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Where To Live in Tampa [Quiz]

If you like warm weather and lots to do, Tampa is for you.

The post Where To Live in Tampa [Quiz] appeared first on The Rent.com Blog : A Renter’s Guide for Tips & Advice.

Examining the Race Gap in Homeownership

Despite the Fair Housing Act of 1968 and other federal laws, a large race gap in homeownership continues to exist across the United States. The Black homeownership rate in the fourth quarter of 2021 stood at 43%, compared with 74% for non-Hispanic whites, according to the U.S. Census Bureau. A large race gap in homeownership […]

The post Examining the Race Gap in Homeownership appeared first on SoFi.

Where To Live in San Antonio [Quiz]

Take this quiz to see which neighborhood to call home in the Alamo City.

The post Where To Live in San Antonio [Quiz] appeared first on The Rent.com Blog : A Renter’s Guide for Tips & Advice.

Where To Live in Detroit (Quiz)

Take our quiz to see which Detroit neighborhood is right for you!

The post Where To Live in Detroit (Quiz) appeared first on The Rent.com Blog : A Renter’s Guide for Tips & Advice.

Could Bitcoin Replace Gold as the New Safe Haven?

A growing number of people believe Bitcoin could soon replace gold as a safe haven against a depreciating dollar.  This, of course, is just speculation, but it is curious to see the exuberance of people regarding Bitcoin. 

Aside from the fact that there are a multitude of digital coins (assets), what’s unique about Bitcoin is the fact that its supply is truly fixed. Only 21 million bitcoins will ever be produced. So, considering there are an estimated 47 million millionaires in the world, if each of them wanted just one bitcoin, they couldn’t all acquire one. These supply limitations make Bitcoin bullish.

  • SEE MORE How Do I Spend My Bitcoin? (And Where?)

Gold on the other hand, has been a means of storing wealth for 5,000 years and is a real physical asset. It has always had value in times of geopolitical uncertainty and has many commercial uses. It is inert, making it for the ages, and with mining declining and demand on the rise, we can only assume that prices would increase.

Whether you lean digital or physical, at the core of the debate is a universal distrust of government, and rightfully so, in my opinion.  We have seen governments spend and print money at levels so outside of the lanes of being responsible that all we can do is observe and wait to see what happens next.

It is maddening as we watch currencies around the world collapse and regimes fail, it only fuels the appetite for finding ways to store wealth outside of governments’ grips. You have to ask yourself, what is the tipping point?

A History of Gold’s Value Comes Full Circle

When it comes to gold, we only need to look at history to know its viability, but aside from the historical price of gold, the historical events that influenced those prices are where our focus needs to be as we see things beginning to come full circle.

Gold has a very long history ,but we will pick up with the signing of the Federal Reserve Act in 1913. At the time, the country was facing a money supply shortage at the local bank level, and the idea of centralizing the banking system seemed the answer for controlling the elasticity of the money supply.

  • SEE MORE Why Are Bitcoin Prices So Volatile?

Then in 1934 the government was running short on money.  So, to increase the supply at the Federal Reserve, they raised the spot price of gold by 69% to $35 per ounce.  (It is important to note here that the dollar was backed by the gold standard at the time and in order to have more money, the price of gold would have to be higher.)  It wasn’t the printing we see today, but it shows the government’s ability to manipulate the currency.

I wrote about something similar the Romans did in my book, Common Sense.  Caesar Augustus trimmed the edges of the gold coins to harvest the gold in order to create a new set of coins. The result was a smaller coin with less gold but more coins to circulate. Well, we know how that turned out.

Stagnation, Then Inflation

Jumping to 1964, we see the Dow Jones average was around 800, and 16 year later was still hovering around 800. The reasons for the flat line were many: the Vietnam War, a heavy tax burden, rampant inflation and the lingering possibilities of a nuclear war between the Soviet Union and the United States. The convergence of all these things was preventing the economy from improving, and the markets remained stagnant.

In 1971, the government found itself with yet another money supply shortage, and their answer was to rid themselves of the one thing holding them back: the gold standard.  So, the government debased our currency from gold and converted it to a fiat currency. This allowed what we refer to today as the ability to print money without anything backing the stated value other than the government’s creditworthiness. 

After this conversion to a fiat currency, gold began a steady climb in value as the dollar began depreciating, reaching an average price of $614 in 1980, up from $35 in less than a decade. 

Hot Economy Hammers Gold

Then came the Economic Recovery Tax Act of 1981, which began an explosion of wealth that stretched through the 1990s.  The act reduced taxes and regulations. Later in the decade came the fall of the communist Soviet Union, which sparked optimism about the future and provided relief from the prospects of a nuclear threat or communist takeover. With a more optimistic view of the economy, as demand shrank, we saw gold prices decline, bottoming out in 2001 at an average price of $271.

