Consensys has told the U.S. Securities and Exchange Commission that Ethereum’s proof of stake implementation “meets and even exceeds the security of Bitcoin’s Proof of Work (PoW).” The blockchain software company said the commission should recognize the advanced safeguards inherent in Ethereum’s design which exceed the “security and resilience safeguards underlying bitcoin-based exchange-traded products.” The […]
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Most Americans have the majority of their retirement savings in their company 401(k).
There’s a good reason for that. Not only do 401(k)s offer generous contribution limits, employers will often match contributions up to a certain amount as an employee benefit. That leads many people to prioritize their 401(k) for retirement savings.
Even so, many folks reach retirement age well short of their savings goals. That’s reflected in the average 401(k) balance for retirees age 65 and older. But if you’re savvy, you can come out well above average while making the most of any savings you’re able to accumulate.
The average 401(k) balance for account holders age 65 and older was $232,710 as of the end of 2022, according to data from Vanguard. That’s well short of most people’s retirement savings goals, but even that number may be overstating the reality for the typical retiree. The median account balance for people age 65 and up was just $70,620.
Importantly, the average retiree likely has savings in other accounts. It usually makes sense to roll over your 401(k) to an IRA when you leave your employer to reduce fees and open up more investment options. Additionally, many people save for retirement in a regular brokerage account as well.
Moreover, once you retire, you start to draw down your account. That can reduce your retirement savings, and the impact can be quite noticeable in years when the financial markets decline, like in 2022. Overall, however, given a conservative withdrawal strategy, you can often expect your account value to increase despite regular withdrawals.
Image source: Getty Images.
That said, the median balance across all retirement accounts for people aged 65 to 74 is only $200,000, according to data from the Federal Reserve. Those people also have about $160,000 in stock holdings outside of retirement accounts. Put together, that’s still well short of most people’s retirement needs.
Even when you add in the average monthly Social Security payment of $1,907, most folks will struggle to live the life they envisioned for retirement with just median account balances.
If you find your 401(k) account coming up short as you approach retirement age, there’s only so much you can do. If you can work longer and save more, that’s a great option, but putting off retirement is unappealing and it’s not a possibility for some.
The next best thing you can do is make sure you use a strategic withdrawal strategy from your 401(k) to minimize taxes. Delaying the start of Social Security for a year or two can help put you in a position where you can significantly lower your overall tax bill later in retirement. It may be worth consulting with a financial advisor to see what strategies are available for your situation.
If you still have a lot of time before you reach retirement, it’s worth examining how much you’re saving. Work backward from your goal using reasonable return expectations to see how much you should be saving every month. If you’re not getting the employer match on your 401(k), you should be contributing at least that much to start. Increasing your contribution rate with every raise is a great strategy to boost your savings.
If you want to retire with an above-average balance in your 401(k), you need to do things that are above average during your career. Just a few tweaks can help you do that, and smart strategies in retirement can make more out of the money you do save.
The markets haven’t shown any sign of slowing down in 2024. The final confirmation that a new bull market is well underway came in January as the S&P 500 set a new record high. It has continued to climb since then, on its way to gaining 10% in the first quarter of the year.
While the broad market is regularly setting new records, several individual stocks are still trading at a discount, especially in the tech sector. Two Motley Fool contributors were asked to take a closer look at two of those discounted tech stocks. They offer their insights and suggestions about whether these two stocks might be worthy of inclusion in your investment portfolio.
Keith Noonan: It’s no secret that Intel (NASDAQ: INTC) is losing ground to some key competitors when it comes to designing chips. The company surrendered some market share to Advanced Micro Devices in the central processing unit (CPU) markets for PCs and servers. The company also faces a threat from Arm Holdings in the laptop market.
Even after rallying roughly 43% over the last year, Intel stock is still down 35% from its early 2020 peak. While Intel is making moves to catch up to its key competitors in the CPU market and to expand in new categories that will help it capitalize on demand for artificial intelligence (AI) and other opportunities, the company will continue to face a challenging competitive landscape in the design space.
On the other hand, one of Intel’s strategic advantages is actually on track to become far more pronounced. Intel already ranks as the world’s third-largest semiconductor manufacturer, trailing behind only Taiwan Semiconductor Manufacturing and Samsung.
