Month: January 2022

Stock Market Today: Stocks Enjoy Stellar End to Woeful January

January 2022 will still go down as a turbulent and loss-ridden month for stocks, but at least it ended on a high note.

A relatively quiet news weekend followed by little in the way of fresh economic data gave investors little to go on Monday, but the session was peppered with a host of individual relief rallies.

  • SEE MORE The 15 Best Growth Stocks to Buy for 2022

Most notable was the S&P 500’s seventh-largest holding, Tesla (TSLA), which popped 10.7% thanks to Credit Suisse analysts, who upgraded the stock to Outperform after it lost 20% in January.

“With the market disproportionately punishing growth stocks in the past month, we believe an attractive entry point has emerged for Tesla,” said CS analysts, adding that Tesla checks off a number of boxes: attractive growth story, disruption, decarbonization and more.

Netflix (NFLX, +11.1%), Moderna (MRNA, +6.2%), PayPal (PYPL, +5.2%) and Nvidia (NVDA, +7.2%) were among other recently beat-up stocks that closed the month with a rebound.

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The S&P 500 gained 1.9% Monday to 4,515, leaving it down 5.3% for the month. That marks the index’s worst January since 2009, and the worst month for stocks overall since March 2020. The Dow Jones Industrial Average (+1.2% to 35,131) finished January off 3.3%, and the Nasdaq Composite (+3.4% to 14,239) trimmed its full-month losses to 9.0%.

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YCharts

Other news in the stock market today:

  • The small-cap Russell 2000 also roared back Monday, jumping 3.1% to 2,028.
  • U.S. crude oil futures surged 1.5% to settle at $88.15 per barrel.
  • Gold futures gained nearly 0.6% to end at $1,796.40 an ounce.
  • Bitcoin recovered some ground over the weekend and into Monday, improving by 1.9% to $38,484.05. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) 
  • Spotify (SPOT) jumped 13.5% after the audio streaming service over the weekend said it would start adding content advisories to podcasts that contain information about COVID-19. This comes after several musicians, including Neil Young, pulled their music from Spotify to protest podcaster Joe Rogan from spreading misinformation about COVID-19 on his show “The Joe Rogan Experience.” SPOT was also upgraded to Buy from Neutral by Citigroup analysts.
  • Barclays analyst Benjamin Theurer issued a double uptrade on Beyond Meat (BYND, +15.2%) stock today, raising his outlook on the plant-based protein maker to Overweight from Underweight (the equivalents of Buy and Sell, respectively), saying there are “more positives than negatives” in the U.S. alternative meat product market. BYND already has several high-profile partnerships, including with drinkmaker PepsiCo (PEP) and Taco Bell parent Yum! Brands (YUM). And earlier this month, McDonald’s (MCD) said in February it will boost its test market for BYND’s plant-based burger by another 600 locations.

A Weak Environment for IPOs, But …

Market pundits generally predict more volatility ahead, but that doesn’t mean investors should write off 2022.

  • SEE MORE 15 Bitcoin ETFs and Cryptocurrency Funds You Should Know

“Market corrections are a normal part of investing and may present opportunities for value-conscious investors,” say Jason Pride and Michael Reynolds, CIO of private wealth and vice president of investment strategy, respectively, at investment firm Glenmede. “Growth should continue in 2022, albeit at a slower yet still acceptable pace consistent with an ongoing expansion.”

One area of the market desperately looking for signs of normalization and stability is initial public offerings (IPOs). Last year marked a banner year for IPOs, with more than a thousand companies raising roughly $316 billion, according to financial markets platform Dealogic. However, increased volatility slowed IPOs to a crawl in the latter part of 2021, and the slowdown extended into January.

Nevertheless, once the IPO gears start moving again, investors should be able to gain access to several exciting, well-known names. Here, we outline 11 companies widely expected to launch IPOs in the year ahead.

