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  • 15 Ways to Do Your Financial Planning Better | Entrepreneur

    15 Ways to Do Your Financial Planning Better | Entrepreneur

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    When you get down to basics, financial planning is simply the process of setting financial goals and creating a plan for how you’ll meet those goals. That seems innocuous enough but it can admittedly get a little complex, and sometimes overwhelming. 

    Yet short of a winning lottery ticket or an unexpected inheritance, it’s virtually impossible to improve your financial situation without planning. The answer may well be in taking a few key steps to improve your financial planning process. 

    Here are 15 ways you can do just that and reach your money goals a lot faster. 

    1. Set Financial Goals

    No matter where they are in life, people hope to have something ahead to look forward to or plan for, and those events might warrant realigning current financial goals. Some people may even be setting those objectives for the first time. Whether you want to go to college or graduate school, start your own business, raise a family, buy a house, or retire in comfort, your financial situation dictates whether and how you reach those goals. 

    Setting appropriate financial goals for yourself can help you reach them by creating a workable plan that you can follow and a way to monitor how close you are to meeting that goal. Moreover, financial goals help you increase and maintain your level of motivation to follow that action plan. 

    2. Create a Budget

    No matter what kind of budget you’re interested in establishing for yourself, the process can seem a bit complex at first but it doesn’t need to be an overwhelming challenge. At its core, your budget is based on factors you already know: your current and expected income, your fixed bills, your recurring variable bills, and any future one-time expenditures that you can anticipate. 

    To simplify the process, break the work into segments and tackle them on different days. And if the thought of budgeting with a pen or pencil and paper makes you a little dizzy, why not explore a digital approach? You can find lots of freely available budgeting tools online. If you’re familiar with Google office suite apps, you can also search online for budgeting spreadsheet templates that might simplify your planning process. 

    3. Track Your Spending

    Lots of people struggle with controlling spending habits, but there’s no doubt that it’s one of the easiest ways to improve your cash flow and work towards your financial goals. Tracking spending helps you spot the areas in which you can trim expenses and purchases, which means you can then redirect those funds to more productive uses. 

    As with budgeting, you can go with an analog or a digital approach. There are lots of expense tracking apps available online, some free and some premium. Or you can pick up a small, inexpensive notepad to carry with you and simply jot down what you spend every day. The true value of tracking your spending lies in the analysis of your habits, so be prepared to spend some time weekly or monthly reviewing your expenditures to spot where you can cut back. 

    4. Reduce Debt

    Focusing your attention solely on ways to increase income in order to meet your financial goals can be tempting. It seems like the most direct path to achieving those objectives. However, most people find there’s only so far they can ethically and legally increase their income. One area that occasionally gets short shrift in financial planning is reducing debt. 

    It might not seem as exciting as creating new streams of passive income, but debt reduction is a powerful way to help make financial planning. By trimming the amount you spend each month to pay off loans and credit cards, you free up important capital to put to more constructive use, such as investments or savings. 

    5. Increase Savings

    Given the ways in which life can throw some unpleasant surprises our way, it’s not so hard to see why it’s important to create and build up your savings. That’s especially true in stressful economic conditions, such as where a recession may be looming around the corner. 

    One of the best ways to begin saving is to look for a bank account with automatic savings tools built in. For example, with some checking accounts you can round up each purchase to the nearest dollar and put the difference in your savings account automatically. You may also be able to direct your bank to divert a certain percentage or dollar amount of each paycheck to your savings. That way, you’ll continue to build your savings without additional effort on your part. 

    6. Invest in Your Future

    Savings accounts and reducing debt payments are important, but if you want to provide for your retirement, build true generational wealth and achieve other long-term financial goals, you’ll probably need to invest your money in some way. Investments help your assets grow faster and more significantly than they do in a typical savings account. 

    However, getting started with investing can be a daunting prospect. To begin educating yourself, use trusted resources to learn about investing in stocks and ways you can safeguard your investments in a challenging economy. 

    7. Plan for Retirement

    Most of us hope to eventually stop working one day and enjoy our golden years. That means we’ll need to plan for our living expenses and retirement goals, too. 

    One of the first steps in financial planning for your retirement years is to address your sources of income. Between Social Security, your job’s 401(k) or your Roth IRA, and other investments, you’ll need to ensure you have enough money to cover living expenses and any travel or other goals you’d like to pursue. It’s also crucial to think about how you plan to manage your debt in retirement. 

    8. Protect Your Finances

    Another aspect of financial planning that you’ll want to consider is how you’ll protect your investments, your assets, and your income. In most cases, that means insurance. While you’re working, it’s critical that you protect yourself and your family with long-term care and disability insurance policies, to augment whatever coverage you might have from your health insurance policy. 

    Insurance is also crucial during your retirement years. You’ll be less able to replace a source of income if something unfortunate occurs, so you’ll want to ensure you’re covered with health insurance and long-term care and disability coverage, along with the usual life, auto, and homeowner’s insurance. 

    9. Evaluate Your Insurance

    While it’s important to get and maintain insurance coverage, it’s also crucial to periodically review and evaluate your coverage limits and policy terms. That’s because life events can radically alter your financial landscape. Just as you want to ensure you’re carrying enough insurance to address likely risks, you also want to make sure you’re not carrying too much. 

    Given the myriad ways in which personal decisions, health issues, and career choices among others can impact your finances, it’s smart to take some time to sit down with an insurance professional every so often and evaluate your current coverage. 

    10. Review Your Credit Report

    The U.S. government gives its residents the right to one free copy of the reports from each of the three major reporting bureaus (Equifax, TransUnion, and Experian) every year. You don’t need to pay a commercial service for this information. Simply visit AnnualCreditReport.com, or if you prefer call 1-877-322-8228.

    Once you acquire your credit reports, review them carefully for any errors. Look for loans or accounts that you paid off that may be listed as unpaid, any accounts marked closed that are actually still open (or vice versa), and delinquencies that are listed in error. Not every creditor will report your account to each agency, so your reports may contain different items, but you do have the right to request corrections for erroneous information. 

    11. Improve Your Credit Score

    Your credit scores (you have more than one) will play a large part in determining your financial future. Whether you’re approved for a loan, what the terms will be, how much interest you pay, and more can all depend on the strength of your score. 

    There are many strategies you can employ to improve your credit score. Start by disputing errors on your credit report. Additionally, pay every bill on time each month. Set up automatic bill pay for recurring debts to make sure you aren’t late. Avoid applying for too many new credit accounts at once, and don’t close out old credit accounts once they’re paid off. These steps will help you improve your score and meet your financial goals. 

    12. Refinance Your Loans

    The loans that make modern life possible also carry costs that can have a significant impact on both your current cash flow and your financial planning process. Between the interest rate and the other terms associated with your loan, there’s quite a bit of room for adjustment there. 

    If your credit rating has improved since you first took out the loan, it may be a good idea to inquire about refinancing the loan. You may be able to get your interest rate reduced, which could lower both monthly payments and the total amount owed. 

    Check your loan documentation to see if there’s a prepayment penalty first, then shop around for a new lender. Even if you do owe your current lender a fine for paying the loan off before schedule through a refinancing, it might be offset by what you’d save in the long run. 

    13. Negotiate Bills and Expenses

    Due to a combination of factors including the COVID-19 pandemic, supply chain disruptions, and more, the price of everything from eggs to your next car is rising. That’s why it’s important to negotiate and trim your bill expenses wherever you can. 

    At the grocery store, you can look for cheaper alternatives, including store brands; choose less expensive cuts of meat; eat vegetarian meals more frequently; watch your purchases and serving sizes to cut back on wasted food; and clip coupons where possible. 

    For cell phone bills, try calling your carrier and announcing your intention to shop for a better deal unless the carrier can cut your plan’s costs. The same strategy may also work with other providers where you have alternatives, such as newspapers and media website subscription plans. 

    14. Use Technology to Manage Finances

    In many ways, life is undeniably more complex these days than it used to be. Don’t hesitate to explore ways in which technology can help you manage your finances and achieve your financial goals. 

    Direct deposit, automatic bill pay, automatic savings plans, and more can all help you enlist technology to make implementing your financial plan more efficient. You can also use financial tools for budgeting, bookkeeping, tax preparation, refund hunting, and more. Using technology to keep your financial plan going strong and manage your money more efficiently will help you meet those goals faster and with less stress. 

    15. Seek Professional Advice

    Personal finance is a complex topic, and the rules seem to change frequently. To stay on top of things and make sure your money is working as hard as possible, consider seeking the input of professionals such as financial advisors, tax attorneys, and others who can help you make the best possible money decisions. 

    The right professionals are trustworthy, skilled, and experienced advisors who can help protect your money from unwise or risky investments and more. Consider seeking the help of an investment professional who’s registered with FINRA to give your financial plan a tune-up. 

    The post 15 Ways to Do Your Financial Planning Better appeared first on Due.

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    John Boitnott

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  • How Proving My Value Helped Me Reshape the Face of High-Value Asset Trading Globally | Entrepreneur

    How Proving My Value Helped Me Reshape the Face of High-Value Asset Trading Globally | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    My dad left when I was 11 years old. I watched my mom struggle to pay bills and provide for my sister and me. I decided that I would find a way to help.

    It wasn’t my first time getting a job, and it definitely wouldn’t be my last. But with every new position I took, I had to prove my worth. I had to convince managers and people in charge why a child was a valuable hire.

    This education in promoting myself and conveying my value allowed me to understand how others perceive worth in the world.

    Related: 7 Ways to Know Your Worth and Shake the ‘Poverty Mindset’

    It started with weeds

    The first job I had to take was with the apartment manager of the complex I lived in. I did some landscaping, cleaning and other random handiwork for much-needed cash. I was too young to work officially; the funny part was that this was my second job.

    This job wasn’t being promoted; it didn’t exist. They weren’t looking for someone to fill in the gaps I found. Chances are, the apartment manager wasn’t aware of the need for the work I provided. I could see what needed to be done and communicated compellingly to the apartment manager.

    I was able to showcase my ability to see problems and offer solutions, as well as my willingness and desire to work. There is great value in someone willing to identify and complete the work that needs to be done. This was my first experience understanding my value.

    Then came pizza

    My next job was more official, but I had to fight for it. The pizza shop was not legally allowed to hire anyone under 15. I was 13 and needed a job. I was unwilling to take “no” for an answer, so I understood that I would have to convince the manager of my value.

    I came in day after day asking for a job. Eventually, the manager said he could not hire me because anyone under 15 could not work with the food. So, instead of selling him on the idea that I would join the kitchen crew, I sold him on the idea that I could man the phones. He couldn’t argue with that, so he gave me the job.

    By thinking outside of the box and refusing to give up when it got challenging and didn’t look like it was going to happen, I was able to own my worth and reach my goals. This early lesson gave me powerful confidence to move forward throughout the rest of my life.

    Related: Don’t Just Sell Yourself, Communicate Your Value: 6 Valuable Tips

    There’s power in creating opportunities

    When I needed to create income for my family so young, there weren’t opportunities being advertised that I could grab. I had to identify where I could offer value to others and create the opportunity I sought. In a study from MIT, researchers found that immigrants are actually “job creators,” creating more firms of every size, large and small, than people born in the U.S. While there are several reasons why this might happen, researchers cited the lack of opportunities available to immigrant workers as a core catalyst for why these businesses would be started.

    Another study explored the connection between adverse childhood experiences and creativity. According to the research, the group with the highest amount of adverse experiences also had the highest amount of creativity. By harnessing my creativity, despite facing adversity, and having the fortitude to create my own opportunities, I was able to move beyond the circumstances I was born into.

    High-value person, high-value assets

    When you continually have to showcase your value confidently, you stop questioning it. It’s much easier to own your value when you consistently make a case for why you are deserving, helpful and an asset to any team or situation.

    Working with high-net-worth individuals requires the utmost confidence. It is impossible to help people manage their valuable assets without first valuing yourself. You have to be able to walk into a room and advise some of the wealthiest, most brilliant and most insightful people on the planet without hesitation.

    By advocating for myself since I was a child and consistently showcasing my value to people who had more power, money and influence than I did back then, I have been able to own these rooms and situations with unflinching, unwavering confidence. You create significant change when you have the confidence to advise and provide solutions along with the experience and know-how to deliver results.

    Related: 10 Ways to Build and Boost Your Confidence

    I made a habit of looking for the things that needed to be done back when I was 11 — that skill is exactly what built my business. The market was crying out for something different, and it was clear that high-value Asset Management needed a mobility makeover.

    Once I realized that high-net-worth individuals needed more mobility for their assets, I was able to build a platform that increased each asset’s deployability. That meant people no longer had to hold on to assets that weren’t working for them and could trade for something that would enrich their lives.

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    Jarrett Preston

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  • Is Your Gift Card Expired? Make the Most of Your Gift Cards by Knowing the Law | Entrepreneur

    Is Your Gift Card Expired? Make the Most of Your Gift Cards by Knowing the Law | Entrepreneur

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    Over the holidays, I gave my parents a gift card to a local Mexican restaurant. I didn’t expect them to use it right away. But, I was floored when they told me that the gift card is somewhere in their home. Good grief.

    Hopefully, they’ll find the gift card soon. Why? Because just like any perishable items in your fridge, gift cards also expire.

    Why we love gift cards.

    Gift cards are always a welcome gift, whether you are giving one or receiving one. Sure. They aren’t the most creative or thought-provoking gift. However, they’re convenient and flexible. Perhaps that’s why 54% of Americans surveyed said gift cards are the most wanted gift during the holidays.

    In the era of COVID-19, rising costs, inventory shortages, and shipping delays, however, gift cards have grown in popularity. According to InMarket, the following key findings were found:

    • In 2022, 67% of respondents planned to buy a gift card as their top holiday gift. Among other categories, gift cards outpace clothing (56%), toys (41%), and electronics (27%).
    • The most popular retail category for gift cards is Big Box (32%), followed by Apparel (27%) and Beauty (23%).
    • In 2022, spending on gift cards was expected to continue to exceed pre-pandemic levels, even though it declined from its 2020 peak.

