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Tag: selling

Posted on May 21, 2022

Is PayPal Safe? [11 Tips to Buy and Sell Safely on PayPal]

Is PayPal Safe? [11 Tips to Buy and Sell Safely on PayPal] | Mint

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credit card or bank information to other users. 

Is PayPal safe for sellers?

PayPal is designed to be safe for both buyers and sellers. All information that is communicated between your device and PayPal’s servers is secured and encrypted as long as the network you’re using is secured. 

  • Paypal security in public: It’s riskier to use PayPal on public Wifi, like at a library or restaurant, as others on the network might be able to gain access to your information (though this is still difficult).
  • Paypal security at home: When using PayPal at home on your own WiFi network, sellers can rest assured that the platform is safe. 

In fact, PayPal fraud is pretty uncommon — accounting for only about 0.32% of revenue. 

PayPal seller protection 

PayPal has a number of seller protection protocols in place to make sure that merchants feel safe and confident using their platform. Here are a few of the PayPal protection measures sellers can expect:

  • Transactions only require a username and password, so no financial information is revealed during transactions. 
  • PayPal offers 24/7 monitoring on all transactions.
  • PayPal uses advanced machine learning and encryption techniques to secure each transaction.
  • They provide Merchant Fraud Protection, so you can contact PayPal directly if something suspicious appears on your history. 
  • They will help you resolve disputes by putting holds on transactions until the issue is solved. 
  • PayPal allows you to securely operate in 202 countries, so you’re not just restricted to your own currency. 

PayPal scam prevention tips for sellers

There are a few measures that you can take to prevent scams as a seller, especially if it comes to a disputed transaction where you must prove to PayPal that you have been wronged:

  • Always use a service like UPS or USPS, so there is documentation that you delivered the item. 
  • Require an e-signature for purchases. 
  • Ensure that all items you sell are clearly explained and described — this avoids customers feeling they have been misled. 
  • Prioritize customer service; if you respond to customer complaints, they are less likely to have an issue with your business. You can also demonstrate to PayPal that you have been on top of buyer complaints. 

If you’re new to ecommerce, be sure to read our longform guide that contains everything you should know about how to sell online. 

Is PayPal safe for buyers?

PayPal isn’t just secured and encrypted for sellers; it’s also a secured platform for buyers, too. PayPal works to ensure that transactions are secured on both ends, so neither party is likely to be victim to PayPal fraud or a scam. 

PayPal buyer protection

PayPal is serious when it comes to buyer protection. They know that their users count on them to facilitate fast, effective, and safe transactions. To ensure this, they have put into place a set of security measures that protect buyers from scams, fraud, and theft:

  • PayPal does not share your financial information with sellers.
  • They offer 24/7 monitoring on all transactions.
  • PayPal uses encrypted security technology on both buyer and seller’s ends to ensure a secure transaction.
  • They offer PayPal fraud protection, and allow you to flag certain transactions as suspicious.
  • If you do have a dispute with a buyer or potential fraudster, PayPal offers dispute resolution, putting a hold on funds until the issue is resolved.
  • PayPal facilitates transactions in countries across the globe, making it possible to purchase things from other countries securely. 

How to make a safe PayPal transaction

While PayPal may offer plenty of security protocols to its users, ultimately, it’s also users’ responsibility to ensure they use the platform in a secure manner. There are a few tips to keep in mind if you plan on purchasing online. The best way to make PayPal safe for yourself as a buyer is to follow a few safety guidelines:

