Robert Kiyosaki has issued a stark warning about an impending financial disaster, which he believes will devastate baby boomers. A crypto analyst predicts bitcoin could exceed $330,000, defying historical growth patterns through a combination of pattern disruptions and the theory of diminishing returns. Venture capitalist Tim Draper forecasts that bitcoin will dramatically transform El Salvador […]
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Shares in industrial giant 3M (MMM 1.82%) increased by almost 10% in the week to Friday morning, according to data provided by S&P Global Market Intelligence. The move comes down to a combination of a well-received presentation at the J.P. Morgan Industrials Conference on Wednesday and an update on the CEO succession on Tuesday.
Given that 3M’s share price is down almost 48% since Mike Roman took over as CEO in July 2018 it’s fair to say his tenure hasn’t been a success. However, with former L3Harris Technologies chairman William Brown taking over on May 1, investors have a reason for optimism that a change in strategy could be imminent. That said, Roman will take over as executive chairman at that time, and 3M has waived the mandatory retirement age of 65 years for both men in their 60s.
The headline from the presentation is that Roman raised the company’s first-quarter earnings-per-share guidance from between $2 and $2.15 to a new range of $2.05 to $2.20. However, the $0.05 only comes from “the interest on the Solventum debt raise,” according to Roman. As a reminder, Solventum is the healthcare business 3M is set to spin off on April 1.
On a more positive note, CFO Monish Patolawala told investors 3M’s annualized stranded costs (due to the Solventum spinoff) would be in the $150 million to $175 million range compared to an initial estimate of $350 million to $500 million. That could lead to analysts upgrading their models for ongoing profitability at 3M.
Image source: Getty Images.
3M definitely has attractions as a value play; however, suppose you are considering buying 3M for its 5.9% yield. In that case, it pays to listen to what Roman said in response to a question on the dividend. He once again fell short of definitively affirming it would be maintained at the current level. According to Roman, 3M prioritizes investing in the business before returning capital to investors, including “an attractive dividend.”
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends 3M. The Motley Fool has a disclosure policy.
A significant bitcoin “mega whale” moved 3,000 vintage bitcoins from 2010 as BTC peaked at $69,210. JPMorgan predicted a post-halving drop in bitcoin’s price to $42,000, citing current euphoria levels. Meanwhile, bitcoin cash experienced a 40% surge in anticipation of its halving event and a major 2024 upgrade. Additionally, rumors circulated about a Qatari billionaire’s […]
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Sales of Non-fungible tokens (NFTs) have witnessed a notable uptick this past week, climbing 11.62% to hit $442.02 million over the previous seven days. The most significant transaction was the sale of the ‘Alien’ Cryptopunk #3,100, donning a headband, for $16 million, with Bitcoin-based NFTs claiming the lead in sales volume across 22 different blockchains. […]
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Bitcoin hit a new all-time high for the second time this week and once again experienced a violent sell-off that erased its gains and stirred memories of past volatilities in the crypto space.
Bitcoin broke its previous record early in the US trading hours on March 8, climbing to an all-time high of $70,136 after US jobs data raised expectations of rate cuts in the coming month.
However, the jubilation was short-lived as a wave of sell pressure engulfed the market, driving the price down by more than 3% to a low of $66,500 in less than an hour. The wider crypto market experienced similar volatility.
As of press time, BTC was trading at $67,890, according to CryptoSlate data.
Over the past four hours, the volatility caused $181.5 million in total liquidations, with longs making up more than $100 million. Meanwhile, Bitcoin liquidations during the period stood at $70.57 million, with longs accounting for $40.3 million, according to CoinGlass data.
This week’s market movements have been particularly turbulent, with Bitcoin’s value fluctuating widely. After setting a new record earlier in the week, BTC suffered a dramatic 14% drop, plummeting to around the $59,000 level before recovering.
Such volatility has become a defining characteristic of the crypto market, reflecting both the speculative nature of digital assets and the evolving landscape of financial markets.
Analysts identified a significant volume of sell orders on major exchanges, including Binance and OKX, as a pivotal factor in the rapid price reversal.
The sell orders, valued at roughly $70 million and totaling approximately 1000 BTC, created a formidable barrier that halted any further price increase beyond the $70,000 mark.