In large part, that’s because the company manufactures most of its own chips. But Intel looks poised to make massive strides when it comes to producing chips for other companies — and it’s going to get a lot of help from the public sector. What’s behind this potentially massive transformation?
Many analysts and geopolitical experts anticipate that China will make moves to gain greater control over Taiwan sometime within the next decade. The ability to source high-performance semiconductors has become a vital economic and national security issue. TSMC is the clear leader in the contract chip fabrication market, and it’s even more dominant when it comes to manufacturing high-end chips needed for AI and accelerated computing processes. However, the U.S. and other Western countries can no longer count on undisrupted chip supplies coming out of Taiwan.
In response, Western governments are investing in Intel and helping to position the chip giant as a credible successor to TSMC. Intel’s fabrication business looks poised for huge growth over the next decade, and there’s a good chance it will have a transformative effect on the stock. With shares still down 44% from their high, now looks like a smart time to build a long-term position in the semiconductor stock.
Jeremy Bowman (Coupang): Coupang (NYSE: CPNG) hasn’t gotten much attention on Wall Street lately, and it’s easy to see why. The stock has been a flop since its high-flying IPO in March 2021 and is now down 65% from its peak set not long after the IPO.
Investors may have moved on to other stocks, but Coupang deserves a second look, especially as the shares look reasonably valued and the stock still has a lot of growth potential.
First, Coupang has drawn a lot of comparisons to Amazon, and for good reason. The company is the dominant e-commerce platform in South Korea, and it employs some of Amazon’s most successful tactics. Coupang operates as both a first-party seller and as a marketplace with third-party sellers, allowing it to leverage the strength of the platform and collect fees from merchants using Coupang.
The company also has a Prime-like membership program called Rocket WOW, which offers free shipping and returns, fresh groceries delivered in just a few hours, and same-day delivery on non-fresh items. South Korea is one of the most densely populated countries in the world, which lends itself well to efficient e-commerce operations.
Coupang is also expanding beyond e-commerce with new businesses that include food delivery, a streaming service, and digital payments, as well as international expansion.
Coupang reported 23% year-over-year growth in its most recent quarter to $6.6 billion, Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $294 million, showing it’s growing rapidly and it’s profitable.
Given its growth potential and reasonable valuation, taking advantage of the discount in Coupang stock looks like a smart idea.
Should you invest $1,000 in Intel right now?
Before you buy stock in Intel, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of March 25, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Amazon. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Coupang, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
A Bull Market Is Here: 2 Tech Stocks Down 44% and 65% to Buy Right Now was originally published by The Motley Fool
Semiconductor stocks have been hot over the past year on increased demand due to artificial intelligence (AI). Axcelis Technologies (ACLS -0.84%) is one stock that hasn’t joined the party. Shares have fallen 15% over the past year, lagging behind the broader market.
Is this under-the-radar company an undiscovered gem, or is something amiss?
Here is what you need to know about this company, which plays a vital role in manufacturing certain semiconductors.
Axcelis specializes in ion implantation, a process used to manufacture semiconductors. Ion implantation involves changing the electrical properties of silicon wafers by exposing them to ions. Axcelis builds and services the machines that perform this process. It’s important to note that not all semiconductors require ion implantation. According to Zion Market Research, the ion implantation market is valued at $2.1 billion and will grow to an estimated $3.5 billion by 2030.
This is a more specialized process and not as prominent as others. For example, Mordor Intelligence values extreme ultraviolet lithography (EUV), a process used to build high-end chips, at over $10 billion. The smaller addressable market helps explain the size of Axcelis, which has $1.1 billion in annual revenue and a $3.5 billion market cap today.
ACLS Revenue (TTM) data by YCharts
Investors can see above that the uptick in semiconductor demand has been good for business these past few years. Revenue and earnings per share have soared to all-time highs. But given the more conservative long-term outlook for ion implantation as an industry, it doesn’t seem like Axcelis is poised for the growth that AI is causing in other areas of the semiconductor industry.
Ironically, analysts have become less impressed with Axcelis’s outlook, dramatically scaling back earnings growth estimates for the long term, which spans the next three to five years. While 13% growth is still good, the broader ion implantation market isn’t lucrative enough to give the company a high ceiling.
