Fears of excessive debt drive more countries to cut down their Belt and Road investments

Some countries are scaling down or scrapping entire projects that are part of China’s Belt and Road Initiative amid mounting financial concerns over the continent-spanning venture. That revised stance not only confirms global fears over the terms of BRI financing, it could also indicate that developing countries are now more willing to prioritize sovereign interests over their need for foreign investment. But critics see it as a means to benefit China’s military, increase opportunities for Chine


Some countries are scaling down or scrapping entire projects that are part of China’s Belt and Road Initiative amid mounting financial concerns over the continent-spanning venture. That revised stance not only confirms global fears over the terms of BRI financing, it could also indicate that developing countries are now more willing to prioritize sovereign interests over their need for foreign investment. But critics see it as a means to benefit China’s military, increase opportunities for Chine
Fears of excessive debt drive more countries to cut down their Belt and Road investments Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-18  Authors: nyshka chandran, taylor weidman bloomberg, getty images
Keywords: news, cnbc, companies, road, excessive, foreign, bri, negotiated, developing, belt, chinas, countries, debt, chinese, projects, drive, nations, cut, investments, fears


Fears of excessive debt drive more countries to cut down their Belt and Road investments

Some countries are scaling down or scrapping entire projects that are part of China’s Belt and Road Initiative amid mounting financial concerns over the continent-spanning venture.

In recent months, developing nations such as Pakistan, Malaysia, Myanmar, Bangladesh and Sierra Leone have either canceled or backed away from previously negotiated BRI commitments, citing worries over high project costs and their impact on national debt and the economy.

That revised stance not only confirms global fears over the terms of BRI financing, it could also indicate that developing countries are now more willing to prioritize sovereign interests over their need for foreign investment.

The BRI — Beijing’s signature foreign policy program — is the superpower’s attempt to stretch its economic power across the globe through the construction of maritime and overland transportation links across Asia, the Middle East, Africa and Europe. But critics see it as a means to benefit China’s military, increase opportunities for Chinese companies and help Beijing gain political leverage.

Under the trillion-dollar endeavor, Chinese state-owned entities flush with cash offer participating countries cheap loans and credit to build large-scale projects such as ports and railways. These arrangements are usually negotiated government-to-government with below-market interest rates but many nations are growing wary over their debt loads.


Company: cnbc, Activity: cnbc, Date: 2019-01-18  Authors: nyshka chandran, taylor weidman bloomberg, getty images
Keywords: news, cnbc, companies, road, excessive, foreign, bri, negotiated, developing, belt, chinas, countries, debt, chinese, projects, drive, nations, cut, investments, fears


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Billionaire Bill Gates says this is the best investment he’s ever made

I’ve always assumed that 10% of my technology investments will succeed — and succeed wildly. “When I made the transition from my first career at Microsoft to my second career in philanthropy, I didn’t think that my success rate would change much. … Discovering a new vaccine, I figured, would be just as hard as discovering the next tech unicorn. But one type of investment “surprised” Gates “because — unlike investing in a new vaccine or technology, the success rate is very high,” he says. In fa


I’ve always assumed that 10% of my technology investments will succeed — and succeed wildly. “When I made the transition from my first career at Microsoft to my second career in philanthropy, I didn’t think that my success rate would change much. … Discovering a new vaccine, I figured, would be just as hard as discovering the next tech unicorn. But one type of investment “surprised” Gates “because — unlike investing in a new vaccine or technology, the success rate is very high,” he says. In fa
Billionaire Bill Gates says this is the best investment he’s ever made Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: catherine clifford, bloomberg
Keywords: news, cnbc, companies, discovering, technology, vaccine, bill, needed, investment, success, gates, organizations, best, hes, investments, rate, billionaire, succeed


Billionaire Bill Gates says this is the best investment he's ever made

“Technology is a boom-or-bust business, but it’s mostly busts. I’ve always assumed that 10% of my technology investments will succeed — and succeed wildly. The other 90% I expect to fail,” Gates writes.