Market analysts attribute the initial price surge to a combination of factors, including investor optimism regarding the US economic outlook and the introduction of spot Bitcoin exchange-traded funds (ETFs).
These developments have increasingly aligned crypto trading activity with traditional stock market hours, highlighting the growing integration of digital assets into conventional financial systems.
The backdrop to Bitcoin’s record-breaking rally was the latest US unemployment data, which suggested a potential easing of inflationary pressures and fueled speculation about the Federal Reserve’s interest rate policy.
The unexpected rise in the unemployment rate to 3.9%, coupled with downward revisions to job growth figures, has bolstered hopes for a more accommodative monetary stance.
As Bitcoin’s price ascension coincides with a weakening US dollar, the implications for the Fed’s upcoming policy decisions are being closely watched.
With the Fed’s next interest rate decision anticipated on March 20, market participants remain vigilant as the interplay between macroeconomic indicators and monetary policy could significantly influence the trajectory of Bitcoin and the wider digital assets market.
At the time of press 5:39 pm UTC on Mar. 8, 2024, Bitcoin is ranked #1 by market cap and the price is up 1.19% over the past 24 hours. Bitcoin has a market capitalization of $1.35 trillion with a 24-hour trading volume of $53.2 billion. Learn more about Bitcoin ›
At the time of press 5:39 pm UTC on Mar. 8, 2024, the total crypto market is valued at at $2.59 trillion with a 24-hour volume of $148.59 billion. Bitcoin dominance is currently at 51.89%. Learn more about the crypto market ›
In a 2016 interview with CNN, famed investor Warren Buffett shared insightful views on the state of the economy, the distribution of wealth and the mechanisms through which a fairer economic system could be achieved. Buffett’s observations came years before concerns over inflation intensified. Given that the federal minimum wage has remained unchanged at $7.25 since 2009, his proposals for ensuring a livable wage have become increasingly relevant today.
Buffett emphasized the disparity within the American economy, noting, “We’re in an economy where specialized talents bring incredible sums and where if you’re a little bit where you really don’t fit well into the market system you are left behind.”
This statement underscores the growing divide between the highly skilled and those struggling to find their place in the economy.
When asked about the need for a more inclusive form of capitalism, Buffett pointed to the Earned Income Tax Credit (EITC) as a vital tool for economic adjustment. He advocated for a significant expansion of the EITC, suggesting that while no single measure can solve all problems, targeted adjustments can alleviate economic disparities. Buffett’s stance highlights a preference for government intervention over wage adjustments by businesses, arguing that meddling with the market system through enforced wage increases could lead to decreased employment.
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Buffett’s insights on the minimum wage debate are particularly notable. He argued against the necessity of a higher minimum wage, instead proposing a minimum income achieved through a combination of employer wages and government supplements like the EITC.
“We have to make sure that in a super-rich country, anybody who’s willing to work 40 hours a week has a decent living,” Buffett said. He cautioned against setting unrealistic wage floors that could exclude millions from the workforce because of a lack of necessary skills.
When probed on why the responsibility for ensuring a minimum income should fall on the government rather than on businesses, Buffett offered a pragmatic perspective. He explained that imposing higher wage requirements on businesses could disrupt the market system and lead to a reduction in employment.
“If you tell me I’ve got to run a business that pays $15 an hour in many industries, I’m going to employ fewer people than before,” he said. “I don’t want to employ fewer people; I just want that person to make $15 an hour.”
This view suggests that while businesses play a critical role in the economy, government intervention through mechanisms like the EITC could provide a more effective and less disruptive means of ensuring that workers achieve a decent living without compromising employment levels.
The crux of Buffett’s argument is not against capitalism or the market system but rather on how the benefits of economic growth are distributed. He acknowledged the efficiency of the market system in generating wealth but called for adjustments to ensure fairer distribution. This vision involves not a fundamental overhaul of capitalism but targeted reforms to address specific inequities.
Buffett’s perspective on economic reform, focusing on the EITC rather than mandated wage increases, offers a nuanced approach to addressing income inequality. It underscores the importance of balancing market dynamics with social policies to ensure that economic growth benefits a broader section of society. As discussions on economic policy continue, Buffett’s 2016 interview remains a compelling point of reference for understanding the challenges and potential solutions in creating a more inclusive economy.