  • SEE MORE 2022’s Best Mutual Funds in 401(k) Retirement Plans

Owner-Financed Homes: What You Need to Know

Owner-Financed Homes: What You Need to Know

Looking to get into a home but can’t qualify for a traditional mortgage? You may want to look at owner financing. Owner-financed homes aren’t very common, but they have some benefits for unique buyer and seller situations. Owner financing bypasses a traditional mortgage when the seller takes on the role of lender, but seller financing […]

The post Owner-Financed Homes: What You Need to Know appeared first on SoFi.

Shop an Ethnic Grocery Store to Save Money, Try New Foods

Mom-and-pop ethnic grocery stores are a common sight on big-city street corners, peddling exotic fruits and cuts of meat. These days, they’re also increasingly found outside of major metro areas. Pan-Asian, Middle Eastern or Latin markets may be the most common, but you’ll find markets dedicated to a single nationality, be it Indian, Korean, Serbian, […]

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Do You Qualify for Any of February’s Class-Action Settlements?

Big brands such as Godiva, Tinder, Acura, and Benecol are offering benefits to consumers thanks to class action lawsuit settlements. The February deadlines for filing claims in these settlements are fast approaching, so read on to find out if you qualify. There are more claims than usual deadlining in the first week of the month. […]

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

I stayed at a luxury ranch in Montana — and I didn’t want to go home – The Points Guy

I took a step out of my comfort zone recently when my husband and I vacationed at a luxury ranch in Montana. Living in the Bay Area and not considering myself

Will Travel Insurance Pay for a Trip Cancelled Because of COVID-19?

COVID-19 has made planning ahead a gamble, especially when it comes to travel. It seems every time the virus seems to be on the wane, a new variant and maybe even a sub-variant emerges to launch a renewed attack. News and even rumors can rattle nerves and scuttle travel plans.

How do you plan to travel in this environment? Would you lose your money if you’re forced to cancel a trip?

  • SEE MORE 22 Secrets to Save Money on Travel

For more and more people, the solution is to buy travel insurance for their trips in the hopes of being reimbursed should they have to change or cancel. But not all travel insurance covers all pandemic-related cancellations.

Knowing possible pitfalls can help you decide what’s best for your wallet, your ability to plan a trip and whether you should buy travel insurance.

Sometimes, travel insurance is mandatory

In some instances, it’s not even a choice. Several countries, including Costa Rica and Egypt, as well as some travel providers, like cruise lines, are requiring travel insurance in one form or another. This can be especially true for unvaccinated travelers. This ensures you won’t become stranded, unable to pay for your medical care, extended stay or evacuation should you contract or be exposed to COVID.

The limitations of standard travel insurance have expanded the appeal of a previously obscure upgrade to standard travel insurance known as “cancel for any reason” (CFAR). This option, while significantly more expensive, is more likely to cover the sort of cancellations that COVID has made commonplace. 

According to travel insurance aggregator Squaremouth, Inc., travel insurance policies with a CFAR add-on typically must be purchased within two to three weeks of the first payment towards the covered trip. An exception is that certain policies that cover only cruises offer CFAR at any time before a final payment is made for a trip. 

Standard travel insurance limits pandemic claims

Megan Moncrief, chief marketing officer for Squaremouth, said CFAR has become the go-to plan for more travelers, “When the pandemic hit, it became really the main piece that could offer any coverage.”

Traditional travel insurance, she explained, doesn’t cover the majority of pandemic-related claims. Moncrief said in a review done by Squaremouth, only 30% of such claims were made by people who actually contracted COVID-19 and had to cancel their trips. This is the only type of pandemic claim that would be covered by most standard travel insurance policies. The remaining 70% of claims were for other reasons, including border closures and quarantines, and thus excluded — though generally would be covered by CFAR. 

And COVID-19 continues to be a primary reason for travel insurance purchases. According to Squaremouth data, nearly 37% of all searches on its site for travel insurance cited the pandemic as reasons for coverage as recently as Jan. 28, 2022. The second most-popular search filter used on the site: Cancel for any reason at nearly 15%. In contrast, hurricane and weather were searched less than 3% of the time.

