Select a category

profile/9484image0.png.webp

Mark_

Adobe Stock: Is It Still Worth Buying In 2024?

The analysis of Adobe Inc., including an overview of its business, past performance (sales, profit margins, etc.), and price-related indicators (P/E, P/B ratios, intrinsic value, etc).

profile/2681Capture.PNG.webp

Investopedia

Homes Are Changing Hands At Historically Low Rates. Here's Why

Homes in the U.S. are being bought and sold at the lowest rate in decades, according to a report from the real-estate brokerage Redfin Corp. (RDFN). 

Only 2.5% (or 25 of every 1000) of U.S. homes changed hands in the first eight months of 2024, the lowest rate in at least 30 years, the report found. By comparison, the firm noted that the "pandemic buying frenzy" in 2021 saw 40 of every 1,000 homes change hands. 

A big reason why is higher mortgage rates. Redfin noted that more than 75% of homeowners currently have a mortgage rate of 5% or less, which makes them hesitant to buy a new house at current rates. Rates went as high as 7.52% in April and, while they've come down since, they're still in the low-6% range. 

There are also fewer houses on the market than before the pandemic. In turn, home prices have reached all-time highs, the report said. That combination has many would-be buyers on the sidelines until a downward market trend. 

Phoenix and Newark, N.J., had the nation's highest-turnover metropolitan areas, Redfin found. Meanwhile, California had seven of the 10 lowest-turnover metro areas. 

Do you have a news tip for Investopedia reporters? Please email us at [email protected]

Read more on Investopedia

profile/2681Capture.PNG.webp

Investopedia

Coinbase Global, MicroStrategy Stocks Drop On Crypto Price Pullback

Shares of crypto-related companies Coinbase Global (COIN) and MicroStrategy (MSTR) fell Monday following a bitcoin price pullback after a surge this month.

The stocks retreated along with the prices of bitcoin, ether, and most other major cryptocurrencies on the last day of what has been historically the worst month for them. noted that even with Monday's declines, bitcoin should end the month with a 7% gain. It reported that since 2013, bitcoin has had an average loss of 3.6% in September and a 23% jump in October.

The news site also pointed to data from European alternative investment company CoinShares showing digital asset funds had $1.2 billion in inflows last week, the most since the week ending July 19. CoinShares said that the inflows were driven by expectations of further Federal Reserve interest-rate cuts after the central bank slashed them by 50 basis points (bps) two weeks ago. 

Markus Thielen, founder of digital asset management research firm 10K Research, told that bitcoin appears to be overbought in the short term, and that current signals have turned bearish.

Shares of Coinbase Global fell 5.5% in late-morning trading Monday but are up 4% this year. MicroStrategy shares slipped about 2% but have nearly tripled in 2024.

Do you have a news tip for Investopedia reporters? Please email us at [email protected]

Read more on Investopedia

profile/2681Capture.PNG.webp

Investopedia

What You Need To Know About Super Micro Computer's 10-for-1 Stock Split

Server maker Super Micro Computer (SMCI) announced a 10-for-1 stock split last month that will take effect after the closing bell on Monday.

Here's what you need to know about the split.

Shareholders will receive nine new Super Micro Computer shares for every one they already own. Their overall stake in the company won’t change, but the stock will subsequently trade for 10% of its previous price. 

In other words, if Super Micro Computer shares were trading at $1,000 before the split, an investor holding one share before the split would hold 10 shares priced at $100 each after the split. (Companies can also hold reverse splits, as some have done lately.)

Super Micro Computer shares skyrocketed early in 2024 to a high of nearly $1,200 due to surging demand for artificial intelligence infrastructure. They traded closer to $600 when the split was announced, and closed Friday at about $419.74.

The shares have lost nearly half their value over the past three months, thanks in part to disappointing recent results. Even so, the stock is still roughly 49% higher year-to-date. 

The move would be the latest split by a high-flying tech stock, with Broadcom (AVGO) and Nvidia (NVDA) having already split their shares 10-for-1 this year.

Do you have a news tip for Investopedia reporters? Please email us at [email protected]

Read more on Investopedia

profile/2681Capture.PNG.webp

Investopedia

3 Big Financial Worries For Americans Ahead Of The Presidential Election

As the U.S. presidential election approaches, a majority of American investors are worried about how it could affect their personal finances.