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Bitcoin saw an incredible month in February, adding over $18,000 to its value in a single month. This outperformance has now carried on into the month of March, which has seen the Bitcoin price cross the $65,000 mark for the first time since 2021. As BTC trades in the green, expectations remain that the performance will continue.
In a new report shared with NewsBTC via email, the head of research at Matrixport, Markus Thielen, put forward that the Bitcoin price was headed for another all-time high this week. This report highlighted the BTC price performance over the last year, as well as in February, in which the price rose a total of $18,615 in a single month. Additionally, the analyst pointed out that despite the slowdown in Bitcoin Spot ETFs that were seen toward the end of February, it hasn’t affected BTC’s bullishness by much.
The crypto analyst explains that institutional buying is not just happening in the United States either. There has also been a large uptick in buying volume across other countries, including the likes of Korea where volumes have reached near $8 billion for five consecutive days. Interestingly, the buying is not just limited to Bitcoin either as there are also inflows into altcoins and meme coins.
Furthermore, the anticipation of Hong Kong launching its own Spot Bitcoin ETF, as well as BlackRock taking the plunge and launching a Bitcoin ETF in Brazil, also proves that there is a lot of demand. So despite the decreased inflows that were seen last week, Thielen explains that if Grayscale’s outflows keep dropping, reaching between $0-$100 million, then he expects further rally for the Bitcoin price.
Thielen also pointed out that the Untied States debt is growing exponentially and Bitcoin now offers better macro upside compared to gold. This plays into the bullish potential of BTC going forth.
“ Previously we have shown that 30-40% of the Bitcoin ETF inflows appear to come out of Gold ETFs and with $80bn of assets-under-management, those re-allocation flows can continue. We have also shown numerous times that Bitcoin has become a better macro asset than Gold as Bitcoin’s reaction function towards changes in interest rate expectations, announcement of wars/conflicts, etc., has become superior (we backtested this).”
Among the factors driving the Bitcoin price identified by the analyst was a significant decrease in the amount of over-the-counter (OTC) BTC available for large institutions. Spot Bitcoin issuers such as BlackRock tend to utilize these OTC desks for purchases in order to reduce the impact of their buying on the price. However, these OTC sellers have reported that their balances have dropped 80% in the last year from around 10,000 BTC to less than 2,000 BTC.
Thielen also points out that the same trend is seen in exchanges where balances have declined across trading platforms such as Binance and Coinbase. Both of these, which are currently the Bitcoin trading powerhouses of the world, saw a total of 48,000 BTC leave their balances in a month.
Given these developments, the crypto analyst explains that investors are not price-sensitive at this time. So, the expectation for this week is that Bitcoin makes a new all-time high. If this happens, then the market could see BTC tap $70,000 this week.
BTC price surpasses $65,000 | Source: BTCUSD on Tradingview.com
Featured image from Capital.com, 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.
It is a crucial week for economists and investors as key economic data will be released, along with two days of testimony from Fed Chairman Jerome Powell before Congress.
Fed officials have been singing from the same songbook over the past few weeks, stressing patience about potential interest-rate cuts. Fed Gov. Christopher Waller, summed it up best when he recently asked “what’s the rush?”
Powell may not have appreciated that question. He is going to spend two days this week with lawmakers on Capitol Hill, many of whom are more than likely to have an answer prepared for Waller’s question.
Remember, Senate Democrats already wanted the first rate cut in January, saying that the Fed’s tight monetary policy was damaging the housing market. Talk of patience might not be welcomed.
Democrats are eager for the Fed to cut rates and potentially give the economy a jolt going into the November elections. Republicans will likely stress the need for the Fed to stay the course to combat still-high inflation. It is a political year and the Fed’s actions will be seen in that light, no matter how often it swears to be apolitical.
Economists expect the labor market to cool after two “fiery” job gains the past two months, said Douglas Porter, chief economist at BMO Capital Markets. In December and January, the economy added an average of 268,000 net new jobs per month.
Economists surveyed by the Wall Street Journal expect the economy to add 210,000 jobs in February. The unemployment rate is expected to remain steady at 3.7%., nearly as low as it has been in 50 years. Average hourly wages are expected to moderate to a 0.2% gain from the strong 0.6% rise in the prior month.
