Wall Street faces a tough earnings season: ‘Caution probably makes sense right now’

Companies head into the third-quarter earnings reporting period with trouble behind, more hazards ahead and a muddied road map to guide the journey. As the season kicks into gear this week, S&P 500 firms are expected to report a 4.6% earnings decline over the same period a year ago, according to FactSet. But caution probably makes sense right now.” There’s actually been good news in the nascent earnings season as 21 of 23 companies that have reported thus far have beaten Wall Street estimates on


Companies head into the third-quarter earnings reporting period with trouble behind, more hazards ahead and a muddied road map to guide the journey. As the season kicks into gear this week, S&P 500 firms are expected to report a 4.6% earnings decline over the same period a year ago, according to FactSet. But caution probably makes sense right now.” There’s actually been good news in the nascent earnings season as 21 of 23 companies that have reported thus far have beaten Wall Street estimates on
Wall Street faces a tough earnings season: ‘Caution probably makes sense right now’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: jeff cox
Keywords: news, cnbc, companies, trade, season, right, probably, faces, street, wall, period, companies, whats, sense, strategist, earnings, tough, makes, likely, think


Wall Street faces a tough earnings season: 'Caution probably makes sense right now'

Companies head into the third-quarter earnings reporting period with trouble behind, more hazards ahead and a muddied road map to guide the journey.

As the season kicks into gear this week, S&P 500 firms are expected to report a 4.6% earnings decline over the same period a year ago, according to FactSet. If the period ends up with a negative number, that will make three quarters in a row, the first time that’s happened in three years.

Investors never seem to focus on what’s in the rearview mirror as much as they do the outlook for what’s on the horizon.

In this case, though, they’re likely to see the same thing: Profits weighed down by tariffs, economic weakness and geopolitical tumult that seems unlikely to go away anytime soon, despite the recent good news that the U.S. and China have reached at least the first phase of a trade agreement.

“I don’t think we flipped the switch last weekend,” Art Hogan, chief market strategist at National Holdings, said in regard to the trade news. “My guess is the tone’s going to be as cautious as it’s been. But caution probably makes sense right now.”

There’s actually been good news in the nascent earnings season as 21 of 23 companies that have reported thus far have beaten Wall Street estimates on bottom-line profit, while 12 of those firms have exceeded revenue forecasts. Bank of America Merrill Lynch says there’s an 82% correlation between how early reporters do compared to how the rest of the season goes.

Still, the firm, like a number of others on the Street, says expectations for the future need to be tempered.

“We think consensus is too high for 4Q and 2020, and lower guidance vs consensus could be a key risk for stocks this earnings season,” Savita Subramanian, equity and quant strategist at BofAML, told clients in a recent note. “Companies’ lack of visibility into next year, with just three months left in the year, will likely build more uncertainty among investors and likely result in lower 2020 estimates, in our view.”


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: jeff cox
Keywords: news, cnbc, companies, trade, season, right, probably, faces, street, wall, period, companies, whats, sense, strategist, earnings, tough, makes, likely, think


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How Square makes money

How Square makes money2:50 PM ET Thu, 10 Oct 2019Square’s iconic card readers have become a staple in trendy coffee shops, boutique stores and neighborhood restaurants. But the company does so much more than just help business owners swipe cards. From payroll services to the Venmo-like Cash App, small business loans and more, Square’s CEO Jack Dorsey has built a $26 billion dollar fintech empire. So where did all Square’s money come from and can the company’s prolific growth last?


How Square makes money2:50 PM ET Thu, 10 Oct 2019Square’s iconic card readers have become a staple in trendy coffee shops, boutique stores and neighborhood restaurants. But the company does so much more than just help business owners swipe cards. From payroll services to the Venmo-like Cash App, small business loans and more, Square’s CEO Jack Dorsey has built a $26 billion dollar fintech empire. So where did all Square’s money come from and can the company’s prolific growth last?
How Square makes money Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10
Keywords: news, cnbc, companies, small, stores, swipe, money, shops, business, trendy, venmolike, squares, staple, square, makes


How Square makes money

How Square makes money

2:50 PM ET Thu, 10 Oct 2019

Square’s iconic card readers have become a staple in trendy coffee shops, boutique stores and neighborhood restaurants. But the company does so much more than just help business owners swipe cards. From payroll services to the Venmo-like Cash App, small business loans and more, Square’s CEO Jack Dorsey has built a $26 billion dollar fintech empire. So where did all Square’s money come from and can the company’s prolific growth last?


