Your Retirement is Funding CommunismToday's Market Sizzle: Funding blacklisted firms, high-yield profits, pension shifts, TSMC's AI success.
Happy Friday, Josh here from sunny Miami, FL! Wondering why your weekend tee times are busier than a Starbucks at 8 AM? It seems the Millennial wave has finally crashed onto the green pastures of golf communities. Once the domain of retirees seeking serenity (and sand traps), these lush landscapes are now getting a youthful makeover. What's next, hipster baristas in the clubhouses? 🤣 Your Money Funding Blacklisted Chinese Firms
A House investigation found Wall Street firms, like BlackRock, used American cash to buy shares in some Chinese companies. These companies are on the U.S. blacklist due to their ties to China's military and human rights issues. Over $6.5 billion went to these companies last year through index funds. The funds included firms like an aerospace giant and an internet security company. The House report says this isn't illegal, but it suggests Congress should stop such investments. Both BlackRock and MSCI, which creates the fund lists, said they follow U.S. laws. They can't pick which companies to leave out on their own. The U.S. is thinking of stricter rules for investing in China, especially with elections coming up. The report urges clear laws to guide U.S. investments in Chinese companies. Cash Flush Companies Score Big with Smart Savings
Companies are quickly putting their money into special savings to earn more. Since the COVID-19 hit, they have been saving a lot. Now, with high interest rates, they're saving even more. These accounts give companies over 5% interest. That's a lot! Even if the Fed lowers rates, companies plan to keep their cash in these high-interest accounts. This is because the rates in these accounts don't change fast. Big companies like Meta and Google are making a lot more money this way. Right now, companies are keeping more than half of their money in these quick access accounts. They are moving more cash into these accounts than ever before. This helps them make more money without much risk. Pensions Shift Billions to Safer Bets
Big pension funds are moving billions out of stocks and into safer things like bonds. They want to make good money without too much risk. The biggest public pension in California plans to move $25 billion away from stocks. They want to earn steady money over the next 20 years. Pension funds have about $9 trillion saved up. They need this money to pay for future benefits. Companies and governments are being careful. They don't want to lose the gains they've made. So, they're choosing safer investments. The changes mean less money in stocks and more in bonds and private stuff like real estate. This can help pensions stay strong without taking big risks. This is good for people who will need pension money later. TSMC Navigates Slow Chip Market with AI Focus
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s top chip maker, had some mixed news. They said the chip industry is picking up slower than they thought. TSMC cut its growth forecast a bit. They think they will make less from car chips this year. But, they still expect to earn a lot more money overall. TSMC is doing well because they make special chips for others. They are really good at making the newest chips for things like AI. Big tech companies need these chips for their data centers. Even though the overall chip market is slow, TSMC is set to keep growing. They plan to spend a lot of money this year to stay ahead. The AI chip business is still booming, which is good news for them. Quick Sizzles:
That’s today’s Market Sizzle! Good trading, good life. You're currently a free subscriber to Josh Belanger. For the full experience, upgrade your subscription.
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2024年4月19日星期五
Your Retirement is Funding Communism
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