Veteran trader Peter Brandt has provided an update on his bitcoin price prediction. He explained that the price target for “the current bull market cycle” scheduled to end in Aug/Sep next year has been raised from $120,000 to $200,000. Peter Brandt on Bitcoin Bull Market Cycle Peter Brandt provided an update on his bitcoin price […]
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Clothing retailer Urban Outfitters Inc. said Tuesday it is reviewing “all areas” of its struggling namesake stores, after yet another quarter of falling same-store sales and what executives described as waning exuberance among shoppers.
Those remarks came during Urban Outfitters’
URBN,
earnings conference call, after the company — which also runs women’s clothing chains Anthropologie and Free People, as well as Nuuly, a women’s clothing rental and resale service — reported fourth-quarter results that missed expectations.
Shares sank 10.2% after hours.
Chief Executive Dick Hayne said on the call that while the retailer’s customers remain upbeat overall, “they’re not as exuberant as they were when first coming out of the pandemic.”
“They don’t have as many weddings and events to attend. They are less apt to move and have recently refurbished their living spaces,” Hayne said. “So demand for categories like dress or footwear and home furnishings are trending softer.”
However, he said consumers were in decent financial shape, adding: “They tend to be optimistic, want the latest fashion and are willing to spend some of those extra earnings to enjoy them.”
Urban Outfitters executives said they believe the company could put up “low-single-digit” same-store sales growth across its business for both the current first quarter and the full fiscal year ahead — helped by Anthropologie and Free People, which tend to cater to wealthier customers who are better shielded from inflation. Wall Street analysts forecast 2.8% same-store sales growth for the year.
However, the company said first-quarter same-store sales for its namesake Urban Outfitters chain, specifically, would look a lot like the fourth quarter, when they fell 13.6%. They said those sales would improve over the course of the year.
Urban Outfitters stores have struggled to stay fashionably relevant among younger, less affluent customers, who have been hit by two years of higher prices for basics. That inflation has hurt demand for clothing across the industry.
As part of efforts to revitalize its business, Shea Jensen — a veteran of department-store chain Nordstrom Inc.
JWN,
— joined the company this month as president of its Urban Outfitters brand for North America. During the call, Hayne said having that leadership in place is the core ingredient to the brand’s turnaround.
Still, management said they have had to cut prices at Urban Outfitters more than expected, to clear out existing clothing stockpiles.
“Markdowns were flat for the quarter versus last year, but were higher than planned in the month of January as Urban Outfitters needed to promote more aggressively than planned to clear through excess inventory,” Frank Conforti, the company’s chief operating officer, said on the call.
For the fourth quarter, Urban Outfitters reported adjusted earnings per share of 69 cents, below FactSet analyst forecasts of 74 cents. Revenue rose 7.3% to a $1.486 billion, just below estimates for $1.499 billion.
As Anthropologie puts up bigger same-store sales gains, executives said they are trying to “modernize” what is on its shelves, offering refreshed denim and dress selections in an effort to attract more customers under 40.
A hard landing is guaranteed for the US, Morgan Stanley’s chief US economist has said.
She said the full impacts of the Federal Reserve’s tightening hadn’t been fully felt in the economy.
It could take 18 months after the last rate hike to feel the full weight of higher rates.
A hard-landing recession is certain to come for the economy, and high rates are to blame even as markets start positioning for the Federal Reserve to loosen monetary policy this year, says Ellen Zentner, Morgan Stanley’s chief US economist.
Speaking to CNBC on Monday, Zentner responded to Jamie Dimon’s recent comments on the economy, in which the JPMorgan boss warned that the chance of a soft landing was about half of the 70% to 80% odds other forecasters were predicting. He said that was because of several risks still facing the US, including the Fed’s tightening campaign, geopolitical conflict, and interest rates, which central bankers have said could remain higher for longer.
Zentner said she was expecting the US to avoid a recession this year as there was no data to support a soon-to-come downturn. But she warned that a hard landing was unavoidable.