Then in the early 2000s we saw a shift back to a loss of confidence when a series of events turned the tides and resurfaced insecurities of the past.  The tech bubble burst, the 9/11 terrorist attack, and the mortgage meltdown all occurred within an eight-year period.  The government once again turned on the printing presses, and free money began to circulate in an unprecedented fashion and hasn’t really stopped since. 

After the worst of 2008, the markets and our economy began clawing their way out of a gaping hole until the Tax Cut and Jobs Act of 2017.  From 2017 though 2021 (including COVID in 2020) the markets rose by 56% as a result of the tax cuts and deregulation, allowing businesses to expand and hire more employees. 

Back to the Future

Fast forward to today, we see the government aggressively spending money, and if we look at other countries that have traveled the road we are on (not unlike the Romans), we see that it ends badly. 

We must also be mindful of the fact that there is a serious rise in global tensions between China and the United States, and Russia and the United States that have an eerie resemblance to the Cold War.

I mentioned earlier that we were coming full circle.  What we have learned through this history lesson is that the government’s appetite for spending money is insatiable and has proven to erode our currency to what end?  This leaves the future of the markets, our currency and the future of our country uncertain as we venture deeper and deeper into unchartered waters. 

With All This in Mind, What about Bitcoin vs. Gold?

Which brings me back to the question, will Bitcoin replace gold as the new safe haven?  Lacking a crystal ball, I do know if this will happen, and neither does anyone else.  Quite frankly, I am not even sure if this is the right question to ask, but it is a lingering question and one that cannot be answered without understanding the history of our currency.

With all this uncertainty around us, we are certainty seeing a flight to safety, but if you are a diversified investor, perhaps you should own both gold and Bitcoin instead of debating about which is better. By focusing on things you can control, such as your allocation, you can participate if there are gains and limit your exposure if something goes south.  Hence, diversification.

Proponents believe that Bitcoin and its blockchain might very well rewire the entire global financial network based on the fact that bitcoin and blockchain, along with smart contracts and NFTs, are the most revolutionary technological innovations since the internet itself.  With that, it is safe to consider that it stands alone as its own asset class separate from gold.

But if one is steadfast in comparing the digital asset to gold, you could say that Bitcoin is the more convenient of the two to own, being that it is accessible via the internet at any time.  However, as a physical asset, gold can be held securely in hand free of internet outages or a hacking threat. 

I will conclude with this: Gold has always been a storage of wealth, and Bitcoin may very well be that in the future but is too volatile to replace gold at this time.  Instead look at Bitcoin as the technology of tomorrow, knowing that tomorrow is closer than you think.

One of the most important things to consider before buying gold, Bitcoin or other investments is knowing your risk tolerance.  Many people are unsure about how to articulate their feelings about risk and will often resort to using ambiguous words to describe their tolerance.  That doesn’t have to be the case for you.  You can have a precise score to describe your risk tolerance for free by taking my risk score quiz here.

Sources:
https://www.hoover.org/research/ten-causes-reagan-boom-1982-1997
https://www.washingtonpost.com/news/wonk/wp/2013/12/21/the-federal-reserve-was-created-100-years-ago-this-is-how-it-happened/
https://www.federalreservehistory.org/essays/jekyll-island-conference
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
https://www.macrotrends.net/1358/dow-jones-industrial-average-last-10-years
https://coingeek.com/bitcoin-creator-dr-craig-wright-on-trickle-down-theory/
  • SEE MORE What Executives Can Learn from Odell Beckham Jr.’s Bitcoin Decision

Stock Market Today: Markets Turn Tail as Ukraine Invasion Risk Rises

Ukraine-Russia tensions wrested control of investor sentiment from the Fed in a difficult session for the broader markets, which was exacerbated by a few pieces of disappointing economic news.

On Thursday, both U.S. President Joe Biden and British Prime Minister Boris Johnson warned that the shelling of a kindergarten in Ukraine’s eastern Donbas region might be a “false-flag operation” meant to give Russia an excuse to invade the country.

  • SEE MORE 22 Best Retirement Stocks for an Income-Rich 2022

“The evidence on the ground is that Russia is moving toward an imminent invasion,” Linda Thomas-Greenfield, U.S. Ambassador to the United Nations, told reporters. “This is a crucial moment.”

Also sending stocks in the wrong direction were a few weak reports, led by initial unemployment claims that came in at 248,000 for the week ended Feb. 12 – well ahead of expectations for 219,000 filings and up from last week’s upwardly revised 225,000.