Company: cnbc, Activity: cnbc, Date: 2019-10-10
Keywords: news, cnbc, companies, small, stores, swipe, money, shops, business, trendy, venmolike, squares, staple, square, makes


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Top investor makes contrarian call as trade uncertainty grips Wall Street

Trade talks don’t resume until Thursday, but Wall Street is already worried a deal can be struck. As tensions escalate, Institutional Investor hall of famer Richard Bernstein is ready to make a contrarian call on one casualty of the trade conflict — the Chinese economy. “Because of trade, there’s been tremendous amounts of monetary and fiscal stimulus injected into the Chinese economy. “Surprise, surprise, China is the only major economy where leading indicators — very important word ‘leading in


Trade talks don’t resume until Thursday, but Wall Street is already worried a deal can be struck. As tensions escalate, Institutional Investor hall of famer Richard Bernstein is ready to make a contrarian call on one casualty of the trade conflict — the Chinese economy. “Because of trade, there’s been tremendous amounts of monetary and fiscal stimulus injected into the Chinese economy. “Surprise, surprise, China is the only major economy where leading indicators — very important word ‘leading in
Top investor makes contrarian call as trade uncertainty grips Wall Street Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-08  Authors: keris lahiff
Keywords: news, cnbc, companies, makes, indicators, bernstein, investor, leading, economy, uncertainty, grips, work, utilities, sectors, wall, trade, contrarian, chinese, signs, street


Top investor makes contrarian call as trade uncertainty grips Wall Street

Trade talks don’t resume until Thursday, but Wall Street is already worried a deal can be struck.

The Dow tumbled more than 200 points on Tuesday morning as pressure increased heading into the high-level negotiations. The Trump administration blacklisted some Chinese tech on Monday and is reportedly considering limiting government pension investment in Chinese stocks.

As tensions escalate, Institutional Investor hall of famer Richard Bernstein is ready to make a contrarian call on one casualty of the trade conflict — the Chinese economy.

“Because of trade, there’s been tremendous amounts of monetary and fiscal stimulus injected into the Chinese economy. Now, unless you believe that Economics 101 doesn’t work anymore, which I would argue is incredibly bearish, then you should start to look for signs that the economy is beginning to turn,” the CEO of Richard Bernstein Advisors told CNBC’s “Trading Nation” on Monday.

Chinese GDP declined in the second quarter to 6.2%, down from 6.7% in the three months to June 2018. Bernstein sees signs of a turnaround in another data set.

“Surprise, surprise, China is the only major economy where leading indicators — very important word ‘leading indicators’ — are accelerating,” said Bernstein. “One could argue it’s not showing up in their numbers. Of course not. That’s because these are leading indicators. It will appear in the leading indicators before it appears in GDP.”

The Conference Board’s Leading Economic Index for China increased by 1.1% in August. It rose by the same amount in July.

A Chinese economy in recovery comes as the U.S. corporate world faces troubles of its own, adds Bernstein.

“Profits have been decelerating now all through 2019, and we actually expect that to continue. I think the risk right now is that first half of 2020 we actually see a full-blown profits recession where earnings growth for the S&P turns negative on a year-to-year basis,” he said.

To hedge against an earnings slowdown or recession, Bernstein is putting money to work in traditional defensive sectors such as staples, health care, utilities and real estate. The utilities and real estate sectors are two of the best performers this year.


