Category: Economy (Page 1 of 2)

Credit Suisse Receives New $17 Billion in Write-offs

Market News Daily: Credit Suisse receives news $17 Billion in write-offs.
Market News Daily: Credit Suisse receives news $17 Billion in write-offs.

(Reuters) Credit Suisse said 16 billion Swiss francs ($17.24 billion) of its Additional Tier 1 debt will be written down to zero on the orders of the Swiss regulator as part of its rescue merger with UBS, angering bondholders.

FINMA, the Swiss regulator, said the decision would bolster the bank’s capital.

The central bank also helped by providing 100 billion Swiss francs ($108 billion) in liquidity assistance.

The move reflects authorities’ desire to see private investors share the pain from Credit Suisse’s troubles.

Chair Marlene Amstad said FINMA had stuck to the country’s “too-big-to-fail” banking framework in making the decision.

It means bondholders appear to be left with nothing while shareholders, who sit below bonds in the priority ladder for repayment in a bankruptcy process, will receive $3.23 billion under the UBS deal.

“It’s stunning and hard to understand how they can reverse the hierarchy between AT1 holders and shareholders,” said Jerome Legras, head of research at Axiom Alternative Investments, an investor in Credit Suisse’s AT1 debt.

Reuters reported earlier on Sunday that Swiss authorities were considering imposing losses on bondholders as part of the rescue deal.

UBS’ CEO Ralph Hamers told analysts that the decision to write down the AT1 bonds to zero was taken by FINMA, so it would not create a liability for the bank.

How Did Credit Suisse Collapse?

Market News Daily: Credit Suisse receives news $17 Billion in write-offs.
Market News Daily: Credit Suisse receives news $17 Billion in write-offs.

Credit Suisse (NYSE:CS) has gone through financial difficulties many times since its inception but has been bailed throughout its history.

“A string of scandals over many years, top management changes, multi-billion dollar losses and an uninspiring strategy can be blamed for the mess that the 167-year-old Swiss lender now finds itself in”, says Reuters.

Chairman Axel Lehmann is blaming the banks collapse on retail investors.

In an interview in Switzerland, the Chairman says “last autumn we had a social media storm” and highlights the changing environment in the market.

“Last autumn we had a social media storm and this had huge repercussions, more in the retail sector than in the wholesale sector, and too much becomes too much.

And that’s when we reached this point, it’s an accumulation of various facts that contributed to one another then materialized at some point. And this then caused the situation.”

Axel Lehmann also said they were affected by a model that “no longer works in this market environment.”

Should There Be a Limit to How Many Times a Bank Can Get Bailed Out?

The fed said in 2021 that ‘meme stocks’ pose risks to financial stability, something retail investors voiced as the most absurd thing our body of government could conclude.

Overleveraged hedge funds, infinite capital from banks, and complicit regulators have been the main cause of systemic risk.

We’re beginning to see the retail crowd become a scapegoat for our financial system’s failures — though this isn’t going to last long.

The ‘it’s retail’s fault’ card won’t carry weight in lawful request for accountability.

This card was used during the ‘meme stock’ frenzy as well when Robinhood, Citadel, and other brokerages halted trading.

Retail investors were blamed but the truth is there was a massive liquidity problem and short sellers could not afford to close their naked shorts.

The only solution was to halt trading, take short positions again, and wait for prices to fall in order to make up losses.

Regulators waived billions in collateral, bailing institutions out of a massive mess.

More and more investors are losing trust in the financial system.

Now that Credit Suisse has escaped with $17 billion in write-off, it’s now more evident that certain institutions truly are too big to fail.

But I’d love to hear your thoughts on this – leave a comment down below.

Related: “The Game is Rigged” Says Ex-Citadel Data Scientist

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Market News Daily: Credit Suisse receives news $17 Billion in write-offs.
Market News Daily: Credit Suisse receives news $17 Billion in write-offs.

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Short Sellers Are Down $81 Billion This Year

short sellers are down $81 billion this year
Market News: Short seller losses amount to $81 billion this year as stock market rallies.

Short sellers feel the pain in the stock market’s 2023 rally, says the Wall Street Journal.

The market’s comeback in 2023 has been difficult news for one group of investors: short sellers.

Short sellers profit from the declines in the market, which we saw much of in 2022.