The most recent MassMutual Consumer Spending & Saving Index report showed that 86% of those surveyed were concerned about the impact of the presidential election on their “day-to-day finances.” About a quarter of respondents said that personal finances are the most important factor in deciding who to vote for in November's contest between Republican candidate Donald Trump and Democrat Kamala Harris.

Most of the worries, according to other surveys and financial advisors, revolve around what a new administration could mean for retirement plans, stock market performance and tax policy.

"For those feeling concerned about the election, I’d encourage them to talk with their advisor to ensure their financial plan is built to last, regardless of who’s in office,” said Ayako Yoshioka, a Portfolio Consulting Director at Wealth Enhancement.

A recent survey by Wealth Enhancement showed that 80% of respondents expect the election to affect their retirement plans in some way.

Some investors are also worried about how the outcome of this election could influence how much they can rely on programs such as Social Security and Medicare and what the incoming administration would do about high prices.

Even though inflation has come down, prices of many goods and services remain elevated. Roughly half of all people surveyed said that high inflation derailed their plans for retirement, delaying it by 8.5 years on average.

Financial advisors fielding questions from their anxious clients are telling them that some turbulence may be expected.“While there is technically some type of uncertainty involved with elections, it's relatively short-lived,”  said Megan Gorman, Managing Partner at Chequers Financial Management, adding that advisors can help investors “tune out the noise and stay focused on long-term goals.”

Markets may temporarily react to big news, election outcomes included. Nearly a quarter of respondents in the Wealth Enhancement survey worried about how stock markets would fare after the elections and what it would mean for their portfolios.

Jamie Bosse, a Kansas-based CFP at CGN Advisors, notes that despite volatility in election years, the majority of the past presidential election years have generally yielded positive market returns.

“We’ve had 24 election years [since 1927]. And out of those 24, only four of those election years had negative [annual] market returns,” Bosse said. The four years with negative returns—1932, 1940, 2000, and 2008—included the Great Depression in 1932 and the Great Recession in 2008. 

In fact, according to a T. Rowe Price analysis for data going back to 1927, there's not much difference in the average annual returns for the S&P 500—a barometer index for U.S. stocks—for election years (11%) compared to non-election years (11.6%).

"We believe that investment decisions should be based on longer‑term fundamentals, not near‑term political outcomes,” researchers wrote in the T. Rowe Price analysis. “Trying to time the market based on short‑term dynamics, political or otherwise, is extraordinarily difficult.”

Both Bosse and Gorman have had clients ask them about the future president’s tax policies. And with good reason.

The Tax Cuts and Jobs Act (TCJA) is a 2017 law that lowered income tax brackets, increased the standard deduction, and raised the estate tax exemption, among other things. The law is set to expire December 31, 2025, and if Congress doesn’t act, it could make taxes even more complicated for some people. 

Gorman's high-net-worth clients are particularly concerned with TCJA provisions related to the state and local tax (SALT) deduction cap and the increased estate tax exemption. 

Catherine Valega, a Boston-based CFP at Green Bee Advisory, said she’s been talking to clients about considering a Roth IRA conversion before income tax brackets potentially change.

In this strategy, you move your pre-tax retirement money from a traditional IRA into a post-tax Roth account. You may have to pay income tax at the time you convert, but the money would grow and withdrawals would be tax free. Such a conversion can prove to be a tax efficient if you expect to face higher taxes in the future.

“Conversions are important to think about,” Valega said, adding that investors should think about questions such as: Do we do them this year? Can we squeeze them in next year? What do our tax budgets look like?

Do you have a news tip for Investopedia reporters? Please email us at [email protected]

Read more on Investopedia

profile/5170OIG3.jpeg.webp

Healthwatch

The Popularity Of E-bikes And E-scooters Is Soaring, But Are They Safe?

Ever ridden an e-scooter or e-bike? The convenience, affordability, and flat-out fun of these "micromobility" modes of transportation are undeniable. But did it also seem a bit dangerous?

