Billionaire investor Howard Marks says we’re not in a bubble, but there are reasons to take less risk

Investors should take some risk off the table in 2020 given some of the challenges the market faces, billionaire investor Howard Marks said on Tuesday. “The economic expansion and the bull market are old,” Marks told CNBC’s Wilfred Frost. Stocks hit record highs on Nov. 27, boosted by improving economic data and apparent progress on U.S.-China trade talks. But Marks — who co-founded Oaktree Capital Management in 1995 — thinks the current bull market can rise further. The uncertainties are “not t


Investors should take some risk off the table in 2020 given some of the challenges the market faces, billionaire investor Howard Marks said on Tuesday.
“The economic expansion and the bull market are old,” Marks told CNBC’s Wilfred Frost.
Stocks hit record highs on Nov. 27, boosted by improving economic data and apparent progress on U.S.-China trade talks.
But Marks — who co-founded Oaktree Capital Management in 1995 — thinks the current bull market can rise further.
The uncertainties are “not t
Billionaire investor Howard Marks says we’re not in a bubble, but there are reasons to take less risk Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-10  Authors: fred imbert
Keywords: news, cnbc, companies, world, market, pointed, think, marks, billionaire, uncertainty, investor, table, reasons, risk, trade, howard, economic, bubble


Billionaire investor Howard Marks says we're not in a bubble, but there are reasons to take less risk

Investors should take some risk off the table in 2020 given some of the challenges the market faces, billionaire investor Howard Marks said on Tuesday.

“The economic expansion and the bull market are old,” Marks told CNBC’s Wilfred Frost. “Valuations are above average. There’s a lot of uncertainty in the world and it strikes me that one should not have as much risk as one did three years ago or six years ago.”

Stocks hit record highs on Nov. 27, boosted by improving economic data and apparent progress on U.S.-China trade talks. However, uncertainty around the trade situation has risen lately.

National Economic Council Director Larry Kudlow said Tuesday that additional tariffs slated to take effect Sunday are “still on the table.” Those comments came after multiple reports pointed to a possible delay on those tariffs.

But Marks — who co-founded Oaktree Capital Management in 1995 — thinks the current bull market can rise further. The uncertainties are “not to say I think it’s going down … but I think there are reasons to have less risk going forward than you have had in recent years.”

He also pointed out the U.S. economy is, to some extent, “the envy of the world.” Marks’ remark followed last week’s release of jobs creation data that easily topped analyst expectations. The U.S. economy added 266,000 jobs last month, blowing a Dow Jones estimate of 187,000 out of the water.

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Company: cnbc, Activity: cnbc, Date: 2019-12-10  Authors: fred imbert
Keywords: news, cnbc, companies, world, market, pointed, think, marks, billionaire, uncertainty, investor, table, reasons, risk, trade, howard, economic, bubble


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Morgan Stanley says overpriced growth stocks are the market’s ‘greatest risk’

Frothy growth stocks in the equity market remain Wall Street’s biggest risk heading into the final weeks of 2019, according to Morgan Stanley. “We still think the greatest risk in the equity market remains in growth stocks where expectations are too high and priced,” Wilson wrote. “From a sector standpoint, this is consumer discretionary broadly and expensive software and secular growth stocks.” “Since the Fed began cutting, [discreationary and other growth stocks] have underperformed the S&P 50


Frothy growth stocks in the equity market remain Wall Street’s biggest risk heading into the final weeks of 2019, according to Morgan Stanley.
“We still think the greatest risk in the equity market remains in growth stocks where expectations are too high and priced,” Wilson wrote.
“From a sector standpoint, this is consumer discretionary broadly and expensive software and secular growth stocks.”
“Since the Fed began cutting, [discreationary and other growth stocks] have underperformed the S&P 50
Morgan Stanley says overpriced growth stocks are the market’s ‘greatest risk’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: thomas franck
Keywords: news, cnbc, companies, morgan, stocks, wilson, growth, fed, risk, markets, equity, overpriced, stanley, stock, market, wrote, greatest


Morgan Stanley says overpriced growth stocks are the market's 'greatest risk'

Caution tape hangs near the steps of Federal Hall across from the New York Stock Exchange in New York.

Frothy growth stocks in the equity market remain Wall Street’s biggest risk heading into the final weeks of 2019, according to Morgan Stanley.

