Bitcoin experienced a 7% drop overnight, falling from $72,000 to $67,000. This is a significant event as Bitcoin has been gaining mainstream acceptance. Experts say this drop is healthy and removes excessive speculation. Bitcoin is still up 57% this year and has climbed due to anticipation of Bitcoin ETFs. Despite its recent high, Bitcoin is known for rapid rallies and dramatic drops. Crypto optimists hope that its volatility will decrease as it matures.
Bitcoin's value has skyrocketed thanks to new investments and exchange-traded funds (ETFs). Coinbase, a platform for buying and selling crypto, has also benefited, with its stock price soaring. Analysts expect this momentum to continue as Bitcoin becomes more mainstream and Coinbase expands into new areas like payments and digital assets.
The Federal Reserve is expected to lower interest rates by 0.75% to 1% in 2024. This is despite recent high inflation data, and strategists believe the Fed will prevent a recession and achieve a "soft landing" as it adjusts interest rates.
Baylor University, despite its smaller size, has outperformed Ivy League endowments with a substantial 6.4% return on its $2 billion endowment. The university's team, led by David Morehead, leverages market disruptions to optimize allocations. They invest strategically in emerging industries such as helium (for chip manufacturing and space exploration), biotech, and small caps, aiming to secure future returns.
In his annual letter, Warren Buffett honored his late business partner, Charlie Munger, attributing Berkshire Hathaway's success largely to Munger's guidance. Munger influenced Buffett to focus on acquiring outstanding companies at reasonable prices, leading to Berkshire's remarkable growth and value of $900 billion. Buffett acknowledged Munger's mentorship and praised his invaluable role in shaping Berkshire Hathaway's investment strategy.
Retirement savings in 401(k) accounts rebounded strongly in 2023, with an average balance of $118,600. Increased savings habits and stock market growth contributed to this recovery. However, account withdrawals also rose. Financial experts advise using 401(k) loans over high-interest debt in emergencies, but stress preserving long-term savings goals.
Vladimir Artamonov, a Harvard Business School graduate, used his connections to swindle $2.9 million from fellow alumni and associates through a Ponzi scheme promising huge returns based on Berkshire Hathaway investments. Despite risky trading practices and personal fund misuse, the scheme thrived until the tragic suicide of a victim who lost $100,000. The Attorney General's office swiftly intervened, highlighting that even experienced investors can fall prey to fraudsters leveraging personal connections for trust.
The Toronto Stock Exchange (TSX)'s parent company acquired VettaFi, an ETF education company, to expand its global ETF offerings. This move capitalizes on the continued popularity of ETFs, despite recent market slowdowns. The TSX aims to facilitate ETF creation, attract international investors, and leverage Canada's economic advantages with new ETFs. Since the acquisition announcement, the TSX's shares have increased by 11%, reflecting investor confidence in the company's growth strategy.
Gold is considered a safe haven during economic turmoil, but its returns are historically modest compared to stocks and bonds. Experts suggest investing a small portion (less than 5%) of one's portfolio in gold as a financial safeguard, but it's unlikely to generate substantial gains during stable market conditions.
Struggling New York Community Bancorp (NYCB) has obtained $1 billion in funding from investors including former Treasury Secretary Steven Mnuchin's Liberty Strategic Capital. As part of the deal, Mnuchin and others will join the bank's board amid financial struggles and declining share value. The capital infusion and leadership changes are intended to stabilize the bank and prevent the fate of collapsed regional banks.
UK exchanges receive approval to offer ETNs backed by cryptocurrencies, including Bitcoin and Ethereum. These products are deemed high-risk and only suitable for professional investors. Retail investors may consider managed funds to gain exposure to cryptocurrencies.
