The S&P 500 tripped and fell 0.39%, and the Dow Jones Industrial Average, well, let’s just say it lost over 100 points, or 0.49%. And the tech-savvy Nasdaq? It was down 0.44%, folks. This came after an uptick in stocks as the debt ceiling negotiations in Washington seemed to be gaining traction.

Our man on the ground, Rep. Garret Graves, who’s been the quarterback for the Republicans in these negotiations, told reporters, “It’s time to press pause because it’s just not productive.” The collective sigh from Wall Street could almost be heard across the nation.

Let’s not forget about our tech giants who had been spearheading a rally all week. Powerhouses like Netflix, Apple, Alphabet, Meta, Microsoft, and Nvidia were on a hot streak, wrapping up Thursday at their highest levels in at least a year.

Now, switching gears to the farming side, Deere & Company, the folks who make all those nifty tractors and other farming equipment, saw their shares fall by 1%. However, in an interesting turn of events, they boosted their profit outlook for the year after exceeding Wall Street’s expectations for both revenue and earnings. CEO John C. May highlighted improved operating conditions, although supply-chain constraints continue to pose challenges.

Moving to the retail turf, Foot Locker witnessed a jaw-dropping 27% drop in shares at the opening – their most significant tumble since February 2022. The sneaker moguls had to slash their full-year guidance for earnings per share due to a softening sales backdrop. CEO Mary Dillon cited aggressive markdowns to drive demand and manage inventory.

Meanwhile, Federal Reserve chair Jerome Powell took the spotlight with some noteworthy commentary. He spoke about the impact of banking sector stresses on controlling inflation. Powell explained that thanks to some smart moves from the Fed to manage issues at mid-sized banks, interest rates might not need to skyrocket to keep inflation in check. He did note, though, that problems at banks like Silicon Valley Bank could still cause some economic echoes.

Further adding intrigue, Powell shared that although inflation is a bummer for many people experiencing it for the first time, failing to tame it could lead to more significant social costs and harm families and businesses. Powell’s current approach? Keep the policy “restrictive,” while future decisions will be data-driven, rather than a fixed course.

Summing it up, folks, Friday was quite the roller coaster. Stocks dipped, some earnings reports were a bit of a letdown, but there’s still optimism, especially with Powell’s stance. So keep an eye out, budding investors, because it’s all part of the financial thrill ride!

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Why is Pyongyang eyeing crypto assets, you ask? The answer lies in their missile program. North Korea is believed to be converting these stolen assets into foreign currency to fuel its missile ambitions – a move that could send shockwaves across Asia’s security landscape.

The sleuths behind this intriguing discovery are none other than Elliptic, a firm with the tech prowess to track and identify money transfers on the blockchain – the digital ledger where all things crypto are traded.

In a digital-age Sherlock-style investigation, Elliptic sorted businesses by region whose virtual currencies were shifted into digital wallets used by the Lazarus Group, a hacker group that calls North Korea home. This marks the first time financial damages caused by North Korean hackers have been segmented by region or country.

Global powers are starting to take notice of the threat brewing in North Korea. At a meeting of the G7 finance ministers and central bank governors in Japan, top brass recognized the “growing threat from illicit activities by state actors” such as cryptocurrency theft, with North Korea’s missile exploits at the forefront of their minds.

According to a report released on April 5 by a U.N. Security Council panel of experts, North Korea doubled its crypto thefts in 2022, stealing between $600 million and $1 billion. Elliptic’s estimates put the figure at $640 million for 2022.

North Korea’s hacker arsenal primarily consists of two cyber weapons – hacking and ransomware. Elliptic’s investigations mostly found evidence of hacking – direct thefts from cryptocurrency exchanges. Given the uncertainty of ransomware success, it seems North Korea is focusing its resources on direct attacks on exchanges, as a single successful hack can yield a massive crypto windfall.

Elliptic’s findings reveal that North Korea has looted a total of $2.3 billion in cryptocurrency from businesses between 2017 and the end of 2022. Japan bore the brunt of these thefts, followed by Vietnam ($540 million), the U.S. ($497 million) and Hong Kong ($281 million).