However, the stock market has been performing surprisingly well this year despite talks of a looming recession.

The Wall Street Journal reports that short sellers are down $81 billion this year alone as the markets begin to bounce back.

“Short sellers who have incurred hefty losses are actively trimming their positions”, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.

“Investors betting against stocks have racked up $81 billion of mark-to-market losses on short positions this month through Thursday after accumulating $300 billion in gains in 2022”, Mr. Dusaniwsky said.

Experts are expecting heavily shorted stocks to squeeze as more short sellers begin to close their positions.

Is short squeeze season here?

is short squeeze season here?
Are stocks about to squeeze? Short seller losses in 2023.

Investors and analysts say the rally appears to be driven by a few things.

Signs that inflation is cooling have stoked bets among investors that the Federal Reserve will pivot from raising interest rates to cutting them as soon as the second half of the year.

That has helped risky assets across the board rise.

Especially risky corners of the market, such as stocks with high short interest, have rallied even more.

Analysts say that has likely forced short sellers to close out bearish positions to cut their losses — resulting in what is known on Wall Street as a short squeeze.

Retail favorites such as AMC stock, MULN, and others seem to have bottomed out earlier this year.

It’s very possible heavily shorted stocks such as AMC entertainment squeeze short sellers again this year.

“We’re seeing a mirror image of the performance within the equity market. The worst performers last year have been leading this year,” said David Lefkowitz, head of Americas equities at UBS Global Wealth Management. “It does look like some re-risking and short covering.”

“A lot of these stocks rallying were highly shorted, long duration names with earnings way out in the future. With a significant decline in the discount rate, those earnings are now worth more,” said Sameer Bhasin, principal at Value Point Capital, a New York-based family office.

Source(s): BlackBullMarket

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Market News Today: Short sellers feel the pain in stock market's 2023 rally.
Market News Today: Short sellers feel the pain in stock market’s 2023 rally.

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These Companies Are Facing Massive Layoffs This Year

which companies are laying off employees this year?
Market News: Which companies are laying off employees this year?

Some of the biggest companies in the U.S. are facing massive layoffs this year as well as slashing salaries for big executives.

Many employees began to get laid off since the last quarter of 2022.

However, the trend continues into 2023 as a recession looms.

The workforce is expected to shrink for majority of the year according to Bank of America economists.

“There is a slowdown happening, there is no question about it. We are expecting a fairly weak economy throughout the entire year,” said Wells Fargo CEO Charlie Scharf.

Which companies are laying off employees in 2023?

  1. PayPal – 2,000 employees
  2. FedEx – More than 10% of its workforce
  3. Ford – 3,200 employees
  4. Amazon – 18,000 employees
  5. Wayfair – 10% of its workforce
  6. Goldman Sachs – 3,200 employees
  7. Twitter – 7,700 employees
  8. Microsoft – 10,000 employees

“A recession is very likely in the U.S.,” BoFa wrote in its Year Ahead 2023 report. The bank points out that this recession can last through the third quarter of 2023.

There’s no official definition of a recession, but many economists define it as a period of two consecutive quarters of negative economic growth or gross domestic product (GDP) decline – a drop that’s already been seen in 2022, says FOX Business.

But many Americans already believe the U.S. is already in a recession.

Nearly 77% of market participants said they expect a recession in 2023 with many arguing the U.S. economy has already been in one since last year.

Do you think we will go into a recession this year?

Vote using the poll above or leave a comment down below.

1. PayPal – 2,000 employees

PayPal layoffs
Companies laying off in 2023.

The cuts account for around 7% of the company’s workforce and will take place over the next few weeks, CEO Dan Schulman said in a statement.

Schulman emphasized that the company was operating in a “challenging macroeconomic environment,” and said that while the company had made progress getting its cost structure under control, it had “more work to do.”

The CEO wrote that laid-off workers would be given severance and support after they departed the company.

“We will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultation where required, and support them with their transitions,” he wrote. “I want to express my personal appreciation for the meaningful contributions they have made to PayPal.”

Source(s): Fortune.

2. FedEx – More than 10% of its workforce

FedEx announced plans on Wednesday to cut 10% of its officer and director team, one day after PayPal, HubSpot and HarperCollins announced rounds of layoffs—making them the latest U.S. companies to reduce their head counts as recession fears linger into 2023.

The company employs approximately 547,000 people.