“We will have a hard landing at some point. I guarantee you that. We’re all wondering: When does that come?” she said. “The point that Dimon makes is that there are these cumulative impacts that build over time, and we are in the camp that we haven’t yet seen all of the tightening impacts from monetary policy,” she added, referring to the impact of Fed rate hikes.
Fed officials raised interest rates a whopping 525 basis points in 18 months to tame inflation, a move that’s taken borrowing costs in the economy to their highest level since 2001.
Economists have warned that high interest rates could spark a recession as financial conditions become restrictive and that the full impact of rate hikes probably hasn’t been felt, as they typically take about 18 months to fully work their way through the economy.
Signs of stress are beginning to show in parts of the financial system. Corporate defaults soared last year to their highest level since the pandemic, according to Moody’s Analytics. Bank lending has fallen for three straight quarters, according to Fed data.
Still, signs point to the Fed keeping interest rates elevated as it keeps an eye on inflation. Consumer prices came in hotter than expected last month, with inflation rising 3.1% year-over-year in January.
Zentner predicted that inflation would probably reaccelerate over the first quarter, pointing to the 3.9% growth in core inflation last month. That reacceleration could show up in the next consumer-price-index report, which markets are expecting later this week.
“We do expect inflation reacceleration to be temporary, but that is an open question,” Zentner said, adding that markets might have to consider Fed rate cuts pushed beyond mid-year.
Investors had been pricing in ambitious rate cuts to come in 2024, but many forecasters have dialed back their expectations amid hot inflation data. Markets are now pricing in a 39% chance that the Fed could lower rates by 100 basis points or more by the end of the year, according to the CME FedWatch tool.
Read the original article on Business Insider
Over the past six months, I was crypto scammed. I just retired and lost $243,000 that I don’t think I will ever see again. I have reported the company to the FBI, Federal Trade Commission, and a few others. Some of the money was from a SEP IRA. Is there something I can do at tax time so I don’t have to pay taxes on it?
When I first started “investing,” the person helping showed how easy it was to get money back out which we did. This operation got “interesting” when I was informed that if I put in a total of $150,000 I would start the VIP treatment and would get tax-avoidance help, among other things. The company will not allow me to withdraw the money I have put in.
I was helped by this individual to invest in crypto futures. The person “helped” me by adding $40,000 here and $40,000 there to boost my money-making ability. The last time I added another $100,000. It’s a long story but in a nutshell that is the “help” I received. I tried to pull money out and the crypto company said the government thinks that I am laundering money.
They now say I need to pony up $150,000 — 15% of my “profit” — to pay taxes. The company said this would be reimbursed so I would not lose any money. I stopped right there and contacted the FBI and FTC. Now the crypto company is saying if I don’t pay the money soon my account will be frozen! I have not written back.
I met this “friend” via Instagram
META,
We switched from Instagram to Whatsapp, which I now see is also a no-no. I needed some photography help, and after a few weeks, the conversation turned to investing. Initially, the money went to what appeared to be a real site, and was sent to an external account called Cryptonex.com.
I should have done my homework as the real company is actually Cryptonex.org. The fake website looked legit to me. It also looked great on the phone which is where all the transactions were done. (On the computer, the header was all screwed up. (I have done HTML and SQL programming and that would have been a simple fix.) The rest of the page looked quite good.
The company seems to have kept a very good track record of my installments. I still can’t be sure if it’s a scam or not. I have not yet received any communication from the FBI website for cybercrime. I filed a case for both elder fraud (I’m 62) and also for cybercrime. It is very unfortunate that these people prey on the older folks.
It’s not like we want to go back to work for minimum wage the rest of our lives just to put food on the table. I am especially upset as I think I am a pretty educated guy. My financial adviser said one of her clients lost $2.7 million in one of these types of scams. I’ve read that they can trace the wallets, and there are all sorts of “companies” that will help for a fee.
What can I do now?
Scammed
Related: ‘I want to do what is right’: My father died without a will. His wife moved out of state — and left me paying the mortgage.
MarketWatch illustration
Once a scammer has gained your confidence, it’s hard to break that trust.