Company: cnbc, Activity: cnbc, Date: 2019-10-08  Authors: keris lahiff
Keywords: news, cnbc, companies, makes, indicators, bernstein, investor, leading, economy, uncertainty, grips, work, utilities, sectors, wall, trade, contrarian, chinese, signs, street


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Your kid makes $1,500 a year in allowance. Here’s how to turn that into a money lesson

But most of them won’t be able to make a big buy with allowance money. “We as parents have to teach them what’s in it for them [to save],” Almonte said “Why shouldn’t they buy that toy today? Three out of four adults say the most important purpose of an allowance is to teach children the value of money and financial responsibility. Show them where the money goesOpen a bank account with your child so they see where their money ends up. “It’s really hard for someone to be like ‘here’s $10 for your


But most of them won’t be able to make a big buy with allowance money. “We as parents have to teach them what’s in it for them [to save],” Almonte said “Why shouldn’t they buy that toy today? Three out of four adults say the most important purpose of an allowance is to teach children the value of money and financial responsibility. Show them where the money goesOpen a bank account with your child so they see where their money ends up. “It’s really hard for someone to be like ‘here’s $10 for your
Your kid makes $1,500 a year in allowance. Here’s how to turn that into a money lesson Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-01  Authors: mallika mitra, jill cornfield
Keywords: news, cnbc, companies, makes, almonte, savings, kids, parents, lesson, heres, bank, allowance, teach, 1500, money, turn, kid, financial, save


Your kid makes $1,500 a year in allowance. Here's how to turn that into a money lesson

Jose Luis Pelaez Inc | DigitalVision | Getty Images

Children are pocketing an average of $30 a week in allowance — enough to rack up around $1,500 in a year. But most of them won’t be able to make a big buy with allowance money. Only 3% of parents say their kids primarily save their cash, according to a new telephone survey from the American Institute of CPAs. The organization polled 1,002 adults from Aug. 22 to Aug. 28. Of these, 273 identified as a parent or guardian of at least one child aged 25 or younger who is living at home. “Once you put money in someone’s hands, it feels like it’s just burning a hole there and they have to do something about it,” said David Almonte, CPA and member of the American Institute of CPAs’ financial literacy commission.

Close to half of the parents said their children’s allowances go toward outings with friends, while 37% said their kids spend the money on digital devices or downloads. A third of parents said their kids use the cash to buy toys. “We as parents have to teach them what’s in it for them [to save],” Almonte said “Why shouldn’t they buy that toy today? Whats the benefit of waiting?” Three out of four adults say the most important purpose of an allowance is to teach children the value of money and financial responsibility. Here are some tips on how to do that.

Make them earn it

SDI Productions | E+ | Getty Images

Nothing is free — not even that weekly allowance. “If you just give someone money, you help them resolve a short-term need,” Almonte said. “If you teach someone to earn money, you set them up for financial success for the rest of their life.” One way to do this is through chores. This teaches children the real world lesson that, “if you don’t show up and put in the effort, you don’t get a paycheck,” Almonte said. Another option is to reward them for saving by matching dollars for dollars — this allows them to turn $20 of savings, for example, into $40.

Show them where the money goes

Open a bank account with your child so they see where their money ends up. Bring your kids to the bank and explain to them what happens to their money when they keep it in a savings account instead of spending it. “It’s really hard for someone to be like ‘here’s $10 for your allowance,’ then take it back to put it into savings,” Almonte said. “As a kid, you’re like ‘where did my money go?”

If you teach someone to earn money, you set them up for financial success for the rest of their life. David Almonte CPA and member of the American Institute of CPAs’ financial literacy commission

Because a lot of banking is now done digitally, this can also be done online. Cristina Guglielmetti, a certified financial planner and founder of Future Perfect Planning in New York, does this with her 9-year-old son. “I log into the bank and show him ‘this is where our interest is, this is how much we had last month and this is how much we have this month,'” Guglielmetti said. Seeing and understanding bank statements can help children track the increase in their savings and the decrease in their spending. Another way to show them where their money goes is to tell them that for every dollar they save, you’ll donate 10% to an organization of their choice. You and your child can hand-deliver the donation, Almonte said.