Chief U.S. Equity Strategist Michael Wilson wrote in a weekly report to clients that the brokerage still favors defensive, reliable stock picks and a choosier bias in general as investors look to 2020.

“We still think the greatest risk in the equity market remains in growth stocks where expectations are too high and priced,” Wilson wrote. “From a sector standpoint, this is consumer discretionary broadly and expensive software and secular growth stocks.”

“Focus on what you own, not how much,” he added.

The strategist’s advice to steer clear of consumer discretionary stocks comes after equities rallied on Friday to finish the week on a high note.

A healthy nonfarm payrolls print that showed employers added 266,000 jobs in November sparked a 337-point surge in the Dow Jones Industrial Average and 1.2%-bump in the S&P 500, with stocks closing just below their record highs reached on Nov. 27.

But barring outperformance from a handful consumer stocks like Ulta, discretionary equities lagged the broader market as communications, energy and financials stocks all carried the indexes within spitting distance of their relative records.

Though the market’s internal performance may not seem critical at first, the composition of equity outperformance shows that the Street may be starting to err on the side of caution in such an expensive environment.

And while some money managers have cautioned investors from adding too much more to their equity holdings based on elevated valuations, Morgan Stanley says it views the rotation in a more defensive light.

“Since the Fed began cutting, [discreationary and other growth stocks] have underperformed the S&P 500 and appear to be breaking down on a relative basis,” Wilson wrote. “Importantly, these groups underperformed on Friday when the market was up and earlier in the week when the market was down.”

“Despite a big rally in stocks, we continue to position our overweights / underweights away from growth and toward the more defensive parts of value (Staples, Utilities and Financials),” he added.

Wilson said that banks are his hedge against better-than-expected growth as rates would rise. On the flip side, if growth disappoints, the Fed might be tempted to cut the overnight lending rate against and the yield curve could steepen and help widen lending margins.

To be sure, Wilson is one of Wall Street’s biggest equity bears for 2020 and earlier in the fall told clients that Morgan Stanley expects “disappointing” earnings per share in 2020.

“We’d argue that in 2018, an aggressive Fed quashed one of this decade’s best years of growth, while this year, the Fed elevated asset prices despite broadly slowing growth-something we identified well in 2018 but missed this year,” he wrote in November.

“However, we expect that by April, the liquidity tailwind will fade and the market will focus more on fundamentals,” he continued.

His S&P 500 price target of 3,000 implies 4.6% downside over the next 12 months for the U.S. stock market.


Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: thomas franck
Keywords: news, cnbc, companies, morgan, stocks, wilson, growth, fed, risk, markets, equity, overpriced, stanley, stock, market, wrote, greatest


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Millennials should brace for a ‘bucket of cold water’ when it comes to their investments

But that may have created unrealistic expectations among millennials that markets will never go down and that investing isn’t that risky. Millennials, typically defined as those 23 to 38, “don’t have any clue” about risk, he says. How the investing environment shapes perceptionsThe past few years have created an almost perfect environment for millennials to discount the risks they’re taking when it comes to investing, Lafferty says. But Lafferty says while these companies can make investing simp


But that may have created unrealistic expectations among millennials that markets will never go down and that investing isn’t that risky.
Millennials, typically defined as those 23 to 38, “don’t have any clue” about risk, he says.
How the investing environment shapes perceptionsThe past few years have created an almost perfect environment for millennials to discount the risks they’re taking when it comes to investing, Lafferty says.
But Lafferty says while these companies can make investing simp
Millennials should brace for a ‘bucket of cold water’ when it comes to their investments Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: megan leonhardt
Keywords: news, cnbc, companies, water, cold, investing, lafferty, investors, stocks, investments, bucket, portfolio, risk, millennials, dont, bonds, comes, brace, market


Millennials should brace for a 'bucket of cold water' when it comes to their investments

The last decade has brought a charging bull market that doesn’t seem to be losing steam. But that may have created unrealistic expectations among millennials that markets will never go down and that investing isn’t that risky. At least, that’s one of the biggest concerns plaguing David Lafferty, senior vice president and chief market strategist at Natixis Investment Managers, heading into next year. Millennials, typically defined as those 23 to 38, “don’t have any clue” about risk, he says. “I think there’s a bucket of cold water coming in the face at some point — I don’t know what will cause it and I don’t know when it will happen, but I worry that we’re not ready for it when it does happen,” he said during a press briefing last week.