In a staggering comparison, the Japan External Trade Organization revealed that the $721 million stolen from Japan is 8.8 times more than the value of North Korea’s exports in 2021. The hackers seem to prefer Japan and Vietnam, where crypto markets have ballooned quickly, but security measures have struggled to keep pace. Insiders claim that at least three Japanese cryptocurrency exchanges, including Zaif, which lost $51.4 million in 2018 and subsequently closed down, fell victim to North Korean hackers between 2018 and 2021.

Due to global sanctions, North Korea finds it difficult to acquire foreign currency, leading them to resort to cyberattacks as a strategy to make up for the loss of foreign exchange from their heavily restricted coal trade.

The international community has been keeping a close eye on North Korea since it first caught wind of its cyber activities around 2014. These groups not only launch cyberattacks but also engage in information theft from defense, healthcare, and other sectors. A cybersecurity expert said, “The technology of the programs they use is higher than that of attack groups in other countries.”

The international community, led by the U.S. government, has singled out North Korea as a key player in a series of ransomware
attacks that unfolded across the globe in 2017. Japan’s National Police Agency and other authorities also pointed the finger at North Korea in October 2022, urging caution among crypto exchange operators. The U.N. Security Council panel of experts echoed this warning in its 2021 report, highlighting the country’s ongoing hacking operations to support its nuclear and missile programs.

The potential use of stolen cryptocurrency for military objectives poses a significant security threat. In response, Japan has tightened its security protocols by amending its Payment Services Act, with other nations following suit. However, the world is still catching up with new technologies like decentralized finance (DeFi), where financial transactions are handled by blockchain programs, and providing support to domestic crypto exchange operators to navigate these waters.

Hiroki Iwai, president of Tokyo-based cyber consultancy Sighnt, emphasized the importance of international collaboration in the crypto industry, stating, “We need to share threat information, such as attack routes and malware that exploit them, among the public and private sectors and industry associations in each country to raise the level of defense capabilities of each industry, including the financial sector.”

As we wrap up, it’s clear that the world of crypto is not just about making a quick buck or riding the Bitcoin wave. It’s a digital battlefield with real-world implications, where each transaction could either fuel an economy or, in this case, potentially a missile program. The next time you dabble in crypto, remember that you’re not just a trader, but a soldier on the front lines of this financial frontier.

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Foot Locker Sprints into a New Era

Mary Dillon, the CEO of Foot Locker, is making her mark just seven months into her new gig. She’s got big plans for the company, and we’re talking next-level big.

With a clear focus on “all things sneakers,” Dillon aims to ensure Foot Locker remains the OG of sneakers for the next 50 years. It seems she’s off to a great start: Foot Locker shares have soared by 8% since her appointment in August 2022, outperforming the S&P 500’s 2.1% dip. Keep your eyes peeled for more news from the sneaker giant!

Lyft Hitches a Ride with a New CEO

Lyft, the ride-hailing service that’s been struggling to keep up with Uber, has decided it’s time for a change at the top. Co-founders Logan Green and John Zimmer will be stepping down from their operational roles, making way for David Risher, an Amazon and Microsoft alum.

Risher, who’s also been on Lyft’s board for about 18 months, has big plans to refocus the company’s efforts and cut expenses. And when asked about a possible sale of Lyft, he didn’t rule it out, stating, “Right now our focus is on creating such a great service that in whatever configuration, we are going to be relevant — valuable — either as a standalone company or something else.”

Lyft investors will have to wait until April 17 for Risher’s official start as CEO.

FAANG Bares Its Fangs, At Last!

Tech analyst extraordinaire Dan Ives of Wedbush claims that big-cap tech stocks like FAANG (that’s Meta Platforms, Apple, Amazon, Netflix, and Alphabet) are the new safety trade for investors looking for shelter amidst the bank crisis. And you know what? He’s onto something.

The first quarter saw a resurgence in interest for FAANG stocks, with Meta Platforms leading the pack with a 70% increase in shares. On the other end of the spectrum, Netflix saw a 15% increase, partially due to some unhappy subscribers following a password crackdown.