Talk about money early and often

kate_sept2004 | E+ | Getty Images


Company: cnbc, Activity: cnbc, Date: 2019-10-01  Authors: mallika mitra, jill cornfield
Keywords: news, cnbc, companies, makes, almonte, savings, kids, parents, lesson, heres, bank, allowance, teach, 1500, money, turn, kid, financial, save


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Whistleblower complaint makes a ‘very compelling’ case for impeaching Trump, Rep. Jackie Speier says

This combination of pictures shows Ukraine’s President Volodymyr Zelensky on June 17, 2019 in Paris, and US President Donald Trump during a meeting in the Oval Office at the White House, September 20, 2019. The whistleblower complaint that sounded the alarm on a phone call between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky makes strong case for impeachment, Rep. Jackie Speier told CNBC on Wednesday night. “When the impeachment process started with Richard Nixon, there


This combination of pictures shows Ukraine’s President Volodymyr Zelensky on June 17, 2019 in Paris, and US President Donald Trump during a meeting in the Oval Office at the White House, September 20, 2019. The whistleblower complaint that sounded the alarm on a phone call between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky makes strong case for impeachment, Rep. Jackie Speier told CNBC on Wednesday night. “When the impeachment process started with Richard Nixon, there
Whistleblower complaint makes a ‘very compelling’ case for impeaching Trump, Rep. Jackie Speier says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-26  Authors: weizhen tan, kevin breuninger
Keywords: news, cnbc, companies, impeaching, compelling, president, zelensky, signs, told, impeachment, complaint, case, rep, house, jackie, volodymyr, whistleblower, started, makes, speier, trump


Whistleblower complaint makes a 'very compelling' case for impeaching Trump, Rep. Jackie Speier says

This combination of pictures shows Ukraine’s President Volodymyr Zelensky on June 17, 2019 in Paris, and US President Donald Trump during a meeting in the Oval Office at the White House, September 20, 2019.

The whistleblower complaint that sounded the alarm on a phone call between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky makes strong case for impeachment, Rep. Jackie Speier told CNBC on Wednesday night.

On Tuesday, House Speaker Nancy Pelosi announced that the U.S. House of Representatives will begin an official impeachment inquiry into Trump over his efforts to push Ukraine to investigate a potential 2020 election rival, former Vice President Joe Biden.

“Make no mistake, this is conduct that I think reaches the impeachment charge that is being contemplated by the House right now,” Speier, D-Calif. told “Street Signs” from Washington D.C. on Wednesday night.

When asked about the likelihood of Trump’s impeachment, the congresswoman said: “I can assure you this complaint has shown all the signs of being a very compelling argument for impeachment.”

“When the impeachment process started with Richard Nixon, there was very little support for it. But as more and more evidence was built up, it became more and more persuasive,” the Democratic congresswoman said.

An impeachment process was started against Nixon because of the Watergate scandal, but he ultimately resigned from office before it came to a vote.

“We will allow the facts to take us where they will,” Speier said, pointing out that the inquiry against Trump was still at an early stage.


Company: cnbc, Activity: cnbc, Date: 2019-09-26  Authors: weizhen tan, kevin breuninger
Keywords: news, cnbc, companies, impeaching, compelling, president, zelensky, signs, told, impeachment, complaint, case, rep, house, jackie, volodymyr, whistleblower, started, makes, speier, trump


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Hong Kong stock exchange makes $36.6 billion offer for London stock exchange

Hong Kong Exchanges and Clearing Limited (HKEX) said Wednesday it has made a proposal to the board of London Stock Exchange Group Plc (LSE) to “combine the two companies,” in a deal which values the LSE at about £29.6 billion ($36.6 billion). The HKEX said the deal would be funded by a combination of existing cash and a new credit facility. HKEX has proposed £20.45 a share in cash, as well as 2.495 newly issued HKEX shares. LSE shares rallied shortly after 10:00 a.m. London time, rising by 8.5%