    About 65% of gift cards are redeemed within 180 days of purchase. Marketers have the opportunity to engage shoppers at a critical stage of the purchase cycle as a result.

    In spite of that, it is not all honky-dory.

    It was found that 47% of U.S. adults have at least one unused gift card, voucher, or store credit, according to a CreditCards.com study conducted by YouGov.com. The survey also found that the average amount of unspent gift cards, vouchers, and store credits was $175, up from $116 last year. Overall, U.S. adult populations have unspent cash totaling $21 billion.

    Now is the time to use these gift cards, says Ted Rossman, senior industry analyst at CreditCards.com. “With inflation at a 40-year high, everyone is looking for ways to save money,” he says. “Putting your unused gift cards to work is an easy way to unlock some hidden value.”

    What is the shelf life of gift cards?

    Thanks to the 2009 CARD Act, gift cards last at least five years from the date of issue.

    According to the law, retailers cannot deactivate a gift card less than five years old, and fees for inactivity are limited. Basically, that means that if a business tries to claim that a gift card is expired due to its age, you have recourse to contest that claim

    All 50 states must comply with this rule. Also, the recipient needs to know the terms and conditions of the gift card. The expiration date is included in these rules. However, some states require that the receiver follow certain specific circumstances.

    In some states, gift certificates and gift cards are regulated by law. There are no expiration dates or dormancy fees on gift certificates and gift cards in California (except in certain cases), for example. And you can use the balance for cash if it is under $10.

    Fees vary from state to state as well. In some states, for example, any fees must be disclosed on the card packaging. If states allow post-sale fees, they should only be charged once a month after one year of inactivity.

    The issuance of post-sale fees for gift cards is governed by state legislation in a few states, however. A fee is charged for maintenance, activation, and transactions during the purchase process. There must also be a statement describing the accompanying fees on the gift card.

    If your state has laws covering gift cards and certificates, consult the State Statutes for Gift Cards and Certificates published by the National Conference of State Legislatures. Alternatively, you can speak with a local lawyer about the state’s consumer protection laws.

    What’s wrong with gift cards that expire?

    For me, expiring gift cards are a losing proposition.

    For one, it’s got to be a bummer for the person who purchased the gift card. What if my parents never find that $100 gift card that I gave them? That means it is left unused. To be honest, I could have just taken a Benjamin and lit it on fire. And, because I know they lost the gift card, I’m even more ticked off.

    Suppose my parents find the gift card. Then, to their dismay, they discover that it has expired. It’s very likely that this won’t reflect well on the business. As a result, the customer experience won’t improve. It doesn’t motivate them to return to this restaurant — especially since they occasionally patronize it.

    Furthermore, even though it’s illegal for cards to expire until five years down the road (at least), their value can start to depreciate before then. As a refresher, the reason is that depending on the state, some businesses can charge fees for inactivity after a certain time period, depending on certain circumstances.

    As for businesses, unused gift cards can lead to brokerage.

    Furthermore, even though it’s illegal for cards to expire until five years down the road (at least), their value can start to depreciate before then. As a refresher, the reason is that depending on the state, some businesses can charge fees for inactivity after a certain time period, depending on certain circumstances.

    As for businesses, unused gift cards can lead to brokerage.

    “Breakage is an accounting term that identifies revenue recognized from services that are paid for but not used,” explain Aaron Hurd and Dia Adams in Forbes.

    “The most familiar example of breakage is in gift cards. Many retailers sell gift cards because they know that a certain percentage of the gift cards they sell will never be redeemed,” they add. “Some gift cards will get lost, some will get thrown away and some will just get forgotten. In every case, unredeemed gift cards represent additional profit for the issuer.”

    The loss of value caused by gift cards, miles, points, certificates and other stores of value expires, is lost, or otherwise goes permanently unused from a travel and personal finance perspective.

    These liabilities can also be converted into breakage income after some time — typically between six and 24 months. It’s how much money the company says won’t be redeemed from gift cards. In other words, the company is getting free money.

    However, it might make sense for a business not to let gift cards expire. It’s been found that 75% of people who redeem gift cards spend more than they intended.

    Gift cards: How to make the most of them

    You can avoid confusion over expiration dates and fees by using your gift card right away.

    Tips for when you receive a gift card.

    • Be sure to put it in a place where you will remember it. Instead of tossing gift cards in your dresser drawer, place them on top of your dresser, where they will be more visible. Alternatively, you can set a reminder on your digital device to remind you of its location.
    • This month, plan on using it. To make the most of an experience gift card, such as one for a restaurant, spa, or museum, book your appointment or reservation right away.
    • It shouldn’t be left unused for more than a year. There should be a five-year time period (at least) before any repercussions are felt. However, if the store closes its nearest location or goes out of business, that won’t matter much.
    • Think strategically. When redeeming gift cards, you can also save money by using them strategically. With a gift card, you are more likely to get a discount or bonus if the store is already running a special promotion.
    • Whenever possible, add it to an app. Depending on where you bought the gift card, you can redeem it for a credit to use at your convenience. As a result, you don’t have to worry about losing the physical card or not having it when needed.
    • Sell your gift card. Gift cards can be cashed out at the company where they were purchased or via sites like Raise — if your state allows it. Normally, you can cash out a gift card balance under $10, but you may want to inquire with the retailer. Additionally, Target offers instant store credit when you trade unwanted gift cards.

    Tips for when you give a gift card.

    • Consider the person’s likes and dislikes. Your gift card will likely go unused if you give it to someone who isn’t interested in the store or service or can’t use it. If you’re unsure, choose a retailer with a variety of items, like Walmart or Target.
    • Choose something convenient for them. If your recipient lives far from a theme park or museum, a gift card or membership may remain unused. Additionally, don’t give gift cards that would exceed the budget of the recipient. An expensive meal at a high-end restaurant or at Louis Vuitton will not be covered by a $25 gift card.
    • Shop local. Supporting small businesses can be as simple as purchasing gift cards from them. Although this may not save you money, it is an excellent way to make sure that your money is going to support local businesses and communities. This is also a great way to boost the revenue and business of a family or individual you know personally.
    • Take advantage of sales. When you buy gift cards at a discount, you can save money. Their value remains the same even though you’ll pay less for them.
    • E-gift cards may be a good option. Gift cards sent by email or text are ideal for digital natives because they make it easy for them to load the funds directly into their digital wallets.

    Frequently Asked Questions About Gift Cards

    1. Exactly how do gift cards work?

    There is no difference between gift cards and cash. Typically, the buyer loads a specific amount onto the gift card, and then the recipient uses it to make purchases.

    Generally, gift cards are associated with specific businesses, such as Starbucks or Amazon. But some credit card companies, like Visa, offer their own debit cards as well.

    2. Do gift cards have an expiration date?

    All gift cards are expected to expire at least five years after activation according to the Credit Card Act of 2009.

    Also, the inactivity should be mentioned and made public after 12 months of non-use. Inactivity fees can only be deducted once a month. Despite the expiration of the card, gift card funds do not expire. A user must be informed about the fees in advance.

    3. Is there a gift card that doesn’t expire?

    It is possible for gift cards to never expire in some states. A Mastercard or American Express, for example, gift card never expires. There may also be a date by which the physical card needs to be replaced. You can request a new card by calling the number on the back of the card.

    4. If I have a PIN on a gift card, can I get cash from it?

    As long as gift cards did not have a PIN, they were treated like credit cards at the point of sale. It is possible to use prepaid cards in either fashion since they usually have a PIN.

    In 2013, the Federal Reserve mandated that everyone could get a PIN for a general-purpose gift card, which allowed them to select what type of transaction they would like to make. Some consumers, however, thought they could withdraw cash using the PIN on their Visa gift cards through ATMs or merchants. However, they cannot. Using a PIN on a gift card allows you to make debit transactions.

    With gift cards, you can’t withdraw money from an ATM or get cashback from a retailer, but Visa reloadable prepaid cards do permit these transactions.

    5. Who purchases gift cards?

    You can sell gift cards to companies that buy and sell gift cards for cash if you end up with gift cards you won’t use. You may want to consider Gift Card Granny, CardCash, or Raise as some of the more noteworthy options.

    The post Is Your Gift Card Expired? Make the Most of Your Gift Cards by Knowing the Law appeared first on Due.

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    John Rampton

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  • Do You Know Your Money Language? It Can Have a Real Impact. | Entrepreneur

    Do You Know Your Money Language? It Can Have a Real Impact. | Entrepreneur

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    Chances are, you’ve heard of the five love languages: words of affirmation, acts of service, gifts, quality time and physical touch. First outlined by Gary Chapman in his 1992 book The Five Love Languages: How to Express Heartfelt Commitment to Your Mate, the concept has since become a cultural phenomenon, surprising even the writer himself, per The New York Times.

    But there’s another language you should know if you want healthy relationships and finances. According to wealth manager and “fiscal feminist” Kimberlee Davis, four money languages influence the way we think and talk about our financial situations — and can have a real impact on our romantic partnerships.

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    Amanda Breen

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  • Free Webinar | April 6: When to Use an LLC, S-Corp, or C-Corp? | Entrepreneur

    Free Webinar | April 6: When to Use an LLC, S-Corp, or C-Corp? | Entrepreneur

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    Making your business official through incorporation can help attract investors, save you money during tax time and protect your personal assets from debts and liabilities. Incorporation can come in the form of an LLC, S-Corp or C-Corp. So which is right for you?

    Mark J. Kohler, CPA, attorney, and author of The Tax and Legal Playbook, and Mat Sorensen, attorney, CEO of Directed IRA & Directed Trust Company, and author of The Self-Directed IRA Handbook, will be breaking down all of the options and help you determine which entity is right for your business.

    Topics to be covered:

    • Pros and cons of an LLC

    • How an S-Corp saves taxes

    • Understanding asset protection of your entity

    • Why the C-Corp isn’t the right fit for most businesses

    • What state you should set-up your entity in

    • Avoiding bad advice and scams for your entity

    Don’t miss out! Register now join us on April 6th at 3:00 PM ET.

    About the Speakers:

    Entrepreneur Press author Mark J. Kohler, CPA, attorney, co-host of the Podcast “Main Street Business”, and a senior partner at both the law firm KKOS Lawyers and the accounting firm K&E CPAs. Kohler is also the author of “The Tax and Legal Playbook, 2nd Edition”, and “The Business Owner’s Guide to Financial Freedom”.

    Mat Sorensen is an attorney, CEO, author, and podcast host. He is the CEO of Directed IRA & Directed Trust Company, a leading company in the self-directed IRA and 401k industry and a partner in the business and tax law firm of KKOS Lawyers. He is the author of “The Self-Directed IRA Handbook”.

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    Entrepreneur Staff

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  • Three Valid Reasons To Say “Give Puts A Chance” | Entrepreneur

    Three Valid Reasons To Say “Give Puts A Chance” | Entrepreneur

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    With apologies to John Lennon and the Plastic Ono Band for the title of the article on VXN and QQQ puts.

    The recent red-hot rally in stocks, especially the NASDAQ 100 names, has brought the bulls back charging and put the bears in hibernation. Whether the momentum will continue or not is certainly uncertain.

    One thing that is certain, though, is that some stock measures are definitely getting more extreme, which warrants caution. Protecting or playing for some potential downside is something to seriously consider.

    Rather than simply exiting or shorting stocks, using option strategies makes more sense in the current environment.

    Here are three big reasons why now might be an opportune time to be buying bearish puts, either as a portfolio protection or a short-term speculative trade.

    Implied Volatility

    Most of you are probably familiar with the VIX, sometimes referred to as the Fear Gauge. It is a measure of option prices in the S&P 500. How many of you know that the NASDAQ 100 has a similar instrument to measure implied volatility -VXN- or “Vixen”. Below is the definition from the Chicago Board Options Exchange (CBOE) for the VXN. For our purposes, we are substituting QQQ for NDX since QQQ is much more heavily traded.

    The Cboe NASDAQ-100 Volatility IndexSM (VXN) is a key measure of market expectations of near-term volatility conveyed by NASDAQ-100® Index (NDX) option prices. It measures the market’s expectation of 30-day volatility implicit in the prices of near-term NASDAQ-100 options. VXN is quoted in percentage points.

    The VIX has dropped sharply recently as stocks have rallied in the past month. VIX closed just above the lowest levels of the year on Friday as the S&P 500 rallied, albeit well shy of yearly highs.

    VXN, however, did close at a new yearly low on Friday as the NASDAQ 100 (QQQ) closed at a new yearly high. Also, VXN closed at the lowest level since January 2022.

    A quick comparison of the last time QQQ was at comparable pricing will show how much the drop in VXN cheapens the price of puts. The comparative option montages are shown below.

    On August 25 of last year, QQQ closed at $320.58. The November 18th $315 puts had 85 days until expiration and were priced at $14.00. IV was just over 29.

    Fast forward to Friday, and QQQ closed at $320.93, so only 38 cents higher than back in August. The June 30th expiration $315 puts had 91 days to expiration, so a few more days longer than the similar November 18th expiration puts from back in August. The June 30th puts were priced at $11.00. IV was just under 24.

    Putting it all together, the slightly out of the money $315 puts from last August were trading $3.00 cheaper than the virtually similar puts are trading now.

    Another way to look at it, the puts back in August cost 4.37% the price of QQQ compared to just 3.43% now. All because IV dropped from 29.04 to 23.76. To me, buying puts at a much cheaper price (and the cheapest price in quite a while) is never a bad thing.

    VXN is also a reliable market timing tool, very much like the VIX in that regard. Drops to comparatively low levels of VXN almost invariably coincide with short-term tops in QQQ, as the chart below shows. Is the QQQ near a top$ The VXN is implying so.