  • Use a credit card rather than a debit card. There are two main reasons for this:
    • First, if there is a disputed purchase, and PayPal won’t refund you, you can still contact your credit card company to see if they will intervene.
    • And second, if someone has gained unauthorized access to your PayPal account, they won’t be able to empty out your bank account if your account is connected to a credit card. 
  • Use a safe password. This goes without saying on any internet account, especially ones that contain sensitive financial information.
    • A good password should have a mix of uppercase and lowercase letters, numbers, and other characters (such as @, &, #, or others).
    • This is one of the best identity theft protection moves you can make.
  • Regularly update software. For instance, if you use the PayPal app on your phone, it’s important to regularly update it.
    • Older versions are more susceptible to hacks, as they lack the most up-to-date security features that PayPal regularly adds to its software.
  • Avoid making financial transactions on public WiFi. You can’t always avoid it, but when you can, it’s a good idea not to use public networks for your financial transactions.
    • It’s possible for other users on an unsecured network to intercept information about your purchase. Instead, use mobile data when away from home if you can. 

Want more information on managing online payments safely? Read our guides on how to spot a scam and coronavirus fraud so you know what to watch out for as you shop online. 

Know the different kinds of PayPal transactions

There are two different ways that users can use PayPal to complete financial transactions.

PayPal Friends and Family

PayPal allows users to send money to friends and family. It’s a convenient way to:

  • Send someone money you might owe them
  • Chip in to buy something together
  • Send a gift

However, there is a small fee that is applied to friends and family transactions, so be sure to factor this into your calculations if you are using PayPal to send money to someone you know. The fee can be paid either by the sender or the recipient. 

Pro-Tip: There is no fee attached to sending a personal payment if you use a PayPal Cash or PayPal Cash Plus account to send money. 

PayPal Goods and Services

You can also use PayPal to purchase goods and services from a buyer, whether that’s your local cafe or an online retailer. When using this method of payment, note that the seller pays the transaction fee, not the buyer. 

PayPal refund policy — how to dispute a charge on PayPal

There are a number of ways that you can request refunds on PayPal.

1. When a transaction is already completed

If you have completed a transaction, and the seller has accepted payment, you will have to ask them directly to refund your money. They can do this by going onto the PayPal app and selecting the “Issue a refund” option. 

2. When a transaction is pending

If your payment is still pending, you can go to your Activity page and press the cancel button next to the payment. If the seller hasn’t accepted your payment for 30 or more days, you are automatically refunded. 

3.  When you’ve requested a refund on the transaction

If you have requested a refund, but the seller has denied it, you can go to the PayPal Resolution Center and open a dispute. If your dispute succeeds, a refund will be issued to the credit card, debit card, or bank account you used to pay for the item. 

PayPal safety: key takeaways

PayPal is a safe and convenient way to pay for goods and services, send money to friends and family, or accept payments from customers and clients as a seller. However, it’s important to know how to use the platform safely. Here’s what to remember:

  • PayPal provides a number of safety protocols for sellers, including encrypting financial data, fraud protection, and 24/7 monitoring. 
  • Even with built-in protection for sellers, it’s still wise to follow safe practice tips:
    • Use a service like USPS or UPS
    • Require a signature from buyers
    • Clearly explain your products, and always provide quality customer service
  • PayPal is also safe for buyers. They include the same set of security protocols for buyers that they do for sellers, including encrypted data and fraud protection, as well as dispute resolution. 
  • As a buyer, be sure to keep tips like these in mind:
    • Opt for paying with a credit card rather than a debit card if you can
    • Use a secure password
    • Update your app to have access to the newest security features
    • Avoid making financial transactions on public WiFi
  • PayPal also allows you to cancel or dispute payments if something goes wrong

PayPal is convenient, fast and secure. By using the right security measures, you can complete your transactions with peace of mind.

 

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Source: mint.intuit.com

Posted on May 20, 2022

Stock Market Today: Wall Street Rallies Around Reassuring Retail Data

The stock market enjoyed a broad rebound Tuesday as fresh economic data suggested the U.S. consumer is still shopping strong.

The U.S. Census Bureau said today that April retail sales improved by 0.9% over March. Though that was slightly less than the 1.0% expected, there was a show of strength in the significant upward revision to March’s numbers, to 1.4% growth from 0.5% originally.

