Blogs y opiniones de economia en ingles

For Californians, raising rents is a must due to AB 1482. Single family rentals may be exempted from the law but your contracts must include specific language. For multifamily rentals, failure to adequately raise rents will absolutely catch up to you when you go to sell. For those who are unaware, appraisers use three methods for determining value: cost, sales and income. Naturally, for income producing multifamily residences, the income approach is most applicable – search Cap Rate. Don’t fall asleep at the wheel, treat your investment property as a investment.

TikTok Bans Cryptocurrency And Financial Services Promotional Content From Its Platform

In a move that is likely going to sever off a large portion of its content (and we're certain has nothing to do with the Chinese government), TikTok is now banning financial services, pyramid schemes and cryptocurrencies from its platform. 

So much for the number one source where most "investors" get their financial advice nowadays...

The move comes after "users were warned against taking financial advice from TikTok videos over concerns it could be misleading, particularly for younger savers," according to Yahoo! News. 

Financial services and products were added to TikTok's "globally prohibited industries" list, alongside "lending and management of money assets, loans and credit cards, buy now pay later services, trading platforms, cryptocurrency, foreign exchange, debit and pre-payment cards, forex trading and pyramid schemes," the report says.

Anthony Morrow, co-founder of financial advice service OpenMoney said: “...the real proof of TikTok’s commitment to cleaning up its act will be in how it enforces the policy to ensure that banned content is identified and removed quickly.”

“We know that social media influencers are fuelling demand for day trading and unregulated investments like cryptocurrencies by talking up the potential returns without explaining the enormous risks involved,” he continued.

And the move is meaningful for TikTok in terms of content views: posts labeled #bitcoin have received 4.4 billion views and those labeled #cryptocurrency have received 1.5 billion views. The report says that the #investment hashtag has received 790 million views, and the hashtag #stockstobuy has received 447 million.

Morrow commented that people should get advice from someone “who’s properly qualified to talk about the options," Yahoo reported.

In an obvious nod to apps like Robinhood and TikTok, the UK's Financial Conduct Authority noted earlier this year that young people were "getting involved in higher risk investments, potentially prompted by the accessibility offered by new investment apps".

The authority concluded that "there is evidence that these higher risk products may not always be suitable for these consumers’ needs as nearly two thirds (59%) claim that a significant investment loss would have a fundamental impact on their current or future lifestyle."

Tyler Durden Sun, 07/11/2021 - 14:00

Majority Of Americans Now Believe COVID Was Leaked From Wuhan Lab, New Poll Finds

Authored by Paul Joseph Watson via Summit News,

A new Politico-Harvard study finds that a majority of Americans now believe COVID was leaked from the Wuhan lab, underscoring again the danger of empowering ‘fact-checkers’, media outlets and Silicon Valley to censor information.

The poll found that 52% of Americans believe the lab leak hypothesis, once derided as a fringe “conspiracy theory,” including 59% of Republicans and 52% of Democrats.

Bipartisan support for the theory is highly unusual, with poll designer Bob Blendon commenting, “Usually, our polls find a big split between Republicans and Democrats, so this is unique.”

“The Politico-Harvard study shows that what was once covered by liberal media as a far-right fake news story is now broadly accepted on a bipartisan basis,” reports the Daily Mail.

“By contrast, in March 2020 just 29% of Americans accepted the lab leak theory.”

Indeed, for many months the media and social media networks characterized the whole idea as a dangerous conspiracy theory and those who promoted it were censored and deplatformed.

In June 2020, Vice President Kamala Harris even claimed Donald Trump’s advocacy of the theory represented “racist and xenophobic rhetoric against Asian Americans and Asian immigrants directly puts their lives at risk.”

As we previously highlighted, Dr. Peter Daszak, President of the EcoHealth Alliance, a group that has extensive ties to the Wuhan lab gain of function research, thanked Dr. Anthony Fauci for dismissing the lab leak theory early on in the pandemic.

Daszak was also tasked by Facebook with ‘fact-checking’ (censoring) information related to the hypothesis, while Google, which via YouTube also censored information about the theory, also funded Daszak’s virus research.

The Wuhan lab leak issue once again underscores how ‘fact-checkers’, media outlets and Silicon Valley giants shouldn’t be handed monopoly power to dictate reality.

By blacklisting content related to the lab leak theory up until just a few months ago, those entities may well have been complicit in facilitating one of the biggest cover-ups in modern history.

*  *  *

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Tyler Durden Sun, 07/11/2021 - 13:30

I started investing in rentals 15 years ago with one, paid for with life savings, and invested 100% of the profits ‘compound interest style’ into other rentals as they came along, paying cash for all. I now have 17 rentals all paid for, with a net value of 2.7 mil due to appreciation. (way) Over six figures net in passive income aint bad either
The best thing I ever did was hire a >Quality< property manager to manage them. They are out there, but require some detective work to find a really good one that works for you. Most just collect the rents, send you the rest, and you can get stuck real easy. My current manager only charges 10%, but for that fee they get 100% of my headaches!! NEVER,EVER let the tenant know you are the owner, or they will use that against you anytime they want special treatment, lower rent, etc. Trust me on this one, it will save you lots of headaches, late night phone calls, litigation and in the end, money.
Remember, this is a business, not a hobby or a social program. It is designed to make you money. Rent increases are just a part of the game, a necessary part of doing business.

Related Stocks: OTCM,

Goldman Has Three Questions For Companies During Q2 Earnings Season

2Q earnings season kicks off next week when the big banks kick off reporting as usual, and consensus expects 2Q EPS growth of 61% year/year, driven by a combination of base effect, 22% sales growth and 256 bps of net margin expansion to 11.1% even though the median stock is forecast to grow EPS by a more modest 24%. Compare this to one year ago, when S&P 500 EPS fell by 32% as the pandemic sparked a sharp recession. Cyclical Industrials, Consumer Discretionary, and Materials sectors are forecast to lead the index in EPS growth.