    Technicals

    The NASDAQ 100 (QQQ) is getting overbought on a technical basis. 9-day RSI is now over 70. Bollinger Percent B just broke past 100. MACD hit an extreme. Shares are trading at a big premium to the 20-day moving average. Last times these indicators all aligned in a similar fashion marked a short-term top in QQQ.

    NASDAQ 100 (QQQ) is getting a little out over the skis on a comparative basis when compared to the other three major indices. The Nazzy is showing a spectacular gain of over 20% so far in 2023. Compare that to the still very respectable gain of almost 7.5% for the S&P 500 (SPY) and it is easy to see just how much QQQ has rallied versus other stocks in Q1. If you compare the gains of QQQ to those of either IWM (Russell 2000) or DIA (Dow Jones Industrials) the out-performance is even more astounding.

    Certainly, some outperformance by the NASDAQ 100 is warranted given it was the worst performing index of the big four in 2022. That outperformance, however, is now getting to an extreme. Look for QQQ to be an underperformer over the coming months as the comparative spread converges back towards the more traditional relationship.

    Fundamentals

    Two stocks, Microsoft (MSFT) and Apple (AAPL), account for over 25% of the NASDAQ 100 Index weighting. They also comprise over 13% of the S&P 500-the first time two stocks were this powerful since IBM and AT&T in the late 1970s. Plus, they are the only stocks with a $2 trillion plus market cap.

    To a large degree, as go these two stocks so goes the NASDAQ 100 and stocks generally. Looking at the valuations of these two mega cap names will provide a good insight into valuations generally for QQQ.

    The Price/Sales ratio for top weighted Microsoft (MSFT) is now back well over 10 and at the highest multiple since August of 2022 when the QQQ peaked.

    Number two Apple paints a similar picture.

    Price/Earnings ratio in MSFT is even more extreme, now at a higher level than back at the previous QQQ peak in price. All this even with interest rates increasing sharply in that time frame-which should cause multiples to contract.

    Option prices are cheap. The NASDAQ 100 is overbought technically and overvalued fundamentally. Combining those two statements together means purchasing puts now on QQQ is much cheaper and much more sensible than anytime this year. All we need is the market to return to some semblance of sensibility to profit on a put play.

    POWR Options

    What To Do Next?

    If you’re looking for the best options trades for today’s market, you should check out our latest presentation How to Trade Options with the POWR Ratings. Here we show you how to consistently find the top options trades, while minimizing risk.

    If that appeals to you, and you want to learn more about this powerful new options strategy, then click below to get access to this timely investment presentation now:

    How to Trade Options with the POWR Ratings

    All the Best!

    Tim Biggam

    Editor, POWR Options Newsletter

    QQQ shares closed at $320.93 on Friday, up $5.25 (+1.66%). Year-to-date, QQQ has gained 20.71%, versus a 7.46% rise in the benchmark S&P 500 index during the same period.

    About the Author: Tim Biggam

    Tim spent 13 years as Chief Options Strategist at Man Securities in Chicago, 4 years as Lead Options Strategist at ThinkorSwim and 3 years as a Market Maker for First Options in Chicago. He makes regular appearances on Bloomberg TV and is a weekly contributor to the TD Ameritrade Network “Morning Trade Live”. His overriding passion is to make the complex world of options more understandable and therefore more useful to the everyday trader. Tim is the editor of the POWR Options newsletter. Learn more about Tim’s background, along with links to his most recent articles.

    More…

    The post Three Valid Reasons To Say “Give Puts A Chance” appeared first on StockNews.com

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    Tim Biggam

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  • Difference Between Recession and Depression | Entrepreneur

    Difference Between Recession and Depression | Entrepreneur

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    If you lived through the 2008 recession, you know how painful recessions can be. Even if you didn’t personally lose your job or home, you likely knew more than one person who did. The effects of that recession lasted long after the period was declared over. Many Millennials cite its knock-on effects as the reason they haven’t purchased a home or started a family, even to this day.

    As bad as recessions are, depressions are even worse. You could generally describe the latter as dramatic pauses in economic activity, and they’re much rarer. The U.S. has only experienced one depression throughout its history: the Great Depression, which lasted from 1929 to 1939 when the U.S. began mobilizing for World War II.

    Today, we’ll look at the key features that define a recession and a depression and at specific examples of their orders of magnitude.

    Key Takeaways

    • The NBER designates recessions by examining factors like GDP, employment, wholesale-retail sales, and real personal income less transfers.
    • Depressions are similar to recessions in definition – except they’re worse, indicating a more significant pause in economic activity.
    • The U.S. is unlikely to go into a depression thanks to federal legislation passed during and after the Great Depression surrounding policies like deposit insurance, unemployment insurance, and the Federal Reserve.

    Definition of a recession

    The organization in charge of declaring recessions in the U.S. is the National Bureau of Economic Research (NBER). You’ll often hear a recession defined as two consecutive quarters of negative growth domestic product (GDP) growth.

    The NBER does not accept this as a hard rule because they don’t identify economic activity solely with real GDP. Also, the depth of negative GDP growth can influence the NBER’s assessment of the economy. If GDP declines for two consecutive quarters, but only marginally, they may not call a recession.

    Instead of the “two consecutive quarters” rule, the NBER relies on various economic indicators. Some of the most relevant data points include the following.

    • Unemployment: The NBER considers employment numbers during recessions, and it does so with great nuance. The Current Population Survey (CPS), a survey of roughly 60,000 eligible houses nationwide conducted once a month, measures these numbers. An uptick in unemployment sometimes signifies more people have started looking for jobs after being unable to work rather than ending up back on the market due to job loss.
    • Non-farm jobs: Creating jobs is generally considered a net win for the economy. The NBER looks at non-farm payrolls and considers the amount of available work, employee hours, and compensation within those positions.
    • Industrial price index (IPI): The IPI measures monthly output across mining, manufacturing, gas, and electric industries. More output is a signifier of a healthier economy. The government has collected data for the IPI since the 18th century.
    • Wholesale-retail sales: Growing retail sales indicate a growing economy, while shrinking retail sales indicate a contraction. Lower retail sales and inflationary pressure tend to go hand-in-hand. You’ll see in NBER articles that this data has to be “adjusted for price changes” to account for fluctuating seasonal pricing.
    • Real personal income less transfers (PILT): This data is reported monthly via FRED. It includes wages and excludes government transfer payments people might receive, like Social Security payments or unemployment compensation.
    • GDP: Gross domestic product represents the total market value of all finished goods and services produced and sold within the U.S. for that month. Typically – though not always – two-quarters of contraction in GDP accompany a recession. This metric is not used in isolation but is one component of a larger economic picture.

    The NBER doesn’t typically designate recessions in real-time. They wait for all the data to come in, then designate the beginning and end of a recession after the fact. This delay means you could live in a recession and not have it acknowledged until months later. Or, if the NBER has already called a recession, it could end but not be officially declared over until later.

    Recessions are considered a natural and unavoidable part of the economic cycle. They’re much more common than depressions. There have been 14 recessions since the Great Depression.

    The Sahm Rule

    Experts often cite unemployment as one of the most critical recession indicators. There’s a rule the Federal Reserve uses called the Sahm Rule, which holds that when the three-month moving average of the national unemployment rate rises by 0.50% or more relative to the previous 12-month low, the country has entered a recession.

    Economists also see unemployment as one of the most significant indicators of economic depression. As shown in the table below, unemployment rates during the Great Depression reached over 20%, whereas unemployment rates during the 2008 recession peaked at 10%.

    GDP vs. GDI

    The NBER considers GDI (gross domestic income) in addition to GDP. Both measure U.S. economic activity but in slightly different ways. GDP measures the value of financial products like goods and services, whereas GDI measures the money companies or people “get” for said goods and services. GDI includes data on things like wages and taxes.

    GDI is another reason the NBER doesn’t stick by the “two quarters of negative GDP growth” rule, as they weigh the two equally. The difference between GDP and GDI, also known as the statistical discrepancy, is caused by differences in survey techniques and ways of accounting for seasonal price fluctuations. GDP estimates (and GDI estimates) are revised multiple times after publication, making it even more critical for the NBER to consider a broader range of data before calling a recession.

    Definition of a depression

    There is no singular definition of a depression. One of the best ways to think about them is that they’re like a recession – but worse.

    The last and only depression in U.S. history spanned across the 1930s, with its effects spilling over into the decades immediately preceding and following it. It included two recessions: one lasting an incredibly long 43 months from 1929 to 1933 and the other lasting 13 months from 1937 to 1938.

    Difference between a recession and a depression

    The main difference between a recession and a depression is severity. Here’s a comparison of key metrics during the 2008 recession and the same metrics throughout the Great Depression.

    Economic Period GDP Loss Peak Unemployment Industrial Production Loss Duration
    Great Depression 29% from 1929-1933

    10% from 1937-1938

    		 25% peak in 1933

    20% between 1937 and 1938

    		 47% from 1929-1933

    32% from 1937-1938

    		 43 months

    13 months
    2008 Recession 4.3% 10% 10% 18 months

    GDP loss, industrial production loss, and unemployment rates were much higher during the Depression than they were in 2008. And the Great Recession was the longest recession the country has experienced since the 1940s.

    Governmental safeguards against depressions

    The U.S. did learn and apply some lessons from the Great Depression.

    Many banks went under during the Great Depression, hurting financial institutions and those who kept their money with them. Policies instituted post-Depression largely centered around winning back public trust in banks.

    Deposit insurance

    The government created the Federal Deposit Insurance Corporation through the Banking Act in 1933. It made effective what we still know today as deposit insurance. At the time, every depositor had coverage for up to $2,500. Now, the FDIC backs deposits at trustworthy banks up to $250,000.

    Since its founding in 1934, the FDIC has made sure not a cent of insured money was lost due to bank failure.

    Unemployment insurance

    This was another direct response to the Great Depression. Established with the passage of the Social Security Act of 1935, this program provides partial wages to those who have recently lost their jobs involuntarily. This helps them continue to have money to meet their basic needs and allows money to keep circulating in the economy and into businesses.

    The Federal Reserve

    The banking system wasn’t particularly strong before the Great Depression. Bank failures and subsequent bank runs were not uncommon. 1929 took the situation to a new level. Because bank failures were such a concern, the Federal Reserve was founded in 1913 to create a cash reserve for banks.

    But the system was young in 1929. Only one-third of banks were part of the Reserve’s system, there were frequent problems with the Reserve keeping enough cash on hand, and early leaders had difficulty agreeing on the best path forward – meaning in many cases it erred towards inaction.

    During the Great Depression, that meant the situation was allowed to spin out of control into something even worse than inflation: deflation. Between 1930 and 1933, prices dropped an average of 7% annually. The causes of deflation are low demand or excess supply, which can lead to unemployment.

    Today, the Federal Reserve has a much more proactive hand in controlling issues like inflation and deflation, partially because it is now an effectively independent consolidated body. Some of its responsibilities, like insuring deposits, have been outsourced to the FDIC.

    Final words

    We may or may not be living through a recession currently. We won’t know until the NBER decides when or if one started, which can be months later. Still, analysts are constantly speculating whether or not we’re in a recession, and the relevant data considered by the NBER is publicly available. You can research it yourself to understand the country’s economic situation.

    A depression, on the other hand, would be much easier to spot. Its severity would make it undeniable. The low demand, high unemployment, and sinking costs would be evident even if government agencies took a few months to catch up with official diagnoses.

    One thing still holds true whether the economy is on its way down or up. Historically, the market as a whole has always gone up over long time horizons.

    The post Difference Between Recession and Depression appeared first on Due.

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    Eric Rosenberg

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  • When Will the Stock Market Balloon Pop Again? | Entrepreneur

    When Will the Stock Market Balloon Pop Again? | Entrepreneur

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    There is a time honored theory that the stock market (SPY) is quite like a helium balloon. Discover what that means for what stocks are doing now and in the months ahead. Read on below for the full story….

    By far the most popular article I have written in years was from last week because it crystalized what so many of us are feeling. Here it is again:

    The WORST Stock Market Ever!

    Unfortunately, everything said then is just as true now. That being that the only trend is NO trend. And that is true even after a few solid days in the plus column.

    Gladly, we can add a few key updates to help us plot our trading plan for the days ahead. That is what is in store in this week’s commentary below…

    Market Commentary

    Let’s start with a helpful analogy that will frame our discussion today. And that is to appreciate that the stock market is quite similar to a helium balloon.

    Meaning that its natural state is to float higher unless it is being held down by a stronger, negative force that pushes it lower.

    Please read that again so it sinks in.

    Now if we pull back to the big picture, we can easily appreciate that state of floating higher is true because 85-90% of investment history is framed by bullish conditions where going up is more likely than going down. However, we find this picture to also to be the case during bear markets when negative events are removed.

    Consider the start of the year…how the market climbed day by day in January. Perhaps it was because there was really nothing negative to hold stocks down.

    Next comes February with an increase in hawkish rhetoric from the Fed which starts to reign in some of the early enthusiasm. Next comes about concerns of a potential banking crisis and stocks get pushed down lower and lower on each wave of negative headlines.

    This had stocks giving back all the 2023 gains by mid March with a closing low of 3,855 stocks. Amazingly from there we have gotten served up a +6.6% rally for the S&P 500 (SPY) to where we stand today.

    Was it because of something positive?

    No…just the lack of more negatives to hold down stocks. That’s all it took for them to float higher once again.

    Now let’s start looking ahead. Because if we can clearly see if there are more negatives or positives ahead…then we can appreciate where the balloon (stock market) goes next.

    I spent some time researching economic forecasts from a variety of sources. Sill 60% of them are calling for a recession forming in 2023 leading to a deeper bear market.

    Most of the other 40% are not really calling for a gangbuster growing economy. They see it more in the stagnant growth category.

    Stagnant is not exactly bullish my friends. Nor is it bearish. It would most likely equate to a continuation of the activity we have seen so far in 2023. That being range bound with unsettling volatility.