However, all FAANG stocks outperformed the S&P 500’s 7% increase in the quarter. So watch out, world—FAANG is back in full force!

That’s all, folks! You’re now up to speed on the markets’ first-quarter rally. Keep an eye on these companies and their exciting developments, and don’t forget to stay informed on all things finance. Stay tuned for more market updates!

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This is the biggest U.S. bank failure since the 2008 financial crisis, and it’s coinciding with some major events in the economic world. U.S. inflation numbers are coming out on Tuesday, followed by the UK’s budget on Wednesday and the European Central Bank’s interest-rate meeting on Thursday.

“There’s a rough ride ahead,” warns Pooja Kumra, senior European and UK rates strategist at TD Securities in London.

The “fear index,” or VIX, which measures stock market volatility in the US, has already spiked up to its highest since October. Meanwhile, the ICE BofA Move Index, which measures volatility in the US fixed income market, has risen to its highest since mid-December.

Stock markets in the Middle East have already taken a hit, with the Egyptian bourse leading the declines. Qatar Islamic Bank, in particular, has taken a tumble, falling 3.9%. And there’s even been a sign of contagion to other assets, as stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday.

But the biggest concern is the domino effect that SVB could have on other US regional banks and beyond. U.S. regional and smaller bank shares were hit hard on Friday, with the S&P 500 regional banks index dropping 4.3%. This brings its loss for the week to 18%, its worst week since 2009.

The British government is also scrambling to minimize the damage on the country’s tech sector, as SVB’s UK subsidiary faces insolvency. Advisory firm Rothschild & Co is exploring options for the subsidiary, and the Bank of England has said it is seeking a court order to place the UK arm into an insolvency procedure.

The SVB failure has also left many Chinese funds and tech start-ups in a lurch, as the bank was a key funding bridge for groups operating between China and the U.S. If turmoil in the banking sector forces central banks into a re-think, it could impact expectations for further interest rate hikes in the United States and Europe.

Investors will be keeping a close eye on the European Central Bank, which is set to deliver another hefty interest rate hike on Thursday. A surprise surge in underlying inflation in February has left policymakers worried that price pressures could prove persistent.

All in all, it’s going to be a bumpy ride. But we’ll be watching closely and keeping you updated. Stay tuned!

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Under normal conditions, longer-term loans or bonds, which carry higher risks, are expected to have more expensive interest rates than their shorter-term counterparts. However, when the Fed starts tightening borrowing conditions by lifting short-term rates to restrict credit creation and eventually choke off growth, this changes. While the magnitude of a yield curve inversion is not necessarily predictive of a deeper or longer recession, a host of other bond market indicators are sounding alarm bells.

Alfonso Peccatiello, the former bond trader and CEO of TheMacroCompass.com, noted that the bond market expects the Fed to remain tight and fight inflation, with interest rates likely to remain above 5% a year from now. He believes that cannot happen if a recession is unfolding, as the Federal Reserve will be forced to cut interest rates. Peccatiello warned that the tighter the borrowing conditions for the private sector, the higher mortgage and corporate borrowing rates will be, which raises the risk of freezing credit markets and, in general, accelerating a recession.

Peccatiello expects stocks to suffer from an earnings recession, which is not fully priced in, before the Fed delivers relief in the form of rate cuts. An earnings recession is marked by two consecutive quarterly declines in S&P 500 earnings, which often, but not always, precedes an economic recession. He believes that the U.S. is already in an earnings recession, with stocks reflecting complacency. However, Peccatiello does not expect a disaster, and he sees about 10% maximum downside risk in the S&P 500 down to the 3600 level, which is around last year’s lows. He adds that the stock market generally bottoms before earnings bottom, as the Fed historically capitulates and slashes rates when earnings drop. This results in better stock valuations, which eventually halt the decline in stock prices and signal the start of a new bull market.

In conclusion, Powell’s comments have increased the chances of a recession in the United States. The bond market is sounding alarm bells, and Peccatiello warns that a tighter borrowing environment for the private sector could lead to credit market freezes and accelerate a recession. An earnings recession, which is not fully priced in, could cause stocks to suffer before the Fed delivers relief in the form of rate cuts. However, Peccatiello does not expect a disaster and sees the maximum downside risk in the S&P 500 at around 10%.