“Even though we believe job growth will cool in February, we still see a number of signs that the labor market remains strong, Feroli of JPMorgan said.
Economists are ratcheting up their forecasts for first-quarter gross domestic product based on recent data.
Michael Feroli, chief U.S. economist at JP Morgan Chase, said he raised his estimate to a 2.25% rate in the January-March quarter, from his prior forecast of 1.7%.
Aichi Amemiya, senior economist for the U.S. at Nomura Securities, said he’s raised his tracking estimate to 2.2% from 2.1%.
The Atlanta Fed’s GDPNow estimate is 2.1%, down from 3% previously.
The government revised its estimate for fourth quarter growth to 3.2% from 3.3% previously. The official first-quarter GDP data won’t be released until April 25.
So the economy “is still in the soft landing zone,” said Scott Anderson, chief U.S. economist at BMO.
Week to date, shares of Coupang (CPNG 2.32%) were up 14% as of 10:38 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence. Korea’s largest e-commerce company reported another quarter of accelerating revenue growth that sent the shares higher, but its relatively small footprint of the retail market spells more growth.
Low growth expectations can set up a stock to soar when a company’s financial results are better than expected. That’s what happened with Coupang this week. The company reported its fourth consecutive quarter of accelerating revenue growth, driven by a 16% year-over-year increase in active customers.
Management credited investments it made years ago, such as fulfillment and logistics, for driving strong results. Small businesses are finding value in Coupang’s fulfillment service, where participating merchants were up 80% over the year-ago quarter.
Slowing growth in 2022 had sent the stock down almost 80% from its previous peak, so investor expectations have been low. Investors have also had to process the rationale for Coupang’s recent acquisition of online luxury goods marketplace Farfetch, which has struggled to generate profitable growth.
However, the returns it is seeing from investments in its core business might earn management the benefit of the doubt. Coupang’s top-line momentum shows it is on course to join the ranks of other top e-commerce companies that have delivered superior returns to shareholders.
With only a small share of the retail markets in Korea and Taiwan, the stock could be a good value at these lower share prices compared to where it traded just a few years ago.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Coupang. The Motley Fool has a disclosure policy.
Amazon CEO Andy Jassy speaks with CNBC’s Jon Fortt.
CNBC
Amazon will replace Walgreens Boots Alliance in the Dow Jones Industrial Average, according to a Tuesday announcement from S&P Dow Jones Indices, which manages the price-weighted measurement of 30 stocks. Amazon shares moved up 1% in extended trading, and Walgreens stock moved 3% lower.
The move will result in more exposure to the online retailer for investors who bet on the average, which is far smaller than the S&P 500 index. The change goes into effect prior to market open on Feb. 26.
“Reflecting the evolving nature of the American economy, this change will increase consumer retail exposure as well as other business areas in the DJIA,” S&P Dow Jones Indices said in a statement.
The company said the revision was “prompted” by Walmart’s 3-for-1 stock split, resulting in lower index weight for Walmart.
Today’s Amazon is more than just “the leading online retailer of books,” which is how the company described itself to investors before its 1997 initial public offering. Since 2021, it’s been run by Andy Jassy, who built up Amazon’s cloud business. That segment leads the market, giving Amazon 14% of revenue and most of its operating profit.
Jeff Bezos, Amazon’s founder and the only CEO before Jassy, is the company’s executive chair. The world’s second wealthiest man based on one measurement, Bezos has unloaded billions in stock in recent weeks.
Beyond cloud, there’s revenue coming in from Amazon promoting products in search results. Amazon’s advertising business delivered 27% revenue growth in the fourth quarter, faster than at Alphabet, Meta and Microsoft.
Amazon’s arrival in the Dow Jones comes three years after business software maker Salesforce joined, along with Amgen and Honeywell International.
Walgreens has been a Dow component since 2018, when it replaced GE, which had been part of the stock grouping since the beginning in 1896.
In the most recent quarter Walgreens narrowed its losses to $278 million from $3.8 billion in the year-ago quarter, excluding non-controlling interests. Amazon’s fourth-quarter earnings came to $10.6 billion, up from $278 million.
WATCH: Jeff Bezos sells $2 billion of Amazon shares