“To the extent that markets are worried about a growth slowdown, this is good news, but it is also a further catalyst for the Fed to raise rates even higher to get inflation under control,” says Chris Zaccarelli, chief investment officer for registered investment advisor Independent Advisor Alliance.

While Zaccarelli joins other names in believing a recession is unlikely in 2022, “the Fed is going to need to raise interest rates to a point where they are likely to cause a recession in 2023 or 2024, and that gives us cause for concern,” he says.

Despite the promising retail data, success in retail stocks wasn’t a gimme.

Walmart (WMT, -11.4%) plunged after delivering a mixed quarterly report. Revenues improved 2.4% year-over-year to $141.6 billion to easily top expectations, and Walmart lifted its full-year sales outlook. However, that windfall is coming from cost-conscious consumers flocking to its grocery aisle, which has lower margins than its other offerings. This, as well as supply-chain problems and other headwinds, caused Walmart to report profits of $1.30 per share that were well short of estimates, and to lower its income forecast for 2022.

Home Depot (HD, +1.7%) fared better, however, after delivering record fiscal first-quarter sales and upgrading its full-year outlook. 

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“Walmart’s report this week basically confirmed all the negative scenarios that you would expect given inflationary pressures and rising interest rates,” says David Keller, chief market strategist at StockCharts.com. But he added that “Home Depot’s report had a much more encouraging tone as consumers fueled a strong earnings win for the company.”

Other pockets of strength Tuesday included airline stocks such as American Airlines (AAL, +7.7%) and Delta Air Lines (DAL, +6.7%), which were boosted by United Airlines’ (UAL, +7.9%) higher second-quarter revenue outlook. Semiconductor stocks including Micron Technology (MU, +5.7%) and Qualcomm (QCOM, +4.3%) also rallied around Piper Sandler’s upgrade of Advanced Micro Devices (AMD, +8.7%).

The Nasdaq Composite was tops among the major indexes Tuesday, up 2.8% to 11,984. The S&P 500 delivered a 2.0% gain to 4,088, while the Dow Jones Industrial Average improved 1.3% to 32,654.

stock chart for 051722stock chart for 051722

Other news in the stock market today:

  • The small-cap Russell 2000 surged 3.2% to 1,840.
  • U.S. crude oil futures slumped 1.6% to $112.40 per barrel.
  • A retreat in the U.S. dollar helped gold futures tick 0.3% higher to $1,818.90 per ounce.
  • Bitcoin improved by 1.7% to $30,058.48. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
  • Twitter (TWTR, +2.5%) made some gains despite a potential deal with Tesla (TSLA, +5.1%) CEO Elon Musk looking increasingly unlikely. Musk insisted today that he would back out of his $44 billion bid to buy the social platform unless Twitter proved that fewer than 5% of its users are bots. He tweeted that “20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher” without providing proof. Numerous analysts have now said they believe Musk’s sudden interest in Twitter’s bot numbers is either an attempt to escape his deal, or lower the $54.20-per-share price tag.

Buffett’s Latest Buys Are In!

A number of other stocks were driven higher Tuesday by their newfound inclusion into a prestigious order: the equity portfolio of Warren Buffett’s Berkshire Hathaway.

Berkshire filed its quarterly Form 13F with the SEC yesterday afternoon, revealing that after more than a year of heavy selling, Warren Buffett was finally eager to buy. Paramount Global (PARA, +15.4%) and Celanese (CE, +7.5%) were just two of the eight new positions Berkshire entered during the first quarter, and among the top beneficiaries of earning Buffett’s seal of approval.

We recently mentioned that inflation has been a major driver of many of Buffett’s purchases of the past few months, but it’s not the only story.

Read on as we explore each and every one of Buffett’s 22 moves from the first quarter of 2022, including what likely drew the Oracle of Omaha (or his lieutenants) to the position.

Kyle Woodley was long AMD as of this writing.