In fact, the rate of accidents involving e-bikes and e-scooters is climbing. Maybe that shouldn't be surprising given their dramatic jump in popularity. And then there's the way riders often use them: at high speed, near cars and pedestrians, and on roads and sidewalks that weren't designed for them.

Disruptive innovations, such as e-bikes and e-scooters, inevitably come with downsides. So, how can we minimize risks for accidents?

E-bikes, e-scooters, and injuries

Between 2018 and 2022, sales of e-bikes rose from around 250,000 per year to more than a million. E-bike and e-scooter rentals have also increased dramatically. As their popularity grows, emergency rooms are seeing many more people injured while riding e-bikes and e-scooters.

A 2024 study in JAMA Network Open highlights this. Researchers drew data from the National Electronic Injury Surveillance System, which is run by the US Consumer Product Safety Commission. They analyzed ER care between 2017 and 2022 for people injured while riding an e-bike or e-scooter, compared with people injured while riding conventional bikes and scooters.

What did the study find?

During the six-year study period, roughly three million people riding e-bikes, e-scooters, or their conventional counterparts sought care in the ER, including about 45,500 e-bike riders and 190,000 e-scooter riders, and about 2.5 million conventional bike riders and 305,000 conventional scooter riders.

Certain themes emerged around e-micromobility:

ER care spiked upward

E-bike injuries more than doubled every year, going from 751 in 2017 to 23,493 in 2022.

E-scooter injuries increased by more than 45% every year, going from 8,566 in 2017 to 56,847 in 2022.

More risky behavior

43% of e-bike and e-scooter riders wore helmets versus 52% for conventional micromobility riders

7% of e-bike riders and 9% of e-scooter riders were drinking before their accidents versus 4% of conventional bike riders and 3% of conventional scooter riders.

More accidents occurred in urban areas compared with rural settings:

83% of e-bike and e-scooter accidents

71% of conventional bike and scooter accidents.

All riders experienced similar types of injuries: scrapes, bruises, broken bones, and head and neck injuries were most common.

What are the limitations of this study?

This study only included people evaluated in an ER, so it excluded people with less severe injuries — and even those with significant injuries who didn't go to an ER. Some may have sought no care at all, or gone to a primary care practice or walk-in clinic to avoid costly ER care or for other reasons.

Nor did the study count injuries suffered by pedestrians injured by e-bike or e-scooter riders. Property damage, such as damage to a car, wasn't calculated.

And ultimately the study cannot compare the safety of e-bikes and e-scooters with conventional options. That's because no data were collected on the number of miles traveled using a particular mode of transportation, or over how much time.

How can you avoid e-bike or e-scooter injuries?

Ten common-sense precautions can help you avoid injuries and ER visits:

Wear a helmet. If you're renting an e-bike or e-scooter, you may need to bring your own since many rental systems do not provide helmets.

Practice. E-bikes are much heavier than conventional bicycles and may handle differently. And many adults have not ridden a scooter since elementary school! So if you aren't familiar with riding an e-bike or e-scooter, practice in a safe location where there's no traffic or pedestrians.

Follow road rules. Ride on available bike lanes and avoid sidewalks. On an e-bike, use arm signals to alert those nearby of your intentions to turn or change lanes. (On an e-scooter, it's best to keep both hands on the handle bars at all times.).

Slow down. Some e-bikes approach speeds of 30 miles per hour. The faster you go, the less time you have to react to unexpected potholes or veering vehicles, and the more serious an injury is likely to be if you have an accident.

Lower risks. Don't ride while under the influence of alcohol or drugs, or use your phone while moving.

Go it alone. Don't add riders. Most e-bikes and e-scooters are built for one rider at a time.

Ride defensively. Watch out for potholes or opening car doors.

Reflect. Wear reflective clothing or attach a light if riding at night.

Call out. Announce your presence to others. For example, shout "on your left!" as you approach pedestrians or slower riders that you intend to pass.

Lobby. Reach out to local politicians to create bike lanes and other infrastructure to make micromobility safer.

The bottom line

Whether it's part of your daily commute, an occasional quick zip from point A to point B, or just a ride for the fun of it, e-bikes and e-scooters are a great way to get around. Though they do come with some risk, you can do a lot to minimize the odds of wrapping up your travels with a trip to an ER.

Source: Harvard Health Publishing