The U.S. Treasury Secretary, Janet Yellen, said that she hasn’t determined whether the Federal Reserve should establish a digital version of the dollar. Such a move would require widespread congressional, central bank, and White House support.
In a Reuters Next conference interview, Yellen said that more research was required on the merits and downsides of a central bank’s digital currency and its effects on the financial system. “I see both benefits and drawbacks to doing so. And I’m still undecided on the subject. “Yellen expressed this.
According to Yellen, a Fed report on the subject is due shortly, and the central bank recognizes that consensus is required to go further.
According to the Treasury secretary, the matter has not been considered “serious way” at the White House, which led the Federal Reserve from 2014 to 2018. Congress will also have to weigh in, he added.
Oil Prices Rise as OPEC+ Leaves the Door Open for a Quick Plan Change:
After a choppy trading day on Thursday, the West Texas Intermediate finished up 1.4 percent. After the producer group indicated it would keep its meeting open to change plans on short notice if required, futures rebounded from their 4.8 percent drop in the morning. It’s an extraordinary measure that highlights the bleak outlook in the face of a rising epidemic.
Traders had expected OPEC+ to postpone the 400,000 barrel per day supply increase, as fears of the omicron coronavirus variety hurting demand grew. Prices have recently fallen into a bear market, and Germany announced substantial coronavirus limitations as the group gathered, highlighting the threat to demand.
In a Bloomberg Television interview, Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd., remarked, “The brilliance decision was keeping this meeting open.” “You won’t have the courage to sell against that.”
Since late October, oil has plunged more than 20% due to a White House-led coordinated reserve release and, more recently, a new virus type. The Federal Reserve’s more hawkish tone also impacts the U.S. economy’s growth prospects. Existing viral medications will function against omicron, which is a big question that has yet to be solved.
Still, some believe the reduction in oil prices has been exaggerated. According to Goldman Sachs Group Inc., prices are sure to rise, as OPEC+’s decision to proceed with planned production increases on Thursday would not disrupt an “ongoing structural bull market.” Bank of America Corp. maintained its $85-per-barrel prediction for 2022, with a potential additional $100 if air traffic recovers.
The latest price drop has extended down the futures curve. The crucial Brent Dec.-Red-Dec. Spread, which traders use to speculate on the market’s health, is its lowest since February. Options markets have also been shaken, with volatility reaching new highs not seen since May of last year.
Separately, talks to resurrect the Iran nuclear deal are also underway. According to local media, officials from the nation submitted recommendations for the process of lifting sanctions, albeit there is no evidence of a deal to restore supplies to the market anytime soon.
Meanwhile, the United States is sticking to its guns on the reserve sale. The Energy Department stated that there are no plans to adjust the date or volume of the announced 50 million barrel release.
When these four stocks provide ‘easy money,’ Jim Cramer says buying the tech downturn is a mistake:
Many companies, notably in the technology sector, are trading significantly below their 52-week highs following last week’s omicron-triggered selloff. But, as Jim Cramer points out, doing the obvious and purchasing the decline on your favorite tech firms might mean missing out on “easy money.”
“I’d rather unearth businesses that did well throughout earnings season but were unfairly trampled in the last few weeks because they weren’t part of the Nasdaq stampede,” Mad Money host Jim Cramer said last week on his show. “That way, if something goes wrong, you can always go back to the essentials, which are still vital, and buy more.”
The following are Cramer’s four stock selections for this market turnaround; any of them may be a good buy if you’re investing for free. Like its financial sector counterparts, Morgan Stanley enjoyed a strong bull run from November to August.
However, shares haven’t sustained that upward trend in recent months. “This firm has done everything properly throughout this period,” Cramer continues, “but the price has been hammered due to the inane rotation out of the financials.”
He pointed out how the investment banking behemoth was trading at just 12 times earnings, which he deems a bargain in today’s market, particularly when contrasted to the Nasdaq’s high-flying tickers. For “Aeons,” Centene has been one of Cramer’s favorite health insurers. Centene stock is up 17.6% in 2021, below the S&P 500’s 28.5 percent year-to-date return.