When you start to suspect that something may be wrong, you learn to suspend your disbelief. It’s a horrible cycle that goes against all logic and, in many cases, everything we have been taught to watch out for — strangers approaching us online, “too-good-to-be-true” offers and requests to throw good money after bad. When our confidence fails, fear and desperation take over. It can seem easier to keep the illusion alive than to admit to ourselves we’ve been had.
That’s likely why you are still unsure whether or not this is a scam, despite the fact the fake Cryptonex.com website no longer exists. A spokesperson for the real Cryptonex says it has issued an alert about situations such as this. That warning says: “Don’t rush — scammers often create an illusion of urgency. Verify the accuracy of the information provided to you. Do not share personal information. Cryptonex will never ask for payment or personal data.”
Such confidence tricks are known as “pig butchering.” It’s a nasty term for a nasty business. The scam artists scour social-media sites, public records and dating sites for marks. It’s called “pig butchering” because they take their time fattening up their marks, establishing trust and gradually feeding the victim information promising bigger and better returns. Slowly, the victim compromises their own instincts with the excitement of a big payday. And then they get bled dry.
“The scammer’s goal is not to request money from you, but to convince you to invest in a fake trading website or platform that will show you a bogus balance with lots of profit,” according to this warning from the Georgia Secretary of State. They allow you to withdraw profits early so you invest more. “They may even ‘lend’ you money so that you can make larger trades.” Imposter websites are one of the most popular methods. You can read more here.
It’s hard to claim a tax loss on such scams. The Tax Cuts and Jobs Act of 2017 limited individual casualty and theft deductions to federal disasters. There are exceptions for Ponzi-scheme scams, if the loss is considered a business-theft loss rather than a personal-theft loss; for that to happen, the scammer must be charged with theft, fraud or embezzlement, and the writeoff must be made in the same year as those charges are made. You can read more from the IRS here.
George Dimov, a New York-based CPA, says he receives roughly two requests a week from people who wish to take this kind of deduction. There may be some possibility — however slim — to write off such losses, he says. “Claiming a capital loss is the least risky, typically resulting in a relatively minor deduction of up to $3,000 per year as capital losses. Of course, this does not help victims much, especially in cases that we have seen where the victim has lost millions.”
The IRS Revenue Procedure 2009-9/20, or the Ponzi Scheme Safe Harbor, generates a greater deduction of up to 95%, Dimov adds, “yet it also comes with potential audit risks and IRS rejection. To determine qualification for Ponzi loss deductions, we must evaluate the client’s situation on a case-by-case basis. Before making any concrete tax-reporting decisions, it is also important to assess the taxpayer’s own risk tolerance for potential audits.”
He cites a “lack of clarity” on deducting such investment losses as one of several “loose ends” created with the Tax Cuts and Jobs Act of 2017. Although Dimov says he has successfully navigated numerous cases involving Ponzi-loss deductions, the interpretation of the IRS tax code on scams could help some victims but, as I noted above, not others. “I do not want to provide general tax advice as a blanket statement, one-size-fits-all strategy,” Dimov says.
It sounds like a slim chance, at best. Please let me know if you have any success.
You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com, and follow Quentin Fottrell on X, the platform formerly known as Twitter.
The Moneyist regrets he cannot reply to questions individually.
Previous columns by Quentin Fottrell:
‘Things have not been easy’: My sister is a hoarder and procrastinator. She is delaying probate of our parents’ estate. What can I do?
‘I gave up a job that I loved passionately’: My husband secretly set up a trust that includes our home and his investments. What should I do?
I have $1.5 million in stocks and bonds. I asked my broker to convert my bonds to cash. He didn’t and my portfolio fell by $100,000. Can I sue?
Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.
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Cardano (ADA) could be on the path to breaking new price levels in the coming weeks, as indicated by on-chain data and adoption growth. The creation of new wallets on the Cardano blockchain has seen multiple spikes on various days since the beginning of February, showing a potential influx of new money into Cardano.