In 2Q 2020, Brent crude traded at an average of $33/bbl and Energy stocks posted an aggregate net loss. Oil prices averaged $69/bblin 2Q and Energy firms are expected to return to profitability.

Like last quarter, Financials are expected to be the primary driver of S&P 500 EPS growth. In 1Q, Financials represented $3 of the total $9 EPS beat versus consensus expectations. Financials EPS are forecast to grow by 116% in 2Q and account for 25% of S&P 500 EPS growth. Most banks analysts expect results to come in largely in line with consensus after adjusting for reserve releases. Capital markets activity has normalized following the strong pace in 2020 and 1Q 2021. However, large reserve releases will boost EPS for the third quarter in a row and could drive up to 18% EPS uplift for Banks by year-end. Though investors are not likely to reward these beats outright since releases are non-recurring, analysts expect that the market will pay for the capital return that could result from the earnings tailwind and the recent CCAR results.

Another notable point: while consensus expects S&P 500 EPS to grow by 61%, the median stock is only forecast to grow earnings by 24%.

The greater rebound in aggregate earnings is largely a function of the base effect, or the sharper decline in earnings in 2020; the median S&P 500 stock saw its EPS fall by just 12% year/year in 2Q 2020 compared with the 32% decline in aggregate earnings. The five largest stocks in the index (FB, AMZN, AAPL, MSFT, GOOGL) account for 22% of market cap and 14% of S&P 500 2Q 2021 EPS. Despite last year’s acute 2Q economic contraction, these firms actually posted average EPS growth of 38% and are still expected to grow earnings by an average of 52% in 2Q 2021.

In his preview of Q2 earnings season, Goldman's chief equity strategist David Kostin - who expects the S&P to close the year at 4,300 or -0.5% lower from Friday's record close - focuses on three questions for managements this earnings season:

1. How will firms preserve profit margins amid input cost pressures?
2. How will companies prioritize their cash spending as balance sheets recover?
3. How does ongoing policy uncertainty affect the business outlook? Rates have plunged and high “quality” themes are outperforming.

Digging a little deeper

• 1. How will companies preserve margins amid input cost pressures? S&P 500 margins notched a record high of 11.9% in  1Q 2021, though investors remain focused on the forward margin outlook given rising input costs. Global shipping woes, raw material inflation as well as acute shortages in both labor and semiconductors have combined to increase costs for companies across the by raising prices and passing higher input costs to their customers. During Q1 calls, many companies discussed price increases and this trend will likely continue during 2Q earnings. Alternatively, with SG&A as a share of sales elevated versus history, companies can also preserve margins through cost cutting. As an example, General Mills announced last week that it faces some of the highest costs in a decade and will implement a mix of both cost cuts and price increases.
• 2. Investors have started to reward companies with attractive margin profiles. According to Goldman, profit margins are the second most important driver of company valuations today, behind only equity duration. The bank's sector-neutral factor of stocks with the highest vs. lowest profit margins has also started to outperform. Other “quality” factors such as strong vs. weak balance sheets and high vs. low returns on capital have also inflected higher since early June.

• 3. How will companies prioritize their cash spending as balance sheets recover? Both aggregate and median S&P 500 cash / assets ratios have rebounded and now stand at record levels, driven in part by record high corporate bond and follow-on equity issuance during the last 18 months. And while leverage remains elevated versus history, it has been falling as corporate profits have started to improve. Info Tech and Consumer Discretionary hold the highest cash / asset ratios of any sectors and account for 43% of total S&P 500 ex-Financials cash.

For what it's worth, Goldman expects capex will represent the largest share of S&P 500 cash use in 2021, but forecasts the fastest year/year growth will be in cash M&A and share buybacks. After a 10% decline in cash spending in 2020, the bank forecasts that high cash balances, anemic yields as well as strong economic and earnings growth will combine to drive 19% growth in cash spending in 2021 ($2.8 trillion) and 6% in 2022 ($3 trillion). Investing for growth (capex, R&D, and cash M&A) should account for 55% of total cash spending in 2021. High cash balances, record buyback authorizations, and excess capital for Financials post-CCAR should also drive a 35% rebound in buybacks in 2021. Indeed, data from the bank's buybacks desk show that US corporates have authorized $627 billion in buybacks YTD, the second-fastest pace on record (only behind the tax reform aided level in 2018) and 155% above 2020 levels

In terms of preferred trades, Kostin highlights a screen of stocks with above-average net margins, realized margin growth of 50+ bp in 2020, and expected margin growth of 50+ bp in each of the next two years.

The median stock has a 2021E net margin of 26% (vs. 13% for S&P 500 median) and is forecast to grow margins by 306 bp through 2022 and (vs. 156 bp for median stock).

Tyler Durden Sun, 07/11/2021 - 13:00

My husband and I are debt free (paid off the house early a couple of years ago). Now, we are building our future retirement home on land we have owned for several years. The plan was to originally stay in our paid off home but soon realized that one story living and a more energy efficient home was better for us. Our current home is over 100 years old, renovated 25 years ago but now needs many updates. It is not the most optimal time to build due to the expense of materials and labor but we will be able to do some of the work ourselves to save on the costs. So the biggest decision will be to decide how much of the proceeds from the sale of our current home we will put towards the new mortgage and the loan term we will take out. I have changed my tune on a paid off mortgage with interest rates so low.

In reply to wiselyunwise.

I don’t know the solution to this, it is much easier to recognize a problem than to have the answer. The only thing that comes to mind is Great Depression era infrastructure spending, but rather on homes. The added benefit of this would be providing new skills to laborers who can become contractors in their own right.