Month: November 2020

The market is looking for clues from the Fed on whether it will adjust bond buying

U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell are seated to testify before a House Financial Services Committee hearing on oversight of the Treasury Department’s and Federal Reserve’s coronavirus disease (COVID-19) pandemic response on Capitol Hill in Washington, U.S., September 22, 2020.

Joshua Roberts | Reuters

The Federal Reserve could provide clues about its bond buying program when it releases its minutes Wednesday, but the odds the central bank takes action at its December meeting have fallen slightly with the expected nomination of Janet Yellen as Treasury Secretary.

Minutes from the Fed’s last meeting are released Wednesday at 2 p.m. ET. The Fed talked about possible ways to adjust the program at that early November meeting, so it may reveal some aspects of that discussion.

Market speculation had been building that the Fed will tweak the bond buying program when it meets in December by changing the duration of the bonds it is buying but keeping the total Treasury purchases at $80 billion a month. The theory is if the Fed increases the purchases of longer duration Treasurys, like 10-year notes and 30-year bonds, that would keep the rates that impact mortgages and other loans from rising.

Vincent Reinhart, chief economist at Mellon, said the minutes may not reveal much other than that changing the average duration

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Avoiding Investor Mistakes – MintLife Blog

Many new investors have started investing, either through a traditional securities brokerage or with one of the new “app” based brokerage firms. No matter how long you’ve been an investor, or whichever firm you choose to buy your investment from, investor mistakes occur.

Mistakes generally fall into six categories. We’re going to break down what these categories are and how to avoid these mistakes.

Don’t just look at the short term 

Short term performance is speculative. It’s long term performance that tells the complete story of an investment. While we may be tempted to invest in something that has had good short term performance, longer-term performance measures such as total return (capital gain plus dividends) are better indicators of an investment. While past performance is no guarantee of success, it is often all we have to go on.

Review the financials of the company you want to invest in and ask yourself these questions:

  • Is there too much debt on its balance sheet?
  • How does this company you are investing in make its money?
  • Is this a company that makes a product that is becoming obsolete (think of the compact disc, the DVD, and before them VHS videotape, vinyl records, and 8 track tape players!)

Consider the risks 

Concentrating your investment capital in too few areas can put you at

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Square and PayPal emerge as whales in the crypto market

The PayPal application can be seen on a mobile phone.

Felix Kästle | picture alliance | Getty Images

Fintech companies are helping fuel demand for bitcoin as they open the floodgates for millions of people to trade it.

By one firm’s analysis, PayPal and Square clients have been buying the majority of the new bitcoin supply entering the market each day. Hedge Fund Pantera Capital estimates that Square clients have accounted for 40% of bitcoin that enters the market in the two years since the product launched.

PayPal may be responsible for even more demand since launching just a few weeks ago. The payment company partnered with crypto firm Paxos for custody and trading. Volume on Paxos’ exchange, itBit, had been consistently in the same range since September. But as PayPal went live recently, volumes on the exchange more than tripled, according to data from CoinGecko.

Pantera estimated that within three weeks, PayPal clients were already buying roughly 70% of the new supply of bitcoin.

“It’s having a significant increase on price,” said Dan Morehead, founder and chief investment officer of Pantera Capital and former CFO at Tiger Management. “You bring on two corporates that are already buying all of the newly issued bitcoins — supply and demand says the price has to go up.”

PayPal’s implied bitcoin volume

CoinGecko

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Best Buy, Hormel, Abercrombie & Fitch & more

Stocks making the biggest moves in the premarket: Best Buy, Hormel, Abercrombie & Fitch & more



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‘Go For It, But Be Honest With Yourself’

The CEO and founder of Uncommon James talks about what it takes to launch.

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Kristin Cavallari is a best-selling author, TV personality and CEO and founder of Uncommon James, a -based jewelry and apparel brand. She is no stranger to the -taking and the it takes to find success. When asked if now was a good time for startup entrepreneurs to take a chance on a new endeavor, she didn’t hesitate to answer: “You should go for it!”  

“Fear is the biggest thing that stands in everybody’s way,” Cavallari says, adding, “but I think there is a way to go for it and also be smart.”

She believes the first thing you need to have an honest conversation with yourself. Do you truly have the time, passion and tolerance for pain that launching a startup requires? “Because if you don’t, being an entrepreneur will eat you alive,” Cavallari says. “This is not a 9-to-5 job. It is very, very difficult and so you have to be willing to put in the hours, go above and beyond, and give it your all.” 

Her second big piece of advice: be careful with your cash. “You shouldn’t put

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