That makes buying the stock at a smart price important. Today, shares trade at 16 times their estimated 2024 earnings:
ACLS PE Ratio (Forward) data by YCharts
I like using the PEG ratio to measure how much an investor pays for a company’s earnings growth. For PEG ratios, a lower number is better. I generally like buying stocks with around 1.5 or lower PEG ratios. At a PEG ratio of 1.2, investors get a pretty good deal on shares if Axcelis lives up to analysts’ estimates.
While the numbers say Axcelis is a buy today, there is ultimately a problem of being a big fish in a small pond. It limits growth and can stunt investment returns. You see, Axcelis has been around for years and hasn’t done much to expand beyond its core business. The stock boomed in the early 2000s and spent the next 20 years recovering after the bubble popped.
Shares have woefully underperformed the market:
ACLS Total Return Price data by YCharts
I think that can change, but it’s unclear how much. I would be more confident if the company innovated to expand into new markets and create growth opportunities, but there’s not enough to hang a hat on. Investors are probably better off on the sidelines, looking for alternatives with higher ceilings.
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The following is a guest post from Evgeny Filichkin, an Investment Advisor at Keytom neobank.
When Bitcoin cleared the $69,000 level and established a new all-time high, it resulted in the so-called ‘euphoria zone’ — a phase in the market cycle characterized by extreme optimism and speculative frenzy among investors.
With the upcoming April halving just around the corner, all the hype around it only serves to drive the exuberance further. This sentiment causes the BTC rate to grow as more investors rush to buy into the market, perpetuating a self-reinforcing cycle of optimism and price escalation.
But what can we expect to happen when the event hits the market? Halvings have historically heavily affected investor behavior patterns, and we’re already moving ahead of the curve this year. So, how should investors change their strategies amidst the current surge? Let’s take a closer look.
This halving will be the fourth in BTC’s history. Since the previous event in 2020, Bitcoin has made great strides towards mainstream adoption, which are underscored by notable advancements in regulatory frameworks and technological infrastructure.
Among the more recent events, the introduction of Bitcoin ETFs into the market has also contributed greatly to driving positive investor sentiment to new heights. The US SEC’s approval of them marked a significant milestone in Bitcoin’s acceptance as a legitimate investment asset. Furthermore, ETFs have broadened access to BTC for new investor segments, including financial advisors and capital market allocators. This broader access invites substantial capital influx.
As Bitcoin continues to gain traction among institutional investors and retail traders alike, the anticipation surrounding the 2024 halving event is heightened, with expectations of its potential impact on the market dynamics.
Historically, Bitcoin has experienced notable price fluctuations in the wake of halving events, as the reduction in block rewards has led to a decrease in the supply of new BTCs entering the market. With increasing demand and limited availability, Bitcoin’s appeal is amplified, driving further investment interest.
However, the lead-up to the 2024 halving has already differentiated itself in a unique scenario where Bitcoin reached the new all-time high of $73,000 well in advance of the event itself. This departure from past patterns suggests that the market sentiment is running ahead of historical patterns, and the dynamics after April’s halving may differ significantly from previous cases.
The old trading adage “buy the rumor, sell the news” may prove appropriate in the context of this year’s Bitcoin halving. Fueled by the anticipation of the event, investors are actively accumulating Bitcoin, thus “buying the rumor.” However, once the event passes, they may engage in profit-taking instead of driving the prices further and, in doing so, “sell the news.”
Given that the market dynamics are taking place faster this year than during the previous cycles, once the halving event passes, the BTC price will likely have no more room to grow around that news. If investors choose to take the profit-taking road, it would reflect the market’s ability to price in future events and adjust accordingly, resulting in a period of price correction and recalibration
Investors need to exercise caution and maintain a balanced approach to Bitcoin investment, particularly during periods of euphoria like the one we’re seeing now. While feeling excited about the potential for significant returns is natural, the euphoria zone is also characterized by heightened volatility. Many investors may overlook the fundamental factors driving Bitcoin’s value, instead focusing solely on short-term price gains, which can lead to unsustainable market dynamics.