    I wanted to share 2 of the forecasts I found most interesting starting with the Conference Board which provides a pretty typical recessionary call. They see the bad times starting in Q2 of this year with -0.9% GDP getting worse in Q3 at -1.8% followed by -0.6% in Q4 before things improve next year (See their full forecast here).

    Yes, they see inflation coming down which is what the Fed was hoping to accomplish. Unfortunately employment also cracks and doesn’t get better til the middle of 2024.

    How accurate do I believe this to be?

    Close enough because economic forecasts are highly difficult to dial in perfectly. The point being this is likely a fairly mild recession that should still be plenty harsh enough to get stocks to head 15-20% lower from here. And yes, the more painful the future recession…the more stocks would go down.

    Now I want to turn our attention to some of the extreme views out there like the famed Jeremy Grantham talking about the bursting of an “everything bubble” that could lead to a 50% peak to valley decline for the S&P 500 (SPY). (Read about that here).

    However, lets remember that Jeremy Grantham is a perma-bear. And like a stopped watch he is only right twice a day…and amazingly wrong the rest of the time. So for as interesting as it may be to read outlooks like these, please do take them with a grain of salt.

    In the short run, I expect stocks to remain in the same trading range we have seen all year long with a low of 3,855 and high of 4,200. Most every move in that range has proved to be meaningless noise not predictive of what comes next.

    We will break above when more people are convinced that fears of recession are overblown. And we will break below if indeed the recession does come to town.

    This is all to say that a focus on the fundamentals is still the key. Like paying attention to the slate of key economic reports next week like:

    4/3 ISM Manufacturing

    4/5 ISM Services

    4/7 Government Employment (with focus on wage inflation)

    And after that will be a focus on Q1 earnings season.

    Will enough clues emerge in April to make us break one way or another?

    Probably not UNLESS a new rash of banking failures emerge. That could create a Jenga moment for stocks to tumble lower as risk taking would go out the window.

    At this moment I still believe odds of recession and deeper bear market are around 70%. This explains why I continue to manage my newsletter portfolios for that greater bearish possibility.

    What To Do Next?

    Watch my brand new presentation, REVISED: 2023 Stock Market Outlook

    There I will cover vital issues such as…

    • 5 Warnings Signs the Bear Returns Starting Now!
    • Banking Crisis Concerns Another Nail in the Coffin
    • How Low Will Stocks Go?
    • 7 Timely Trades to Profit on the Way Down
    • Plan to Bottom Fish for Next Bull Market
    • 2 Trades with 100%+ Upside Potential as New Bull Emerges
    • And Much More!

    If these ideas concern you, then please click below to access this vital presentation now:

    REVISED: 2023 Stock Market Outlook >

    Wishing you a world of investment success!

    Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
    CEO, StockNews.com and Editor, Reitmeister Total Return

    SPY shares . Year-to-date, SPY has gained 7.46%, versus a % rise in the benchmark S&P 500 index during the same period.

    About the Author: Steve Reitmeister

    Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.

    More…

    The post When Will the Stock Market Balloon Pop Again? appeared first on StockNews.com

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    Steve Reitmeister

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  • The Pet Shop: Calendar of events

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    Get information, stories and more at The Pet Shop blog at www.greensboro.com/blogs. Send events to people@greensboro.com.

    Community Play Date: 5-7 p.m. May 19, Purina Bark Park, inside of Freedom Park, 121 N. Edgewood Road, Eden. The event will commence with a “ribbon tugging” ceremony and feature live performances from the Purina Incredible Dogs team as well as food and treats available for purchase. edennc.us/departments/parks-recreation.

    Pet Adoption Special: 8 a.m.-5 p.m. weekdays and 10 a.m.-4 p.m. Saturdays, through May 31, Burlington Animal Services, 221 Stone Quarry Road, Burlington. All dog adoptions are fee-waived, and all cat adoptions are reduced to $20. Adoptions include spay or neuter and vaccinations. www.burlingtonnc.gov/pets. Fosters are needed as well, visit www.burlingtonnc.gov/foster.

    Wellness Clinic: 10 a.m.-2 p.m. second Saturday, RCSPCA Building, 300 W. Bailey St., Asheboro. Wellness checkups, skin and ear checks, heartworm tests, pet weighing, microchips, vaccines, preventative medicine. 704-288-8620 or info@cvpet.com.

    People are also reading…

    Megan Blake Dog Training Classes: 4:30 p.m. Sundays, LeBauer Park, 200 N. Davie St., Greensboro. Ask questions, learn new dog behaviors. Registration recommended. www.greensborodowntownparks.org/post/group-dog-training.

    Volunteer Days: 10 a.m. Sundays, Carolina Veterinary Assistance and Adoption Group, 394 Cook Florist Road, Reidsville. Walk, brush, interact with pets, gardeners are welcome to help in the community garden. 336-394-4106 or www.cvaag.org.

    Adoption Fair: noon-3 p.m. Saturdays, PetSmart, 2641 Lawndale Drive, Greensboro. With Triad Independent Cat Rescue. Visit www.triadcat.org or email meowmire.yahoo.com.

    Low-cost Rabies Clinic: noon-2 p.m. third Saturday, SPCA of the Triad, 3163 Hines Chapel Road, Greensboro. www.triadspca.org.

    Virtual Adoption Fair: 11 a.m.-3 p.m. third Saturday. With Tailless Cat Rescue, SPCA of the Triad, Helping Hands 4 Paws and other local cat adoption groups. Posts originate at www.facebook.com/richard.partridge.332, but are tagged so that they show up on the individual rescues’ page. www.facebook.com/pg/taillesscatrescue/community/.

    Adoption Fair: noon-3 p.m. Saturdays, PetSmart, 1206 Bridford Parkway, Greensboro. With Juliet’s House Animal Rescue. julietshouse1@gmail.com.

    Cat Adoptions: Sheets Pet Clinic, 809 Chimney Rock Court, Greensboro. $100 for one cat, 6 months or older; $150 for two adopted together to the same home, 6 months or older. $125 for each kitten, $200 for two kittens adopted at the same time. Fees includes spay/neuter, microchipping, testing for feline leukemia and/or feline immunodeficiency virus, current and age-appropriate vaccinations, FeLV vaccinations for kittens, flea treatment, and deworming. All adoptees receive an “exit exam” from a veterinarian before going home. Every cat or kitten adopted from Sheets Pet Clinic receives half-price vaccinations for the rest of its life, if brought in for yearly wellness exams. Every cat receives one-month free pet insurance. Also, adoption fairs, 1-3 p.m. on the second and fourth Saturdays of each month. petadoptions@sheetspetclinic.com or www.sheetspetclinic.com.

    SPCA of the Triad: Open for adoptions from 10 a.m.-4 p.m. Tuesdays-Saturdays and noon-4 p.m. Sundays, 3163 Hines Chapel Road, Greensboro. Submit an adoption application and wait for approval email. www.triadspca.org, www.facebook.com/TriadSPCA, www.instagram.com/spca_of_the_triad/. Funds are needed for SPCA’s new 9,000 square foot, $3 million facility which will hold more than twice as many homeless pets than the current shelter.

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  • The Pet Shop: Calendar of events

    The Pet Shop: Calendar of events

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    Get information, stories and more at The Pet Shop blog at www.greensboro.com/blogs. Send events to people@greensboro.com.

    Fetch—Egg Hunt for Dogs: 9 a.m.-noon April 1, Griffin Dog Park, 5301 Hilltop Road, Greensboro. Register. tinyurl.com/FetchDogEggHunt23. 336-373-7503 or chamreece.diggs@greensboro-nc.gov.

    Community Play Date: 5-7 p.m. May 19, Purina Bark Park, inside of Freedom Park, 121 N. Edgewood Road, Eden. The event will commence with a “ribbon tugging” ceremony and feature live performances from the Purina Incredible Dogs team as well as food and treats available for purchase. edennc.us/departments/parks-recreation.

    Pet Adoption Special: 8 a.m.-5 p.m. weekdays and 10 a.m.-4 p.m. Saturdays, through May 31, Burlington Animal Services, 221 Stone Quarry Road, Burlington. All dog adoptions are fee-waived, and all cat adoptions are reduced to $20. Adoptions include spay or neuter and vaccinations. www.burlingtonnc.gov/pets. Fosters are needed as well, visit www.burlingtonnc.gov/foster.

    People are also reading…

    Wellness Clinic: 10 a.m.-2 p.m. second Saturday, RCSPCA Building, 300 W. Bailey St., Asheboro. Wellness checkups, skin and ear checks, heartworm tests, pet weighing, microchips, vaccines, preventative medicine. 704-288-8620 or info@cvpet.com.

    Megan Blake Dog Training Classes: 4:30 p.m. Sundays, LeBauer Park, 200 N. Davie St., Greensboro. Ask questions, learn new dog behaviors. Registration recommended. www.greensborodowntownparks.org/post/group-dog-training.

    Volunteer Days: 10 a.m. Sundays, Carolina Veterinary Assistance and Adoption Group, 394 Cook Florist Road, Reidsville. Walk, brush, interact with pets, gardeners are welcome to help in the community garden. 336-394-4106 or www.cvaag.org.

    Adoption Fair: noon-3 p.m. Saturdays, PetSmart, 2641 Lawndale Drive, Greensboro. With Triad Independent Cat Rescue. Visit www.triadcat.org or email meowmire.yahoo.com.

    Low-cost Rabies Clinic: noon-2 p.m. third Saturday, SPCA of the Triad, 3163 Hines Chapel Road, Greensboro. www.triadspca.org.

    Virtual Adoption Fair: 11 a.m.-3 p.m. third Saturday. With Tailless Cat Rescue, SPCA of the Triad, Helping Hands 4 Paws and other local cat adoption groups. Posts originate at www.facebook.com/richard.partridge.332, but are tagged so that they show up on the individual rescues’ page. www.facebook.com/pg/taillesscatrescue/community/.

    Adoption Fair: noon-3 p.m. Saturdays, PetSmart, 1206 Bridford Parkway, Greensboro. With Juliet’s House Animal Rescue. julietshouse1@gmail.com.

    Cat Adoptions: Sheets Pet Clinic, 809 Chimney Rock Court, Greensboro. $100 for one cat, 6 months or older; $150 for two adopted together to the same home, 6 months or older. $125 for each kitten, $200 for two kittens adopted at the same time. Fees includes spay/neuter, microchipping, testing for feline leukemia and/or feline immunodeficiency virus, current and age-appropriate vaccinations, FeLV vaccinations for kittens, flea treatment, and deworming. All adoptees receive an “exit exam” from a veterinarian before going home. Every cat or kitten adopted from Sheets Pet Clinic receives half-price vaccinations for the rest of its life, if brought in for yearly wellness exams. Every cat receives one-month free pet insurance. Also, adoption fairs, 1-3 p.m. on the second and fourth Saturdays of each month. petadoptions@sheetspetclinic.com or www.sheetspetclinic.com.

    SPCA of the Triad: Open for adoptions from 10 a.m.-4 p.m. Tuesdays-Saturdays and noon-4 p.m. Sundays, 3163 Hines Chapel Road, Greensboro. Submit an adoption application and wait for approval email. www.triadspca.org, www.facebook.com/TriadSPCA, www.instagram.com/spca_of_the_triad/. Funds are needed for SPCA’s new 9,000 square foot, $3 million facility which will hold more than twice as many homeless pets than the current shelter.

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  • Starting a Business in a Recession: What You Should Know | Entrepreneur

    Starting a Business in a Recession: What You Should Know | Entrepreneur

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    Launching a new business venture is a giant leap, even in the best of times. Variables, increased costs and a new responsibility as an owner are all big shifts, and the unpredictability of th economy makes them even more challenging. “Recession” strikes fear in the hearts of many, as a downturn can stifle the job market and money flowing through infrastructure. On the other hand, a recession may be your ticket to a flourishing new business.

    Yes, there are distinct challenges to starting a business in a recession, but there are various benefits that could be in your future as well. Better yet, the creativity, flexibility and resourcefulness you employ during this process will strengthen your resolve and business model long after the recession has ended.

    A recession can’t stop you from soaring to new heights. With all the proper information and planning at your side, your new business is ready to cement itself as a solid and valuable player in the industry.

    What Challenges May Arise?  

    A recession is any significant decline in economic activity that lasts for a few months. People tend to view recessions as years-long struggles, probably because of the collective shock that was the 2008 financial crisis. Not to mention, the decade-long Great Depression left thousands homeless and destitute. However, depressions are much more severe and widespread, particularly in unemployment.

    The U.S. recently traversed a recession in the spring of 2020, lasting just two months. The government shutdown and restrictions halted production, employment, spending and the general flow of the economy.

    Today, the country’s economy is still facing ripples from the pandemic but is steadily growing. A recent poll of economists found a growing prediction of a 2023 recession, but that it will be mild and brief.

    With a recession potentially on the way, what challenges might your business face if it does arrive? While there are many growth opportunities, knowing what challenges or roadblocks may arise for you and your team is still crucial. These include:

    • Widespread job loss and layoffs
    • Curbed credit access
    • Slow economic output
    • Decrease in consumer spending
    • Lessened business investment
    • Bankruptcies on the rise
    • Reduction in marketing and research

    What Are the Benefits? 

    Historic challenges are great to keep in your back pocket. Later on, they’ll help you formulate a contingency plan and meet obstacles. Things may seem scary right now, but the benefits of starting a business in a recession outweigh the challenges in many cases.  How can your new business hop on these enticing benefits in the coming year?

    1. Motivated Investors

    While investing may decrease, it does not end entirely. Moving out of the stock market and into a well-articulated and organized business model would actually be a saving grace for many investors. It’s a win-win operation for both your startup and investor, as you both gain security for the future.

    2. Cheaper Supplies 

    Because of the decreased demand from consumers and businesses alike, your suppliers are sitting with an abundance of materials on their hands. To get funds flowing and make sales, these suppliers are selling off their products at a significantly lower cost than before the recession.