According to on-chain data, new addresses on the Cardano network spiked 89% between February 22 and February. Similarly, this metric witnessed a 248% surge earlier in the month between February 1 and February 2. Such a huge influx of new wallets is a very bullish signal for ADA.
One of the major factors to consider when considering the adoption rate of cryptocurrencies is the amount of new wallets created. According to on-chain data, the number of new wallets added to the Cardano blockchain spiked from 1,706 on February 22 to 3,227 on February 23. Similarly, this metric witnessed a larger spike from 1,553 on February 1 to 5,414 on February 2.
While the number of new wallets created daily has slowed down since February 23, it has steadied above 1,500 since the beginning of February. The total number of wallets registered on the Cardano network has also been steadily climbing and is almost at 4.6 million addresses.
Active daily addresses have climbed above 30,000 since the beginning of the year, recently reaching 64,568 active addresses on February 16. This growth on the back end shows that interest in the Cardano ecosystem is skyrocketing as more people want to get their hands on the native ADA token. This could translate into more demand for ADA, leading to a price increase.
ADA holders have been left wondering if the price can revisit its all-time high above $3.1 this year. After ranging and trading mostly $0.6 last week, ADA has now broken past the $0.62 mark again after a 6.99% influx into the entire crypto market. At the time of writing, Cardano is now trading at $0.6211, up by 6.23% in the past 24 hours and up 29.85% in the past 30 days.
However, ADA’s path back to the all-time high of $3.1 remains difficult, as it must overcome numerous price resistances. The first stage would be to get significant traction above $0.63. If successful, ADA might launch a new rise above $0.63, reaching $0.66 for the first time since December 2023.
As long as Cardano stays above $0.66, it is in good shape to eventually reach $1.20. Many long-term holders (529,000 addresses) who bought around this price point would likely sell here to break even. But if adoption increases and demand is strong enough, ADA could power right through.
ADA price at $0.619 | Source: ADAUSD on Tradingview.com
Featured image from Eightcap EN, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Uniswap Labs has unveiled a collection of new features designed to refine the trading journey for users of its decentralized exchange (dex). This collection encompasses the Uniswap browser extension, limit orders for precise trading strategies, and advanced data and insights for making well-informed choices. Uniswap Labs explained on Tuesday that the expansion aims to make […]
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Do Kwon’s lawyers told a US court on Feb. 26 that the Terraform Labs co-founder will be unable to attend the initial hearings of the SEC trial.
The lawyers did not request an adjournment and said the trial could begin as scheduled on March 25 without Kwon’s presence, according to court filings.
Kwon’s lawyer, David Patton, said that Kwon, currently in Montenegro, may not be extradited by the end of March due to unforeseen complications in the legal process. He added that these have derailed earlier expectations of a quick extradition.
Patton said the delay is primarily caused by “unanticipated mistakes” made by the Montenegrin court in charge of Kwon’s extradition case.
The filing includes a declaration from Kwon’s Montenegrin defense attorney, Goran Rodic, which highlights several issues with the high court’s extradition ruling.
Rodic criticized the Feb. 21 decision, claiming it was based on incorrect information regarding the timing of extradition requests by the US and South Korea. He also raised concerns over several procedural errors during the legal process.
Kwon was arrested by Montenegro in March 2023 for using falsified travel documents and has remained there since. The arrest came amid ongoing investigations following the collapse of Terra in May 2022, with Kwon’s whereabouts previously unknown.
Montenegro found him guilty of possessing forged documents and sentenced him to four months in prison. His extradition case has been ongoing in tandem.
The legal battle over his extradition involves both South Korea and the US. The two countries filed extradition requests with Montenegro following Kwon’s arrest.
The SEC’s lawsuit against Kwon and Terraform, filed in February 2023, and subsequent criminal charges by the US Attorney’s Office have placed Kwon at the center of allegations involving billions in crypto asset securities fraud.
In December 2023, Judge Jed Rakoff granted summary judgment in favor of the SEC, with the trial scheduled for late March 25.
Meanwhile, South Korea wants him extradited to face trial in his home country. Some of his former associates, including Terra co-founder Daniel Shin, have already faced trial over fraud charges.