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The executive order will limit American investment in advanced technologies that have national security applications, such as next-generation military capabilities that could help China improve the speed and accuracy of military decision-making.

This latest effort by the White House to target China’s military and technology sectors comes at a time of increasingly fraught relations between the two largest economies in the world. In October 2021, the Biden administration imposed export controls to limit China’s access to advanced chips, which it says can be used to make weapons, commit human rights abuses, and improve the speed and accuracy of its military logistics.

The US-China relationship has become even more strained in recent weeks after the US shot down a Chinese spy balloon last month that traversed the country. The Biden administration has also publicized US intelligence findings that raise concerns Beijing is weighing providing Russia with weaponry for its ongoing war on Ukraine.

The tensions were on display as top diplomats from the Group of 20 industrialized and developing nations ended a contentious meeting in New Delhi on Thursday with no consensus on the Ukraine war, with concerns about China’s widening global influence dominating much of the talks.

Meanwhile, China this past week blasted the new House Select Committee on the Chinese Communist Party after it held its first hearing on countering Beijing’s influence. Foreign Ministry spokesperson Mao Ning demanded its members “discard their ideological bias and zero-sum Cold War mentality.”

Administration officials have been consulting with allies as they formulate the new regulations on US investment, according to the anonymous official. The Wall Street Journal reported that the Treasury and Commerce departments delivered reports to lawmakers on Friday detailing plans for the new regulatory system to address US overseas investment in advanced technologies. The agencies said they expected to seek additional money for the investment screening program in the White House budget, which is scheduled to be released on March 9.

The expected action is certain to face pushback from US firms, and administration officials have sought to signal to the business community that even as they look to examine rules on US investment in China, they are mindful of not overreaching.

“One of the most important things we can do, from my perspective, is make sure that we draw clear lines between what is competition and what is national security because, fundamentally, my view is that the United States does well when we’re competing on a level playing field with any country in the world,” said Deputy Treasury Secretary Wally Adeyemo at a recent Council on Foreign Relations event. “But we also want, in the narrow spaces where we see national security risk, be able to use the tools at our disposal to protect the national security of the United States of America.”

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In 2023, over 120,000 tech employees have already lost their jobs, indicating that the trend of job cuts is not slowing down any time soon. This figure is already three-quarters of the total number of tech employees laid off in 2022, which was 159,000. Experts predict that the pace of layoffs will not decrease in the short term.

A majority of the layoffs occurred between October and January, with 147,000 tech layoffs announced during this period. This wave of job cuts has been fueled by the overhiring that occurred in mid-2020 when the sector went on a hiring spree, fueled by low interest rates and high demand for tech products like cybersecurity and cloud computing.

Due to the COVID-19 pandemic, experiences like travel and restaurants were off the table, leading people to shift their discretionary spending towards buying products from tech companies. This created a rapid rise in e-commerce, and companies like Amazon hired aggressively, assuming that consumers would continue to use e-commerce at an accelerating pace once the pandemic ended.

However, consumers eventually reverted to their pre-pandemic spending habits, which prompted Amazon to pare back on business units that were unprofitable. Many other tech companies have also been performing layoffs to undo the overhiring during the past couple of years.

Chief executives at technology companies have presented various reasons to employees for tech layoffs, but overhiring was a common theme.

The layoffs are not limited to the tech industry, as other sectors have also been affected. Entertainment giant Disney is cutting 7,700 jobs, automaker Ford is planning to ax 3,800 jobs in Europe, 3M is eliminating 2,500 manufacturing jobs globally, and chemical developer Dow is laying off 2,000.

The economic weakness has also led to a sharp pullback in digital advertising, which has hammered social media companies that rely on digital advertising for almost all their revenue.

As to when the cutbacks might ease in the coming months, experts predict that the rise and fall of interest rates will play a crucial role. The recent wave of tech layoffs has tracked closely with the rise in interest rates over the past year. If and when interest rates stabilize or even decline, which is currently projected to happen sometime this year, the experts believe we’ll see layoffs start to subside as well.