Hong Kong Exchanges and Clearing Limited (HKEX) said Wednesday it has made a proposal to the board of London Stock Exchange Group Plc (LSE) to “combine the two companies,” in a deal which values the LSE at about £29.6 billion ($36.6 billion). The HKEX said the deal would be funded by a combination of existing cash and a new credit facility. HKEX has proposed £20.45 a share in cash, as well as 2.495 newly issued HKEX shares. LSE shares rallied shortly after 10:00 a.m. London time, rising by 8.5%
Hong Kong stock exchange makes $36.6 billion offer for London stock exchange Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: david reid
Keywords: news, cnbc, companies, hong, announcement, statement, values, kong, 366, makes, deal, london, offer, lse, hkex, shares, cash, work, exchange, stock, billion


Hong Kong stock exchange makes $36.6 billion offer for London stock exchange

Hong Kong Exchanges and Clearing Limited (HKEX) said Wednesday it has made a proposal to the board of London Stock Exchange Group Plc (LSE) to “combine the two companies,” in a deal which values the LSE at about £29.6 billion ($36.6 billion).

The HKEX said the deal would be funded by a combination of existing cash and a new credit facility. It cautioned, however, that its statement to the market should be considered as an announcement to make a possible offer and is not confirmation of a firm intention to bid.

The statement from HKEX said a further announcement will be made “as and when appropriate.”

HKEX has proposed £20.45 a share in cash, as well as 2.495 newly issued HKEX shares. LSE shares rallied shortly after 10:00 a.m. London time, rising by 8.5% before giving up some of the initial gains.

HKEX said it expected key LSE management to keep their jobs and work for the new owners.


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: david reid
Keywords: news, cnbc, companies, hong, announcement, statement, values, kong, 366, makes, deal, london, offer, lse, hkex, shares, cash, work, exchange, stock, billion


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Shaq: ‘I don’t invest in companies just to try and get the big hit’

Since retiring from the NBA in 2011, Shaquille O’Neal has established himself as a successful businessman. “I don’t invest in companies just to try and get the big hit,” O’Neal tells CNBC Make It. “I [invest] because I know it’s going to change people’s ideas… change people’s lives.” O’Neal makes sure to do his homework before agreeing to a deal. “My formula is: If you do your due diligence and you see other successful people put into it, it’s probably going to work and make sense,” O’Neal says.


Since retiring from the NBA in 2011, Shaquille O’Neal has established himself as a successful businessman. “I don’t invest in companies just to try and get the big hit,” O’Neal tells CNBC Make It. “I [invest] because I know it’s going to change people’s ideas… change people’s lives.” O’Neal makes sure to do his homework before agreeing to a deal. “My formula is: If you do your due diligence and you see other successful people put into it, it’s probably going to work and make sense,” O’Neal says.
Shaq: ‘I don’t invest in companies just to try and get the big hit’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: anna hecht
Keywords: news, cnbc, companies, big, going, shaq, dont, successful, hit, doing, invest, oneal, jeff, change, peoples, try, probably, companies, makes


Shaq: 'I don't invest in companies just to try and get the big hit'

Since retiring from the NBA in 2011, Shaquille O’Neal has established himself as a successful businessman. He was an early investor Apple and Google, is the new face of Forto coffee, and owns 17 Auntie Anne’s, a Krispy Kreme franchise and several other service companies. But he doesn’t do business solely for the money.

“I don’t invest in companies just to try and get the big hit,” O’Neal tells CNBC Make It. “I [invest] because I know it’s going to change people’s ideas… change people’s lives.”

O’Neal, 47, was first inspired to follow this line of thinking by Amazon founder and CEO Jeff Bezos.

“I heard Jeff Bezos say one time [that] he makes his investments based on if it’s going to change people’s lives,” O’Neal told the Wall Street Journal in a recent interview. “Once I started doing that strategy, I think I probably quadrupled what I’m worth.”

O’Neal makes sure to do his homework before agreeing to a deal. When investing, he watches what other business leaders are doing and follows their lead.