“When I made the transition from my first career at Microsoft to my second career in philanthropy, I didn’t think that my success rate would change much. … Discovering a new vaccine, I figured, would be just as hard as discovering the next tech unicorn. (Vaccines are much harder, it turns out.)”

But one type of investment “surprised” Gates “because — unlike investing in a new vaccine or technology, the success rate is very high,” he says. “It’s what people in the global-health business call ‘financing and delivery.'”

Gates explains that buying medical supplies and getting them where they’re needed can be difficult and dangerous because they often are needed in “remote villages and war zones.”

He says most people have never heard of the organizations that do this, or their work, but each of the three he’s invested in “has been extremely successful…. These organizations are not trivial or expendable. In fact, they are probably the best investments our foundation has ever made.”


Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: catherine clifford, bloomberg
Keywords: news, cnbc, companies, discovering, technology, vaccine, bill, needed, investment, success, gates, organizations, best, hes, investments, rate, billionaire, succeed


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Facebook will invest $300 million to help local news survive

Facebook will invest $300 million over three years in local news globally as it faces blistering criticism over its role in the erosion of the news business worldwide. “But we also have an opportunity, and a responsibility, to help local news organizations grow and thrive.” The recipients of the investments include the Pulitzer Center, Report for America, Knight-Lenfest Local News Transformation Fund, the Local Media Association and Local Media Consortium, the American Journalism Project and the


Facebook will invest $300 million over three years in local news globally as it faces blistering criticism over its role in the erosion of the news business worldwide. “But we also have an opportunity, and a responsibility, to help local news organizations grow and thrive.” The recipients of the investments include the Pulitzer Center, Report for America, Knight-Lenfest Local News Transformation Fund, the Local Media Association and Local Media Consortium, the American Journalism Project and the
Facebook will invest $300 million to help local news survive Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: getty images, christina farr
Keywords: news, cnbc, companies, local, million, help, newsrooms, business, media, products, investments, invest, facebook, 300, survive, program, investment


Facebook will invest $300 million to help local news survive

Facebook will invest $300 million over three years in local news globally as it faces blistering criticism over its role in the erosion of the news business worldwide.

The investment in time and money is a significant expansion of a plan to help newsrooms in the U.S. and abroad create and sustain viable business models to survive, the company said on Tuesday.

Unlike earlier investments in the news business, this latest round is distinguished by how it is not tied to Facebook-related products, recipients of the investments say.

Earlier rounds of investments in the news business were designed to encourage publishers to rely on delivering its products over Facebook, which eventually hurt many news organizations when Facebook’s strategies shifted.

“We’re going to continue fighting fake news, misinformation, and low quality news on Facebook,” Campbell Brown, Facebook’s vice president of Global News Partnerships said in a statement. “But we also have an opportunity, and a responsibility, to help local news organizations grow and thrive.”

Critics have slammed Facebook for its role in providing a platform for hate speech, misinformation and political meddling.

The first round of investments in the U.S. will help bolster resources for local reporting, help research how to use technology to improve news gathering and create new products, recruit “trainee community journalists” and place them in local newsrooms and also help fund a program modeled after the Peace Corp, which will place 1,000 journalists in local newsrooms over five years.

The recipients of the investments include the Pulitzer Center, Report for America, Knight-Lenfest Local News Transformation Fund, the Local Media Association and Local Media Consortium, the American Journalism Project and the Community News Project.

Fran Wills, CEO of the Local Media Consortium, an alliance of 80 news companies representing 2,200 outlets, said Facebook is helping the group create a branded content program aimed at attracting new advertisers. “Facebook is making this investment to help support local media companies … open up new revenue streams that will support local journalism,” she said.

Last December, it announced a $6 million investment in local publishers in Britain. It also plans to expand an “Accelerator” program it launched last year to help local newsrooms such as the San Francisco Chronicle and the Denver Post improve its ability to attract subscribers and membership donations.

“It’s in their best interest to have as much credible content as they can have on their platform and that’s a direct benefit to consumers,” Wills said.

Subscribe to CNBC on YouTube.

