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Surge in risky loans leaves global economy vulnerable to rate hikes, IMF warns

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“Low interest rates and surging economic growth have stoked a boom in risky lending which could turn sour as interest rates rise, potentially derailing global growth” writes Tim Wallace for telegraph.co.uk. Even low-quality borrowers are able to issue bonds at very low interest rates, the International Monetary Fund said, leading to a spike in poorly-rated bond issuance.Loans to heavily indebted or even junk-grade borrowers have also shot up – $788bn (£554bn) of so-called leveraged loans were issued last year, smashing through the pre-crisis record of $762bn in 2007. The amount…

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Markets News Stocks 

Fidelity puts 6 million savers on a risky path to retirement

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“About 6.2 million Americans have about $224 billion invested in Freedom Funds, Fidelity’s largest retirement fund franchise” writes unknown author for cnbc.com. Loporchio said such short-term swings do not reflect what Fidelity’s retirement savers will see over the long term.In the 1990s, Fidelity helped pioneer target-date funds as a prudent method to diversify investments and automatically dial down risk as participants age. Source: cnbc.com Share This:

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Crypto News 

Bill Gates: Cryptocurrency is ‘super risky’ in the long run

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“Gates also warned that the wave of speculation surrounding cryptocurrencies is “super risky for those who go long.”” writes Adam Galica for cnbc.com. Bill Gates is not a fan of cryptocurrency.”Right now, cryptocurrencies are used for buying fentanyl and other drugs, so it is a rare technology that has caused deaths in a fairly direct way.”. When a Reddit user pointed out that plain cash can also be used for illicit activities, Gates said that crypto stands out because it can be easier to use. Source: cnbc.com Share This:

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News Stocks 

Risks in tech sector grow as more investors pile in

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“On the buy-side, mutual funds under the large-cap growth category continue to favor tech stocks with overweight allocations” writes Anora M for marketwatch.com. Calvasina and her team are wary of such positioning risk and maintain a “market weight” recommendation on the tech sector.The much-beloved tech sector — up nearly 9% year to date — accounted for more than 60% of those S&P gains.Over the past 12 months, the S&P 500 is up 16.4%, while the tech sector gains are more than double that at 35%. Source: marketwatch.com Share This:

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The false fear of rising wages and risky inflation

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“If you check the Wage Growth Tracker of the Atlanta Fed, the January wage growth is actually below rates seen in 2016 and much of 2017” writes Special To The for seattletimes.com. This stagflation — slow growth and roaring price increases, the fear of all inflation hawks — wasn’t caused by workers.Not only that, but wage growth was around 5 percent in the last few years of the 1990s expansion, and inflation was tame.The long view is sobering: Since the early 1970s, the typical worker has seen wage growth of…

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Risky, short-volatility bets to get greater regulatory scrutiny, experts predict

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“Inverse volatility products allowed investors to wager that the VIX, which reflects expected volatility on the S&P 500 30 days in the future, would fall” writes Mark Decambre for marketwatch.com. As a popular bet on market calm on Wall Street imploded, capsizing mom-and-pop investors and institutional investors alike on Monday, calls for stronger disclosures of the dangers inherent in some Wall Street products have intensified.An extended period of low and falling VIX readings saw short volatility bets become one of the most lucrative and crowded trades on Wall Street. Source: marketwatch.com…

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Kids with food allergies often put at risk by their parents

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“In addition, parents of kids with multiple food allergies were more likely to report risky behaviors than parents of kids with one food allergy” writes Midwest Communications Inc for 95kqds.com. Almost half of parents of kids with food allergies reported at least one risky behavior, such as not carrying epinephrine autoinjectors or not reading food labels.(Reuters Health) – Parents of kids with food allergies often engage in behaviors that could trigger an allergic reaction in their child, a survey found.”This article highlights the barriers families in an urban setting face…

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Anthony Rapp: ‘I knew there were other Kevin Spacey accusers’

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“Anthony Rapp felt compelled to come forward with misconduct allegations against Kevin Spacey to protect others” reports hollywood.com. I think all of this is an important step to dismantle the machinery that allowed this sort of thing to continue.” Since Rapp came forward, several others have accused Spacey of inappropriate sexual behavior and British police officers are investigating three criminal complaints against the actor, who was a former director at London’s Old Vic theatre.Rapp now explains he knew that coming forward would be “risky”, but he was hoping his comments…

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Markets News Stocks 

Spotify’s risky IPO reveals a valuation crisis, not a Wall Street revolution

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“The debt investors had the right to convert the debt to stock during the IPO at a 20 percent discount” writes Chris O’brien for venturebeat.com. When Spotify’s stock starts trading, it’s going to be facing a lot of unknowns in terms of who will buy it and how much they will buy.The IPO market in the U.S. has been pretty awful the last couple of years, but it’s been particularly harsh for unprofitable companies that don’t offer a clear road to profitability.However, that debt came with some onerous terms that…

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Crypto News 

A certified financial planner explains just how risky of an investment bitcoin is

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“Lauren Lyons Cole, a certified financial planner and senior editor at Business Insider, explains the risks of investing in cryptocurrency” writes Lauren Lyons Cole for businessinsider.com.au. The bottom line is if you’re investing in bitcoin, you need to be prepared to lose everything in case that happens.And so if you are investing in bitcoin, you’ve got to know how much risk you can handle.But with an investment like bitcoin, no one really knows where it’s going to go. Source: businessinsider.com.au Share This:

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