Also Thursday, January housing starts came in shy of estimates, as did a February reading of Philadelphia-area manufacturing activity.

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“Some of January’s dip in housing starts reflects especially tough winter weather. The January industrial production report released yesterday showed utilities output jumped nearly 10% from December, even after accounting for normal seasonal swings. The severe winter weather that hit much of the country in January held back housing starts,” says Bill Adams, chief economist for Comerica Bank. “But supply chain problems also continue to restrain housing activity; one illustration of the ongoing dysfunction in supply chains is the 25% monthly increase of softwood lumber prices in the January producer price index.

Investors skittered away from cyclical and growth sectors alike, with technology (-3.0%) and financials (-2.5%) leading the way down.

  • SEE MORE The 9 Best Energy Stocks to Buy for 2022

There was appetite for defense plays, however, with consumer staples (+0.8%) the day’s best-performing sector.

Losses accelerated later in the day, sending the Nasdaq Composite 2.9% lower to 13,716, followed by the S&P 500 Index (-2.1% to 4,380) and Dow Jones Industrial Average (-1.8% to 34,312).

“The S&P 500 has found some footing in recent days but the options market remains skittish,” says Michael Oyster, chief investment officer for asset-management firm Options Solutions. “The CBOE Volatility (VIX), often referred to as the market’s ‘fear gauge’ is in the top 15% of its history signaling concern among sophisticated investors. Both weekly and monthly options expire this Friday, which could further spike volatility.”

YCharts

Other news in the stock market today:

  • The small-cap Russell 2000 gave back 2.5% to finish at 2,028.
  • U.S. crude futures tanked 2% to settle at $91.76 per barrel.
  • Gold futures jumped 1.6% to end at $1,902 an ounce.
  • Bitcoin plunged 7.2% to $40,948.32. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
  • DoorDash (DASH) jumped 10.7% after the food delivery firm posted a 34% year-over-year jump in revenue to $1.3 billion and a 35% increase in total orders to 369 million. Plus, the company’s net loss narrowed from the year prior, to $155 million. “We think DASH is seeing sustained demand within the food delivery space while momentum in new verticals (convenience, grocery, and pets) (about 14% of sales) coupled with new merchants on the platform will support growth,” says CFRA Research analyst Angelo Zino. Still, the analyst kept a Hold rating on DASH.
  • Walmart (WMT) was just one of a handful of Dow Jones stocks to finish in the green, jumping 4.0% following the discount mega-retailer’s earnings report. In its fourth quarter, WMT reported adjusted earnings per share of $1.53 on $152.9 billion in revenue. Analysts, on average, were expecting earnings of $1.49 per share on $151.1 billion in sales. “We expect this momentum to continue in 2022 as consumers likely become increasingly price conscious, with inflation being at a 40-year high, noting WMT’s average price gap relative to the competition continues to widen versus pre-pandemic levels,” says CFRA Research analyst Arun Sundaram (Buy). “We also believe investors are underappreciating WMT’s evolving business model, including omnichannel transformation and its high-margin alternative profit streams (e.g., advertising is now over $2B in annual revenues).”

Find Opportunity in the Market Upheaval

The market is teeming with too many risks for volatility to just magically disappear. So for now, your best options are to defend against it – or use the dips as an opportunity to invest in longer-term trends on the cheap.

Among those trends on the skids is green energy, which despite generally growing long-term growth estimates has suffered of late; several popular green energy funds are off 40%-50% over the past year.

  • SEE MORE 5 Super Stocks to Stave Off Sizzling Inflation

So why now?

“Inflation and economic reopening have increased fossil-fuel prices, and alternative and clean energy returns typically rise in parallel with increasing oil costs,” says exchange-traded fund provider ProShares. “Clean energy was also a priority in the initial $2.2 billion White House infrastructure proposal, and policy tailwinds for increased spending remain.”

If you’re looking for somewhere to begin, consider this short list of 10 green energy stocks that might be down now – but are nonetheless poised to profit from an expected boom in expanded energy capacity for years to come.

  • SEE MORE 22 Best Retirement Stocks for an Income-Rich 2022

Buy Now, Pay Later (BNPL) vs. Credit Cards – How Are They Different?

Looking to understand the difference between credit cards and buy now, pay later services? Find out how they work here.

What Is a Debt Consolidation Loan and How Does It Work?

Debt consolidation can make things a lot easier for someone juggling multiple payments at high interest. Learn how debt consolidation works.

Stock Market Today: S&P 500 Swings Higher After Fed Minutes

Stocks spent most of Wednesday in negative territory as investors mulled the latest Russia-Ukraine headlines.