Watch: Social media detox — why quitting Instagram and Facebook made me happier


Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: getty images, christina farr
Keywords: news, cnbc, companies, local, million, help, newsrooms, business, media, products, investments, invest, facebook, 300, survive, program, investment


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Abu Dhabi’s Mubadala has its eye on North American shale

While North American shale may be competition for OPEC members, some crude-exporting countries in the Arabian Gulf are simultaneously taking advantage of the commodity’s ability to fuel lucrative investments beyond oil. For the United Arab Emirates’ Musabbeh al-Kaabi, chief executive of Abu Dhabi’s Mubadala Petroleum and Petrochemicals, the shale revolution has the made North American gas and petrochemicals industry very attractive, bringing competitively-priced gas feedstock to the market. The


While North American shale may be competition for OPEC members, some crude-exporting countries in the Arabian Gulf are simultaneously taking advantage of the commodity’s ability to fuel lucrative investments beyond oil. For the United Arab Emirates’ Musabbeh al-Kaabi, chief executive of Abu Dhabi’s Mubadala Petroleum and Petrochemicals, the shale revolution has the made North American gas and petrochemicals industry very attractive, bringing competitively-priced gas feedstock to the market. The
Abu Dhabi’s Mubadala has its eye on North American shale Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-12  Authors: natasha turak
Keywords: news, cnbc, companies, abu, petrochemicals, north, investments, feedstock, american, alkaabi, energy, producers, gas, shale, mubadala, dhabis, big, eye


Abu Dhabi's Mubadala has its eye on North American shale

While North American shale may be competition for OPEC members, some crude-exporting countries in the Arabian Gulf are simultaneously taking advantage of the commodity’s ability to fuel lucrative investments beyond oil.

For the United Arab Emirates’ Musabbeh al-Kaabi, chief executive of Abu Dhabi’s Mubadala Petroleum and Petrochemicals, the shale revolution has the made North American gas and petrochemicals industry very attractive, bringing competitively-priced gas feedstock to the market.

The petrochemicals firm is a major component of Mubadala Investment Company, Abu Dhabi’s state-owned holding company. It operates as a sovereign wealth fund with assets of more than $226 billion, and is aimed at diversifying the emirate’s economy.

“We as an investor made big investments in the last 18 months, north of $12 billion dollars, and some of these big investments are happening in North America,” al-Kaabi told CNBC’s Hadley Gamble during the Atlantic Council Energy Forum in Abu Dhabi.

This was for two simple reasons, the CEO said. “It is a big market and it is enjoying a highly competitive feedstock. So we like the business in that part of the world because of these two reasons.” Feedstock refers to raw material, such as natural gas, used in petrochemical production. Gas dominate’s the company’s business, and al-Kaabi has previously highlighted North America as the focus of a strategic shift when it comes to petrochemicals thanks to the shale revolution.

“Other parts of global energy I would say, the energy industry, the price would be set by the high cost producers going forward,” al-Kaabi added. “And who are the high cost producers nowadays? The shale producers. And we will keep monitoring what is happening in that part of the world.”


Company: cnbc, Activity: cnbc, Date: 2019-01-12  Authors: natasha turak
Keywords: news, cnbc, companies, abu, petrochemicals, north, investments, feedstock, american, alkaabi, energy, producers, gas, shale, mubadala, dhabis, big, eye


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North Korea’s Kim appears to have a big goal: Winning Belt and Road investments from Beijing

There was ‘frustration’ in Kim Jong Un’s message: Expert 4:50 AM ET Wed, 2 Jan 2019 | 03:00But to do so, Pyongyang needs help from its rich neighbors. The nuclear-armed nation is seeking more than $7.7 million in investment, the Seoul-based online newspaper NK News reported last month, citing information from a website run by North Korea’s foreign trade ministry. Xi’s Belt and Road project offers the perfect answer to those needs. Pyongyang “would love to be part of Belt and Road,” Dane Chamorro


