News Stocks 

How trillion-dollar stock-market index funds are vulnerable to manipulation that ‘could harm American investors’

“A recent op-ed in the New York Times cautions that passive index funds may be vulnerable to bias and, possibly manipulation, as interest in those funds has ballooned over the past decade” writes Mark Decambre for marketwatch.com. Dangers may lurk in index funds, a popular area of the stock-market known for its recent and consistent record of outperformance against actively managed funds, according to experts. Nearly $6.7 trillion, or a third of those assets resided in passive funds at that time, the data provider said.Such passive ETFs track an index…

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Markets News Stocks 

Investors are reverting back to the same bad habits that doomed the stock market last year. Here’s what Morgan Stanley says they should be doing instead.

“In terms of what investors can do, Wilson says he’s keeping his highest ratings on more defensive stocks including utilities and household products makers” writes Marley Jay for businessinsider.com. “Cyclicals and expensive growth stocks are high beta and both have performed well year-to-date in what has been a broad beta rally,” he wrote.”The market is still not convinced we are out of the woods on growth concerns,” Michael Wilson said in a recent client note.But Morgan Stanley’s chief US equity strategist says investors shouldn’t get too comfortable. Source: businessinsider.com

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News Stocks 

The Fate of Bank Stocks Amid Quantitative Tightening

“Given the extrapolated performance of bank stocks, deregulation, quantitative tightening (interest-rate hikes), and a booming US economy do not seem to be having the desired effect on bank stocks” writes Finance Magnates Staff for financemagnates.com. Based on current trends, interest rates are set to rise modestly in 2019, which should propel bank stocks in the process.According to SelectUSA.gov, the financial services industry in the US comprised 7.5% of US GDP (gross domestic product) in 2017.Consider that in 2017, US financial services and insurance exports amounted to $114.5 billion.It is largely…

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Markets News Stocks 

‘Panic buying’ likely to drive stock market higher in the near term

“The surge in stocks comes as investors increasingly bet China and the U.S. will strike a trade deal in the near future” writes unknown author for cnbc.com. “Systematic trend followers that had temporarily suspended buying after the weak US retail sales print have also been compelled to follow the market by adding fresh longs.”. “It seems a ‘panic buying’ mood, with purchases by investors who had been lagging the broader market, has strengthened,” Masanari Takada, a cross-asset strategist at Nomura, said in a note Monday.Stocks could get a short-term boost…

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Markets News Stocks 

European markets struggle as investors respond to HSBC and BHP earnings

“European stocks were down on Tuesday, as investors responded poorly to earnings from HSBC and BHP Group while trade negotiations between the U.S. and China continue in Washington” writes Emily Horton for marketwatch.com. The markets mainly reacted to the latest set of company earnings from heavyweights HSBC Holdings PLC HSBC, +1.01% HSBA, -3.98% HSBA, -3.98% and the world’s largest listed miner by market value BHP Group BHP, -1.03% HSBC Holdings PLC HSBC, +1.01% HSBA, -3.98% reported lower than expected fourth-quarter profits, leading to a 3% drop in the share price.Results…

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News Platforms 

This US tech start-up helped a maker of football helmets tap investors with new VC funding platform

“Similarly, Modumetal, a start-up from Seattle, brought in $14 million through Buttonwood in funding led by Vulcan Capital” writes Callum Burroughs for businessinsider.com. “Usually companies pitch to investors one at a time before they do their own due diligence, this is the opposite now the investors are invited to opportunities at some incredible companies.”. The company raised $28.5 million in funding through Buttonwood in an oversubscribed deal that took just three months to complete.Founders must pitch their wares to investor after investor hoping to drum up enough interest in the…

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Crypto News 

Indian Police Nabbed Four for $14 Million Crypto Scam

“The police of the Indian city of Mumbai has arrested four persons alleging their involvement in a multimillion-dollar cryptocurrency scam” writes Arnab Shome for financemagnates.com. According to the Times of India’s February 17 report, the gang allegedly duped people for 1 billion rupees ($14 million) in a cryptocurrency scam.According to the report, the Mumbai police arrested four people, however, the mastermind of the scam -Ashok Goyal – is still at large. In last October, the Indian authorities busted a $3 billion crypto Ponzi scheme which even involved the kidnapping of…

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Markets News Regulators Stocks 

As Wall Street rallies on US-China trade hopes, bond investors may be worried about a recession

“However, the bond market is a different story” writes Patti Domm for cnbc.com. “The bond market is betting we are not going to see stabilization of growth, and that the China trade war drags on.”. But when you look at the bond market, Treasury yields remain surprisingly low, reflecting fears about a weakening economy and lingering uncertainty.The stock market is euphoric over the idea that a trade deal between the U.S. and China will fix the economy and boost earnings.Buyers have been jumping into both markets, and the broader stock…

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