Source: kiplinger.com

Posted on May 20, 2022

The Best Way To Splurge And Not Feel Bad About It

Save more, spend smarter, and make your money go further

After a year of lockdowns and restrictions, just about everyone is ready to let loose and shake off the pandemic cobwebs. But treating yourself shouldn’t be restricted to once a year. Let’s look at why the occasional splurge is such an important part of an effective budget – and how to keep yourself from going overboard when indulging.

Why splurging is important

People on a strict diet often allow themselves cheat meals, usually once a week, where they can eat anything they want. For one day, they don’t worry about carbs, calories, or grams of sugar.

Splurging is a similar concept. Whether you’re dieting or budgeting, allowing yourself an occasional indulgence can help you avoid burnout. If you can add in a financial treat day here and there, you won’t feel like your budget is always the enemy.

Plan your splurges

It’s fun to be spontaneous, but when it comes to treating yourself, it’s best to plan ahead. The best kind of splurge is one you won’t regret a day later. Instead of buying the first thing you see, start collecting a list of splurge ideas.

Use the goals feature in the Mint app, a notes folder on your phone, or the wish list function on Amazon. You can also keep a physical wishlist in your wallet to use when you’re shopping in person.

Anytime you want something that’s not in your budget, add it to the list. When you’re finally ready to splurge, refer back to the list. This ensures that you’ll really treasure what you buy and will get a lot of use out of it.

Make it meaningful

When possible, splurge on an experience or a memory, like a day trip with your partner or an evening at a karaoke bar with friends. Research shows that people are happier spending money on events than on physical items.

This largely depends on what matters the most to you. If you love interior design, buying a new rug for your apartment might mean more than a weekend outing.

Create splurge rules

Even though splurging is important, you should still follow some basic rules. Never use a credit card or loan to finance an indulgence. A splurge should be something you can afford, not something that requires going into debt.

If you want to splurge, look at your budget first to make sure you can afford the expense. If you can’t, brainstorm ways to make more money like selling something you own or starting a side hustle.

Some people find it helpful to create simple rules governing their splurge habits. For example, allocate 10% of every windfall for a splurge. Windfalls can include tax refunds, bonuses from work, rebates, and birthday checks from Grandma.

Having rules in place will ensure that you don’t go overboard, which can be especially helpful if you’re also trying to pay off debt or save for a down payment.

If you work overtime, freelance, or have a second job, you could dedicate half of those earnings for fun and the other half for long-term savings.

Always stick to the rules you create, even when you’re tempted to break them. They’ll help you strike a balance between splurging and saving.

Avoid splurging too often

When we’re stressed, tired, or anxious, retail therapy seems like an easy answer. But be wary of using moral licensing to justify frequent splurges. Moral licensing is the concept that you deserve to do something bad if you’ve previously done something good.

For example, if you’ve been working until 9 p.m. every night, you might decide it’s OK to buy a $200 purse. But working hard doesn’t necessarily mean you can afford a $200 purse.

Remember, splurges are like dessert. If you eat dessert as a fun treat, you might get a little sugar rush, but you won’t gain any weight. If you eat dessert three times a day, you’ll probably see a drastic change in your health.

If you do fall off the wagon, be kind to yourself. Remember that one shopping trip doesn’t undo all your good habits. Offer grace to yourself just like you would with a friend. Go through your budget and see what changes you can make to rectify the mistake, like scaling back on take-out or other bonus buys for a couple weeks.

Space out your treats

If you feel like you’re treating yourself too often, you don’t have to go cold turkey to reset. Keep the same rewards, but try spacing them out farther apart. For example, instead of getting a manicure every two weeks, dial it back to once a month.

Prioritize your splurges. Make a list of all your non-essential expenses and rank them from what brings you the most joy to what brings you the least joy. Ask yourself how sad you would be if you had to eliminate or reduce each particular expense. That will help you figure out what splurges really make you happier.