There was ‘frustration’ in Kim Jong Un’s message: Expert 4:50 AM ET Wed, 2 Jan 2019 | 03:00But to do so, Pyongyang needs help from its rich neighbors. The nuclear-armed nation is seeking more than $7.7 million in investment, the Seoul-based online newspaper NK News reported last month, citing information from a website run by North Korea’s foreign trade ministry. Xi’s Belt and Road project offers the perfect answer to those needs. Pyongyang “would love to be part of Belt and Road,” Dane Chamorro
North Korea’s Kim appears to have a big goal: Winning Belt and Road investments from Beijing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: nyshka chandran, kcna, -mintaro oba, former us state department official
Keywords: news, cnbc, companies, investments, north, winning, koreas, worth, website, pyongyang, goal, pyongyangs, chamorro, needs, big, kim, road, beijing, belt


North Korea's Kim appears to have a big goal: Winning Belt and Road investments from Beijing

There was ‘frustration’ in Kim Jong Un’s message: Expert 4:50 AM ET Wed, 2 Jan 2019 | 03:00

But to do so, Pyongyang needs help from its rich neighbors. The nuclear-armed nation is seeking more than $7.7 million in investment, the Seoul-based online newspaper NK News reported last month, citing information from a website run by North Korea’s foreign trade ministry.

Xi’s Belt and Road project offers the perfect answer to those needs. China has historically been Pyongyang’s largest trading partner.

Pyongyang “would love to be part of Belt and Road,” Dane Chamorro, a senior partner in the Asia Pacific division of Control Risks, a consulting firm specializing in politics told CNBC on Friday. Kim’s government is waiting for an invitation so his country can get assistance on the construction of railway links and ports and other facilities, Chamorro said.

Beijing also seems keen on Pyongyang’s inclusion, with the Chinese government inviting a North Korean delegation to attend a Belt and Road summit in 2017 — but it’s unlikely to take any action for now.

Including Pyongyang in the BRI is “probably more trouble than it’s worth” at the present moment, said Mintaro Oba, a former U.S. State Department official who specialized in the Koreas during the administration of former President Barack Obama.

For one, sanctions still remain in place. Beijing, however, has called for those penalties to be eased.


Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: nyshka chandran, kcna, -mintaro oba, former us state department official
Keywords: news, cnbc, companies, investments, north, winning, koreas, worth, website, pyongyang, goal, pyongyangs, chamorro, needs, big, kim, road, beijing, belt


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There are a ton of buy and sell calls from Wall Street on Wednesday. Here are the biggest

The firm also raised its price target from $92 to $95, representing a 25 percent rally from here, on optimism about the sneaker maker’s online sales expansion. “Q2 an impressive beat but we are more impressed by what’s coming ahead in terms of digital and how it affects Nike’s model…After years of investments and a decade of stable margins, Nike could be at brink of multi-year margin expansion story,” the note stated. “With management thinking that its target for digital to reach 30% by 2023 i


The firm also raised its price target from $92 to $95, representing a 25 percent rally from here, on optimism about the sneaker maker’s online sales expansion. “Q2 an impressive beat but we are more impressed by what’s coming ahead in terms of digital and how it affects Nike’s model…After years of investments and a decade of stable margins, Nike could be at brink of multi-year margin expansion story,” the note stated. “With management thinking that its target for digital to reach 30% by 2023 i
There are a ton of buy and sell calls from Wall Street on Wednesday. Here are the biggest Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-09  Authors: john melloy
Keywords: news, cnbc, companies, ton, sales, investments, biggest, calls, valuation, online, buy, wall, whats, street, margin, digital, target, nike, visible, sell


There are a ton of buy and sell calls from Wall Street on Wednesday. Here are the biggest

The firm also raised its price target from $92 to $95, representing a 25 percent rally from here, on optimism about the sneaker maker’s online sales expansion.

“Q2 an impressive beat but we are more impressed by what’s coming ahead in terms of digital and how it affects Nike’s model…After years of investments and a decade of stable margins, Nike could be at brink of multi-year margin expansion story,” the note stated.

“With management thinking that its target for digital to reach 30% by 2023 is likely low and mentioning that eventually online sales could exceed 50% of its business, we see this as a margin game-changer. Indeed, heavy investments have been made in platforms and data analytics, and we believe that returns are now bound to start being more visible,” added the analyst.