Employee layoffs are reported to be full-time positions with at least 90 FedEx office locations closing this year.

3. Ford – 3,200 employees

Ford Motor Co. plans to cut about 3,200 jobs across Europe, following workforce reductions in the US as the automaker slashes costs in a shift toward electric vehicles.

The European cutbacks come after Ford already eliminated 3,000 jobs primarily in the US in the second half of last year.

Chief Executive Officer Jim Farley is targeting $3 billion in cuts as he seeks to boost profits from traditional internal combustion engine models to help finance the $50 billion he is pouring into developing electric vehicles.

“We absolutely have too many people in some places, no doubt about it,” Farley told analysts in July after Bloomberg broke the news of the coming job cuts. “We have skills that don’t work any more, and we have jobs that need to change.”

4. Amazon – 18,000 employees

Amazon Layoffs 2023
Layoff News Amazon – Which companies are laying off employees in 2023?

Amazon’s 18,000-plus job cuts announced this month are being felt broadly across the company’s sprawling operations, from physical retail technology and grocery stores to robotics and drone delivery, and even in cloud computing.

That’s according to a spreadsheet created after the layoff announcement by an employee, who has encouraged those affected to submit their information for use by recruiters. The database, which was circulated widely on LinkedIn, provides a window into the businesses hit with layoffs.

CEO Andy Jassy wrote in a blog post in early January that “several teams” were impacted but that the cuts would primarily be centered in Amazon’s worldwide stores and human resources divisions.

Beyond that, the company provided scant details on where downsizing would take place in 2023.

5. Wayfair: 10% of its workforce

Wayfair’s stock price jumped more than 20% last Friday after the retail giant said it will let go of roughly 1,750 employees, or 10% of its global workforce, to support company-wide cost reductions.

The announcement marks Wayfair’s second round of job cuts in less than six months since the retailer let go of about 5% of its workforce in August.

Executives expect the two rounds of layoffs will save $750 million a year, according to a press release.

6. Goldman Sachs – 3,200 employees

Goldman Sachs Layoffs 2023
Which companies are laying off in 2023?

Goldman Sachs said on Jan. 17 it had laid off around 3,200 employees as part of a headcount reduction, per Reuters.

The bank said its board had awarded Chief Executive David Solomon compensation of $25 million for his work in 2022, compared with $35 million the previous year.

This comes to a reduction of approximately one third.

Morgan Stanley also paid less to Chief Executive James Gorman, though only by 10%. 

Bank of America, one of the largest banks in the U.S. is also preparing to trim its workforce in an effort to cut expenses over fears of a looming recession.  

7. Twitter – 7,700 employees

Twitter had laid off 7,700 employees after the Musk takeover.

The company plans to lay off 50 workers in the social media site’s product division in the coming weeks, news site Insider reported on Wednesday, citing two people familiar with the company.

The layoffs, which come six weeks after top boss Elon Musk reportedly told staff that there would not be further retrenchment, could reduce the company’s headcount to under 2,000, according to the report.

However, Elon Musk also confirmed Twitter would be hiring some at some point to which he did not specify in 2023.

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8. Microsoft – 10,000 employees

The job cuts, which amount to less than 5 percent of the company’s work force, are its largest in roughly eight years.

Microsoft on Wednesday became the latest addition to a growing list of big technology companies that have announced plans to lay off employees because of over hiring during the pandemic and worries about the economy.

The company will lay off 10,000 workers, Satya Nadella, Microsoft’s chief executive, said, as it looks to trim costs amid economic uncertainty and to refocus on priorities such as artificial intelligence.

Microsoft employed about 221,000 workers as of the end of June, and the cuts amount to less than 5 percent of its global work force.

JPOW says no recession

Jerome Powell said on Wednesday’s FOMC day to expect soft layoffs but no recession.

Powell says that the disinflationary process has started, stating he’s confident inflation back down to 2% is possible, but this means keeping rates higher for a longer period of time.

The fed says it expects the economy to have positive but suppressed growth in 2023, at least +1%.

I’m curious to hear your thoughts on the economy this year.

All signs point to a recession, is the fed prolonging official announcements?

Leave a comment below.

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Goldman Sachs Lays Off 3,200 Employees and Cuts Salaries

Goldman Sachs Layoffs
Market News: Goldman Sachs layoffs exceed more than 3,000 employees.