Following Tuesday’s reports that Russia was withdrawing some troops from Ukraine’s border (which gave markets a boost), NATO Secretary-General Jens Stoltenberg on Wednesday said his organization has not seen any de-escalation. “On the contrary, it appears that Russia continues its military buildup,” Stoltenberg told a group of defense ministers from NATO’s member states at a meeting in Brussels.

  • SEE MORE 5 Super Stocks to Stave Off Sizzling Inflation

But the major benchmarks erased their earlier losses after the release of the minutes from the Federal Reserve’s January policy meeting.

“In markets, timing is everything, and the delayed reaction [to raise rates] from the Fed has investors convinced that aggressive policy tightening is on the horizon,” says Charlie Ripley, senior investment strategist for Allianz Investment Management.

And although today’s minutes did indicate the central bank is poised to raise rates at a quicker pace than it did during the last tightening cycle in order to combat surging inflation, “there was nothing in the minutes that suggested the Fed would be more aggressive than what the market has already priced in,” Ripley adds.

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While the Dow Jones Industrial Average (-0.2% at 34,934) and Nasdaq Composite (-0.1% at 14,124) still ended the day in the red, the S&P 500 Index (+0.1% at 4,475) managed to hang on for a win.

YCharts

Other news in the stock market today:

  • The small-cap Russell 2000 gained 0.1% to end at 2,079.
  • The Russia-Ukraine news sparked a fire under U.S. crude futures, which ended up 1.7% at $93.66 per barrel.
  • Gold futures rose 0.8% to settle at $1,871.50 an ounce.
  • Bitcoin slipped 0.2% to $44,120.38. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
  • Also in focus today was the latest retail sales data, which showed retail sales jumped by a seasonally adjusted 3.8% in January, much higher than forecast (though Kiplinger economist David Payne says the results come with an asterisk). “Retail sales and core retail sales both increased by more than expected in January, reflecting strong spending even after allowing for a boost from residual seasonal factors, and only a modest drag from Omicron on spending at eating and drinking establishments,” Goldman Sachs economists wrote in a note.
  • Roblox (RBLX) shares plunged 26.5% after the open gaming platform reported a fourth-quarter loss of 25 cents per share and bookings of $770 million. Analysts, on average, were expecting a slimmer per-share loss of 13 cents on $772 million in bookings. Still, RBLX reported 49.5 million daily active users, up 33% year-over-year. CFRA Research analyst John Freeman says he expects losses to “continue until 4Q22, driven by a somewhat troubling doubling of G&A and R&D expenses (ex-stock comp.) and a 47% higher expense related to the labor-intensive monitoring and security enforcement to ensure safe interactions on the platform, a key imperative given the majority of daily active users are still under 18.” However, he kept a Strong Buy rating on the metaverse stock.
  • Shopify (SHOP) was another post-earnings loser, sinking 16% after its results. While the e-commerce platform reported higher-than-expected earnings per share and revenue in its fourth quarter, it warned fiscal 2022 revenue growth would slow compared it 2021. “We expect merchant solutions to continue to benefit from strong growth in merchant sales, up 35%, and as Shopify Payments see greater penetration (49% of GMV vs. 45% a year ago),” says CFRA Research analyst Angelo Zino (Hold). “We also think Shop Pay Installments (buy now, pay later product) is seeing greater traction as it has proven to boost repeat purchases among first time customers by 23%. Despite decelerating growth, we remain encouraged by e-commerce trends and new growth opportunities.”

A Special Breed of Dividend Payers

With geopolitical uncertainty front and center, markets are likely going to remain volatile.

“In the short term, stocks are moving in lockstep with headlines from the Russia/Ukraine situation,” says David Bahnsen, chief investment officer at wealth management firm The Bahnsen Group.

  • SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022

He counsels investors to make sure their portfolios are well-constructed, with “high-quality stocks with strong cash flows and a long history of dividend growth.” There are many different corners of the market investors can look to find solid dividend growers.

The Dividend Aristocrats – companies that have raised their dividend payments annually for the last 25 years – is certainly a good place to start, as are the yield-friendly real estate, healthcare and energy sectors.

Another strategy is to home in on companies that consistently pay “special dividends,” or additional one-time payouts on top of their regular dividends. In any given year, there are typically only a handful of companies that reward shareholders with these bonus dividends, and these 10 names are shining examples of this special breed.

  • SEE MORE 22 Best Retirement Stocks for an Income-Rich 2022

How Does Social Security Work? 12 Common Questions Answered

You probably know that saving and investing are essential to retirement planning. But just as important to the equation: Social Security planning. It’s impossible to overstate the importance of Social Security to retirees. The truth is, Americans aren’t saving or investing enough for a secure retirement. Without Social Security, approximately 4 out of 10 people […]

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.