How the investing environment shapes perceptions

The past few years have created an almost perfect environment for millennials to discount the risks they’re taking when it comes to investing, Lafferty says. Perhaps the biggest factor is that most millennials are too young to have ever experienced a sustained bear market where the value of stocks falls more than 20%. Since the financial crisis ended in March 2009, the markets have returned 17.8% annualized returns. Meanwhile, central banks, such as the U.S. Federal Reserve, have kept interest rates low during the same period. Those circumstances have pushed many investors, especially millennials, into portfolios that are heavily concentrated in stocks, as opposed to the less risky bonds that just aren’t paying these days.

The problem with a stock-heavy approach is that at some point, the stock market will experience a sustained downturn. There’s been some volatility in recent years, but Lafferty says it’s been easy for investors to say they’ll ride out a 10% or 12% drop. And many times that drop was short-lived. However, it will likely become much more difficult to watch their portfolio tank when the market drops 20% for a sustained period. “I wonder if we’re creating a class or generation of investors who haven’t seen a bear market and don’t think one can exist,” Lafferty says. “I almost want to use the term snowflake — it feels to me that there’s a little snowflakiness out there.”

The rise of automated investing isn’t helping

Investing apps and so-called robo-advisors that automatically invest and manage your money have grown in popularity in recent years. About 30% of millennials who say they invest use a robo-advisor to do so, according to a recent survey of U.S. adults 18 to 35. But Lafferty says while these companies can make investing simple, they can also make it so investors, particularly millennials, don’t know exactly how they’re invested. And if they’re not paying close attention, they could end up investing their money in far riskier strategies than they are truly comfortable with. Betterment, for example, recommends a retirement-focused portfolio of 90% stocks and 10% bonds for a 30-year-old with a $50,000 income. Vanguard rates its similar 90/10 portfolio as having a risk potential of four out of five, with five being the highest risk category. A low-risk portfolio is considered to have up to 40% in stocks, while a moderate risk is a portfolio with 40% to 60% invested in the market. Portfolios with more than 70% invested in stocks are generally considered high-risk.

However, other robo services provide a more balanced portfolio. Fidelity Go recommends a portfolio of 70% stocks and 30% bonds for a similarly situated potential investor who responded their risk tolerance was a 5 on a scale of 1 to 10. Meanwhile, Schwab’s Intelligent Portfolio product recommends investing 65% in stocks, 24.5% in bonds, 2% in commodities and about 8.5% in cash for a millennial saving for retirement and moderately aggressive. Robo-advisors are not a bad way to invest, but millennials do need to understand how these companies are handling their money. When it comes to retirement accounts, you can ensure you always have an on-track, diversified portfolio by buying something called a target-date fund. These funds are designed as long-term investments with moderate risk and typically become more conservative as you approach retirement.

Not everyone is jumping all-in on stocks


Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: megan leonhardt
Keywords: news, cnbc, companies, water, cold, investing, lafferty, investors, stocks, investments, bucket, portfolio, risk, millennials, dont, bonds, comes, brace, market


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Impeachment is not a risk for investors — but the 2020 election is, UBS says

The potential impeachment of U.S. President Donald Trump does not pose a risk to markets, according to UBS. Last week, House Speaker Nancy Pelosi directed the House Judiciary Committee to draft articles of impeachment against the president following a series of public hearings detailing the administration’s conduct regarding foreign policy in Ukraine. Thus far, markets have shown little reaction to developments in the impeachment inquiry, and this could be down to the unlikelihood that the Repub


The potential impeachment of U.S. President Donald Trump does not pose a risk to markets, according to UBS.
Last week, House Speaker Nancy Pelosi directed the House Judiciary Committee to draft articles of impeachment against the president following a series of public hearings detailing the administration’s conduct regarding foreign policy in Ukraine.
Thus far, markets have shown little reaction to developments in the impeachment inquiry, and this could be down to the unlikelihood that the Repub
Impeachment is not a risk for investors — but the 2020 election is, UBS says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: elliot smith
Keywords: news, cnbc, companies, investors, republicans, public, impeachment, house, risk, president, election, policy, markets, senate, inquiry, 2020, ubs


Impeachment is not a risk for investors — but the 2020 election is, UBS says

The potential impeachment of U.S. President Donald Trump does not pose a risk to markets, according to UBS.