Don’t bring a friend with you

It might seem counterintuitive, but having a friend with you won’t help your splurge. They may encourage you to buy more and exceed your budget. Plus, if you see them shopping without remorse, you might start to wonder why you’re budgeting at all.

Shopping by yourself gives you more time to think and consider if you really want something. If you still want to go with a friend, pick someone who’s not afraid to call you out. Let them know beforehand what your budget is and ask them to help you stay on track.

Save more, spend smarter, and make your money go further

Zina Kumok

Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Conscious Coins. More from Zina Kumok

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Source: mint.intuit.com

Posted on May 19, 2022

The Hidden Costs of Moving to Another State

Although most states give you a grace period before getting a new driver’s license (for example, it’s 90 days when you move into Illinois), you still want to do that as quickly as you can because you are likely to need identification that has your current address on it for other chores.
How Do I Budget for a Move?
If you are moving from a single family home, then the city in which you lived charges you for city services such as trash pickup and possibly sewer and water. Contact your City Hall and let them know they are losing a resident, and ask them to stop any charges under your name related to that address.
This will not cost you money, but it will cost you time. You are going to want to update your voter registration information, and you are likely going to want to let your former state know that you are no longer eligible to vote in that state. Otherwise, your current vote could get hung up in a technicality (and there are more of those today than there were in previous years).

The Costs of Moving Besides Moving

It is possible that you will be able to use the same bank with the same checking or savings account. Your routing number will change, because routing numbers are assigned based on the state of the bank branch where you opened the account. Ask your bank if you need to alert all of your direct deposit senders (employer, pension, income tax refunds) that you have a new routing number. Even for brick-and-mortar banks, you can likely handle this online.

Driver’s License and Car Registration

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Most moving services offer a state-to-state move budget calculator. Your move budget will depend on how much you are moving and how far you are going. Your budget for the move will be in the thousands of dollars, but you can reduce those costs by shipping some items or hauling some items by yourself. 

Automobile Registration

It is advised to contact utilities two to three weeks before your move. Some utilities require a security deposit before activating service, and the amount of your security deposit could depend on your credit rating.
In most cases, it will not cost you money to change your address, but again, in the “time is money’’ category, this is going to be expensive.
Let your auto insurance company know your new location and new license plate numbers. Since insurance rates vary based on location, you may see a change in your premium due to your move. Who knows? Maybe your premium will decrease.

Voter Registration

We’ve rounded up the answers to some of the most commonly asked questions about the costs of moving.
You will need to register your vehicle(s) with the new state, getting new license plates and local registration stickers. Even if your license plate has several months remaining on its registration in your previous state of residence, you will save yourself any explaining if you get pulled over or in an accident.

Banking

Source: thepennyhoarder.com
For Wi-Fi service, you need to contract with an internet provider, even if you are not going to use cable TV. The cost of the service varies widely throughout the country and depends on the provider, but you will likely need to pay a monthly fee of – for the modem and router.

Electric, Water and Gas

If you are changing banks because your current bank does not have any locations or ATMs in your new state, then you need to contact everyone who uses your current banking information. That includes apps, direct deposit senders, subscriptions, and any other service or product that accesses your banking information for payments.
Moving to your dream location does require money. Whether you hire a mover or load your own truck, there are moving costs. Selling a property, buying a property, paying the first two months rent and a security deposit on a new apartment, getting your security deposit back from your own place — these are all considerations that go into the decision to move and could cost you thousands of dollars.
The average cost for vehicle registration and plates is nationwide, but in Florida that will cost you 5.
For example, if you are moving to Las Vegas and need to start service with NV Power, you will pay a deposit of the last 12 months of service at the address you are moving to. If there was no service there — maybe it’s new construction — be prepared to pay a 0 deposit to start service.
What are the Costs Associated With Moving?