    As you launch your business, you’ll face a large overhead of new costs like inventory, shipping, staffing and rent. Starting in a recession means you can snag your first equipment, materials and infrastructure at a reduced price. 

    Because you’re buying at a critical time for those suppliers, you’re also forging a reliable relationship with them that could last decades. Negotiating long-term deals is a must to keep those costs reasonable after the economy rises.

    3. Lessened Competition

    Recessions can be scary and probably frightens away other start-ups during this time. However, that leaves more room and reduces competition for you and your team. A market once dominated by fortified players now has gaps for a small but mighty startup to make waves. Remember, a recession will affect both large and small businesses in some way, so it evens the playing field.

    4. Opportunities to Answer Unique Consumer Needs

    Recessions also offer you the chance to impact customers. At a time when people are struggling or — as in the 2020 recession — isolated and reeling from a pandemic, they’re looking for answers. That answer can come from your business.

    Before, their needs may have already been met by the established players in the industry. However, your new addition can identify the problems people are facing and introduce a relevant and timely solution.

    For example, COVID-19 trends centered on businesses that offered contactless delivery or even products to beat the quarantine blues.

    In 2021, 30% of people shopped less in-store and ordered their groceries online. Therefore, successful infrastructure during recessions can carry into the future. What problems does your product or service address, particularly in the recession?

    Tips For Starting a Business In a Recession

    Recessions offer your startup a shining wealth of opportunities. By positioning your business model correctly, you can traverse the shifting tides of the economy to find soaring profits, leads and opportunities. Explore the following tips to shape your next steps.

    1. Find Your Niche

    Before setting up shop, consider what your business adds to the market. Remember the benefit of open market opportunities to answer consumer needs? This is your chance to really dive deep into the uses of your products and services. Ask these questions about your model to uncover how best to market to a wide range of people:

    • What is unique about your product?
    • Is it handmade or crafted with unique ingredients?
    • Does it offer solutions to social issues?
    • Does it offer fun in a time of social distress? People may seek solace in these entertaining experiences or products.
    • What do you stand for? Think about the businesses that took a people-first approach to health during 2020.

    When evaluating your startup, consider the value to consumers, business partners, suppliers and investors. If there’s not a considerable area of entry or particular need for your startup, then it may be better to wait for the economy to return to normal.

    2. Research Trends and Opportunities

    On a similar note, your niche may be specific to trends in recessions themselves. Typically, recessions see a spike in household goods, such as health care and cosmetic needs, grocery staples and home supplies. People still need life’s necessities even when trying to save money.

    However, even “frivolous” products can sell well in a recession. Again, in darker times, people want to find happiness and joy. Notably, leisure-related goods like sports, pet products and magazines rose during the COVID-19 pandemic as people searched for fun activities at home. What current trends or needs can your business provide to your audience?

    3. Build Your Trusted Team

    Because the state of the economy is uncertain, you want the most reliable team at your side. Building up staff is challenging at any time because people may be wary of the risk of startups. However, recessions often mean job loss and layoffs, so people are looking for work.

    Share your plans for the future with your team to instill that confidence and security. Employees who believe in the company vision are more motivated to dig deeper into their tasks and accomplish goals.

    4. Dial Into Customer Connections

    Amid an economic downturn, people are cautious with their spending habits, so you must make an impression and demonstrate your value. You can pursue digital marketing tactics like email marketing to clue consumers into coupons and deals.

    Social media marketing is also an excellent hub for small businesses. On apps like TikTok, you don’t need a huge following to reach a wide audience. Through their For You page, viral videos can appear on anyone’s page. Tap into humorous trends and communicate with users to make a significant impact and go viral.

    Furthermore, always appreciate the power of face-to-face connections. At a time when digital marketing is everywhere, consumers find it refreshing to chat with brands in-person. Check out seminars and networking events around the area to make a name for your business.

    Once those connections have been made, continually check in with leads and repeat customers to build that bond. You can invite them to local company events like barbecues or offer small tokens of appreciation like t-shirts and travel bags. Eight out of 10 people prefer physical promotional products over digital marketing techniques, so these personal touches during what can be a traumatizing time make all the difference to your consumer base.

    5. Craft a Detailed Plan B

    There are opportunities to advance in a recession, but there can be an equal amount of risk. By nature, they can be unpredictable in severity and longevity. Thus, you need a detailed and comprehensive contingency plan.

    Write a list of “what-ifs” for your business model. What if the prices of your base material rise? What if your landlord decides to foreclose your office space? What if products sell out too quickly? How will you navigate financial aspects like quarterly estimated taxes or any unique tax relief programs?

    Combine a list containing all possible good and bad options and formulate paths ahead. With a sharp eye and preparation, it will be easier to traverse those events if they do come to pass.

    Remember the investors looking for more secure money-making ventures? At your pitch meeting, you have a chance to display your in-depth research and plans for the future. Once they see your predictive and thoughtful financial planning, they feel more confident in your ability to weather the recessional storm and into sunnier skies.

    Find Growth in a Recession

    Recessions are an economic downturn by definition, but your business can use this time to its advantage. Starting a business during this time is not without risk and you should consider that from all angles. However, startups have opportunities to meet specific needs and traverse a more open playing field.

    With meticulous planning and all the facts, you’re ready to turn your business dreams into reality, no matter the state of the economy.

    The post Starting a Business in a Recession: What You Should Know appeared first on Due.

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    Devin Partida

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  • 43 Years of Investing Wisdom in Just Minutes | Entrepreneur

    43 Years of Investing Wisdom in Just Minutes | Entrepreneur

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    Steve Reitmeister has been investing successfully for 43 years. He just released a brand new presentation to boil down his many years of stock picking experience into a simple to follow system that has beaten the S&P 500 (SPY) by more than 4 to 1 over the years. Keep reading below for the full story.

    Yes, I have been investing for 43 years. And how I pick stocks today is shaped as much by the past mistakes as it is by the successes.

    I really wanted to boil down all those years of wisdom into short form to share with investors which led to a brand new presentation that you can watch today:

    Unlock the POWR in Your Portfolio  

    I can say without hesitation that the ideas highlighted in this webinar are the very best I can share with other investors to improve your results in the months and years ahead.

    That is because the key investing lesson learned is that the vast majority of things taught to us are DEAD WRONG!

    This is not just a matter of opinion. Rather it is scientific fact.

    Consider this… a few years ago I enlisted the help of one of the leading Data Scientists in the field to help create the POWR Ratings system. This journey started with a review of thousands of potential factors that would point to stocks likely to outperform.

    95% of what we researched in fundamentals and price action failed the test.

    This means that only 5% of the factors (118 in total) we reviewed actually helped select better stocks on a consistent basis.

    Instead of just focusing on 1 or 2 of these elements we wanted to combine all 118 winning factors together to truly stack the odds in our favor.

    This led to the creation of the POWR Ratings which has beaten the S&P 500 (SPY) by greater than 4 to 1 over the years.

    The rest of the story awaits you in this brand new presentation. Including how incredibly well it has performed since the bear market came on the scene in early 2022.

    Unlock the POWR in Your Portfolio  

    Wishing you a world of investment success!

    Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
    CEO, StockNews.com and Editor, Reitmeister Total Return

    SPY shares were trading at $409.39 per share on Friday afternoon, up $5.69 (+1.41%). Year-to-date, SPY has gained 7.46%, versus a % rise in the benchmark S&P 500 index during the same period.

    About the Author: Steve Reitmeister

    Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.

    More…

    The post 43 Years of Investing Wisdom in Just Minutes appeared first on StockNews.com

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    Steve Reitmeister

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  • Breaking: MAGA Patriots Donate Here To Help Protect Our Beautiful President Trump

    Breaking: MAGA Patriots Donate Here To Help Protect Our Beautiful President Trump

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    In order to PUT AN END TO THE INJUSTICE perpetrated by Manhattan District Attorney ALVIN BRAGG’s recent INDICTMENT of our BELOVED LEADER, MAGA PATRIOTS can now DONATE HERE to HELP PROTECT OUR BEAUTIFUL PRESIDENT TRUMP. The BEST PRESIDENT THIS COUNTRY HAS EVER HAD is under ATTACK by a POLITICALLY MOTIVATED WITCH HUNT…

    Read more…

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  • What Climbing Interest Rates Mean for Annuities? | Entrepreneur

    What Climbing Interest Rates Mean for Annuities? | Entrepreneur

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    Careful scrutiny of your retirement plans requires you to factor in annuities to balance your investment portfolio. Annuities remain reliable investment vehicles to generate a guaranteed income post-retirement. Meticulously planned annuities often replicate monthly paychecks that reflect in the form of salary amidst rising interest rates.

    Where Will I Start With My Annuities?

    Well, you might be in a dilemma about when to start your annuities. Perfect timing ensures that you make the most of the market conditions. If you plan to predict the annuity rates in the future, it pays to start investing at the right time.

    Adding to all the financial dilemmas — the FED keeps altering the interest rates. So, what does increasing interest rates mean for annuities? We have comprehensively covered the impact of climbing interest rates for annuities in this article. Having this knowledge will help you plan your investments and maximize your returns.

    Different types of annuities in the US

    Before jumping to the interest rate impact on annuities, first, let us learn the types of annuities you can invest in the US.

    1. Immediate annuities

    Immediate annuities guarantee payments to the investor within the first year. You can also get customized, guaranteed income. For instance, you pay $200,000 as a single premium to your insurer. As per the agreement, the insurer pays you $5,000 per month for a fixed period later on. The interest rates and market conditions determine the payout amount.

    While deciding the type of annuities, it’s imperative to consider your age. Otherwise, calculating your estimated requirements for retirement savings turns out to be challenging. Purchasing immediate annuities help guarantee a lifetime payout, regardless of your age.

    However, the investor would be trading liquidity to warrant a fixed income. During emergencies, you won’t have access to this fund.

    The prime benefit of purchasing immediate annuities is that you get to know exactly how much you will receive after your retirement.

    2. Deferred annuities

    Through deferred annuities, you can receive guaranteed income in the future. This can be a monthly inflow of cash or lump sum income. You need to pay monthly premiums or a lump sum amount. Based on the type of investment you selected, the insurer will invest the amount consistently as per the contractual agreement. With deferred annuities, you can grow the principal significantly. These investments also bring you the opportunity to save taxes.

    3. Fixed annuities

    If you aren’t willing to take on higher risk, go for fixed amenities. As per the agreement, your insurer will pay you a fixed rate of interest on your investment, which is guaranteed. You are going to receive the payouts through an agreed time period. Once the contract period expires, you can renew or annuitize your contract.

    Besides, one can also get the invested dollars transferred into a different retirement account or annuity contract. As the interest rate is fixed, market volatility won’t affect your returns.

    4. Variable annuities

    A variable annuity refers to a contract where the value is based on how the underlying sub-accounts perform. This is different from fixed annuities that offer a guaranteed return. However, you get to enjoy the scope of maximizing your returns by investing in a variable annuity. However, these investments tend to be riskier, as the value of the sub-accounts might fall, corresponding to adverse market performances.

    Variable annuities hold the highest income potential. These annuity contracts are tax-deferred, enabling the investor to channel funds into sub-contracts. This is similar to your investments in a 401 (k). These sub-accounts help to maintain the growth trajectory of your annuity.

    At times, these annuities can help you beat inflation. The sub-accounts, just like mutual funds, are subject to market performance and risk. Besides, you can get an income rider or a death benefit rider with variable annuities.

    What makes timing crucial for investing in annuities?

    Typically, the sale of annuities tends to shoot up with rising interest rates. This is because people would be interested in finding a safe place to park their funds while earning a decent return. For better returns during retirement days, starting your annuities is crucial when interest rates remain high.

    On the other hand, the sales of annuities dip with low-interest rates. People feel the returns won’t be too good during retirement. Naturally, they refrain from purchasing annuities when interest rates are low.

    Now that the interest rates are soaring, people are keen to purchase annuities. Even if your workplace retirement plan or 401(k) is running dry, the income from the annuity will come in handy. Amidst a volatile market and increasing interest rates, this would be a great time to purchase your annuities.

    Annuities warrant a consistent stream of monthly cash inflow

    Annuities are designed to offer a consistent monthly stream of income. This is similar to your pensions and social security. While you will come across different types of annuities in the US financial market, the core concept remains the same. You pay premiums or invest your funds with an insurer. The insurer, on the other hand, keeps paying a regular amount of funds for the rest of your life as per the agreement.

    Since 2022, the average payouts from annuities have shown more than a 13% increment for women and 11% for men. This statistic is based on the records of a 65-year-old woman and a 70-year-old man who invested a $100,000 lump sum in annuities. As per CANNEX, the average sum insurers offered at the end of April 2022 was $616, while it was $553 at the beginning of the year. In 2023, the interest rates have further increased, which can translate into higher annuity payouts.

    Understanding the basics of returns through annuities

    Whether you go for a variable or fixed annuity for monetary benefits, the issuer invests a sizable chunk of the assets in fixed-income debt securities, bonds, index points, or investment funds. Therefore, the performance of debt securities largely determines the returns you gain through annuities.

    While dealing with bond issuers, the issuer of the annuity receives relatively higher rates. The crediting rate, or the rate at which the annuity issuer pays to the annuity holder, is slightly low. This difference is referred to as “spread.’

    The trade groups and regulators in the US usually categorize the asset reporting for annuity products and life insurance together. According to the Fed, annuity and life issuers hold assets worth $9.8 trillion. This includes debt securities worth $4.4 trillion. In 2021, life insurers boosted their bond holdings in debt securities by $141 billion.

    In 2023, if life insurers invest around $200 billion in bonds, it would result in an increment of 1.9% in the new money rate of the insurers. This can result in an increment of $3.8 billion in a single year in terms of interest that the life insurers and their clients receive.

