash goes on a liver cleanse. But, if that’s not in the cards, there’s an easier way to whip it into shape—no boot camp required. (Read 4 Life Changing Words for Your Survival Guy: “You Should Try This” - Your Survival Guy). Your Survival Guy knows what you’re dealing with. Your bank is getting fat by lending out your cash for a song and paying you peanuts. Banks are always slow to pay … [Read more...]
Blue States Alarmed by Fleeing Residents
COVID-19 and the riots of the summer of 2020 were eye-opening experiences for many Americans living in blue states. When they realized their politicians were willing to hurt their children and businesses with preposterous lockdowns, and to look the other way when mobs of rioters and looters terrorized the cities, residents looking for peaceful lives began to flee in droves. Now states like Massachusetts, which has watched over 100,000 people leave since the beginning of COVID-19 are sounding the alarm. Janelle Nanos reports for the Boston Globe: Sometimes, Amanda Hitchins looks out her … [Read more...]
February RAGE Gauge: How Will YOU Feel in Retirement?
You can feel the tension. Americans are not happy, and they see the mounting risks facing them in the future. My RAGE Gauge, a measure of risk in America, has been pegged at the maximum for a long time now, and it's hard to see that changing anytime soon. Faced with inflation, the prospect of nuclear war, a flood of illegal immigration, and crime spiking to rates not seen in decades, is it any wonder Americans are worried? One of the biggest worries Americans face is what they'll do about retirement. If this was forwarded to you. Join the club. Sign Up here for my weekly email. OK. … [Read more...]
Is There Room for Morgan Stanley in the Crowded ETF Industry?
Morgan Stanley is entering the crowded ETF industry with six new products, including two actively managed ETFs. Steve Johnson reports in the Financial Times: In a parallel universe Morgan Stanley might be Europe’s pre-eminent exchange traded fund provider. In this one it is the wet-behind-the-ears newbie, beaten to the punch by the more than 400 issuers globally that have already entered the ETF fray. Despite its tardiness Morgan Stanley, the 18th-largest manager in the world with assets of $1.3tn, and the biggest without ETFs, has ambitious plans. Six ETFs were unveiled in the US … [Read more...]
How Will YOU Feel in Retirement? Let Me Explain
OK. Here’s the deal. You don’t know how you’re going to feel in retirement. There I said it. Plain and simple. It’s an unknown, unknown. Sure, you think you’ll know how you’ll feel. But thinking is a whole lot different than living. Let me explain. Your Survival Guy spends hours each day talking with investors just like you. You tell me you’re feeling the pressure. You did your job. You raised your family. Now it’s a whole different ballgame. The truth is, once college is paid for and the kids are out of the house, the pressure cooker starts whistling. The force of the world comes … [Read more...]
Is Hydrogen the True Future of Clean Energy?
Electric vehicles are all the rage at the moment, but is it possible hydrogen-fueled vehicles are the real future of clean energy? Toyota and Hyundai are putting good money into the possibility. June Yoon reports for the Financial Times: The battle over cars running on alternative fuel shifts up a gear this year. A record number of new models powered by electric batteries are due to be released in the coming months as manufacturers place their bets on greener solutions to petrol engines. But two of the biggest carmakers, Toyota and Hyundai, are still driven by the belief that hydrogen will … [Read more...]
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