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What is a bear market? 

A bear market is a term used to describe a situation in the financial markets where prices of securities, such as stocks, bonds, and commodities, are declining. It is typically characterized by a general pessimistic sentiment among investors. This leads to a prolonged period of downward price movements in the market.

Bear markets are often accompanied by economic recessions, high unemployment rates, and reduced spending, which can have a significant impact on businesses, individuals, and the overall economy.

Having strategies to profit in a bear market is important because it can help investors mitigate losses and potentially generate profits during a downturn. Let’s take a look at 6 different ways you can profit in a bear market.

1) Inverse ETFs

It’s easy to feel like the market is working against you when prices are falling and your portfolio is taking a hit. But what if I told you there was a way to flip the script and potentially profit when the market is going down? Inverse ETFs are an innovative way to do just that, by providing investors with inverse returns to an underlying index or benchmark.

Put simply, if the market or index goes down, an inverse ETF that tracks that market or index will go up, and vice versa. This can be a useful tool for investors looking to profit from a bear market, as it allows them to potentially profit from falling prices without having to directly short sell individual stocks.

Here’s some popular inverse ETFs:

• ProShares Short S&P500 (SH): This ETF seeks to provide inverse returns that correspond to the daily performance of the S&P 500 index, a benchmark of 500 large-cap U.S. stocks.

• ProShares UltraShort QQQ (QID): This ETF aims to provide twice the inverse returns of the Nasdaq 100 index, which consists of the 100 largest non-financial companies listed on the Nasdaq stock exchange.

• ProShares UltraShort S&P500 (SDS): This ETF provides investors with twice the inverse returns of the S&P 500 index, allowing them to profit from falling stock prices in the index.

• Direxion Daily Financial Bear 3x Shares (FAZ): This ETF seeks to provide triple the inverse returns of the Russell 1000 Financial Services Index, which tracks the performance of financial services companies in the U.S.

• ProShares Short Dow30 (DOG): This ETF aims to provide inverse returns that correspond to the daily performance of the Dow Jones Industrial Average, a widely followed benchmark of 30 blue-chip U.S. stocks.

Keep in mind these are just a few, there are many to choose from. You can go wide like ProShares Short S&P500 (SH) or more-narrow such as ProShares Short Oil & Gas (DDG). If you are feeling especially bearish about a certain industry, chances are there’s an inverse ETF that will capitalize on it. 

Inverse ETFs can provide investors with a way to profit from a bear market without having to directly short sell individual stocks, which can be a complex and risky process. They can also be used as a hedge against a long position in a particular market or sector. 

It’s important to note that inverse ETFs come with risks and may not perfectly track the inverse performance of the market or index over longer periods of time. They can also be more expensive than traditional ETFs due to their complex strategies and instruments, and may be subject to amplified losses in a rising market. 

As with any investment, thorough research and consultation with a financial advisor is recommended before investing in inverse ETFs. They should be used as part of a broader investment strategy and may not be suitable for all investors.

2) Short Selling

Short selling is a trading strategy where an investor borrows shares of a stock or other security and immediately sells them on the open market. The investor hopes to profit from a decline in the price of the stock, as they can buy back the shares at a lower price and return them to the lender, pocketing the difference as profit.

Short selling can be a risky and complex strategy, as losses can be amplified if the stock price rises instead of falls, and there is a potentially unlimited downside to the investment. As such, it’s typically only used by experienced traders and should be done with caution.

Due to the complexity and risk involved, I won’t go into more detail in this article. However, I wanted readers to be aware that short selling is a strategy traders use to potentially profit from a bear market. While it can be a powerful tool in the hands of experienced investors, it’s important to understand the risks involved and the potential for amplified losses if the stock price rises instead of falls. As always, thorough research and consultation with a financial advisor is recommended before investing.

3) Put Options

A put option is a type of financial contract that gives the holder the right, but not the obligation, to sell an underlying asset, such as a stock, at a specified price (known as the strike price) before a specific expiration date. 

Put options are commonly used as a form of insurance or hedge against potential losses in a bear market. If the price of the underlying asset drops below the strike price, the holder of the put option can exercise their right to sell the asset at the higher strike price, potentially limiting their losses. 