Like Bitcoin, Ethereum has also picked up steam, with the second-largest crypto token crossing the $3,000 resistance level for the first time since 2021. Interestingly, this crypto analyst believes the rally is far from over, as he highlighted a key price level that ETH could hit soon enough.
Crypto analyst Altcoin Sherpa suggested in an X (formerly Twitter) post that Ethereum could rise to as high as $4,000. His prediction looks feasible when one considers crypto analyst Bitcoin Ape’s recent analysis of Ethereum from a technical analysis perspective.
In his X post, Bitcoin Ape noted that the ADX (average directional index) indicator is currently “very high,” signalling that ETH’s bullish trend is strong. Indeed, this bullish momentum might be very strong as the crypto token has since crossed the $3,130 price level, which Bitcoin Ape highlighted in his post as ETH’s new resistance level.
Interestingly, the analyst noted that Ethereum had already faced four resistance levels in February alone and has so far broken all of them, having also crossed the $3,130 mark. Although Bitcoin Ape failed to give his short-term prediction for ETH, he expects the crypto token to hit its all-time high (ATH) of $4,891 when the bull run returns in full force.
Meanwhile, Altcoin Sherpa isn’t the only one who believes that ETH could rise to $4,000 soon enough. Standard Chartered Bank had also predicted that the crypto token would hit this price level by the time the Spot Ethereum ETF is approved in May.
Crypto analyst Rager also recently gave a bullish prediction for ETH’s price, although he put his short-term target at $3,500. However, he added that this price level is only the beginning, stating that it isn’t the “peak high by any means.”
There is reason to believe Ethereum’s current bullish momentum isn’t due to Bitcoin’s price surge, as the Ethereum ecosystem also has narratives that may be driving ETH’s rally. For one, the Ethereum network’s ‘Dencun’ upgrade is set to take place on March 13. This much-anticipated event is significant as it would usher in advancements in the scalability, security, and usability of the Ethereum network.
Meanwhile, talks about a Spot Ethereum ETF likely being approved in May have created a lot of excitement for investors who have chosen to double down on their investments in the second-largest crypto token in anticipation of this happening.
The increased interest in ETH is expected to spark significant rallies in its price ahead of the May deadline, when the SEC will have to approve or deny VanEck’s Spot Ethereum ETF application.
ETH bulls maintain hold above $3,200 | Source: ETHUSD on Tradingview.com
Featured image from Bitcoinist, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Renowned real estate mogul Grant Cardone sparked controversy with his recent comments on entrepreneurship and business investments. On Feb. 5, Cardone posted a video on Instagram where he expressed strong opinions about the pitfalls of starting a new business.
“I wouldn’t go start a business today. Dumbest, most selfish thing a person could do,” Cardone said, emphasizing the challenges and unrealistic expectations new entrepreneurs face. “You can’t work for somebody else. How are you going to work for yourself? You don’t even know what you’re doing. You can’t even pay rent.”
He also mocked the idea of aspiring to be your own boss thinking you can make all the rules and have the freedom to call the shots.
“You’re going to be the slave and the master — for nothing,” he said.
Cardone, known for his candid and often polarizing advice, elaborated on what constitutes a successful business.
“A good business is a business that cash flows. A good business is a business that scales. … A good business is a business I could walk away from, it’s not dependent upon my ability, my talent, my skill or my body or my time,” he said, highlighting the importance of scalability and independence from the owner’s direct involvement. He pointed to real estate and banking as exemplary sectors where such business models thrive.
“Real estate is a great business,” he said.
For people seeking entry into real estate investment without the complexities of direct ownership, options such as purchasing shares in publicly traded real estate investment trusts (REITs) or engaging with crowdfunding platforms present viable alternatives. These methods allow investors to own a portion of physical properties — from rental units to commercial spaces — providing a pathway to generate income with significantly reduced responsibilities related to property management.
In addition to criticizing the startup culture, Cardone advised against the common entrepreneurial aspiration of starting from scratch. He suggested an alternative route to business ownership: buying an existing business.