Last week, House Speaker Nancy Pelosi directed the House Judiciary Committee to draft articles of impeachment against the president following a series of public hearings detailing the administration’s conduct regarding foreign policy in Ukraine.

Thus far, markets have shown little reaction to developments in the impeachment inquiry, and this could be down to the unlikelihood that the Republican-controlled Senate will convict.

“The UBS U.S. Office of Public Policy regards impeachment as likely, as it can be passed in the House without any Republican votes, but considers a Senate conviction unlikely, as Republicans hold a majority in that chamber and a two-thirds supermajority would be needed,” UBS Global Wealth Management CIO Mark Haefele said in a note to investors on Monday.

Senate Republicans have rallied behind the president throughout the inquiry, consistently adapting their defenses in response to each piece of evidence presented by senior officials and diplomats in sworn testimonies before the House Intelligence Committee.


Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: elliot smith
Keywords: news, cnbc, companies, investors, republicans, public, impeachment, house, risk, president, election, policy, markets, senate, inquiry, 2020, ubs


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Nearly 40% of Facebook’s valuation is on the line from regulatory risk, HSBC says

HSBC said regulatory overhang is equivalent to 38.5% of Facebook’s current valuation. But HSBC said its only a matter of time before the stock prices in the real threat of privacy, regulatory and antitrust risk. The results of the regulatory crackdown, including fines and policy changes could cost Facebook almost 40% of its market value, the firm said. Trust-busting, anti-competitive fines, privacy fines, taxation, merger control and telecoms-type regulation all pose potential implications to va


HSBC said regulatory overhang is equivalent to 38.5% of Facebook’s current valuation.
But HSBC said its only a matter of time before the stock prices in the real threat of privacy, regulatory and antitrust risk.
The results of the regulatory crackdown, including fines and policy changes could cost Facebook almost 40% of its market value, the firm said.
Trust-busting, anti-competitive fines, privacy fines, taxation, merger control and telecoms-type regulation all pose potential implications to va
Nearly 40% of Facebook’s valuation is on the line from regulatory risk, HSBC says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, stock, telecomstype, regulatory, target, nearly, risk, line, share, facebook, fines, valuation, facebooks, hsbc


Nearly 40% of Facebook's valuation is on the line from regulatory risk, HSBC says

The Facebook logo is displayed during the F8 Facebook Developers conference on April 30, 2019 in San Jose, California.

Imagine $225 billion of Facebook’s $565 billion market cap was gone. That’s how much HSBC Global Strategies said is threatened by the social media giant’s dance with regulators.

The firm initiated coverage of Facebook with a reduce rating, recommending investors sell the stock. HSBC said regulatory overhang is equivalent to 38.5% of Facebook’s current valuation.

“Although it has taken time for policy makers and regulators to ready their ideas, it should now be clear they have well-advanced plans for intrusive interventions,” said HSBC senior analyst Nicolas Cote-Colisson in a note to clients.

Facebook has drawn negative attention from politicians and regulators from the U.S. and all over the world. The Federal Trade Commission, the the European Union have all announced investigations into Facebook, either on the tech giant’s practices on digital competition or concerns about its digital currency Libra. Despite the regulatory overhang, shares of Facebook are up over 50% this year. But HSBC said its only a matter of time before the stock prices in the real threat of privacy, regulatory and antitrust risk.

“In a sense, Facebook’s sheer pace of growth is becoming a risk factor in its own right, as it is likely to accelerate scrutiny and intervention,” said Cote-Colisson.

The results of the regulatory crackdown, including fines and policy changes could cost Facebook almost 40% of its market value, the firm said. Trust-busting, anti-competitive fines, privacy fines, taxation, merger control and telecoms-type regulation all pose potential implications to valuation.

“For instance, the possibility of imposition of telecoms-type regulation to make it easy for users to move to competitors,” said Cote-Colisson.

HSBC said due to the risk, growth will become more challenging, therefore consensus estimates are overly ambitious.

The average 12-month price target for Facebook on Wall Street is $238.28 per share, according to FactSet. HSBC lowered its 12-month price target for Facebook to $178 per share. Facebook’s stock closed at $198.71 on Wednesday.