    Understanding the distribution of crediting rates and annuity spread

    • According to S&P, indexed annuity issuers guarantee that holders would receive around a 3% to 4% average crediting rate.
    • In December 2020, Moody’s Investors Service stated nine life insurance companies in the US that had been encountering spread compression problems guaranteed rates between 4% and 5.5%.
    • In 2021, American Equity stated that their aggregate cost of money was 1.55%.
    • Lincoln Financial stated that the average interest rate at which it credited annuity contract holders was 1.93%.

    In June 2021, the National Association of Insurance Commissioners declared that the overall average spread of life insurers between the net investment portfolio yield and their promised rate to clients dropped from 1.8% in 2007 to 0.63% in 2020. The aggregate investment spread of American Equity in 2021 was 2.18%, while it was 1.43% for Lincoln Financial.

    How do higher interest rates translate into higher annuity payouts?

    As an investor, it pays to know the factors on which annuity payouts are calculated. Insurers consider the client’s life expectancy and interest rates as two of the prime determinants of payouts.

    Amidst the pandemic, the Federal Reserve drastically reduced the interest rates to boost the US economy. However, during its recent meetings, the Central Bank has been compelled to increase the interest rates due to high inflation. The rates are further expected to rise in the current year.

    Now, bonds continue to be the cornerstone of the annuity portfolios of insurance companies. With soaring interest rates, they can generate a higher return on new bonds. Naturally, they pass on the benefit to their clients, and you get to savor a higher monthly cash inflow.

    Again, certain annuities, such as multi-year guaranteed annuities, serve like your savings account. At the end of the term, you may decide to convert it into a stream of regular monthly income.

    The interest rate for a five-year multi-year guaranteed annuity at the end of 2021 was 1.95%. Around May 2022, it significantly rose to 2.9%. In 2023, the rates are further likely to increase.

    Naturally, investors are keen to purchase annuities so that they can benefit from higher returns. Although the rates vary from one insurer to the next, they can still capitalize on the benefits. Before investing, it pays to scrutinize the financial strength rating of the insurers.

    Usually, you would find financial firms like Moody’s, Fitch Ratings, A.M. Best Company, or S&P Global Ratings attributing these ratings. A high rating implies that the insurer would be able to generate more income for you in the years to come.

    Why is the US annuity market growing?

    In the first quarter of 2022, fixed annuity sales in the US were recorded at $35.2 million. This marks a 14% Y-o-Y growth. At this time, the total annuity sales were up by 4%, at $63.6 million. By the end of 2022, the value was $310.6 billion, up by 22% compared to 2021.

    This increment in annuity sales corresponds with the rise of interest rates. Evidently, the correlation explains that more people are purchasing annuities as the interest rates keep increasing. Their expectation of a better-guaranteed return in the coming years has been driving the US annuity market.

    In 2023, the interest rates are expected to rise further, which would boost the customers’ expectations. It remains to be seen what awaits the market in the remaining quarters of 2023.

    Why should you buy fixed annuities with interest rates climbing?

    As the interest rates keep rising, Americans are bracing to invest more in annuities. Let’s evaluate the impact of increasing interest rates on borrowers and investors.

    In case you are borrowing money, this wouldn’t be a great time as you would end up paying more on interest. For instance, homeowners need to pay higher on their mortgages throughout their tenure.

    Now, if you are enjoying a cash inflow through an instrument influenced by mortgaged rates, you would be on the gaining end. To take advantage of the market conditions, it would be a logical decision to invest in a fixed annuity. As the interest rates are increasing, you can lock the deal at a high rate throughout the term. Even if the Federal Reserve cuts the interest rate after a few months, the current rate would be applicable to you.

    Insurance companies in the US issue these annuities. The interest that these insurers earn through their interests determines the pay to their clients. Therefore, a higher interest rate would translate into higher payment for you during the contract’s dispersal period.

    Let’s take a case to help you understand the conditions better. In case a 70-year-old woman invested $1 million as a premium to purchase a life-only income annuity on 21st December 2021, the annuity payment would be around $67,204. However, the same product could have fetched her $71,926 had she invested the same amount on 22nd March 2022. The difference in payment is 7%, which can be even higher as the rates keep increasing in 2023.

    Endnote

    Annuities continue to be a core share of a well-balanced investment portfolio. If you are planning your retirement savings, it pays to consider the returns through annuities. Now that you know why timing matters while starting your annuities, this would be a great time to invest.

    With the interest rates rising, annuity buyers can lock the rate and enjoy guaranteed returns after the tenure. Besides, the Federal Reserve is likely to further raise the interest rates in 2023. Even if you settle for a variable annuity, the climbing interest rates promise superior returns.

    The post What Climbing Interest Rates Mean for Annuities? appeared first on Due.

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    Deanna Ritchie

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  • 3 Of the Strongest Stocks in A Booming Industry | Entrepreneur

    3 Of the Strongest Stocks in A Booming Industry | Entrepreneur

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    The Fed’s consecutive rate hikes to control inflation raises the odds of a recession. Despite various macroeconomic headwinds, the Grocery/Big-box Retailers industry has been booming due to the inelastic demand for its products. Given the industry’s defensive nature, it could be wise to invest in top big-box retailer stocks Walmart (WMT), Koninklijke Ahold Delhaize (ADRNY), and Ingles Markets (IMKTA) for steady returns. Continue to read….

    With the possibility of additional rate hikes, the economy could face the peril of recession. Regardless of uncertain macro conditions, the big-box retail industry has been performing well, given its inelastic nature. Thus, investors could consider buying fundamentally strong stocks Walmart Inc. (WMT), Koninklijke Ahold Delhaize N.V. (ADRNY), And Ingles Markets, Incorporated (IMKTA) for solid gains.

    Before delving deeper into the fundamentals of these stocks, let’s discuss various factors that make the Grocery/Big-box Retailers one of the best-rated industries in our POWR Ratings system.

    The Federal Reserve has raised its benchmark interest rate by 0.25% this month to restore price stability, leading to a federal funds rate range of 4.75% to 5%. As per new economic projections, most of the Fed’s members forecast an additional quarter-point rise this year, bringing the rates to 5.1%.

    Furthermore, the central bank’s quarterly forecasts imply that interest rates would remain steady until 2024, at approximately 4.3%. A sequence of successive rate hikes might push the economy into a recession. Amid the inflationary and recessionary environment, the big-box retail industry has been holding up well due to the inelastic demand for its products.

    Furthermore, the proliferation of digitalization and social media has opened a plethora of prospects for the big-box retail industry. Retailers are gearing up to augment their digital channels, which offers a significant opportunity to reach a wide range of customers. U.S. e-commerce sales are estimated to have reached $1.03 trillion in 2022, marking the first time e-commerce revenue topped the trillion-dollar level.

    Investors’ interest in grocery/big-box retailer stocks is evident from the NASDAQ NQ US Food Retailers & Wholesalers Large Mid Cap Index’s 15.7% gains over the past six months. The Grocery/Big Box Retailers is ranked #3 out of 124 industries in our proprietary rating system.

    Let us now take a closer look at the featured stocks.

    Walmart Inc. (WMT)

    WMT offers an extensive range of merchandise and amenities through its retail and e-commerce channels. The company’s core strategy centers around its Everyday Low-Price model, prioritizing affordability and accessibility. It operates across three segments, Walmart U.S.; Walmart International; and Sam’s Club.

    On March 2, WMT announced its plans to inaugurate 28 new Walmart Health centers by 2024, aiming to expand its footprint in Missouri and Arizona while fortifying its presence in Texas. The proposed move has the potential to significantly enhance the company’s operational capabilities, resulting in over 75 such centers by 2024.

    On February 28, WMT joined hands with Citigroup (C) to provide the Bridge built by the Citi platform to WMT’s 10,000 Small and Medium-sized Businesses (SMBs) in the U.S. supplier network. This partnership aims to support WMT’s suppliers to gain access to the capital needed to grow, thus driving the company’s expansion.

    Also, on February 21, the company announced an annual dividend of $2.28 per share for the fiscal year 2024, a 2% increase over the prior fiscal year’s payout of $2.24 per share. WMT’s annual dividend of $2.28 yields 1.59% on the current price level. It has raised its dividends for 49 consecutive years.

    The stock’s trailing-12-month asset turnover ratio of 2.50x is 194.1% higher than the 0.85x industry average. Likewise, its trailing-12-month ROCE, ROTC, and ROTA of 14.60%, 10.47%, and 4.80% compare with the industry averages of 10.48%, 6.32%, and 3.95%, respectively.

    WMT’s total revenues increased 7.3% year-over-year to $164.05 billion during the fourth quarter that ended January 31, 2023. Its income before income taxes grew 86.2% from the previous year’s period to $8.90 billion. Also, the company’s consolidated net income and adjusted EPS rose 59.9% and 11.8% year-over-year to $5.81 billion and $1.71, respectively.

    The consensus revenue estimate of $649.91 billion for the fiscal year ending January 2025 reflects a 3.5% year-over-year improvement. Likewise, the consensus EPS estimate of $6.79 for the next year indicates an 11.2% rise year-over-year. Moreover, the company topped its consensus revenue estimates in all four trailing quarters, which is impressive.

    The stock has gained 17.4% over the past nine months to close the last trading session at $144.23.

    WMT’s strong fundamentals are apparent in its POWR Ratings. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

    WMT has an A grade for Stability and a B for Sentiment, Growth, and Quality. It ranks #3 in the A-rated 37-stock Grocery/Big Box Retailers industry.

    In addition to the POWR Ratings I’ve just highlighted, you can see WMT’s ratings for Value and Momentum here.

    Koninklijke Ahold Delhaize N.V. (ADRNY)

    ADRNY is a retail food and e-commerce company headquartered in Zaandam, Netherlands. Its stores offer a diverse range of products, including produce, meat, dairy, and more. The company runs supermarkets, convenience stores, and online stores under various brands, such as Food Lion, Stop & Shop, Hannaford, and Delhaize.

    On March 7, Delhaize, ADRNY’s Belgian brand, announced its plans to convert its 128 integrated supermarkets in Belgium into autonomously run Delhaize outlets. This would allow the company to be more responsive to local conditions leveraging its strong local presence and flexible business hours to swiftly adapt to the dynamic needs of consumers and the market at large.

    Furthermore, on December 14, 2022, ADRNY’s Albert Heijn brand and Jan Linders Supermarkets, a family business, announced a partnership that would entail Jan Linders operating as an Albert Heijn franchisee. In addition, Albert Heijn would procure Jan Linders’ distribution center in Nieuw Bergen.

    Under this agreement, Jan Linders’ 63 stores would be incorporated into Albert Heijn’s new franchise organization, further strengthening the company’s network of stores in the southern Netherlands. These initiatives would consolidate ADRNY’s market position and enhance its potential for expansion.

    ADRNY’s trailing-12-month cash from operations of $6.54 billion is significantly higher than the $352.50 million industry average. The stock’s trailing-12-month ROCE, ROTC, and ROTA of 17.48%, 7.65%, and 5.24% are higher than the industry averages of 10.48%, 6.32%, and 3.95%, respectively.

    For the fourth quarter that ended January 1, ADRNY’s net sales increased 15.9% year-over-year to €23.36 billion ($25.32 billion), while its operating income rose 30.5% from the year-ago value to €1.17 billion ($1.27 billion). Furthermore, the company’s net income and EPS grew 27.6% and 32.4% year-over-year to €809 million ($876.96 million) and €0.82, respectively.

    Analysts expect ADRNY’s EPS to marginally increase year-over-year to $2.74 for the fiscal year ending December 2023. The company’s revenue for the ongoing year is expected to grow 4.5% year-over-year to $97.14 billion. Furthermore, the company surpassed its consensus revenue estimates in three of the four trailing quarters.

    Shares of ADRNY have gained 30.8% over the past six months to close the last trading session at $33.46.

    ADRNY’s solid fundamentals are apparent in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.

    ADRNY has an A grade for Quality and Stability and a B for Growth and Value. It has topped the 37-stock Grocery/Big Box Retailers industry.

    In addition to the POWR Ratings I’ve just highlighted, you can see ADRNY ratings for Sentiment and Momentum here.

    Ingles Markets, Incorporated (IMKTA)

    IMKTA operates a supermarket chain. Its offerings include food and non-food products like grocery, meat, dairy, produce, fuel centers, and pharmacies. It also owns a milk processing and packaging plant and provides home meal replacement items, delicatessens, bakeries, floral departments, greeting cards, and organic products.

    IMKTA’s trailing-12-month net income margin of 4.77% is 37.7% higher than the 3.47% industry average. Furthermore, its trailing-12-month ROCE, ROTC, and ROTA of 23.26%, 13.17%, and 11.77% are 121.86%, 108.4%, and 197.8% higher than the 10.48%, 6.32% and 3.95% industry averages, respectively.

    For the fiscal 2023 first quarter that ended December 24, 2022, IMKTA’s net sales increased 7.3% year-over-year to $1.49 billion, and its gross profit grew 5.9% from the prior year’s period to $371.16 million. In addition, the company’s net income rose 4.8% year-over-year to $69.37 million.

    As of December 24, 2022, IMKTA’s total assets stood at $2.35 billion, compared to $2.30 billion as of September 24, 2022.

    Analysts expect IMKTA’s revenue to grow 3% year-over-year to $4.84 billion for the fiscal year 2024. Moreover, the company’s EPS is expected to increase by 14.5% annually for the next five years. The stock has gained 10.3% over the past six months to close the last trading session at $87.84.

    IMKTA’s POWR Ratings reflect its promising prospects. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.

    The stock has an A grade for Value and a B for Quality and Stability. Within the same industry, it ranks #2 of 37 stocks.

    To see additional POWR Ratings for Sentiment, Growth, and Momentum for IMKTA, click here.

    What To Do Next?

    Get your hands on this special report:

    3 Stocks to DOUBLE This Year

    What gives these stocks the right stuff to become big winners, even in this brutal stock market?