According to Cardone, the U.S. market is saturated with small businesses, the majority of which are struggling or not profitable.
“There are 32 million. … And these small businesses in America, with 64% of them breaking even or losing money because it’s being incorrectly run,” Cardone said, advocating for the acquisition of businesses that already have customers, cash flow and operational systems in place.
His stance on “don’t start a business — buy a business” reflects a pragmatic approach to entrepreneurship, focusing on existing opportunities rather than the creation of new ventures. Cardone’s advice resonates with investors and entrepreneurs looking for sustainable business models in a competitive and often unpredictable market.
Regardless of people’s opinions about Cardone, he has demonstrated an ability to generate wealth. He was working as a car salesman when he ventured into his first investment: a single-family home in Houston. This foray into property investment taught him a lesson about the risks of relying on one tenant after he experienced a sudden halt in cash flow when his tenant left after seven months.
Learning from this experience, Cardone decided he would not rely on a single tenant for his income. Five years later, he shifted his focus and invested in a multifamily complex in San Diego. The move marked the beginning of a new strategy for Cardone, where he used the income from his first two properties to finance a third purchase.
Continuing with this strategy, Cardone gradually expanded his real estate portfolio. By 2012, his efforts had paid off significantly, with his company being recognized for conducting some of the largest private-party real estate transactions in Florida, particularly in the multifamily property category.
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In a year that defied most economists’ expectations, retirement savers reaped the benefits.
Retirement account balances, which took a sharp nosedive in 2022 due to market volatility, have now started to bounce back, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) savings plans. The financial services firm handles more than 45 million retirement accounts total.
The average 401(k) balance ended 2023 up 14% from a year earlier to $118,600, Fidelity found.
The average individual retirement account balance also gained 12% year over year to $116,600 in the fourth quarter of 2023.
“This past year ended on a high note for retirement savers,” said Sharon Brovelli, president of workplace investing at Fidelity Investments.
Positive savings behaviors were key to realizing better outcomes, added Mike Shamrell, Fidelity’s vice president of thought leadership.
A great year for the major indexes also helped. The Nasdaq soared 43% in 2023, while the S&P 500 notched a 24% annual gain and the Dow Jones Industrial Average rose more than 13%.
At the end of 2023, signs that inflation was cooling were not only good news for the economy, but they were also good news for stocks. After the S&P 500 closed out 2023 with a nine-week win streak, the number of Fidelity 401(k) plans with a balance of $1 million or more increased 20% from the third quarter.
Year over year, the number of 401(k) millionaires rose 11.5%.
“These are the poster children of staying the course and taking a long-term approach,” Shamrell said.
Overall, more than one-third of retirement savers increased their retirement savings contributions, Fidelity found. The average 401(k) contribution rate, including employer and employee contributions, now stands at 13.9%, just below Fidelity’s suggested savings rate of 15%.
Federal law allows workers to borrow up to 50% of their account balance, or $50,000, whichever is less. However many financial experts similarly advise against tapping a 401(k) before exhausting all other alternatives since you’ll also be forfeiting the power of compound interest.
More from Personal Finance:
Why Social Security beneficiaries may owe more taxes
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At the same time, many households are also leaning heavily on credit cards to make ends meet, other research shows.
Across all ages and income levels, more than one-third of adults have more credit card debt than emergency savings, according to a recent report by Bankrate.
“At a time of record-high credit card rates, we see a record-high number of Americans carrying credit card debt that exceeds their emergency savings,” said Greg McBride, chief financial analyst at Bankrate.
During times of financial stress, it may make sense to borrow from a retirement account, rather than rely on such high-interest debt, according to Fidelity’s Shamrell.
“If you have been in a financial bind and the choice is a high-interest credit card or a loan from your 401(k), sometimes the loan is your optimal choice,” he said.
“But that’s in a time of real financial need,” he added, “not going to your college roommate’s wedding in Napa.”
Unlike credit card and other debt, savers who borrow from their 401(k) pay themselves back with interest. Interest rates are also generally much lower than those of credit cards, which are currently at a record high over 21%.
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