Meanwhile, price corrections are a natural and necessary part of any asset’s upward trajectory for a number of reasons. Rapid and sustained increases in price can lead to overvaluation, where the price of the asset exceeds its intrinsic value. This can create a speculative bubble, fueled more by investor exuberance than anything else. Price corrections help to deflate such bubbles, bringing the asset’s price back in line with its true value and restoring market equilibrium.
As for when that correction will take place this time, it’s hard to say with any measure of certainty. Traders should remember that markets generally don’t have fixed peaks or troughs. Just because an asset’s price has already reached a high point doesn’t necessarily mean it must go down again. And the opposite is also true. This underscores the unpredictability of markets and the need for caution in trading decisions.
As investors navigate the opportunities and uncertainties presented by the 2024 halving, a proper understanding of market dynamics and risk management strategies will be essential for maximizing potential returns. If you’re planning to invest in BTC, make sure that you’re doing it for the right reasons, after having properly considered its long-term viability and the risk factors involved.
The market loves a good stock split. When a company decides to split its shares, it is a reflection of the company’s success and also indicates management’s confidence in its future. In other words, it’s almost always top stocks demonstrating strong performance that go for stock splits.
The two newest stock-split stocks currently gripping the market are Walmart, whose 3-for-1 stock split went through in February, and Chipotle Mexican Grill, which announced a gargantuan 50-for-1 split last week. Both of these stocks are outpacing the broader market this year.
Will other stocks follow? Costco Wholesale (NASDAQ: COST) and MercadoLibre (NASDAQ: MELI) are two stocks that look poised for stock splits.
Costco has been a market-beating stock for decades. It has an incredible, unbeatable retail membership model that generates customer loyalty, high traffic, and strong sales. It charges $60 for a basic annual membership, which members more than make up for with their cost savings on their yearly purchases. Costco marks up products, which it sells mostly in bulk, with razor-thin margins to cover costs, and it makes its profits on the fees.
Sales growth was sluggish for most of last year and even headed into negative territory, but that was mostly attributable to shoppers cutting down on large, expensive items. Traffic and volume were up, as was membership.
In fiscal 2024’s second quarter (ended Feb. 18), sales increased 5.9% year over year driven by a 5.6% increase in comparable sales and a 5.3% increase in traffic. Earnings per share (EPS) were up from $3.30 to $3.92. Membership fee increased 8.4% to $84 million, and paid household members increased 7.8% to $73.4 million. Renewal rates continue to be sky-high, with Canada and the U.S. at 92.9% and the global rate at 90.5%.
Costco has split its stock three times in the past, and the last time it did was 24 years ago. The stock is up almost 1,500% since then, and it’s up 48% over the past year. Each share cost more than $700 as of this writing.
Costco paid a $15 special dividend to shareholders earlier this year, and it’s also due for a membership fee hike. Walmart and Chipotle noted their strong performances and continued opportunities in their stock split announcements, and that applies to Costco, too. This could also be the year that it finally splits its stock.
MercadoLibre is the top Latin American e-commerce giant, similar to Amazon. Even though it’s not so young anymore, it operates in a market that’s exploding, and it’s still reporting exceptional growth in its e-commerce business. Gross merchandise volume (GMV) increased 79% year over year (currency neutral) in the 2023 fourth quarter.
Like Amazon, MercacoLibre has branched out into new businesses, and these are growing even faster. It has a large fintech business focused on digital payments, and total payment volume (TPV) was up 153% year over year in the fourth quarter. It has incredible opportunities in off-platform TPV, which are payments that aren’t made in its own marketplace. Off-platform TPV was up a whopping 182% in the fourth quarter.
As part of the fintech segment, MercadoLibre also operates a fairly new credit business. This is a lucrative undertaking that gives the company tons of cash to fund other ventures and invest for interest income. The credit portfolio increased 33% year over year in the fourth quarter.
Total company revenue increased 83% year over year in the quarter. Net income was negatively impacted by a tax liability in the fourth quarter, but MercadoLibre remains reliably profitable, with $165 million in the fourth quarter.