(Separately Nike was downgraded by Baird on concerns about valuation.)


Company: cnbc, Activity: cnbc, Date: 2019-01-09  Authors: john melloy
Keywords: news, cnbc, companies, ton, sales, investments, biggest, calls, valuation, online, buy, wall, whats, street, margin, digital, target, nike, visible, sell


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With consumer protections in limbo, here’s how you can guard your investments

One of the goals following the financial crisis has been to implement a uniform fiduciary standard for investors. Brokers-dealers follow another rule, known as the suitability standard, which is considered less rigorous. A financial professional following the suitability standard could put you in the more costly fund. If they were adhering to the fiduciary standard, they would not, Houlihan said. But coming up with one fiduciary standard for the industry has been slow.


One of the goals following the financial crisis has been to implement a uniform fiduciary standard for investors. Brokers-dealers follow another rule, known as the suitability standard, which is considered less rigorous. A financial professional following the suitability standard could put you in the more costly fund. If they were adhering to the fiduciary standard, they would not, Houlihan said. But coming up with one fiduciary standard for the industry has been slow.
With consumer protections in limbo, here’s how you can guard your investments Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: lorie konish, thomas m barwick, getty images, joshua roberts, -ira rheingold, executive director at the national association of
Keywords: news, cnbc, companies, limbo, fiduciary, protections, houlihan, heres, investments, consumer, sure, financial, investment, standard, guard, fund, suitability, sec, rule


With consumer protections in limbo, here's how you can guard your investments

One of the goals following the financial crisis has been to implement a uniform fiduciary standard for investors.

That is essentially fancy language for requiring financial professionals to provide advice in their clients’ best interests. Currently, all registered investment advisors are required to act as fiduciaries. Brokers-dealers follow another rule, known as the suitability standard, which is considered less rigorous. That means that as long as the investment is appropriate for you, they can recommend it.

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But investments that are just suitable can be much more expensive for the investor, said Patti Houlihan, president and CEO of Houlihan Financial Resource Group and a member of the Committee for the Fiduciary Standard.

For example, you could have a choice between two similar funds, and one could have a much larger expense ratio, or costs associated with running the fund, compared with the other investment.

A financial professional following the suitability standard could put you in the more costly fund. If they were adhering to the fiduciary standard, they would not, Houlihan said.

But coming up with one fiduciary standard for the industry has been slow. The SEC first published a study on the subject in January 2011.

Though the SEC was authorized to propose a rule, the Labor Department pushed ahead with its own version that would have applied solely to retirement accounts. That regulation, however, was scrapped last year.


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: lorie konish, thomas m barwick, getty images, joshua roberts, -ira rheingold, executive director at the national association of
Keywords: news, cnbc, companies, limbo, fiduciary, protections, houlihan, heres, investments, consumer, sure, financial, investment, standard, guard, fund, suitability, sec, rule


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Good companies often make bad investments, study shows

“Despite these concerns, the market has rewarded value investing and other strategies … that rely on buying what other investors are avoiding.” For instance, hordes of investors may find equity of larger companies more attractive than that of smaller companies because of risk and liquidity concerns. But all of that information is public: Great companies are often overvalued simply because they are great companies. The researchers studied a number of factors that make stocks popular, including


“Despite these concerns, the market has rewarded value investing and other strategies … that rely on buying what other investors are avoiding.” For instance, hordes of investors may find equity of larger companies more attractive than that of smaller companies because of risk and liquidity concerns. But all of that information is public: Great companies are often overvalued simply because they are great companies. The researchers studied a number of factors that make stocks popular, including
Good companies often make bad investments, study shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: thomas franck, adam jeffery
Keywords: news, cnbc, companies, investments, companies, researchers, investors, reputation, shows, competitive, stocks, brand, value, market, bad, advantage, study, good


Good companies often make bad investments, study shows

A good reputation, strong competitive advantage and popular brands may not only be hallmarks of any healthy Wall Street company, but also a sign of a poor investment idea, researchers at CFA Institute and Morningstar found.