Wi-Fi and Internet

Remote working has advantages beyond being able to attend Zoom meetings in your sweatpants. You can move closer to family or friends, head to a nicer climate, or live in a cheaper state.
Voter registration should come at no cost and can usually be done online in 42 states and Wasington, D.C.

These ​​13 free TV apps  will let you cut cable from your budget and save you a lot of money. 

City Hall

There are the basics, such as moving trucks, vans and movers. There is also the cost of your personal transportation to the new location. The other costs relate to services you received in your old home (electric, gas, water) and must initiate in your new home (with likely turn-on charges).

Memberships

While most other hidden costs are the ones that cost you time rather than money, you can be charged for services you are no longer personally receiving at your old home if you do not file a change of address or alert those service providers you no longer live there.

Wardrobe

Ready to stop worrying about money?
In some states, you have a choice of electric or gas supply companies. Discuss your choices with your Realtor or city utility personnel — they usually handle water, garbage and sewer — before you move.

Who Needs Your New Address

However, when you move to another state, there are hidden costs that you may not fully comprehend. Some of these costs are, in fact, new payments that need to be made, and others are “time is money’’ costs.

There are fees for getting a new driver’s license and auto registration, plus you may have to pay a deposit to start power, cable and/or internet service. Your automobile insurance rates are likely to change, but that could be positive or negative. There is a slight fee for an official change of address with the U.S. Postal Service.  

  • Your employer. If you are keeping your remote job but moving to a new location, your employer would probably like to know that.
  • Post Office. You need to file a change of address with your old post office, which will receive and forward any mail that comes to your old address. Make a note of any mail you received over the last month before you move to see if there are contacts you need to file a change of address with. Likewise, you will want to check in with your new post office branch to indicate that you now live at the new address and the former resident no longer lives there. This process is going to cost you $1.05.
  • Subscriptions. If you still receive anything in the mail on a subscription basis, you need to contact the provider.
  • Passport. Good news! You don’t need to change your address in your passport because your old one may not even be in there. On U.S. passports, there is a place where you can write in your address. You can erase the old one if you were smart enough to write it in pencil  or use whiteout to create a new address.
  • Ride-sharing apps. OK, this one you are going to want to do. One of the great points of ride-sharing apps is that you only need to touch the “home’’ button to indicate where you are going, or where you are leaving from. If you don’t change this address immediately, you will do so after the first time the driver tries to take you back to Oklahoma.
  • Delivery services. If you get groceries or meals delivered, you want to ensure those services have your correct address.
  • Other apps. Look through your phone home screen and see if there are any other apps that need to know your current address.

Frequently Asked Questions (FAQs) About the Costs of Moving

How much you spend on your weather-appropriate wardrobe is up to you, but it needs to be a consideration. If you’re in need of winter coats, check out the local thrift stores in warmer climates. You may find that many people offloaded them when they moved south.

Kent McDill is a veteran journalist who has specialized in personal finance topics since 2013. He is a contributor to The Penny Hoarder.
If you are moving from one climate condition to another, you are likely going to need to alter your wardrobe. Whether your move is latitudinal or longitudinal, you are going to need lighter weight clothes or heavier clothes, different types of outerwear and footwear. If you are moving from a warm climate to a cold and snowy one, you are going to need winter wear.
Privacy Policy
As long as you have no in-office requirements, you can live wherever you want providing you are willing to deal with attending meetings in a different time zone.
When you set up these services at your new address, there may be reconnection charges, assuming the services were turned off by the previous resident when they moved.
What are the Hidden Costs of Moving Examples?
You will be amazed by the number of times you need to change your legal address when you move. This is true whether you move within a state or to a new state, but the new state rules and regulations may be different than what you are accustomed to.