—with reporting from CNBC’s Michael Bloom.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: maggie fitzgerald
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Stocks at risk of 10% drop, but health care is a ‘win-win’: Matt Maley

The date is when the Trump administration plans to put through its next set of tariffs on Chinese goods if it can’t reach a trade deal with Beijing. With the market pricing in not just a pause in tariffs, but a rollback, Maley said the risks were still brewing. He warned that stocks could pull back by 4-6% even if the Dec. 15 round of tariffs were postponed instead of canceled. So it’s kind of a win-win situation, again, after a little bit of a breather on the near term.” On the trade front, Bap


The date is when the Trump administration plans to put through its next set of tariffs on Chinese goods if it can’t reach a trade deal with Beijing.
With the market pricing in not just a pause in tariffs, but a rollback, Maley said the risks were still brewing.
He warned that stocks could pull back by 4-6% even if the Dec. 15 round of tariffs were postponed instead of canceled.
So it’s kind of a win-win situation, again, after a little bit of a breather on the near term.”
On the trade front, Bap
Stocks at risk of 10% drop, but health care is a ‘win-win’: Matt Maley Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: lizzy gurdus, stephanie landsman
Keywords: news, cnbc, companies, market, winwin, stocks, standpoint, tariffs, care, risk, bapis, drop, deal, going, trade, maley, matt, health


Stocks at risk of 10% drop, but health care is a 'win-win': Matt Maley

Talk about a positive prognosis.

While stocks could fall as much as 10% if the United States and China are unable to reach a trade deal by a Dec. 15 tariff deadline, health-care stocks are poised to rally regardless of what happens, says Matt Maley, chief market strategist at Miller Tabak.

“The Number 1 thing that would really hurt the market and knock it down 10% would be that we get no deal and they do raise the tariffs on December 15th. That’s a low probability — I even put that below 20% — but people do need to keep that out there and consider it,” the strategist said Wednesday on CNBC’s “Trading Nation.” The date is when the Trump administration plans to put through its next set of tariffs on Chinese goods if it can’t reach a trade deal with Beijing.

With the market pricing in not just a pause in tariffs, but a rollback, Maley said the risks were still brewing. He warned that stocks could pull back by 4-6% even if the Dec. 15 round of tariffs were postponed instead of canceled.

While health-care stocks, tracked in part by the Health Care Select Sector SPDR Fund (XLV), didn’t exactly surge when the stock market was sent lower by U.S.-China trade issues in May and August, they’re in a better position to climb now that some of the political noise around the sector has softened.

“[Health-care] outperformed back then in those two months by going sideways, and that’s because it … had some of these political issues surrounding the Elizabeth Warren campaign. Those have been pushed to the side,” Maley said. “And, of course, we’ve seen a huge breakout in the XLV.”

“It’s broken well above its all-time highs,” Maley added. “It is a little overbought on a near-term basis, but I believe that it’s broken out so strongly that even after … it works off that overbought condition, it’s going to rally higher … if we do have a big scare on the tariff side. But it also should rally even if the whole market moves up. So it’s kind of a win-win situation, again, after a little bit of a breather on the near term.”

The XLV closed at $99.75 on Wednesday, up nearly 1% and opened flat on Thursday.

Michael Bapis, managing director with Vios Advisors at Rockefeller Capital Management, pointed out in the same “Trading Nation” interview that while stocks have “run up quite a bit” into year-end, people are staying invested for now.

“Everybody’s hanging on the last 15 to 25 days of the year to try to lock these returns in … if nothing gets messed up going into next year,” Bapis said.

On the trade front, Bapis gave a no-deal scenario less than 50% odds, saying it “would be a disaster” if it happened.

“I think what’s more likely to happen is a neutral to very positive scenario,” he said. “Neutral [is] where we come to some agreement of a deal: The details aren’t there yet, but we’ve moving in the right direction. Super positive would be a deal and no tariffs.”

In Bapis’ book, regardless of what happens, economic growth is still intact, monetary policy is still relatively easy and “the tax law easing is starting to take effect,” all of which puts stocks in a good position regardless of trade.