“My formula is: If you do your due diligence and you see other successful people put into it, it’s probably going to work and make sense,” O’Neal says.


Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: anna hecht
Keywords: news, cnbc, companies, big, going, shaq, dont, successful, hit, doing, invest, oneal, jeff, change, peoples, try, probably, companies, makes


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‘Catastrophic’ Hurricane Dorian makes landfall on the east of Grand Bahama Island

In this NOAA GOES-East satellite handout image, Hurricane Dorian, now a Cat. Hurricane Dorian made landfall on the eastern end of Grand Bahama Island, the National Weather Service said Sunday night. Grand Bahama Island is a little more than 50 miles east of West Palm Beach, Florida. The National Hurricane Center said “catastrophic hurricane conditions” are occurring in the Abacos Islands and are expected to spread across Grand Bahama Island later Sunday. “Dorian is a extremely dangerous category


In this NOAA GOES-East satellite handout image, Hurricane Dorian, now a Cat. Hurricane Dorian made landfall on the eastern end of Grand Bahama Island, the National Weather Service said Sunday night. Grand Bahama Island is a little more than 50 miles east of West Palm Beach, Florida. The National Hurricane Center said “catastrophic hurricane conditions” are occurring in the Abacos Islands and are expected to spread across Grand Bahama Island later Sunday. “Dorian is a extremely dangerous category
‘Catastrophic’ Hurricane Dorian makes landfall on the east of Grand Bahama Island Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-01  Authors: robert ferris natasha turak, robert ferris, natasha turak
Keywords: news, cnbc, companies, florida, catastrophic, coast, storm, expected, makes, warning, grand, landfall, dorian, category, bahama, island, tropical, hurricane, east


'Catastrophic' Hurricane Dorian makes landfall on the east of Grand Bahama Island

In this NOAA GOES-East satellite handout image, Hurricane Dorian, now a Cat. 5 storm, tracks towards the Florida coast taken at 13:40. August 31, 2019 in the Atlantic Ocean.

Hurricane Dorian made landfall on the eastern end of Grand Bahama Island, the National Weather Service said Sunday night.

Grand Bahama Island is a little more than 50 miles east of West Palm Beach, Florida. The island’s eastern end is less heavily populated than its western side, which includes the city of Freeport.

“Dorian will continue to slow as it moves westward across the Northwestern Bahamas overnight before a gradual turn to the northwest then north through Wednesday,” the NWS said on its website.

“Given uncertainty in the track forecast and the anticipated increase in size of the hurricane, a Hurricane Warning and Storm Surge Warning have been issued for a portion of the Florida east coast,” it said.

The “extremely dangerous” storm is the strongest hurricane on record in the Northwestern Bahamas, with maximum sustained winds at 185 mph and gusts over 220 mph.

The National Hurricane Center said “catastrophic hurricane conditions” are occurring in the Abacos Islands and are expected to spread across Grand Bahama Island later Sunday. Hurricane conditions are possible in parts of Florida by late Monday or early Tuesday.

“Maximum sustained winds have increased to near 180 mph (285 km/h) with higher gusts,” the agency said in an update posted Sunday morning. “Dorian is a extremely dangerous category 5 hurricane on the Saffir-Simpson Hurricane Wind Scale.”

The Saffir-Simpson scale is the classification system for Western Hemisphere tropical cyclones. A category 5 rating means the storm has reached reached wind speeds of at least 136 knots or 157 miles per hour. Dorian is the 35th category 5 storm ever recorded in the Atlantic Ocean.

While the storm’s intensity is likely to fluctuate Dorian is expected to remain a powerful hurricane during the next few days, the agency said.

Millions of residents along the Southeastern U.S. coast are on high alert amid warnings the storm would move northeast after battering the Bahamas, threatening Florida, Georgia and the Carolinas.

The NHC also issued a tropical storm warning for parts of Eastern Florida ⁠— north of the state’s Deerfield Beach to Sebastian Inlet ⁠— meaning tropical storm conditions are expected in the area generally within 36 hours.