All of these service providers charge you based on usage in your home. You need to contact the provider for your previous location to stop billing there once you leave, and then you need to start services for your arrival date in your new home. If you do not tell the power company that you no longer live at your old address, you will be charged for monthly service fees, even if you are not there using the electric, gas or water at that location. <!–

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There will be a fee to acquire a new driver’s license, and you may end up taking a test or two to get licensed. This can serve as your official government-issued ID card if you ever need to prove where you live. The average cost of a new driver’s license nationwide is , but it costs to get a new license in Virginia. The average cost for Wi-Fi and internet service is but it is dependent on your local provider’s capabilities.There is a difference in prices between cable, fiber or satellite service. If you want cable for TV watching, you will pay more. Let’s dive below the surface level to consider all of the financial and logistical moves you are going to make when you move to another state.


They will certainly miss you at the gym or fitness center, but they won’t stop charging you the membership fee unless you tell them to do so. This is true for any club you pay to be a member of (country club, golf course, tennis center, etc.) There are many stories, some hilarious (“I want to quit the gym!”) and some horrific, about how hard it is to get a gym or fitness center to stop charging members who no longer use the facility.

Posted on May 19, 2022

The 10 Best Stocks for a Bear Market

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Bear markets are an inevitable if particularly unpleasant part of the market cycle. But investors who hold the best stocks to buy for bear markets can mitigate at least some of the damage.

No, the S&P 500 isn’t in a bear market – a 20% decline from its peak – just yet. It has, however, been flirting with one for some time. The Nasdaq Composite, for its part, fell into a bear market a while ago. 

Either way, 2022 has been a dismal year for equities with no clear end in sight. Bottoms are hard to call in real time anyway, and, besides, stocks can trade sideways for as long as they feel like it. 

And so if this is how things are going to continue, investors might want to arm themselves with the best stocks they can find. And right now, those stock picks should focus on resiliency during deep downturns.

The best bear market stocks tend to be found in defensive sectors, such as consumer staples, utilities, healthcare and even some real estate equities. Furthermore, companies with long histories of dividend growth can offer ballast when seemingly everything is selling off. And, of course, low-volatility stocks with relatively low correlations to the broader market often hold up better in down markets.

To find the best stocks to buy for bear markets, we screened the S&P 500 for stocks with the highest conviction consensus Buy recommendations from Wall Street industry analysts. We further limited ourselves to low-volatility stocks that reside in defensive sectors and offer reliable and rising dividends. Lastly, we eliminated any name that was underperforming the broader market during the current downturn.

That process left us the following 10 picks as our top candidates for the best stocks to buy for a bear market.

Share prices, price targets, analysts’ recommendations and other market data are as of May 17, courtesy of S&P Global Market Intelligence and YCharts, unless otherwise noted. Stocks are listed by conviction of analysts’ Buy calls, from weakest to strongest.

1 of 10

10. Berkshire Hathaway

A Berkshire Hathaway (ticker: BRK.B) signA Berkshire Hathaway (ticker: BRK.B) sign
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  • Market value: $694.1 billion
  • Dividend yield: N/A
  • Analysts’ consensus recommendation: 2.25 (Buy) 

Warren Buffett’s Berkshire Hathaway (BRK.B, $314.81) gets a consensus recommendation of Buy with only modest conviction, but then a mere four analysts cover the stock.

One pro rates it at Strong Buy, one says Buy and two have it at Hold, per S&P Global Market Intelligence, which means the latter two analysts believe Buffett’s conglomerate will only match the performance of the broader market over the next 12 months or so.

That’s a reasonable assumption if stocks do indeed avoid falling into bear-market territory. BRK.B, with its relatively low correlation to the S&P 500, tends to lag in up markets. 

By the same token, however, few names generate outperformance as reliably as Berkshire does when stocks are broadly struggling. That’s by design. And Buffett’s wisdom of forgoing some upside in bull markets to outperform in bears has proven to be an incomparably successful strategy when measured over decades. 

Indeed, Berkshire’s compound annual growth (CAGR) since 1965 stands at 20.1%, according to Argus Research. That’s more than twice the S&P 500’s CAGR of 10.5%.