“If we can remove ourselves from just this one specific topic of … trade and tariff[s], as hard as it may be, we’re in a really good position from a market standpoint, earnings standpoint, earnings growth standpoint,” he said. “So, we will be watching December 15 or prior to, if something changes before then, and I think you’re going to see a lot of volatility up until that point and there may be even more volatility after.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: lizzy gurdus, stephanie landsman
Keywords: news, cnbc, companies, market, winwin, stocks, standpoint, tariffs, care, risk, bapis, drop, deal, going, trade, maley, matt, health


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Here are the biggest analyst calls of the day: Roku, Netflix, Tesla, Alphabet, Facebook & more

Needham’s Laura Martin raised her price target on the stock and said Roku would be the “winning aggregator” of TV and films. The stock rebounded in the premarket on Martin’s call after plunging 15% on Monday following a downgrade by Morgan Stanley. “In 2020, Roku’s key upside valuation driver will be accelerating subscription SVOD revenues, which lowers investment risk, we believe. In the US, we believe YouTube is the winning aggregator of user-generated videos and Roku will be the winning aggre


Needham’s Laura Martin raised her price target on the stock and said Roku would be the “winning aggregator” of TV and films.
The stock rebounded in the premarket on Martin’s call after plunging 15% on Monday following a downgrade by Morgan Stanley.
“In 2020, Roku’s key upside valuation driver will be accelerating subscription SVOD revenues, which lowers investment risk, we believe.
In the US, we believe YouTube is the winning aggregator of user-generated videos and Roku will be the winning aggre
Here are the biggest analyst calls of the day: Roku, Netflix, Tesla, Alphabet, Facebook & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-03  Authors: michael bloom
Keywords: news, cnbc, companies, key, films, believe, tesla, alphabet, stock, analyst, aggregator, roku, calls, winning, netflix, biggest, day, facebook, youtubes, risk


Here are the biggest analyst calls of the day: Roku, Netflix, Tesla, Alphabet, Facebook & more

Needham’s Laura Martin raised her price target on the stock and said Roku would be the “winning aggregator” of TV and films. The stock rebounded in the premarket on Martin’s call after plunging 15% on Monday following a downgrade by Morgan Stanley.

“In 2020, Roku’s key upside valuation driver will be accelerating subscription SVOD revenues, which lowers investment risk, we believe. Additionally, Disney+, Apple+, Peacock/CMCSA and HBOMax/AT&T should accelerate customer acquisition spending, and Roku is a key beneficiary owing to its installed base of 32mm US connected-TV homes. In the US, we believe YouTube is the winning aggregator of user-generated videos and Roku will be the winning aggregator of TV and films. We calculate that YouTube’s U.S. revenue is valued at over $100B. We raise our Roku PT to $200, from $150, based on falling risk.”


Company: cnbc, Activity: cnbc, Date: 2019-12-03  Authors: michael bloom
Keywords: news, cnbc, companies, key, films, believe, tesla, alphabet, stock, analyst, aggregator, roku, calls, winning, netflix, biggest, day, facebook, youtubes, risk


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Here are the biggest analyst calls of the day: Roku, Netflix, Tesla, Alphabet, Facebook & more

Needham’s Laura Martin raised her price target on the stock and said Roku would be the “winning aggregator” of TV and films. The stock rebounded in the premarket on Martin’s call after plunging 15% on Monday following a downgrade by Morgan Stanley. “In 2020, Roku’s key upside valuation driver will be accelerating subscription SVOD revenues, which lowers investment risk, we believe. In the US, we believe YouTube is the winning aggregator of user-generated videos and Roku will be the winning aggre


Needham’s Laura Martin raised her price target on the stock and said Roku would be the “winning aggregator” of TV and films.
The stock rebounded in the premarket on Martin’s call after plunging 15% on Monday following a downgrade by Morgan Stanley.
“In 2020, Roku’s key upside valuation driver will be accelerating subscription SVOD revenues, which lowers investment risk, we believe.
In the US, we believe YouTube is the winning aggregator of user-generated videos and Roku will be the winning aggre
Here are the biggest analyst calls of the day: Roku, Netflix, Tesla, Alphabet, Facebook & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-03  Authors: michael bloom
Keywords: news, cnbc, companies, key, films, believe, tesla, alphabet, stock, analyst, aggregator, roku, calls, winning, netflix, biggest, day, facebook, youtubes, risk


Here are the biggest analyst calls of the day: Roku, Netflix, Tesla, Alphabet, Facebook & more

Needham’s Laura Martin raised her price target on the stock and said Roku would be the “winning aggregator” of TV and films. The stock rebounded in the premarket on Martin’s call after plunging 15% on Monday following a downgrade by Morgan Stanley.