Goldman Sachs said on Jan. 17 it had laid off around 3,200 employees as part of a headcount reduction, per Reuters.

The bank said its board had awarded Chief Executive David Solomon compensation of $25 million for his work in 2022, compared with $35 million the previous year.

This comes to a reduction of approximately one third.

Morgan Stanley also paid less to Chief Executive James Gorman, though only by 10%. 

Bank of America, one of the largest banks in the U.S. and one of is preparing to trim its workforce in an effort to cut expenses over fears of a looming recession.  

Recession 2023

bank of america
Bank of America recession news | Goldman Sachs lays off 3,200 people.

Bank of America said in December it is expecting a recession to hit the U.S by the first quarter of 2023.

There is a major slowdown happening says CEO Brian Moynihan.

Economists are now expecting a volatile market to persist in 2023.

A recession may be coming in the first quarter of 2023, according to forecasts by Bank of America (BofA) economists.

“A recession is very likely in the U.S.,” BoFa wrote in its Year Ahead 2023 report. The bank points out that this recession can last through the third quarter of 2023.

There’s no official definition of a recession, but many economists define it as a period of two consecutive quarters of negative economic growth or gross domestic product (GDP) decline – a drop that’s already been seen in 2022, says FOX Business.

More than half or 56% of Americans believe the country is in a recession, according to a recent poll by YouGovAmerica and The Economist. 

“There is a slowdown happening, there is no question about it. We are expecting a fairly weak economy throughout the entire year,” said Wells Fargo CEO Charlie Scharf.

Additional source(s): Reuters.

Market News Published Daily

Market News Today – FrankNez News, Business News + more.
Market News Today: Goldman Sachs lays off 3,200 people – Goldman Sachs Layoffs.

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Where Is the Stock Market Headed in 2023?

Where is the stock market headed in 2023.
Stock Market News: Where is the stock market headed this year?

Where is the stock market headed in 2023? For many of us, the bear market of 2022 was the first bear market we’ve ever experienced.

I’ve been invested in the stock market since 2019, but many of my readers began investing in 2021.

In 2021, many experienced their first bull market, and it was incredible.

So, what can we expect from the market in 2023?

Let’s look at the S&P 500 index and see what experts are saying.

SPY Stock at A Glance: Will Stocks Keep Going Down?

SPY stock (S&P 500) is currently trading in a channel where we may still see the market retest $400.

Breaking below this channel allows us to identify a strong probability of SPY dropping as low as $322.

See the figure below.

SPY Stock (S&P 500) downtrend channel.
SPY Stock (S&P 500) downtrend channel.

This drop in share price means the stock market will plunge to retest its macro channel.

If price breaks below this channel, the U.S economy may experience a much larger market crash.

A bounce on the trendline may momentarily move the market back up until it retests its highest level on that channel.

A break above this channel could eventually bring the stock market up later in the year.

But why not in the beginning of 2023?

Bank of America and Wells Fargo CEOs are expecting a recession to hit the United States during the first quarter of the new year and subside sometime in the last quarter.

Elon Musk recently sold 22 million shares of the company cashing in approximately $3.6 billion earlier in December, stating that he’s preparing for a ‘serious’ recession.

A recession would likely trigger further selloffs causing the market to crash.

But what are other experts saying?

What Are Experts Saying About the Stock Market?

what are experts saying about the stock market
What are experts saying about the stock market?

While technical analysis shows us the stock market is in a downtrend channel, experts are saying a recession will have a great impact on the continuation of a bear market in 2023.

Dan Raju, CEO of Tradier, a brokerage platform says, “The Fed’s obsession with recession will likely result in more interest rate hikes in the first quarter of 2023, which means that we are going to have continued volatility in the financial markets.”

“Two-in-three economists are forecasting a recession in 2023, yet corporate earnings estimates haven’t come down to reflect that,” says Greg McBride, CFA, chief financial analyst, Bankrate.

“If the economy continues to slow and quarterly earnings calls in January reveal a dour outlook for the year, corporate earnings estimates will be marked down and the market could have a renewed tumble.”

Related: Worst and Best Performing Stocks of 2022

“We feel that going into the fall, the stage will be set for a strong recovery from the 2022-2023 cyclical bear market,” says David Keller, president and chief strategist at Sierra Alpha Research.