Securities with popular, desirable traits generate lower expected returns, while those with more unpopular, undesirable traits receive higher expected returns, the study found. While that may sound counterintuitive to many investors, the stock market often assumes that any effect from a stellar reputation or large market capitalization has already occurred and is valued to reflect such characteristics.

“Assets are priced not only by their expected cash flows but also by the popularity of the other characteristics associated with the company or security,” wrote Yale finance professor Roger Ibbotson and Morningstar researchers Thomas Idzorek, Paul Kaplan and James Xiong. “Despite these concerns, the market has rewarded value investing and other strategies … that rely on buying what other investors are avoiding.”

For instance, hordes of investors may find equity of larger companies more attractive than that of smaller companies because of risk and liquidity concerns. Some may be drawn to companies with excellent reputations or brands. But all of that information is public: Great companies are often overvalued simply because they are great companies.

The researchers studied a number of factors that make stocks popular, including perceived brand value, competitive advantage and reputation.

Of the 75 to 100 stocks studied based on brand value (as determined by third-party consultancy Interbrand), the those in the lowest 25 percent greatly outperform those stocks in the highest 25 percent between April 2000 and August 2017. The top companies by brand value in 2000 — including household names like Coca-Cola, Microsoft, IBM Intel, Nokia, GE and Ford — all fell in rating by 2017, with new leaders like Apple, Google and Amazon making the list.

Source: “Popularity: A Bridge between Classical and Behavioral Finance;” Ibbotson, Idzorek, Kaplan & Xiong .

Of the brands studied, those in the lowest brand value quartile over those years returned 13.5 percent annually versus 7.3 percent for the top 25 percent of brands (with monthly rebalancing back to equal weights).

The researchers found similar results based on competitive advantage, or “economic moat,” which estimates a company’s advantages based on intangible assets, cost cutting and networking effects.

Starting in July 2002, the researchers placed each stock in Morningstar’s universe of 1,039 with moat ratings. Noting that many investors prefer companies they consider to exhibit strong competitive advantage, the researchers found that these stocks tend to be some of the most popular.

Despite that popularity, they found that the companies with zero- or near-zero competitive moat produced the “most superior” mean returns, albeit with more risk.

“Competitive sustainable advantage, brand power, and company reputation should already be baked into the price in a rationally efficient market and, therefore, should not be important to a rational investor who only cares about risk and return,” Ibbotson and his colleagues wrote.

“Assuming that a powerful brand, a sustainable competitive advantage, and a good reputation are characteristics that investors like or admire, from the popularity perspective, some investors (the willing or unknowing losers) are simply willing to give up some level of return or overpay for a characteristic they like,” they added.

The researchers also tested stock returns based on popular opinion, or how members of the general public rank U.S. companies with the best and worst reputations. Again, stocks with the lowest reputation rankings (i.e., least popular) outperformed those ranked higher, with statistically significant returns.

Of the companies studied, those that ranked in the bottom quartile of reputation between 2000 and 2017 returned a mean of 14 percent versus a mean return of 8.4 percent for the companies in the top reputation quartile.

“Investing in unpopular assets is hard. First, they are typically unpopular for a reason. Mounting losses instead of bountiful profits, declining market share or a shrinking market for one’s product, an unusual loading of debt, and other characteristics that drive investors away are often indicators of continued poor performance rather than of what one value manager optimistically calls ‘troubles that are temporary,'” the researchers concluded. “Any strategy or factor that is widely enough used will fail.”


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: thomas franck, adam jeffery
Keywords: news, cnbc, companies, investments, companies, researchers, investors, reputation, shows, competitive, stocks, brand, value, market, bad, advantage, study, good


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Is your 529 savings plan in the red? Tuition may still be due

With stock returns in the red this year, people are generally advised to leave their investments alone until they recover. That can be hard with a 529 college savings plan if you expected to tap the account for a tuition bill due in a few months or weeks. Many of the accounts are likely to have taken a hit as of late. Ideally, savers would have “age-based” 529 accounts, which automatically shift to more conservative investments, such as bonds and certificates of deposit, as the child approaches