“In 2020, Roku’s key upside valuation driver will be accelerating subscription SVOD revenues, which lowers investment risk, we believe. Additionally, Disney+, Apple+, Peacock/CMCSA and HBOMax/AT&T should accelerate customer acquisition spending, and Roku is a key beneficiary owing to its installed base of 32mm US connected-TV homes. In the US, we believe YouTube is the winning aggregator of user-generated videos and Roku will be the winning aggregator of TV and films. We calculate that YouTube’s U.S. revenue is valued at over $100B. We raise our Roku PT to $200, from $150, based on falling risk.”


Company: cnbc, Activity: cnbc, Date: 2019-12-03  Authors: michael bloom
Keywords: news, cnbc, companies, key, films, believe, tesla, alphabet, stock, analyst, aggregator, roku, calls, winning, netflix, biggest, day, facebook, youtubes, risk


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Why advisors encourage these older investors to buy more stocks

Older investors with a combination of pension income, Social Security benefits and income annuities have a measure of safety in retirement. Earlier this year, he released research that showed how a source of guaranteed income can take the pressure off an investor’s portfolio. Meanwhile, Client B has the $1 million portfolio, plus a $20,000 income stream from her Social Security benefits. Instead of viewing the investible assets and the Social Security income and pension as separate components, a


Older investors with a combination of pension income, Social Security benefits and income annuities have a measure of safety in retirement.
Earlier this year, he released research that showed how a source of guaranteed income can take the pressure off an investor’s portfolio.
Meanwhile, Client B has the $1 million portfolio, plus a $20,000 income stream from her Social Security benefits.
Instead of viewing the investible assets and the Social Security income and pension as separate components, a
Why advisors encourage these older investors to buy more stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: darla mercado
Keywords: news, cnbc, companies, stocks, advisors, portfolio, pension, social, security, risk, income, finke, investors, encourage, older, buy, million


Why advisors encourage these older investors to buy more stocks

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Staying in equities and embracing their risk and potential return just might make sense for some retirees. Older investors with a combination of pension income, Social Security benefits and income annuities have a measure of safety in retirement. “If you have a big pension and Social Security, maybe you have the ability to take more risk than you think,” said Alex Brusda, chartered financial analyst and portfolio manager at North Star Asset Management. The Neenah, Wisconsin-based firm ranked fifth on the CNBC FA 100 list. “Yes, short term they are risky, but as the time horizon increases, that market volatility goes down,” he said. “If you’re saving in the long-term, knowing that might make clients more willing to own stocks and increase their allocation.

Why more stocks

There are a number of reasons why it might make sense for a retiree to ramp up equity risk. For instance, a judicious increase in stock allocation might be worth considering if low interest rates continue to drag down fixed income investments and fail to keep up with inflation. “The outlook we have today is reasonably good, but forward-looking becomes more concerning for returns and risk,” said Matthew A. Young, president and CEO of Richard C. Young & Co. Ltd. The Naples, Florida-based firm ranked 10th on the CNBC FA 100 list.

What are you spending on? When are you planning on retiring? These are all moving pieces that can be altered. Robert Souza CFA and relationship manager at Gamble Jones Investment Counsel

“This is more fine-tuning versus going from 25% stocks to 65%,” Young said. Clients may also consider adding stocks if they plan on leaving a bequest once they die. “If you want to give to a charity or give to your kids after you pass away, what you give will likely be more impactful if you give stocks,” Brusda said. “You’re getting more growth.” Just because an investor has enough income sources to absorb the risk doesn’t necessarily mean that he or she is a good contender for higher equity allocation. “The investor might understand greater returns, but they might not like the volatility,” said Aram Schotts, a certified financial planner at Gamble Jones Investment Counsel in Pasadena, California. The firm ranked 12th among the FA 100 firms. “Other investors might have the willingness, but they can’t afford a 20% decline or worse,” he said.”

Guaranteed income to offset risk

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Rather than viewing Social Security and pensions as separate components of a client’s portfolio, advisors should view them as components of the investor’s overall fixed income allocation, according to Michael Finke, professor of wealth management at The American College. Earlier this year, he released research that showed how a source of guaranteed income can take the pressure off an investor’s portfolio. Finke modeled out three hypothetical investors, each with $1 million saved. Client A has only her $1 million portfolio. Meanwhile, Client B has the $1 million portfolio, plus a $20,000 income stream from her Social Security benefits. Finally, Client C has $1 million in her portfolio, a $20,000 annual income stream from Social Security, and $30,000 annually from her pension. Instead of viewing the investible assets and the Social Security income and pension as separate components, advisors should see them as part of one overall portfolio for the client.