“If and when a market bottom emerges in the first half of 2023, we’d be looking to technology as a fantastic long-term opportunity, given the heavy drawdowns since late 2021.”

How Can Retail Investors Navigate These Waters?

where are stocks headed in 2023.

The markets aren’t coming down forever, in fact analysts are predicting a recovery sometime in the 3rd quarter of 2023.

Retail investors may always take advantage of these market lows by adding to their portfolios before we begin to see the stock market take off again.

It’s important to remember that bear markets usually last about 9.6 months on average where bull markets tend to last around 2.7 years.

So, while this bear market might drag on a bit longer, it merely gives investors opportunity to buy low.

What are some stocks you plan on buying in 2023?

What are some of your favorite stock picks for the new year?

Leave a comment down below.

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Wells Fargo Fined $3.7 Billion in Widespread Illegal Activities

Market News: Wells Fargo fined $3.7 billion in widespread illegal activities.
Business News: Wells Fargo fined $3.7 billion in widespread illegal activities.

[ZeroHedge] Wells Fargo has been ordered to pay $3.7 billion by the Consumer Financial Protection Bureau (CFPB) for a variety of illegal activity, including wrongfully foreclosing on homes, illegally repossessing vehicles, incorrectly assessing fees and interest, and charging surprise overdraft fees.

The settlement, which includes the largest fine ever imposed by the Consumer Financial Protection Bureau, allows the bank to resolve claims that it had harmed millions of consumers since 2011.

Wells Fargo’s yearslong mistreatment of its customers has resulted in another record-breaking fine and a warning that more restrictions on its ability to do business could soon follow, per The New York Times.

On Tuesday, the bank agreed to pay $1.7 billion in penalties and another $2 billion in damages to settle claims that it engaged in an array of banking violations over the last decade that harmed millions of consumers, the Consumer Financial Protection Bureau said.

The latest developments contribute to a picture, years in the making, of Wells Fargo as one of America’s worst-run big banks.

For decades, the 170-year-old bank has struggled to fix its practices despite run-ins with regulators, even as employees and customers continued to identify new problems.

The consumer protection bureau said Wells Fargo did not record customer payments on home and auto loans properly, wrongfully repossessed some borrowers’ cars and homes and charged overdraft fees even when customers had enough money to cover purchases they made with their bank cards.

Wells Fargo stopped the conduct this year as part of a larger effort to clean up other unlawful practices stretching back to 2011, the filing said.

Wells Fargo Criticism

Wells Fargo News Today.
Wells Fargo News Today.

The fine is the largest ever imposed by the regulator, breaking a previous record of $1 billion, also set by an action against Wells Fargo.

It brings the total penalties the government has levied against the bank for mistreating customers and investors to $6.2 billion since 2016 and almost $20 billion since the financial crisis.

The settlement is the latest development in a series of a crises that led to the ouster of two of the bank’s previous chief executives, John G. Stumpf in 2016 and Timothy Sloan in 2019.

Mr. Sloan took the top post to help clean up the bank’s reputation, which was reeling from self-inflicted scandals, but he became a lightning rod for criticism and was replaced after three years on the job by Charles W. Scharf.

The consumer protection bureau’s director, Rohit Chopra, told reporters on Tuesday that the action against the bank “should not be read as a sign that Wells Fargo has moved past its longstanding problems or that the C.F.P.B.’s work here is done.”

As part of its settlement with the regulator, Wells Fargo has begun repaying customers, returning improperly charged fees and offering some financial relief to those whose finances and credit ratings were hurt by the bank’s practices.

Related: Bank of America Expects a Recession by Q1 of 2023

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Source(s): ZeroHedge, The New York Times


SPY Stock Continues to Make Lower Lows and Lower Highs

Market Trend: The S&P 500 (SPY Stock) continues its downward trend.
Market Trend: The S&P 500 (SPY Stock) continues its downward trend.

Looking at the SPY for the year and we see that the market continues to make lower lows and lower highs.

SPY stock took a big hit on Wednesday during JPOW’s speech, dropping from $405 to as low as $396.

The index closed at $399.40 but continues to be on a downward trend.

Zooming out to the full year and we see the SPY started off in January at $477 per share.

By the end of the first quarter, we see a high of $461 per share and a low of $417 per share.

In June, we see a low of $365 and a peak of $426 by the third quarter of 2022, in August.