However, if the price of the underlying asset stays above the strike price, the holder of the put option may choose not to exercise their option and let it expire worthless, in which case they would lose the premium paid for the option.

A trader can profit from a put option by speculating on a decline in the price of the underlying asset. For example, if a trader believes that a particular stock is overvalued and will soon experience a price drop, they could purchase a put option with a strike price below the current market price. 

If the stock price drops below the strike price, the trader can buy the stock at the lower market price and sell it at the higher strike price, realizing a profit on the difference. Traders can also profit from a put option without buying any stock by selling the option premium at a higher price than they paid for it. This allows traders to potentially generate income without having to buy and sell the underlying asset.

4) Dividend-Paying Stocks

Amid the uncertainty and volatility of a bear market, it can be tempting to sell off stocks and wait for the market to stabilize. But what if I told you that there was a way to not only weather the storm, but potentially profit from it? Enter dividend-paying stocks, a reliable source of income and potential capital gains even in a downtrending market.

Dividend-paying stocks can be a way to profit in a downtrending market because they can provide investors with a consistent source of income through regular dividend payments, regardless of the direction of the stock price. In a bear market, when many stocks may experience significant price drops, dividend-paying stocks can provide a level of stability and predictability for investors. Additionally, if the stock price does recover after a downturn, investors can potentially benefit from capital gains on top of the dividend income.

When evaluating dividend-paying stocks, there are several key factors that investors should consider:

Dividend Yield: The dividend yield is the amount of the annual dividend payment relative to the current stock price. A higher dividend yield generally indicates a higher level of income potential, but it’s important to ensure that the dividend is sustainable and not at risk of being cut.

Dividend History: Investors should look at a company’s history of paying dividends, including the frequency and consistency of payments. A company that has a long history of paying and increasing dividends is generally viewed as more stable and reliable.

Payout Ratio: The payout ratio is the percentage of earnings that are paid out as dividends. A lower payout ratio generally indicates that the company has more room to increase its dividends in the future and is less likely to cut its dividend in tough economic times.

Financial Health: Investors should consider a company’s financial health, including its revenue growth, earnings growth, and debt levels. Companies with strong financials are more likely to continue paying dividends even during a market downturn.

Industry Trends: Investors should consider the trends and conditions of the industry in which the company operates. Some industries are more prone to economic downturns than others, and investors should take this into account when evaluating dividend-paying stocks.

By considering these factors, investors can make informed decisions about which dividend-paying stocks to invest in, and potentially benefit from a reliable source of income even in a bear market. 

5) Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are companies that own or finance income-generating real estate properties, such as commercial buildings, apartment complexes, or warehouses. REITs allow investors to invest in real estate without actually owning physical property, and provide a way to potentially profit from a bear market.

In a bear market, REITs can be an attractive investment because they tend to perform well in low-interest rate environments, as they typically rely on borrowing to finance their properties. Additionally, some types of REITs, such as those that invest in healthcare or essential services real estate, may be less impacted by economic downturns than other sectors.

REITs typically offer attractive dividend yields, as they are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This can provide investors with a reliable source of income, even if the stock price of the REIT declines during a market downturn.

Investors should be aware that not all REITs are created equal, and should consider factors such as the quality of the underlying real estate portfolio, the track record of the management team, and the overall financial health of the company before investing. 

Here are a few popular REITs:

• American Tower Corporation (AMT): Owns and operates a global network of wireless communication infrastructure, including cell towers and data centers.

• Prologis, Inc. (PLD): Specializes in logistics and distribution real estate, including warehouses and distribution centers.

• Equity Residential (EQR): One of the largest owners and operators of apartment buildings in the United States, with a focus on high-density urban areas.

• Welltower Inc. (WELL): Invests in healthcare real estate properties, including senior housing, medical offices, and outpatient facilities.

• Realty Income Corporation (O): Owns and manages a diversified portfolio of retail and commercial properties, primarily in the United States.

• Public Storage (PSA): Owns and operates self-storage facilities across the United States and Europe, catering to both residential and commercial customers.