With stock returns in the red this year, people are generally advised to leave their investments alone until they recover. That can be hard with a 529 college savings plan if you expected to tap the account for a tuition bill due in a few months or weeks. Many of the accounts are likely to have taken a hit as of late. Ideally, savers would have “age-based” 529 accounts, which automatically shift to more conservative investments, such as bonds and certificates of deposit, as the child approaches
Is your 529 savings plan in the red? Tuition may still be due Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-26  Authors: annie nova, alex wroblewski, the new york times
Keywords: news, cnbc, companies, withdraw, plan, accounts, investments, red, used, twothirds, 529, college, weeksthe, bill, savings, tuition


Is your 529 savings plan in the red? Tuition may still be due

With stock returns in the red this year, people are generally advised to leave their investments alone until they recover. That can be hard with a 529 college savings plan if you expected to tap the account for a tuition bill due in a few months or weeks.

The state-sponsored investment plans encourage parents to save for college and they can withdraw money from the accounts tax-free, so long as the funds are used for qualifying education expenses.

Many of the accounts are likely to have taken a hit as of late. The S&P 500 entered Wednesday down more than 20 percent from an intraday high set in September, meaning the major index was in bear market territory.

Ideally, savers would have “age-based” 529 accounts, which automatically shift to more conservative investments, such as bonds and certificates of deposit, as the child approaches college, said Mark Kantrowitz, publisher of SavingForCollege.com. Two-thirds of families are invested in such accounts, he said.

So, if your son or daughter’s tuition bill is due soon, “the losses are minimal and there is little harm in taking a distribution now,” he said.


Company: cnbc, Activity: cnbc, Date: 2018-12-26  Authors: annie nova, alex wroblewski, the new york times
Keywords: news, cnbc, companies, withdraw, plan, accounts, investments, red, used, twothirds, 529, college, weeksthe, bill, savings, tuition


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Nervous investors need to decide if ‘going to cash’ is best choice

Nervous investors beware: If you’re seeking some shelter from market volatility, fleeing stocks for cash could put a dent in your long-term savings goals. With that said, worried investors may decide to “go to cash.” A cash investment is basically a short-term obligation, usually about 90 days. Cash investments generally offer a low return compared to other investments. Of course, the market roller coaster ride may have investors thinking of some safe havens.


Nervous investors beware: If you’re seeking some shelter from market volatility, fleeing stocks for cash could put a dent in your long-term savings goals. With that said, worried investors may decide to “go to cash.” A cash investment is basically a short-term obligation, usually about 90 days. Cash investments generally offer a low return compared to other investments. Of course, the market roller coaster ride may have investors thinking of some safe havens.
Nervous investors need to decide if ‘going to cash’ is best choice Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: darla mercado, xinhua news agency, getty images, photo, ariel skelley via getty images, peopleimages, -benjamin brandt, cfp, founder of capital city wealth management
Keywords: news, cnbc, companies, nervous, investment, best, going, need, return, low, market, youre, decide, cash, withof, choice, investors, investments, worried


Nervous investors need to decide if 'going to cash' is best choice

Nervous investors beware: If you’re seeking some shelter from market volatility, fleeing stocks for cash could put a dent in your long-term savings goals.

With that said, worried investors may decide to “go to cash.” So, what exactly does that entail?

A cash investment is basically a short-term obligation, usually about 90 days. It provides a return in the form of interest payments. Cash investments generally offer a low return compared to other investments. They are also associated with very low levels of risk and are often Federal Deposit Insurance Corp-insured.

Financial experts urge investors not to act without a plan. Advisors say you should not change your current investment strategy if it was well thought out to begin with.

Of course, the market roller coaster ride may have investors thinking of some safe havens. The Dow Jones Industrial Average fell by more than 400 points Thursday afternoon.


Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: darla mercado, xinhua news agency, getty images, photo, ariel skelley via getty images, peopleimages, -benjamin brandt, cfp, founder of capital city wealth management
Keywords: news, cnbc, companies, nervous, investment, best, going, need, return, low, market, youre, decide, cash, withof, choice, investors, investments, worried


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