This fourth quarter, SPY stock had a low of $348 in October, and a high of $414 in December.

SPY Downtrend Chart - Franknez.com.
SPY Downtrend Chart – Franknez.com.

Will The Stock Market Go Up Soon?

Will the stock market go up soon? Will stocks go up?
Will the stock market go up soon? Will stocks go up?

Based on the current trend we’re seeing from the S&P 500, it doesn’t seem like the market is ready for a bull run anytime soon.

Buyers failed to break the downward trend as seen in the figure above which means the probability of sellers coming in again is high.

In terms of the economy, inflation is still high at 7.11% and mass layoffs have been seen with DoorDash, Amazon, Facebook (META), Twitter, Netflix, Carvana, and many other companies.

Although JPOW said the U.S economy is currently not in a recession, both Bank of America and Wells Fargo CEOs expect a recession to hit the country during the first quarter of 2023 with some sort of light at the end of the tunnel by Q4.

“While retail payments surged 11% so far this year to nearly $4 trillion, that increase obscures a slowdown that began in recent weeks: November spending rose just 5%,” Bank of America’s CEO Brian Moynihan said.

Wells Fargo CEO Charlie Scharf said, “there is a slowdown happening, there is no question about it. We are expecting a fairly weak economy throughout the entire year (2023).”

If this happens to be the case, today’s bear market may drag out through the majority of the new year.

Leave Your Thoughts Below

Do you see this downtrend in the stock market continuing throughout 2023?

Leave your thoughts below.

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Bank of America Expects a Recession by Q1 of 2023

Market News: Bank of America and Wells Fargo CEO expect a recession in 2023.
Market News: Bank of America and Wells Fargo CEO expect a recession in 2023.

Bank of America is expecting a recession to hit the U.S by the first quarter of 2023.

There is a major slowdown happening says CEO Brian Moynihan.

Economists are now expecting a volatile market to persist in 2023.

A recession may be coming in the first quarter of 2023, according to forecasts by Bank of America (BofA) economists.

“A recession is very likely in the U.S.,” BoFa wrote in its Year Ahead 2023 report. The bank points out that this recession can last through the third quarter of 2023.

There’s no official definition of a recession, but many economists define it as a period of two consecutive quarters of negative economic growth or gross domestic product (GDP) decline – a drop that’s already been seen in 2022, says FOX Business.

But many Americans already believe the U.S. is already in a recession.

More than half or 56% of Americans believe the country is in a recession, according to a recent poll by YouGovAmerica and The Economist. 

Here’s the latest market news.

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Major Slowdown in Economy Points Towards a Recession

Recession News: Bank of America expects a recession in 2023.
Recession News: Bank of America expects a recession in 2023.

While retail payments surged 11% so far this year to nearly $4 trillion, that increase obscures a slowdown that began in recent weeks: November spending rose just 5%, Bank of America’s CEO Brian Moynihan said.

Even Wells Fargo CEO Charlie Scharf is saying, “there is a slowdown happening, there is no question about it. We are expecting a fairly weak economy throughout the entire year.”

American consumers are tapping the brakes on spending as the Federal Reserve’s interest rate increases reverberate throughout the economy, according to the CEOs of two of the largest American banks.

After two years of pandemic-fueled, double-digit growth in Bank of America card volume, the rate of growth is slowing.

Still, the downturn isn’t being felt equally across all retail customers and businesses, Wells Fargo’s CEO said.

Both Wells Fargo and Bank of America CEOs expect a recession by Q1 of 2023 and expect some sort of light at the end of the tunnel by Q4.

The implications of a recession end up affecting majority of the U.S. economy as corporations and businesses struggle to yield market capital in slow-growth conditions.

Wages are affected, unemployment skyrockets, and the banks get left with massive debt when Americans can no longer afford to pay their credit card bills or mortgages.

Do you think we will officially enter a recession in the beginning of 2023?

Leave your thoughts below.

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Source(s): FOX Business, CNBC.


How Can the Average American Pivot in a Recession?

Recession

Read the full article here 👈


Is Now the Time to Buy or Sell in The Market?

is now the time to buy or sell in the market
Franknez.com | Stock market news + more.

The markets seem to be nowhere near a bounce as both stocks and crypto freefall; is now the time to buy or sell in the market?