6) Gold and Precious Metals

You’ve heard it said that ‘money makes the world go round’, but what happens when the world’s money is in turmoil? In times of economic uncertainty, investors often flock to safe-haven assets like gold and other precious metals. But is this conventional wisdom actually wise?

Despite the long-standing popularity of gold and other precious metals as safe-haven assets, there are valid arguments both for and against their effectiveness as a hedge against economic downturns. 

On the one hand, gold has a long history of holding its value in times of crisis and has been seen as a symbol of stability and wealth for centuries. On the other hand, some investors argue that gold and other precious metals are simply speculative investments that do not generate income or have any inherent value beyond what the market assigns them.

Let’s take a look at some of the advantages and disadvantages of investing in gold and precious metals during a bear market:

Advantages:

• Safe-Haven Status: Gold and other precious metals are often seen as a safe-haven investment in times of economic uncertainty, as they tend to hold their value and may even appreciate in price during market downturns.

• Diversification: Investing in gold and precious metals can provide diversification benefits for investors, as these assets often have low correlations with other asset classes like stocks and bonds.

• Inflation Hedge: Some investors see gold and precious metals as a hedge against inflation, as their value may increase during times of high inflation or currency devaluation.

Disadvantages:

• Volatility: While gold and precious metals may hold their value or appreciate in price during a bear market, they can also be highly volatile and subject to significant price swings in the short term.

• Lack of Income: Unlike stocks or bonds, gold and precious metals do not generate any income or dividends for investors, and may not be suitable for those seeking regular cash flow from their investments.

• Storage and Insurance Costs: Investing in physical gold or precious metals requires storage and insurance, which can add to the cost of the investment and reduce potential returns.

There are ways to gain exposure to these assets without the need for storage or insurance. One popular option is to invest in exchange-traded funds (ETFs) that track the price of gold or precious metals. These ETFs can provide a convenient and cost-effective way to gain exposure to these assets, as they can be easily bought and sold through a brokerage account.

Examples of gold ETFs include the SPDR Gold Shares ETF (GLD) and the iShares Gold Trust ETF (IAU), while examples of precious metals ETFs include the iShares Silver Trust ETF (SLV) and the Aberdeen Standard Physical Platinum Shares ETF (PPLT).

Final Thoughts

Investing in a bear market can be a challenging prospect for even the most experienced investors, but there are a variety of strategies and assets that can be used to profit from a downtrending market. From inverse ETFs and short selling to dividend-paying stocks, REITs, and gold and precious metals, there are many ways to potentially benefit from market volatility and uncertainty.

Of course, each of these strategies and assets comes with its own set of advantages and disadvantages, and it’s important for investors to carefully consider their goals, risk tolerance, and investment horizon before making any decisions. Whether you’re looking to hedge against potential losses, diversify your portfolio, or simply take advantage of market opportunities, there is no shortage of options available to you.

At the end of the day, the most successful investors are those who remain disciplined, informed, and adaptable in the face of changing market conditions. By staying focused on your long-term goals and keeping a diversified portfolio that is tailored to your specific needs and risk profile, you can navigate the ups and downs of the market with confidence and success.

The post When Life Gives You a Bear Market, Make Lemonade: 6 Ways to Profit appeared first on Insider Trending.

GM’s move comes just a month after CEO Mary Barra and CFO Paul Jacobson told investors that the company was not planning any layoffs. The timing of the cuts is somewhat surprising, given their recent announcement to the investors. However, in a Tuesday letter viewed by CNBC, GM Chief People Officer Arden Hoffman confirmed the company’s goal of $2 billion in cost savings over the next two years, which they plan to achieve by reducing corporate expenses, overhead, and complexity in all their products.

According to the letter, the cuts will impact a “small number of global executives and classified employees following our most recent performance calibration,” and they started on Tuesday and will continue based on location. GM has reiterated in an emailed statement that the cuts are a result of performance and will help in “managing the attrition curve as part of our overall structural cost reduction effort.”

At the end of last year, GM employed around 86,000 hourly workers and 81,000 salaried employees worldwide. The 500 job cuts make up less than 1% of GM’s salaried workforce. Jacobson had informed investors last month that the company expects to reduce employee headcount through attrition rather than layoffs.

