Week InReview
Friday | Jun 3, 2022
|
|
'I’ll take meme stocks! Invest!' |
|
The Securities and Exchange Commission’s Office of Investor Education and Advocacy on Wednesday unveiled a game show-themed public service campaign to help investors make informed investment decisions and avoid fraud. Recognizing that sometimes investing may look and feel like a game, the campaign titled “Investomania” reminds investors to do their due diligence when making investment decisions.
One of the goals of the Investomania campaign, which features a 30-second TV spot, 15-second informational videos on crypto assets, margin calls, and guaranteed returns, and interactive quizzes, is to reach existing, new, and future investors of all ages. The campaign encourages investors to research investments and get information from trustworthy sources to understand the risks before investing. The campaign also reminds investors to take advantage of the free financial planning tools and information on Investor.gov, the SEC’s resource for investor education.
Check out the 15-second videos:
Crypto – In the video, a celebrity encourages investors to take their advice and buy crypto-assets. The video is intended to remind investors not to be tempted by celebrity endorsements and to do their own, independent research when making investment decisions.
Easy Money – This video reminds investors that there are no guaranteed financial returns on investments and that every investment – no matter how good it may sound – has a risk.
Margin – This video warns investors that borrowing money to invest can be very risky.
|
|
While individuals have warned about the safety and reliability of digital assets, the letter to U.S. politicians marks a more organized effort to challenge the impact of crypto advocates who want to resist attempts to regulate the sector. FT montage | Bloomberg | Dreamstime |
|
A group of renowned technologists has joined forces to urge U.S. lawmakers to crack down on the burgeoning cryptocurrencies industry, marking the first concerted effort to counter well-financed lobbying by blockchain companies. (Financial Times | Jun 2)
Shocks to the system
A top Goldman Sachs executive has echoed Jamie Dimon’s pessimistic tone, warning of tougher times ahead amid a string of shocks rattling the global economy. President John Waldron said: “The confluence of the number of shocks to the system to me is unprecedented.” His comments come a day after JPMorgan CEO Dimon warned of an “economic hurricane” ahead, while BlackRock CEO Larry Fink said he expects inflation to remain elevated for several years. Meanwhile, the Federal Reserve’s Vice Chair Lael Brainard said the case for a September pause in interest rate hikes was “very hard to see.”
They are creations of easy credit, beneficiaries of central bank largesse. And now that the era of unconventional monetary policy is over, they’re facing a challenge like never before. They are America’s corporate zombies, companies that aren’t earning enough to cover their interest expenses, let alone turn a profit. (Bloomberg Markets | May 31)
A $5.5 trillion bond market supporting the U.S. mortgage industry is being roiled by fears it will be hit in the Fed’s battle against inflation. Analysts worry that Fed sales of existing bonds could flood the market, driving down prices and pushing yields higher as bond investors demand more compensation to lend money. (The Wall Street Journal | May 31)
With the cryptocurrency world’s luminaries having joined globetrotting elites at Davos – and punters swept up in the market crash suffering sleepless nights – it’s time for regulators to reflect on the real-world impact of the next boom-and-bust crypto cycle. (Bloomberg - opinion | May 30)
|
|
Treasury curve can narrow if jobs add to case for higher rates |
|
(Jun 2) — The jobs data Friday may narrow the Treasury yield curve.
A gain anywhere around the consensus projection of 323,000 jobs will feed expectations for Fed rate hikes, which will help buoy short-term yields.
In the longer end, bonds can benefit from speculation that higher rates will curb both inflation and yields. The 10-year TIPS break-even rate is down from its April highs. Average hourly earnings are expected to ease a little from a year ago.
Ten-year Treasuries still offer a premium of about 1 percentage point over the average of their G7 peers, which makes them relatively attractive. The notes may even offer a haven if healthy data add to the outlook for higher rates and send stocks down.
Source: Wes Goodman | Bloomberg Government
|
|
Illustration: Efi Chalikopoulou | FT |
|
Cyber attackers: if you can’t stop them, disrupt them
For decades, companies have bolstered their cyber defences in a bid to thwart intruders. But while this work will always continue, firms are increasingly confronting the reality that it takes only a small slip-up, or an unnoticed flaw, for hackers to be able to get inside their systems. And then what? So, in a shake-up of approach, many businesses are now focusing on how to mitigate cyber attacks — on the assumption that a breach is inevitable.
Cyber defense confidence ebbs as ransomware attacks multiply
Despite Washington’s recent attempts to expand cybersecurity rules and disrupt hacking gangs, ransomware continues to proliferate and executives report unease about their companies’ ability to ward off the threat.
Cyber insurance policies grow pricey amid rising hacks, lawsuits
An uptick in data breach litigation and skyrocketing costs tied to ransomware attacks and other cybercrime are making it more difficult – and more expensive – for companies to secure insurance policies that help them cover financial hits.
|
|
A train platform at Newark Penn Station in Newark, N.J. In a Gallup survey last summer, 52% of those who want to work remotely listed avoiding commuting time as a top reason. Photo: Gabby Jones | Bloomberg News |
|
Dreaded commute to the city is keeping offices mostly empty
It isn’t the office that workers heading into the city despise. It’s the commute. The Covid-19 pandemic led to a surge in remote work, emptying out office towers as more people worked from home. Cities with longer commutes have taken the biggest economic hit, while urban areas where people live closer to work have a higher return-to-office rate.
A summer of flight cancellations
Even if your flight remains on the schedule, data from flightaware.com indicate you’re almost twice as likely to be delayed this year compared with last year. Through May 23, 22% of flights by the seven largest U.S. carriers experienced delays, with an average wait of 45 minutes. That compares with 12% for the same period of 2021, with flights last year being delayed an average of 41 minutes.
5 habits that slowly chip into your productivity levels
You roll over and hope that the incessant sound of your alarm will shut off. It does, but only for five minutes until it reminds you once again that it’s a work day, and yes, getting up is required. As you drag yourself to the coffee pot, you wonder: What happened?
|
|
|
|
|
|
|