If you’re part of the small percentage that’s in profit, maybe liquidating has come through your mind.

Especially if you’re looking to protect your capital and wait for other opportunities.

But what if your portfolio has suffered significant losses?

Is it best to cut your losses and conserve whatever cash you have left?

This article is going to provide you with perspective on ways to not only protect your cash during this nasty bear market, but also how to identify opportunities to multiply your wealth.

Let’s dive right into it.

Should You Buy or Sell?

should you buy or sell in the market.
Should you buy or sell in the market.

Whether you should buy or sell in today’s market conditions will depend on how liquid you are and on your future and current investment plans.

Value investors looking to add stocks to their long-term portfolios could benefit from buying the markets lows, though it’s important to keep in mind that the markets are still susceptible to fall.

Dividend stock investors could also benefit from buying these lows.

Diversified investors who are looking for the next opportunity may want to liquidate positions to have cash ready when the time is right for the next move.

Whether that be waiting for real estate opportunities or other markets to tumble, this will highly depend on an individual’s needs.

With so much uncertainty in the markets at the moment, the best thing investors can do is create a plan to guide their investment goals in the right direction.

Identify what you’re aiming to achieve when investing in the market.

Is it long-term capital gains?

Income?

And decide what it is you need to do now in order to meet your investment needs.

Bitcoin Falls Under $16K, Crypto Down

Crypto News. Bitcoin news.
Crypto News: Bitcoin News.

Bitcoin (BTC) fell under $16K on Wednesday.

Peter Schiff warned investors in a Twitter space call to sell Bitcoin today as the cryptocurrency could be headed towards lower levels.

The economists said he does not own any Bitcoin but urges holders to buy back in after a market collapse occurs in the crypto space.

On the other hand, FTX is causing a ruckus as the token falls more than 90% in the past 7 days with nearly 60% happening in the last 24 hours.

FTX investors include:

  • BlackRock
  • Ontario Pension Fund
  • Sequoia Paradigm
  • Tiger Global
  • SoftBank
  • Circle
  • Ribbit
  • Alan Howard
  • Multicoin
  • VanEck
  • Temasek

In recent crypto news, Binance backed out from saving FTX leaving the crypto on the brink of collapse.

FTX CEO Sam Bankman-Fried said that without more capital, bankruptcy is likely.

Related: How to Buy Cryptocurrency for Beginners

Stock Market Rains Blood

Is now the time to buy in the bear market?
Is now the time to buy in the bear market?

Stocks continue to bleed as the Fed struggles to maintain economic structure and institutional investors liquidate the market.

The NASDAQ and SPY have seen improvement in the past month, but economists, CEOs, and media influencers say the market has plenty of room to drop.

Stocks fell sharply on Wednesday, a day before CPI announcements.

Poor consumer reports could cause stocks to fall sharply again.

Traders should trade with caution.

With inflation affecting millions of families and corporations such as Netflix, Facebook (META), Twitter, and Tesla laying off tens of thousands of employees, a recession looms.

Whether you decide to buy or sell in today’s markets will ultimately depend on how liquid you are and whether you’re prepared to face a highly likely recession in the coming months to year.

Creating a plan and identifying what you can and cannot do financially as turmoil hits the economy is your best bet of riding this wave.

Do you plan to buy or sell in the market today?

Leave your thoughts down below.

Related: How to Buy Stocks for Beginners

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How Can the Average American Pivot in a Recession?

Recession 2023
Want to become recession proof? Here are some steps you can take.

An economic downturn, a recession, call it what you will.

The U.S. economy is in a state of emergency and the average American is suffering financially.

From stock and crypto market crashes to the rise of gas prices and increased inflation, the middle class is in desperate need of help.

The problem is no one is teaching the middle class how to pivot.

Cutting back on expenses isn’t going to do it, you can only cut so much.

This article is going to help you identify several ways to pivot during a recession so that you can take care of your family during economic hard times.

Let’s get started.

Shifting Mindset from Defense to Offense

how to prepare for a recession.
How to prepare for a recession.

During a recession, most people tend to contract, they tend to shrink (cut expenses, coupon, etc.).

Very few, however, expand and look for high reward opportunities.

It’s these opportunities that allows the few to shift their mindsets from defense mode to offense mode.