Nonetheless, Cramer claims that because Centene mostly runs government-run health insurance, any expansion of Medicare or Medicaid, which the Biden administration favors, would “benefit massively” the company. According to management, revenue for the whole year is expected to range between $125.2 billion and $126.4 billion.
Suppose you’re not confident about Cramer’s recommendations or choosing specific stocks in general. In that case, certain investment firms can put together a blue-chip portfolio for you using spare cash from your daily shopping.
Johnson & Johnson’s stock has been down nearly 12% since its August high, and its newly announced intention to split into two firms hasn’t helped the stock price much. Nonetheless, Cramer loves the healthcare behemoth for its current dividend yield of 2.7 percent.
He also emphasizes JNJ’s pharmaceutical business’s potential if it separates its consumer products section. “The pure-play drug firm that remains will be the universe’s fastest-growing major pharma corporation.” “It should be a market darling right now,” he predicts.
E-commerce was already one of the fastest-growing market categories, and the pandemic-induced stay-at-home climate further increased the popularity of online buying. Freight businesses like UPS, according to Cramer, are what make e-commerce feasible in the first place.
Last month, UPS had a good month financially. In the third quarter, total sales grew 9.2% year over year to $23.2 billion. In the meantime, adjusted profits per share increased by 18.9% to $2.71.
Cramer is pleased since the company’s management has predicted a solid Christmas quarter. “With the railways on fire,” he says, “I expect UPS to catch fire as well, a fire that will rage for days, if not weeks, through the Christmas holiday.”
The stock of UPS is now trading at around $200 per share. However, by using standard software that allows you to acquire fractions of shares for as little as $5, you may still own a piece of the company.
Stock selection is complex, and even specialists like Cramer don’t get it right every time. If you’re looking for a way to invest in something with a lot of upside potential but minimal link to the stock market’s ups and downs, fine art is a good option.
According to the Citi Global Art Market chart, over the last 25 years, modern art has outpaced the S&P 500 by a whopping 174 percent.
Investing in Banksy and Andy Warhol’s fine art, for example, was once reserved for the super-rich. Like Jeff Bezos and Peggy Guggenheim, you can now invest in great artworks through a new investing platform.
European stocks are expected to post gains at the end of a choppy week:
European markets edged higher on Friday, with gains generally restrained ahead of the U.S. monthly employment data, as investors purchased firms battered by worries over the Omicron variation.
On concerns over the possible impact of a newly discovered coronavirus variation on economic recovery, the pan-European STOXX 600 rose 0.1 percent after fluctuating between losses and gains all week. “Investors hope the variation doesn’t turn out to be too severe, while deep sell-offs are viewed as a good opportunity.”
The market outlook has been clouded by additional limitations owing to the new model and spiraling pricing pressures ahead of the winter, so European equities are poised to close the week with small gains. On the other hand, Lagarde repeated her belief that inflation will fall in 2022, even if it has already peaked.
All eyes are on the U.S. jobs report, which is expected to show firms increased hiring in November, providing a significant boost to the economy despite workforce shortages. According to an IHS Markit poll, eurozone company activity expanded last month. Still, the increase may only be temporary as demand growth slowed and worries over the Omicron coronavirus strain dampened confidence.
Travel stocks rallied 1.3 percent following further curbs, recouping last week’s steep losses. After OPEC+ stated it might evaluate supply additions ahead of its next meeting if the virus dampens demand, oil stockpiles rose 1.2 percent, matching crude prices.
Allianz, a German insurer, rose over 2% after raising its mid-term objectives and announcing a new dividend policy. After U.S. private equity company Advent International and Singapore’s sovereign wealth fund announced they were dropping their bid for Swedish biotech Orphan Biovitrum (Sobi), the stock fell 22.8 percent.