US Factories Fuel Ukraine WarMarket Sizzle: Texas fuels Ukraine, Credit spreads widen, boomer candy, hospital job cuts.
Frustrated with Google searches? You’re not alone. More folks, including myself, are turning to Reddit for answers. This social network, which went public in March, has 82.7 million daily active users diving into subreddits for real talk and genuine reviews. While Reddit might not be a stock tip, it sure beats wading through SEO-clogged Google results. Texas Ammo Fuels Ukraine War
The U.S. is boosting ammo production due to Ukraine's conflict. U.S. Army Secretary Christine Wormuth asked if Russia had Turkey's technology for making artillery shells. The Turkish firm said no. The Pentagon is spending $6 billion to update old plants and build new ones. General Dynamics is using advanced machines to speed up production. Before Russia invaded Ukraine, the U.S. made 14,000 shells a month. Now, they aim for 100,000 by 2025. Ukraine uses many 155mm shells daily, fired from U.S.-made M777 howitzers. The new Texas plant will help reach this goal, with production starting this fall. The effort also includes making critical materials in the U.S., like explosives and semiconductors. Expanding domestic manufacturing depends on foreign tools and supply chains. The new plant near Dallas is modern and quiet, unlike older, noisier U.S. shell factories. Boomers’ Sweet Investment Secret
Baby boomers are flocking to new funds to ease market swings. These funds, using derivatives, offer extra dividends or loss protection. Even with good inflation news boosting stock indexes, investors have put billions into these funds. The most popular strategy, "equity premium income," invests in large-cap stocks while selling options. This can give dividends of 8% to 10%, but it also caps gains and has high fees. Buffer funds protect against some losses but limit gains too. Experts call these funds "boomer candy." Boomers still love stocks, fearing they’ll miss out on returns. The S&P 500 has gained over 980% since March 2009, while bonds returned 50%. Some funds offer 100% downside protection under certain conditions. New rules make it easier for asset managers to use derivatives. The largest actively managed ETF, JPMorgan’s Equity Premium Income, launched in 2020, now has over $33 billion in assets. More investors are using these once-exclusive strategies. Corporate Bonds Panic
U.S. corporate bond spreads are widening due to political worries. Investors are nervous about France’s elections and the U.S. debt market. The spread, showing the difference between corporate and safer government bonds, hit its highest in over three months at 96 basis points. People are moving to U.S. Treasuries, seen as safer, after good inflation news. This month, Treasury yields dropped to 4.269% from 4.554%. Corporate debt saw a selloff with $31.4 billion in deals, more than expected. Experts say it's too soon to decide if this selloff is a buying chance or a new trend. The situation might clear up after the French elections. Hospital Price Hikes Kill Jobs
Rising healthcare prices hurt U.S. wages by causing job losses. When hospitals raise prices, companies cut workers to manage higher costs. Higher hospital prices push up health insurance premiums. Companies respond by laying off workers they can’t afford. This was found in new research. Hospital mergers often lead to higher prices without better care. The study tracked changes after 300 mergers from 2010 to 2015. When hospital prices rose 1%, unemployment rose too. Layoffs harm communities, reducing tax revenue and increasing unemployment costs. Areas with strong hospital market power saw bigger price hikes and job losses. Efforts to control hospital prices include transparency rules and blocking mergers. Employers, economists, and policymakers are pushing for limits on price growth. The hardest-hit workers earn between $20,000 and $100,000 a year. They face higher layoff risks because of health insurance costs. Lower-paid workers often have Medicaid, avoiding similar risks. Quick Sizzles:
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2024年6月24日星期一
US Factories Fuel Ukraine War
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