The automotive industry was largely unaffected by job cuts that had plagued the technology sector in recent quarters until recently. Ford Motor earlier this month confirmed it would cut 3,800 jobs in Europe over the next three years to adopt a “leaner” structure as it focuses on electric vehicle production. Meanwhile, Rivian Automotive and Stellantis have also made salaried cuts, with the latter announcing it would idle a plant in Illinois.

Despite the timing of the cuts being somewhat surprising, GM has reiterated that they are a result of performance and will help in managing the attrition curve as part of the overall structural cost reduction effort.

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Let’s take a look at the entrepreneurial trends that will shape this year. 

Working from home and hybrid work

Remote work has been on the rise for several years, but the pandemic accelerated this trend. However, not every employee or business owner wants remote work as a long-term option, nor is it a suitable option for every kind of organization. This is why we will likely see most businesses embrace a hybrid work model. It will retain the flexibility of working in a remote location, while also encouraging in-person collaboration for more exploratory or hands-on work. This potentially provides the benefits of both remote and in-person, while removing the drawbacks.

Niche market service

Companies are specializing in offering increasingly niche market services as consumers want to be unique. Bespoke options are now the name of the game, especially for eCommerce businesses or online markets such as Etsy. Consumers want something unique that most people will never get their hands on. Personalization options such as adding a name or color can be incredibly worthwhile.

The rise of the gig economy

The gig economy relies on front-line or working-class employees. Businesses like Uber and DoorDash have proven the profitability of this business model. As more and more workers feel empowered to pursue new endeavors, the need for gig economy platforms will continue to grow. However, the expectations from those that leverage them for work will also increase. This means current and emerging gig-economy services will need to step up in how they treat contract workers.

Subscription-based businesses

Subscription-based businesses have exploded due to the pandemic. With these businesses, clients rarely purchase or outright own the products or services they use. Adapting a subscription-based business model is a major focus for most established businesses moving forward. Consistent revenue, better engagement and brand loyalty, and increased customer value are all major benefits. However, it will take investing in excellent service and online infrastructure to be truly effective.

Eco-friendly business practices and products

Millennials and younger shoppers are increasingly concerned with the health of the planet. Entrepreneurs are paying attention to these business trends and are dedicated to reinventing their companies to be more eco-friendly. This may require changes such as auditing and adjusting business partnerships, investing in green initiatives for the office, donating a portion of profits to green initiatives and non-profits, and providing incentives to employees for participating.

Crypto acceptance

Cryptocurrency is now incredibly popular thanks to the ease of selling and buying them. More companies than ever are accepting cryptocurrencies at their online stores. This trend will likely continue, with more options emerging, for some years to come. The only major drawback to consider is increased government scrutiny over this payment model, which may hamper adoption.

Artificial intelligence

AI technology has already been adopted by many businesses to streamline operations and improve efficiency. As AI technology continues to improve, businesses will increasingly turn to it for competitive advantages. However, there are some concerns about its impact on jobs. Many predict that AI could lead to the displacement of millions of workers in the coming years. Businesses must also be mindful of the ethical implications of AI and work to ensure that it is used in a responsible manner.

Final Thoughts

Entrepreneurs must adapt to the rapidly changing business landscape. The rise of the gig economy, subscription-based businesses, eco-friendly practices, cryptocurrency acceptance, and artificial intelligence will continue to shape the way businesses operate. By staying up-to-date with these trends and implementing them into their own strategies, entrepreneurs can stay ahead of the curve and remain competitive.

The shift to a hybrid work model will also require entrepreneurs to adapt their management styles and communication methods to ensure effective collaboration between remote and in-person employees. Niche market services and personalization options will continue to be popular among consumers who seek unique and customized products.

At the same time, entrepreneurs must also be aware of the ethical implications of these trends, such as the treatment of gig-economy workers and the impact of AI on jobs. By embracing these trends in a responsible and sustainable manner, entrepreneurs can not only drive growth and success for their businesses but also contribute to a better future for the planet and its people.

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