Overall demand for travel insurance has increased during the pandemic, according to AAA, which says a recent survey found that 31% of U.S. travelers saying they’re more likely to purchase it for their trips planned between now and the end of 2022. A standard travel insurance policy typically adds 5% to 10% to the cost of the trip, according to Mark Friedlander, director of corporate communications for the Insurance Information Institute. Adding CFAR on top of that will raise the cost 40% to 60%. And, depending on the policy, the payout for a CFAR claim can be as low as 50% of the loss, experts said. This marks a decrease from policies before the pandemic, which could reimburse 75% to 90% of the loss.

  • SEE MORE Once the Pandemic Recedes, Where Will the Real Estate Investment Opportunities Be?

Moncrief said that prior to the pandemic, her company was “slow to recommend” cancel for any reason because of the expense. Then, it accounted for less than 4% of sales, she said. Now, it’s about 12% of sales, down from a high of 17% in January. AAA advises travelers to consider policies that include a CFAR component.

“Any reason” is not always “any reason”

“As a purchaser of travel insurance, make sure you understand what you are buying and what the policy covers and what the policy does not cover,” Friedlander cautioned. “No policy has 100% of everything.”
Travel insurers have made a number of adjustments in response to the pandemic. At the beginning, Moncrief said, travel policies didn’t cover medical care for pandemic illnesses. But that quickly changed, and now, if a traveler becomes ill with COVID, it’s covered.

By contrast, insurers now demand their customers first seek reimbursement from the travel service provider, such as an airline or cruise company, that cancelled before filing an insurance claim.
Sometimes, she said, an airline might want to give credit rather than reimbursement. She said insurers will encourage travelers to seek reimbursement before considering whether to provide coverage for such an event.

  • SEE MORE 5 Travel Stocks to Buy in a Tricky Environment

Friedlander noted that different insurance policies will contain different provisions, and “cancel for any reason,” doesn’t necessarily mean “any reason.” He stressed the importance of reading and understanding the provisions of a policy before purchasing it.
Moncrief gave examples of some insurers’ exclusions on CFAR policies:
iTravelInsured Travel LX, TravelSafe Classic and Seven Corners RoundTrip Choice and RoundTrip Basic all have the following language: “This Cancel for Any Reason benefit does not cover the failure of the travel supplier to provide the bargained-for travel arrangements due to cessation of operations for any reason.”

  • Travel Insured International: WorldWide Trip Protector: “This Cancel for Any Reason benefit does not cover penalties associated with any travel arrangements not provided by retail travel supplier or the failure of retail travel supplier to provide the bargained-for travel arrangements due to cessation of operations for any reason.”

An alternative: travel medical insurance

Charlie Leocha, president and cofounder of Travelers United, an advocacy group, said he typically doesn’t buy standard travel insurance unless he’s planning a particularly expensive, all-inclusive trip. “If you’ve got an expensive product, it can be a good deal,” Leocha said. “All insurance is a great deal if you get sick and can’t go on the trip and that’s why you buy it.”

Leocha said he buys travel medical insurance policies each year, which cover up to six trips and up to six weeks per trip. He said his annual policies cost about $260.

These policies cover his medical needs when he is overseas and also cover his return home. For the rest of his travel, he says he self-insures. What that means is he makes arrangements that are reversible. In other words, he mostly buys refundable airline tickets or hotel reservations that can be canceled at the last minute for any reason without paying a penalty.
This can be difficult, he said, because every airline has different rules, particularly when it comes to travel credits. Some airlines require they be used in 90 days, others might give you a year or six months.

Leocha said his organization is working with the Federal Department of Transportation to implement a pandemic rule requiring airlines to all have the same rule so it won’t be so confusing for travelers. “I’ve been pusing like mad to have all the flight credits have the same expiration dates,” he said. “The airlines have been fighting us tooth and nail.”
This paid off for him recently when he was scheduled to go to Spain. A few weeks before the trip, he took a COVID test in preparation for a get-together with friends. When the test came back positive, he needed to postpone his Spain trip.

Because he wasn’t locked in by any of his arrangements, Leocha said, he was able to make the necessary changes and was only out about $50 when everything was said and done.

“Self insurance is one way to do it,” Leocha said. “Probably the most expensive way to do it is get ‘cancel for any reason’ insurance.”

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