MercadoLibre has been a public company since 2007, and it has never split its stock. It’s gained more than 5,000% in its lifetime and trades with a price tag of $1,540 today. Hitting four digits often leads to a stock split, but MercadoLibre has been in that bracket for some time. Its stock is about flat this year, falling after the fourth-quarter report and the drop in profits.
In contrast to the reasons for the other stock splits mentioned above, a stock split could stimulate greater interest in MercadoLibre stock and signal that management is confident about the future. In any case, this is a great opportunity for investors to buy in before MercadoLibre stock starts climbing again.
Should you invest $1,000 in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of March 25, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has positions in MercadoLibre. The Motley Fool has positions in and recommends Amazon, Chipotle Mexican Grill, Costco Wholesale, MercadoLibre, and Walmart. The Motley Fool has a disclosure policy.
Stock Split Fever Is hitting the Market Again With Walmart’s and Chipotle’s Stock Splits: These 2 Top Stocks Could Follow was originally published by The Motley Fool
Families with a net worth of up to $100 million exhibit a strong preference for algorithmic cryptocurrencies over tokens (4.32% versus 0.92%), a new study has found. The study cites statistics indicating that ownership continuity is disrupted in 91% of cases involving a transition from crypto to fiat and vice versa. Traceability of Ownership Continuity […]
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Rich Dad Poor Dad author Robert Kiyosaki has urged investors to ditch the U.S. dollar and buy bitcoin alongside gold and silver. He warned that “baby boomers’ retirements are going broke as paper assets crash.” The famous author stressed: “I do not trust anything that can be printed.” Robert Kiyosaki’s Latest Warnings and Advice The […]
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Panelists at global fintech company Finder have relayed a series of projections on the Cardano native token ADA. Despite the cryptocurrency’s slow growth recently, various crypto experts have predicted the price of ADA to surge to record highs soon.
A recent survey of panelists at Finders has revealed the future outlook for the price of ADA. According to the report, Cardano is expected to witness a significant surge between the average of $5.37 and $3.15 by the end of the decade.
Supporting the cryptocurrency’s potential price growth, the Chief Operating Officer (COO) of Layer One X, Matiu Rudolph has predicted that the price of ADA could increase to $3.50 or higher by 2025. He has also predicted that the cryptocurrency could witness a rise to new all-time highs of $10 by 2030.
The COO has based his predictions on Cardano’s burgeoning ecosystem and robust community of supporters. He disclosed that the cryptocurrency’s loyal community was one of its greatest assets, fostering global adoption and boosting the value of the cryptocurrency.
Also speaking about Cardano’s future price outlook, the founder of Omnia Markets, Mitseh Shah has projected the price of ADA to surge to $2.75 by 2025. The fintech founder has given reasons for his price prediction, stating if the crypto market enters a bull run, Cardano could see its price rising to new highs.
“If next year’s Bitcoin halving leads to a bullish crypto market Cardano could well be taken along for the ride,” Nick Ranga, senior cryptocurrency and forex analyst at ForexTraders stated.
In a similar light, another panelist, Ruadhan O, creator of Seasonal Tokens has remained bullish on Cardano, expecting the cryptocurrency to surge to $2 by 2030. The crypto investor has disclosed that Cardano is likely to witness significant gains from Ethereum’s market share during the next crypto bull run.
Overall, predictions regarding Cardano’s price outlook seem to depend on the market’s performance and the possibility of a bull run. At the time of writing the cryptocurrency is trading at $0.65, reflecting an increase of 3.63% over the past week, according to CoinMarketCap.
Despite the optimistic forecast from a considerable number of Finder’s panelists regarding Cardano’s price, others have expressed opposite views, highlighting Cardano’s underperformance and inability to keep up with market expectations.
Josh Fraser, co-founder of Origin Protocol, Cardano and Joseph Raczynski, a futurist have predicted that the price of Cardano could plummet to zero by 2030 and 2025 respectively. Numerous other panelists who share similar pessimistic sentiments have revealed that Cardano’s lack of decentralized applications and failure to achieve global adoption was one of the key factors behind its foreseeable limited price growth.
ADA price at $0.65 | Source: ADAUSDT on Tradingview.com
Featured image from CoinStats, 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.
“My brother is named executor, and he also has the sign-in passwords to all our father’s investment accounts.”
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