That would mean estimating the portfolio value of the guaranteed income stream, be it Social Security or the pension, Finke explained. Since the investor can count on receiving these sources of income each year, it makes them comparable to the fixed income portion of the client’s holdings. As a result, Client C, who has both a pension and Social Security, really has 72% of her wealth in bond-like investments, Finke said. An investor with guaranteed income sources can take greater risk and add to her stock exposure. “Guaranteed income is going to be smooth every year, so the consequences of investment volatility aren’t as great,” Finke said.

More than risk capacity

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Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: darla mercado
Keywords: news, cnbc, companies, stocks, advisors, portfolio, pension, social, security, risk, income, finke, investors, encourage, older, buy, million


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Esports ETF creator breaks down the current state of the industry

And the creator of one esports ETF says the industry’s about to get even bigger and better. Now NERD may not have been the first esports ETF on the market – that honor goes to VanEck’s Video Gaming and Esports ETF (ESPO) — but Hershey emphasizes that NERD seeks to give investors a more pure exposure to the esports market. And despite past regulations in China, which is a major market for gaming, Hershey points out that the gaming industry is still growing at a rapid pace. “You’re talking about


And the creator of one esports ETF says the industry’s about to get even bigger and better.
Now NERD may not have been the first esports ETF on the market – that honor goes to VanEck’s Video Gaming and Esports ETF (ESPO) — but Hershey emphasizes that NERD seeks to give investors a more pure exposure to the esports market.
And despite past regulations in China, which is a major market for gaming, Hershey points out that the gaming industry is still growing at a rapid pace.
“You’re talking about
Esports ETF creator breaks down the current state of the industry Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-30  Authors: annie pei
Keywords: news, cnbc, companies, hershey, risk, industry, state, companies, breaks, thats, nerd, creator, gaming, market, current, esports, etf


Esports ETF creator breaks down the current state of the industry

It’s been a big year for esports.

Between record multimillion-dollar prize pools in Fortnite and Defense of the Ancients 2 (Dota 2) as well as research firm Newzoo’s prediction that the industry will exceed $1 billion in revenue this year, the esports hype is well and alive.

And the creator of one esports ETF says the industry’s about to get even bigger and better.

Will Hershey, co-founder and CEO of Roundhill Investments, launched the Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD) in June to give investors a way to play the esports space, especially as it continues its global expansion. Esports has historically thrived in Asia, with China and South Korea as two big regions for the industry, but the North American market has exploded in recent years.

Now NERD may not have been the first esports ETF on the market – that honor goes to VanEck’s Video Gaming and Esports ETF (ESPO) — but Hershey emphasizes that NERD seeks to give investors a more pure exposure to the esports market.

“What we’re trying to do [is] provide people that core exposure, and maybe not go outside the risk curve and look at things like Microsoft and Amazon that really aren’t getting you what we’re talking about,” he said on CNBC’s “ETF Edge.”

So while an ETF like ESPO offers exposure to a plethora of game publishers, NERD’s holdings feature the likes of media-related companies like Chinese streaming platform Douyu and hardware companies like Turtle Beach in addition to a handful of major game publishers. Over half of the 25 companies held in the ETF are from Asia including Tencent, whose ownership of major esports-related companies like Riot Games leads Hershey to describe it as “a mini gaming ETF” in and of itself.

And on the subject of Tencent, Hershey also points out that there could be one risk factor coming out of China.

“I think if you’re going to point out risk factors [for esports], I’d more look towards the regulatory environment we’ve seen in China,” he said. “We saw [regulation in 2017 and in 2018] where we actually had a ban on new games coming to market. That’s kind of one of those ancillary risks that we would point to.”

But Hershey also stresses the global nature of the NERD portfolio in mitigating possible headwinds. And despite past regulations in China, which is a major market for gaming, Hershey points out that the gaming industry is still growing at a rapid pace.

“For us it always comes back to the data,” said Hershey. “You’re talking about a gaming industry that’s $150 billion this year, growing at about 10% per year. That’s larger than the music and movie industries combined.”

“I think it’s only a matter of time before those larger investors start catching a wind of how big this industry is,” he added.

Since it launched on June 4, the NERD ETF is up over 1%.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-11-30  Authors: annie pei
Keywords: news, cnbc, companies, hershey, risk, industry, state, companies, breaks, thats, nerd, creator, gaming, market, current, esports, etf


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