    First, because they are all low priced companies with the most upside potential in today’s volatile markets.

    But even more important, is that they are all top Buy rated stocks according to our coveted POWR Ratings system and they excel in key areas of growth, sentiment and momentum.

    Click below now to see these 3 exciting stocks which could double or more in the year ahead.

    3 Stocks to DOUBLE This Year

    WMT shares were trading at $145.21 per share on Thursday afternoon, up $0.98 (+0.68%). Year-to-date, WMT has gained 2.83%, versus a 5.69% rise in the benchmark S&P 500 index during the same period.

    About the Author: Aanchal Sugandh

    Aanchal’s passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor’s degree in finance and is pursuing the CFA program.She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.

    More…

    The post 3 Of the Strongest Stocks in A Booming Industry appeared first on StockNews.com

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    Aanchal Sugandh

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  • EA Lays Off Almost 800 People Weeks After Posting Huge Profits

    EA Lays Off Almost 800 People Weeks After Posting Huge Profits

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    Image: EA

    Publishing giant Electronic Arts announced today that approximately 6% of its global workforce, or between 700-800 people, will be laid off as the company drives “greater focus across our portfolio”.

    This Mini Sega Arcade Cabinet Packed With Retro Games Would Make A Great Gift

    In a post on EA’s website, CEO Andrew Wilson writes that the publisher has taken a look at its upcoming projects, restructured some teams and even reviewed their “real estate footprint”. In the wake of that, the decision was made to lay off “approximately six percent of our company’s workforce”.

    As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams. These decisions are expected to impact approximately six percent of our company’s workforce. This is the most difficult part, and we are working through the process with the utmost care and respect. Where we can, we are providing opportunities for our colleagues to transition onto other projects. Where that’s not possible, we are providing severance pay and additional benefits such as health care and career transition services. Communicating these decisions began earlier this quarter and we expect them to continue through early next fiscal year.

    Electronic Arts generated approximately $7 billion in net revenue last year, as reported on January 31, 2023, with gross profits of over $5 billion (an increase of 18% over the year before). In 2022 CEO Wilson, who described this move as “the most difficult part”, made approximately 172 times the median EA employee’s total compensation. Or 636 times what some customer service staff had been paid (before they were laid off, anyway).

    This announcement comes just a month after 200 testers working on the company’s Apex Legends series were laid off via Zoom call (though given Wilson’s comments that “these decisions began earlier this quarter”, those may have been part of this overall count).

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    Luke Plunkett

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  • Revenue vs. Profit: What’s the Difference? | Entrepreneur

    Revenue vs. Profit: What’s the Difference? | Entrepreneur

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    Understanding the difference between revenue and profit is essential in understanding basic and complicated economics. Even if you don’t know exactly what these terms mean, you’ve heard the words in passing.

    Profit is money in your pocket, and revenue is sales, right? While that is true sometimes, more details will help you clarify the difference and see how it is vital to your future business endeavors.

    What is revenue?

    Revenue is the total amount of money generated through business sales or other activities within the business. This is the total amount before any expenses are considered or deducted from those sales.

    You can calculate revenue using this simple equation:

    Price x quantity = revenue

    Related: What Is Revenue? Here’s Everything You Need To Know and How To Calculate It

    Annual recurring revenue (ARR)

    A critical vein of revenue that is vital to understanding is annual recurring revenue (ARR). ARR is revenue: specifically, the expected revenue from customers annually.

    This is usually determined by subscription agreements or recurring streams of revenue. ARR is most commonly found in businesses with subscriptions for that specific reason.

    Understanding ARR is critical because it provides companies with a predictable revenue stream.

    This helps when it comes to forecasting cash flow and planning future growth or changes in the company. ARR is also an excellent indicator of predicted return on investment (ROI) for investors.

    Related: Return on Investment (ROI)

    What is profit?

    Profit is the total gain or loss of money that a business has. The simple equation to reach this number is:

    Revenue – expenses = profit

    Profit is calculated by taking away the total expenses from the total revenue. These expenses can be generated through business activity, like utilities or employee payments or through the amount generated from taxes or other technicalities.

    Related: What Is Revenue? Here’s Everything You Need To Know and How To Calculate It

    Gross profit

    Gross profit is a category of profit that is important to know as a business owner. You can calculate gross profit with this equation:

    Revenue – the cost of goods sold (COGS) = gross profit

    Because COGS includes the costs of producing and delivering a product or service, gross profit measures a company’s profitability before deducting operating expenses.

    This helps the company by breaking down the steps to finding net profit, which can reveal points of profitability weakness in the production and taxation of a business.

    Operating profit

    Operating profit is the next step in calculating net profit. It’s similar to gross profit but includes three more categories of expenses. You can calculate operating profit with this formula:

    Revenue – COGS – operating expenses – depreciation – amortization = operating profit

    Depreciation and amortization are two more ideas you must understand as an entrepreneur. Depreciation reduces the actual value of equipment or vehicles due to time or use.

    This calculation puts a numerical value on the asset’s cost versus its operating and residual value.

    Amortization refers to the value of non-tangible products like patents or trademarks. It is calculated the same way that depreciation is calculated.

    Both of these methods help to spread out the cost of assets over their useful lives and provide a more accurate picture of a company’s expenses and profits.

    Net profit

    Net profit is the final calculation determining a business’s actual profit. You can calculate net profit using this equation:

    Gross profit – operating expenses – taxes

    If you missed it, this is simply subtracting all expenses from revenue. This net profit indicates the total profitability of a business and is usually an attractive number for investors if it is large enough on your financial statement.

    Related: 4 Ways Net Profit Margin Equals Happiness in Life

    What are the critical differences between revenue and profit?

    So, comparing the definitions above, revenue is simply a company’s total sales, while profit uses that number to calculate true profitability. They are calculated in different ways and used differently.

    Revenue calculates sales and market share growth, while profit is more important for profitability and financial health.

    Another essential thing to note is the typical fluctuation of these numbers. Revenue tends to be highly volatile since it is subject to market demand and other factors, while profit is usually more stable over time.

    Where do you find revenue and profit on an income statement?

    Revenue is usually reported as the first item on the income statement. This is known as the top line. Based on the period of the financial statement, it indicates only total sales from that period.

    Profit is reported last on the income statement, known as the bottom line. The net profit is on the bottom line of the types of profit discussed.

    Related: What Exactly Is Your Income Statement Telling You?

    Why is it important to understand the difference between revenue and profit?

    Fortunately, these things are not specific to the business and entrepreneurial world. Anybody with the proper knowledge and preparation can generate revenue and, in turn, profit from their financial gain. Here are just a couple of ways to do this.

    One idea to understand about profit, in particular, is short and long-term profitability. A great example is investing in a very small APY, even 2% or 3%.

    A business may prioritize short-term profitability by cutting costs and reducing investment, leading to higher profit in the short term.

    However, this may not be sustainable in the long term as it can harm the growth and future profitability of the business.

    A business may prioritize long-term profitability by investing in research and development, expanding operations and improving customer experience, even if it means lower profit in the short term.

    Related: How to Value a Business: 9 Ways to Calculate a Business’s Worth

    An example of revenue vs. profit

    For those who learn better from examples, consider the following example to help you distinguish between revenue and profit.

    A company sells t-shirts for $10 each. This past month, they sold 100 t-shirts. So, the revenue would be calculated as such:

    $10 (price) x 100 (quantity) = $1000 (revenue)

    So, for this past month, the total revenue was $1000. But not all $1000 can go straight into the hand of the owner.

    Consider the company’s expenses. It costs the company money to make the t-shirt, rent the store and pay the employees and utilities for the building of operations. These are just a few broad examples; any company will have multiple categories of expenses.

    So, if we add all those up:

    $1000 (revenue) – $750 (expenses) = $250 (profit)

    That leftover from the equation is your net profit. If you want to go into more detail, you can separate each kind of expense from calculating each type of profit. But in summary, the revenue in this example is $1000 and the net profit is $250.

    Revenue and profit FAQs

    Despite clear explanations and definitions, many questions still emerge in discussing these two principles.

    1. Can you have higher profit than revenue?

    No. This is a simple math question. Since profit is calculated by taking expenses from revenue, you can never have a higher profit than revenue. In math terms, you would have to have a negative amount of expenses, which wouldn’t be expenses.

    2. How is revenue different from sales?

    While revenue and sales are commonly interchangeable and usually identical, there is a distinction that is important to keep in mind.

    Sales are a subset of revenue. As discussed, revenue is the total money that a company earns over a period of time. Sales are the amount of money a company makes from selling products or services. It refers only to the funds generated by selling goods or services.

    3. What’s more important: revenue or profit?

    This question all depends on your situation. When you have these two metrics and need to utilize them, understand your problem statement before trying to make those calculations.

    For revenue, you can understand how your company generates income from core business activity. A high revenue generally means the company sells more, which is a positive sign for any business. However, this does not indicate financial health since expenses are not considered.

    Regarding profit, this should be your indicator of financial health. Profit is the number that shows returns for investors or shareholders, which are critical parts of your company.

    So profit is more important for understanding company growth and sustenance because it indicates the ability to maintain operations, investments and ROI for shareholders.

    Related: Understand Profit, Cash Flow and ROI to Ensure Your Business’ Financial Health

    What understanding revenue and profit can mean for your business?

    It is vital to address the ethical considerations of revenue and profit generation. Businesses should strive to generate revenue and profit that benefits all stakeholders.

    Short-term profit generation that exploits stakeholders or harms the environment can have negative long-term consequences for the business and the economy as a whole.

    Therefore, businesses should aim to balance revenue and profit generation with social and environmental responsibility.

    To those with significant monetary value, a level of responsibility comes with that wealth. Always do your best to steward your wealth in an ethically wise way.

    Check out Entrepreneur’s other articles for more information about revenue, profit and other financial topics.

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    Entrepreneur Staff

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  • What Is Market Cap? Here’s a Comprehensive Explanation | Entrepreneur

    What Is Market Cap? Here’s a Comprehensive Explanation | Entrepreneur

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    The valuation of companies is a critical component of investment analysis and a vital determinant of a business’s financial well-being. Investors must thoroughly understand a company’s value to make informed investment decisions in the dynamic and ever-changing stock market.

    One of the most widely adopted metrics for evaluating the value of a company and its growth potential is market capitalization, often called “market cap.”

    Below, you’ll learn how to calculate market cap, understand its use in business and learn a comprehensive and intellectually rigorous explanation of its significance in valuing companies.

    How do you calculate market cap?

    Market cap is a foundational metric in evaluating a company’s financial stability and growth prospects.

    Market cap is calculated by multiplying a company’s current share price by the number of its outstanding shares.

    This calculation yields a dollar amount that represents the total value of the company’s stock on the market and serves as a critical indicator of the company’s size, stability, volatility and growth prospects.

    For example, let’s consider a fictional company, ABC Inc. As of March 1, 2023, ABC Inc.’s current share price is $30 and the company’s outstanding shares are 100 million. By multiplying the current share price of $30 by the number of outstanding shares, which is 100 million, one obtains a market cap of $3 billion.

    This figure provides valuable insight into the growth prospects of ABC Inc. as a company. For instance, with a market cap of $3 billion, ABC Inc. is considered a mid-cap company and stock, as its market cap falls between $2 billion and $10 billion.

    Why is market capitalization important?

    Understanding market capitalization allows you to perform various financial tasks accurately.

    Some of these include:

    Assess the company’s size and investment potential

    A company’s market cap indicates its size and investment potential. For instance, a mid-cap company like ABC Inc. has a moderate level of size and growth potential.

    Determine the company’s stability and volatility

    The market cap also indicates its stability and volatility. Generally, mid-cap companies are considered less volatile than small-cap or micro-cap companies but more volatile than large-cap companies. The same difference applies to small-cap stocks and large-cap stocks.

    Compare companies

    Market cap is a crucial metric for investors when making informed investment decisions. Specifically, comparing market cap between different companies allows for the assessment of the relative size and investment potential of these entities.

    For example, a smaller company might have more upside potential but may be riskier due to its size and less established track record. On the other hand, a larger company may be more stable and have a proven track record but may have less room for growth. Ultimately, investors must weigh these factors carefully when choosing where to invest their money.

    What are the different market cap designations?

    Market capitalization designations offer a valuable framework for evaluating companies’ relative magnitude and investment prospects. The following are the most fundamental categories:

    1. Large-cap companies and equities

    A market capitalization above $10 billion categorizes a company or equity as large-cap. These organizations exhibit a high degree of stability and comparatively low levels of volatility, making them suitable for investors seeking stability in their portfolios.

    2. Mid-cap companies and equities

    As discussed in the previous example, companies and equities with a market capitalization between $2 billion and $10 billion are classified as mid-cap. Mid-cap companies balance stability and growth potential, making them appropriate investments for those seeking stability and growth.

    3. Small-cap companies and equities

    Organizations and equities with a market capitalization below $2 billion are deemed small-cap. These entities possess substantial growth potential but are also associated with higher levels of volatility.

    As a result, small-cap companies may be suitable investments for those willing to tolerate elevated risk levels in pursuit of higher returns.

    4. Micro-cap and mega-cap companies and equities

    Companies and equities with a market capitalization below $50 million are designated micro-cap, while those with a market capitalization above $200 billion are designated mega-cap.

    These designations represent the smallest and largest companies and may be appropriate investments for those seeking exposure to niche or highly established markets.

    Related: What Is Equity and How Do You Calculate It for Shareholders?

    How does market cap influence investment analysis?

    Market capitalization is also a critical component of investment analysis, offering more granular insights into a company’s health and standing.

    For example, in the realm of investment analysis, individuals use market caps to:

    1. Evaluate capital structure

    The market cap provides a comprehensive view of a company’s capital structure. Capital structure refers to how a company finances its assets, operations and growth through debt and equity.