“Interests elsewhere in southern and central Florida should continue to monitor the progress of Dorian. Additional watches or warnings may be required for portions of the east coast of Florida today,” the center’s statement said.

Historically, early September has seen the most category 5 hurricanes and is considered the peak of the Atlantic hurricane season.


Company: cnbc, Activity: cnbc, Date: 2019-09-01  Authors: robert ferris natasha turak, robert ferris, natasha turak
Keywords: news, cnbc, companies, florida, catastrophic, coast, storm, expected, makes, warning, grand, landfall, dorian, category, bahama, island, tropical, hurricane, east


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Here’s whether it makes sense to ditch stocks and move to cash

Hillary Kladke | Moment | Getty ImagesTrying to time the stock market is considered a fool’s errand. The answer from financial advisors is typically an emphatic no. Some investors and advisors have been increasing cash positions in their portfolios in anticipation of continued volatility and falling prices. Cash is an important part of any financial plan, experts say. There can be value in holding cash, but it should be part of a larger plan, not because you’re running for the hills.


Hillary Kladke | Moment | Getty ImagesTrying to time the stock market is considered a fool’s errand. The answer from financial advisors is typically an emphatic no. Some investors and advisors have been increasing cash positions in their portfolios in anticipation of continued volatility and falling prices. Cash is an important part of any financial plan, experts say. There can be value in holding cash, but it should be part of a larger plan, not because you’re running for the hills.
Here’s whether it makes sense to ditch stocks and move to cash Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-27  Authors: sarah obrien
Keywords: news, cnbc, companies, plan, value, heres, sense, safran, stocks, market, stock, ditch, youre, financial, worth, cash, advisors, makes


Here's whether it makes sense to ditch stocks and move to cash

Hillary Kladke | Moment | Getty Images

Trying to time the stock market is considered a fool’s errand. Yet is it ever a good idea to move entirely to cash? The answer from financial advisors is typically an emphatic no. Some, however, offer a caveat. “If you have all the money you’ll ever need, and don’t need to take on any risk to accomplish all of your goals for the rest of your life, sure, move to cash,” said certified financial planner David Robbins, vice president of investments at Moors & Cabot in Phoenix. “But realistically, that’s a rare scenario,” Robbins said. Against a backdrop of recession fears and continued uncertainty about tariffs, stocks have been zigzagging mostly downward for several weeks. While the Dow Jones climbed Monday, closing at 25,849, it’s still down from its peak of 27,359 on July 15. The S&P 500 index closed at 2,879 on Monday, down from its July 26 high of 3,025.86.

Some investors and advisors have been increasing cash positions in their portfolios in anticipation of continued volatility and falling prices. With an inverted yield curve — when longer-term interest rates fall below short-term rates — suggesting that a recession could be looming, exactly where the market goes from here is anyone’s guess. Cash is an important part of any financial plan, experts say. Many advisors recommend that people generally have at least three to six months’ worth of emergency savings set aside — which typically means having a cash account you can tap without worrying about the securities markets’ effect on its value. For retirees, though, advisors often recommend keeping two to three years’ worth of income in investments that are not subject to the whims of the stock market. Depending on a person’s particular situation, part of that strategy could include a cash component. “There can be value in holding cash, but it should be part of a larger plan, not because you’re running for the hills,” said CFP Erika Safran, founder of Safran Wealth Advisors in New York. For long-term investors — say, younger workers saving for retirement — it’s important to remember that while the stock market might jump around or enter a prolonged downturn, none of those losses you see on paper is locked in unless you sell. And history has shown that the market always ends up going back up — and surpassing its previous high.

There can be value in holding cash, but it should be part of a larger plan, not because you’re running for the hills. Erika Safran Founder of Safran Wealth Advisors


Company: cnbc, Activity: cnbc, Date: 2019-08-27  Authors: sarah obrien
Keywords: news, cnbc, companies, plan, value, heres, sense, safran, stocks, market, stock, ditch, youre, financial, worth, cash, advisors, makes


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