Why Biden's Policies Are Squeezing the Poor?Market Sizzle: Office Defaults Surge, ETF Warnings, Food Budget Cuts, Partisan ETF Battles
Hey there, Josh here from a rainy Miami, FL! Bargain hunting is the new brunch, right? As inflation tightens its grip, savvy shoppers are zigzagging across town more than ever. They're hitting an astonishing 20.7 different stores a year to snag the best deals, turning grocery shopping into a full-blown treasure hunt. Is all this effort just a sign of the times, or are we revisiting the bargain-hunting days of yore before supermarkets ruled the world? Capitol Cash-In: Politicians Game Wall Street
ETFs named KRUZ and NANC are copying U.S. politicians' stock trades. They do this to see which party's picks do better. KRUZ follows Republican choices, while NANC tracks Democrats. So far, both are beating their benchmarks. KRUZ and NANC are very different. KRUZ likes oil and heavy industry stocks. NANC prefers tech companies. This shows how each party sees the economy and the world. Their choices may depend on their political views. Experts think this split is interesting but not a good way to pick stocks. They say it's strange to invest based on politics. Yet, these ETFs do show how different the two parties are. They don't even agree on the economy's state or what will make it better. Office Loan Crisis Spirals Out of Control
Office loan defaults are soaring. They're now at their worst since 2012. Over $38 billion in office buildings could fail to pay back loans. This is because interest rates are high and fewer businesses want office space. Back in 2021, most office loans got paid when due. Now, only 35% do. This is a huge drop. High interest rates hurt more now because office loans are big. They cover at least half of a building's cost. Also, Covid-19 changed how we use offices. More people work from home. So, demand for office space dropped sharply. Now, tenants check if landlords can really pay for building upgrades. They want good working spaces to bring workers back. If things stay like this, many office loans due in the next year might not get paid back. This worries banks and lenders too. Some big property owners are even giving buildings back to lenders. Others are buying these buildings at big discounts. Options-ETF Frenzy Hits Wall Street Reality Check
Wall Street has seen a big jump in options-ETFs, hitting $69 billion. These funds use options to try to make more money. But Bank of America warns they don't work as well as simple stock funds. They say regular dividend ETFs might be better for most. In 2022, these options-ETFs did great because the market was down. But now, as stocks go up, these funds are not doing as well. They are missing out on bigger gains. Some people like these ETFs for the regular money they pay out. Yet, they often lose out on total returns. High-dividend funds could be a smarter choice, giving similar money without the risk. Some advisers suggest safer bonds instead, with steady returns and less risk. Inflation Squeezes Low-Income Shoppers Dry
Big food companies like McDonald's and Coca-Cola notice that poorer people in the US are buying less because things cost more. They are choosing cheaper stuff or not buying as much. Richer people still buy expensive items, like fancy beers from Molson Coors. Lower-income folks are really feeling the pinch. McDonald's says these customers are buying less fast food now. Even with some help from government money during the pandemic, prices keep rising, and it's tough for many. Coca-Cola also sees fewer sales in places like restaurants because poorer people can't spend as much. Big banks are seeing similar trends, with less spending on credit cards by people who don't have a lot of money. Some foods, like frozen pizzas and drinks from PepsiCo, are also selling less. Quick Sizzles:
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Rabu, 01 Mei 2024
Why Biden's Policies Are Squeezing the Poor?
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