A defense mindset is idle, waiting for the government to do something about their financial setbacks (job loss, cut hours, lost pension funds, market crashes, etc.).

An offense mindset on the other hand is identifying how to keep up and overcome the changes occurring in their environment.

While most people focus on the things that are out of their control, few focus on the things that are within their control.

If you’re reading this blog, chances are you’re being impacted by our economy today and want to make more money.

Who doesn’t want to make more money?

Money is how we ensure our family’s security and wellbeing in America.

If you want to learn how you can pivot in today’s falling economy by earning more money, keep reading below.

Learn How to Use Leverage and You’ll Never Fall Short Again

how to use leverage
How to prepare for a recession.

We all have the same 24hrs in a day, but do you want to know why successful people make more money than the average person?

It’s not because they work harder than you or because they’re smarter than you.

It’s because they use leverage.

Leverage is a multiplier of both time and money.

What would have taken you decades to accomplish, leverage gets it done at a fraction of the time.

Leverage is accessible to everyone, including you.

But we don’t grow up with mom and dad teaching us this.

So, what are some forms of leverage you can take advantage of as soon as you exit this blog article?

Let’s dive right into them.

Leverage Tools to Help You Make Big Money

#1. Building Your Dream Business

Small business recession
@easymarketingconcepts

Starting a business around your hobby, passion, or skills has the potential to create that world you desire.

How does leverage play a role in building a business?

Think about this for one second.

If you work a 9-5 or commission job, you the employee are generating income for the leader of that organization and getting paid per hour or per sale to do so.

However, if you’re the business owner of a small business or startup, all revenue goes to your business account.

The leverage here is you’re now using your time to build something that will generate positive cashflow instead of giving it away for an hourly wage or commission.

If you don’t have the capital to start a new business, you can always use leverage by taking out a business loan and incrementally paying it back as your business picks up.

Using the banks money to make money is the proper way to leverage someone else’s capital to your advantage.

#2. Day Trading

how to make money during a recession

If you’re already invested in the stock market, then you’ve more than likely heard of day trading.

Day trading uses one of the biggest leveraging tools out there, the stock market/derivatives market.

Here, traders will require intense discipline in order to execute their trades with profit.

Day trading is certainly not for everyone, but if making hundreds of dollars to thousands of dollars per day sounds appealing, you can learn more about it here.

The incredible thing about trading the market is that traders can learn how to make money whether the stock market is booming or crashing.

This means that as long as you’re able to develop the skills necessary to become a consistently profitable trader, you will be able to pivot in a recession and actually make money while most of the economy faces turmoil.

Going on the offense means learning new skills and getting out of your comfort zone to be successful at something outside your 9-5.

franknez day trading

You can follow my personal trading journey on Instagram or Twitter.

#3. Monetizing a Platform

How to prepare for a recession.

Americans are monetizing on Facebook, TikTok, Instagram, YouTube and other platforms such as blogs and podcasts.

If the idea of creating content at scale intrigues you, monetizing a platform could be a great leverage tool for you.

The bigger you grow your audience, the more income you may earn from advertising revenue, affiliate marketing, sponsored content, or other streams.

But the key here is to provide real world value that can help your audience in one form or another.

My blog for example has helped thousands of people invest in the stock and crypto markets for the first time.

Retail investors were able to profit big from investments such as Bitcoin, Shiba Inu Coin, Terra Classic, AMC, and HYMC from early ticker updates on Franknez.com.

Those who took advantage of the information came out profitable before the markets began to tank.

But not everything has to be educational – many creators are publishing content on pretty much any niche that people find interest in.

A platform will help you pivot in a recession by working 24/7 for you.

How to Prepare Personal Finances for a Recession?

In terms of your personal finances, you’ll want to allocate a good chunk of your income into a savings cash account you can build in case of an emergency.

If your income is booming during a recession, consider investing in the S&P 500 index or in rental property.

Many opportunities will present themselves in times of an economic downturn, and when they do, we better be ready.

Becoming Recession-Proof

recession proof
How to prepare for a recession.

Becoming recession-proof is really about taking action.

It’s about creating something or developing new skills that will allow you to overcome any hardships that come your way during economic adversity.

Living paycheck to paycheck is hard, learning new skills is hard, building something new and getting out of our comfort zone is hard, so choose your hard.

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Read: Stocks Retail Investors Can Buy to Build Wealth This Decade

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