    In simpler terms, it’s the combination of loans and bonds a company takes on and the money it raises through issuing stocks. The optimal capital structure balances the benefits of debt financing, such as lower costs and tax benefits, with the risks of increased financial leverage.

    2. Analyze investment metrics

    Market cap is also relevant in analyzing investment metrics, including earnings growth, profitability and dividend yield. Profitability metrics, such as return on investment (ROI) and return on equity (ROE), measure a company’s ability to generate profits and return value to its shareholders.

    Investment professionals may consider a company’s market capitalization with its profitability metrics to understand its financial stability and investment potential better.

    3. Market cap and industry analysis

    Market cap is useful for analyzing industry trends and the competitive landscape. Investment professionals can use market capitalization to assess companies’ relative size and market share within a specific industry, providing valuable insight into the industry’s competitive dynamics and growth potential.

    By tracking changes in market cap over time, investment professionals can identify emerging trends, shifts in market share and changes in a company’s competitiveness.

    Related: Return on Investment (ROI)

    What does market capitalization look like in public company analysis?

    High-profile companies like Microsoft, Apple and Amazon illustrate market capitalization’s impact on investment decisions. Throughout each company’s lifespan, market downturns, stock splits and changes in free-float market capitalizations have added dynamism to overall performance.

    A company’s past performance is closely correlated with market capitalization. By analyzing changes in a firm’s market capitalization over time, investors can comprehensively understand its historical financial stability, growth prospects and risk exposure.

    In addition, market caps are also relevant in analyzing market downturns and economic volatility, as fluctuations in market capitalization can provide insights into a company’s resilience and potential for recovery.

    Stock splits represent a fundamental change in a company’s capital structure and can significantly impact its market capitalization.

    By altering the number of outstanding shares, stock splits can affect a firm’s market value, making it essential for investors to carefully consider the impact of these changes on the financial stability and growth prospects of the company.

    Finally, free-float market capitalization is an essential metric for investment analysis, as it provides a more accurate representation of a company’s market value by excluding restricted shares of stock held by insiders or other stakeholders.

    By considering free-float market capitalization, investors can make informed investment decisions based on a more precise evaluation of the market value of a company.

    Related: ‘Make use of market volatility’ | Entrepreneur

    What role does market capitalization play in evaluating the value of cryptocurrency?

    In recent years, the cryptocurrency market has become an increasingly important and dynamic arena for investment, with market capitalization serving as a critical metric for evaluating the value of different cryptocurrencies.

    Calculating the market cap of a cryptocurrency is identical to calculating the market capitalization of any other asset — multiply its current market price by its circulating supply.

    Cryptocurrency market caps can vary drastically, with some cryptocurrencies commanding relatively small market caps of a few million dollars. In contrast, others boast market caps of hundreds of billions of dollars.

    This variation in market cap is due mainly to differences in the underlying technology, adoption rate and overall market demand for each cryptocurrency.

    For example, Bitcoin, the largest cryptocurrency by market cap, has a current market cap of just shy of $500 billion, reflecting its widespread adoption and strong demand from investors.

    On the other hand, Ethereum, the second largest cryptocurrency by market cap, has a market cap of around $200 billion, reflecting its growing popularity as a platform for decentralized applications and smart contracts.

    In addition to market cap, investors in the cryptocurrency market also pay close attention to other metrics, such as trading volume and adoption rate, as they make investment decisions.

    While the market cap of a cryptocurrency can provide a useful starting point for evaluating its overall value and potential for growth, much like in traditional investing, it’s just one of many factors that investors consider as they assess the risks and opportunities in the market.

    Related: 7 Things to Know Before Investing in Cryptocurrencies

    How does liquidity interact with market capitalization?

    Liquidity is a crucial factor in investment analysis, representing a company’s ability to meet its financial obligations and respond to market demands.

    In market capitalization, liquidity is often considered in terms of a company’s free float market capitalization. As discussed, it represents the portion of a company’s market cap available for trading and is subject to market fluctuations. This metric is closely tied to liquidity as it provides insight into the ease of buying and selling shares.

    An analysis of a company’s market capitalization, particularly its free float market capitalization, can provide valuable information about the liquidity of its shares and the potential for buying and selling activities to impact the company’s stock price.

    This information can be vital for short-term investors seeking to enter quickly or exit positions or for long-term investors evaluating the stability and sustainability of a company’s financial position.

    Related: 7 Ways to Improve Liquidity – Entrepreneur.com

    What can understanding market caps do for your business?

    Market capitalization is essential in evaluating a company’s financial health, growth prospects and investment potential. By also providing insights into a company’s size, stability and volatility, market cap enables investors to make informed and strategic investment decisions.

    Furthermore, market capitalization is a vital component of investment analysis, offering a comprehensive view of a company’s capital structure, investment metrics and trends.

    Moreover, in cryptocurrency, market capitalization serves as a critical metric for evaluating the value and potential of different cryptocurrencies.

    While market cap is just one of many factors investors consider, it provides a valuable starting point for assessing the health and potential of various cryptocurrencies.

    Overall, keeping track of market capitalization and understanding its significance is crucial for investors to make well-informed and potentially lucrative investment decisions in the fast-paced and ever-evolving financial landscape.

    Explore Entrepreneur’s vast collection of articles for more information on other critical aspects of financial management.

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    Entrepreneur Staff

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  • How to Identify a Good Investment (Even During Economic Uncertainty) | Entrepreneur

    How to Identify a Good Investment (Even During Economic Uncertainty) | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Rising inflation. Ongoing supply chain problems. International conflict.

    There’s a lot of volatility in the market today, which has many entrepreneurs and investors feeling stressed. With this much uncertainty, choosing how to allocate money and being confident in those choices can be challenging. Too often, people get trapped in analysis paralysis or needlessly lose sleep second-guessing themselves.

    One of the best ways to ease that stress is to take the emotion out of your decision-making. And the best way to take emotion out of the equation is to establish a clear set of investing criteria. By knowing precisely what a good investment looks like, you’ll be able to make wise decisions quickly, efficiently and confidently, no matter what else is happening in the world.

    Related: Why the Current Volatile Market is an Opportune Time for Impact Investing in Undercapitalized Entrepreneurs

    Step 1: Understand who you are and what you want

    Investing is not a one-size-fits-all process. An excellent opportunity for you may not be great for someone who doesn’t share your interests, risk profile and goals. This means establishing your investing criteria begins with introspection.

    Spend time answering the following questions:

    • What kind of lifestyle do you want your investments to fund? The answer to this question will help you begin to create accurate financial targets.
    • Are there certain types of assets you enjoy more than others? Some people love buying and managing real estate, while others prefer commodities or currency. Some people are deeply involved in a single business, while others enjoy the thrill of serial entrepreneurship.
    • How do you feel about using leverage? The extent to which you’re willing to use borrowed capital as a source of funding will impact the types of investments that make it onto your preferred list. Strategically using leverage can dramatically increase your opportunities to generate returns, but this technique isn’t a good fit for everyone.

    Step 2: Use the tax law to your advantage

    I always tell my clients: The tax law is a series of incentives. It is the government’s way of telling you what it wants you to do, and when you listen, the government is willing to invest with you. So, while there are a lot of investments that will increase your taxes as you earn more money, there are some excellent options that the government is so excited to have you make it is willing to reduce or even eliminate your taxes.

    How does this work? Governments around the world recognize their societies are better off when businesses and private citizens invest in things like creating jobs, building housing and growing food. So, they create tax incentives to promote these investments.

    I recently wrapped up an in-depth study of these incentives in the U.S. and 14 other countries and identified seven categories of investments that every government supports. The categories are:

    • Business
    • Technology, research and development
    • Real estate
    • Energy
    • Agriculture
    • Insurance
    • Retirement savings

    Which of these categories matches the criteria you established in step 1? Spend time learning more about what incentives the government offers to investors in the categories that interest you most. When you use these incentives, you’re putting yourself in a position to build wealth faster by decreasing the amount of money you’re paying in taxes.

    Choose the category that fits you best. Then, double down on your research. Ideally, you will become narrowly focused on a specific niche within your chosen category. The more you learn about a specific investment and the more focused you become, the more you will increase your expertise. The greater your expertise, the lower your risk.

    Related: 7 Best Types Of Investments In 2023

    Step 3: Make a checklist

    Now that you have clarified what you’re looking for in an investment and identified the tax-effective categories in which you’ll invest, you can finalize the specific criteria you’ll use for evaluating each option. Your goal is to create a detailed checklist that lets you quickly and confidently determine which investments suit you best. Once you have established this framework within your investing niche, you’ll be able to scale your investment process.

    Your list should include the prospective investments:

    • Target rate of return
    • Expected cash flow
    • Leverage requirements
    • Exit strategy
    • And, of course, tax repercussions

    Creating this framework isn’t a black-and-white task. Your goals, circumstances and values will determine what makes an investment a good fit for you.

    You absolutely can and should do this work with the support of your CPA and other financial advisors. They can help you navigate the technical requirements on the tax side and make more precise financial estimates. Having the right team in place, alongside a proven wealth and tax strategy, serves as extra protection from making poor choices in high-stress situations.

    At the end of the day, you’ll have the peace of mind that comes from knowing you are making investment decisions based on where you are in life, where you want to go and how you’d like to get there. Plus, when you build your investing strategy in connection with your tax strategy, you’ll be able to make more money, more quickly and pay fewer taxes at the same time.

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    Tom Wheelwright

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  • 5 Ways Self-Managing Rental Properties Can Save You Money | Entrepreneur

    5 Ways Self-Managing Rental Properties Can Save You Money | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Many small to mid-sized landlords want to self-manage their rental properties, and for good reason.

    Above all, self-managing your properties means more take-home revenue — you won’t have to say goodbye to a large portion of your rental income each month to pay a property manager or company.

    Another benefit is that you’ll be closer to your renters and rental operations. When you’re the one screening the tenants and hiring maintenance contractors, you always know exactly who is in and around your properties, and you’ll be the first to know of a problem.

    However, there are also some cons. You’ll need to invest considerable time, energy and effort into your properties, which not all landlords — especially those with other responsibilities like W-2 jobs or families — can do. You might also find yourself at a loss if you don’t have the knowledge required for a specific task. You’ll need to rely on yourself much more.

    With the right tools and technology, self-management is a profitable and very doable choice for many. In this article, we break down how you can limit expenses with five self-management tips.

    Related: How to Manage Your Real Estate Business Like a Pro

    Listing syndication

    Listing syndication is one of the best tools for landlords. Why? Using listing syndication can make rental advertising a one-man job.

    Listing syndication allows you to write one listing and post it to multiple popular listing sites in one click. Instead of spending time re-writing or typing your listings for sites across the internet, you can use a listing syndication service to post them simultaneously.

    Listing syndication makes self-management possible because it limits the amount of time you spend on listing and advertising tasks. Posting online in general is a good idea because it allows prospective renters to contact you more easily with questions or general interest. However, syndicating your online listings is the best choice — you can optimize your advertisements without having to pay a realtor to do this for you.

    Applicant pipeline

    Similarly, automating your applicant pipeline is another way to make self-management feasible.

    Setting up an applicant pipeline is relatively simple on a particular listing platform. For instance, if you post on sites like Zillow or Apartments.com, you can opt to send introductory emails to renters who “save” your properties or opt to receive more information. Additionally, if a renter doesn’t respond to your initial message, you can designate a follow-up email to be sent after a certain number of days.

    Ultimately, your goal is a signed lease, so you need to stay in contact with interested renters and keep communication regular. If you don’t have time to respond to a message for several days or even a week, it’s likely the renter has already moved on. That’s why it’s important to automate the process: You don’t have to respond to each renter personally in order to make sure they get a personal reply. And you can always choose to answer specific questions yourself or receive phone calls from renters who are serious about renting your properties.

    Related: 5 Property Management Tasks to Automate in 2023

    Property management software

    Perhaps the biggest way to limit expenses through self-management is to use software. Property manager fees can be steep — most charge a percentage of your monthly rent collection, meaning the more successful your business is, the more you’ll have to pay for management.

    This doesn’t have to be the case with property management software. Many software platforms offer cheap plans with all the basic management features you need. Others, like Innago, are entirely free to use. You’ll gain access to key features like online rent collection, tenant screening, rental advertising and maintenance management, and you can automate many of these tools as well.

    If you’re looking to cut management expenses, software is undoubtedly the best place to start.

    Online rent collection

    As mentioned, online rent collection is one tool you’ll find on property management software that can save you much time and money. Instead of collecting paper checks or cash every month and driving everything to the bank, your tenants can simply submit their payments online. You’ll get them much faster and won’t have to manually track down late payments yourself — your software will apply and enforce late fees automatically. With more time on your hands, you can focus on generating more revenue, not tracking down revenue you should already have.

    Related: 4 Smart Ways to Reduce Your Property Management Costs

    Seek guidance when necessary

    Although there are many ways to cut costs by doing tasks yourself, don’t let your desire to save money cloud your good judgment. If there’s a task that needs to be done and you don’t have the knowledge or experience to complete it, you shouldn’t attempt it yourself at the risk of causing further damage.

    For example, if there’s a serious plumbing problem that needs to be addressed immediately, you most likely won’t have time to watch a YouTube video and teach yourself the fix. Instead, you should call a trusted contractor to ensure no further damage is done to your properties.

    Likewise, if you’re facing what’s likely to be a complex eviction and you’ve never attended an eviction court hearing, you should not hesitate to call a lawyer. An experienced eviction lawyer can offer you expertise that is well worth your money when it comes to something as expensive and challenging as an eviction.

    Self-managing your properties is an ambitious, but plausible, goal for most small to mid-sized landlords. There are a variety of resources and tools available for exactly this purpose. Many are based on automation, which is absolutely critical if you plan to manage your properties on your own. It won’t always be easy, but there’s much you can do to become a successful manager of your own investments and save money while you’re at it.

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    Dave Spooner

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