As one would expect, BRK.B is beating the broader market by a wide margin in 2022, too. The stock gained 5.2% for the year-to-date through May 17, vs. a decline of 14.2% for the S&P 500. 

If we do find ourselves mired in a prolonged market slump, BRK.B will probably not go along for the ride. That makes it one of the best bear market stocks to buy.

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9. CVS Health

A standalone CVS Health (ticker: CVS) businessA standalone CVS Health (ticker: CVS) business
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  • Market value: $130.3 billion
  • Dividend yield: 2.1%
  • Analysts’ consensus recommendation: 1.92 (Buy) 

The healthcare sector is a traditional safe haven when markets turn south. Where CVS Health (CVS, $99.60) stands out is that few sector picks possess its unique defensive profile.

CVS is probably best known as a pharmacy chain, but it’s also a pharmacy benefits manager and health insurance company. Analysts praise the company’s multi-faceted business model for both its defensive characteristics and long-term growth prospects.

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“We are bullish on CVS tied to its unique set of assets, robust clinical capabilities and expanding presence in the attractive Medicare business,” writes Truist analyst David MacDonald, who rates the stock at Buy. “We view CVS’ integrated pharmacy/medical benefits as well positioned. Significant scale across its business lines, a strong balance sheet and robust cash flow generation provide dry powder for ongoing capital deployment activities over time.”

MacDonald has plenty of company in the bull camp. Nine analysts rate CVS at Strong Buy, nine call it a Buy and seven have it at Hold. Meanwhile, their average target price of $118.82 gives the stock implied upside of about 27% in the next 12 months or so.

Investors can also take comfort in the stock’s low volatility. Shares have a five-year beta of 0.77. Beta, a volatility metric that serves as a sort of proxy for risk, measures how a stock has traded relative to the S&P 500. Low-beta stocks tend to lag in up markets, but hold up better in down ones.

That’s certainly been the case with CVS stock this year. Shares were off 3.7% for the year-to-date through May 17, but that beat the S&P 500 by nearly 11 percentage points. Such resilience makes the case for CVS as a top bear market stock to buy.

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8. Coca-Cola

Cans of Coca-Cola (ticker: KO) in iceCans of Coca-Cola (ticker: KO) in ice
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  • Market value: $285.2 billion
  • Dividend yield: 2.6%
  • Analysts’ consensus recommendation: 1.88 (Buy) 

Few names in the defensive consumer staples sector can match Coca-Cola (KO, $65.79) when it comes to blue-chip pedigree, history of dividend growth and bullishness on the part of Wall Street analysts.

Coca-Cola’s blue-chip bona fides are confirmed by its membership in the Dow Jones Industrial Average. But the company also happens to be an S&P 500 Dividend Aristocrat, boasting a dividend growth streak of 60 years and counting.

Oh, and Coca-Cola also enjoys the imprimatur of no less an investing luminary than Warren Buffett, who has been a shareholder since 1988. At 6.8% of the Berkshire Hathaway equity portfolio, KO is Buffett’s fourth-largest holding. 

Coca-Cola’s more immediate prospects are bright too, analysts say. It’s an unusually low-beta stock, for one thing, and that has been very helpful during this dismal 2022. Shares in KO have gained more than 11% for the year-to-date through May 17, beating the broader market by more than 25 percentage points.

True, KO was hit hard by pandemic lockdowns, which shuttered restaurants, bars, cinemas and other live venues. But those sales are now bounding back. Analysts likewise praise Coca-Cola’s ability to offset input cost inflation with pricing power. 

“We think KO’s strong fourth-quarter results reflect its brand power and ability to thrive in an inflationary environment, as top line improvement was entirely driven by price and mix,” writes CFRA Research analyst Garrett Nelson (Buy). 

Most of the Street concurs with that assessment. Twelve analysts rate KO at Strong Buy, six say Buy, seven have it at Hold and one calls it a Sell. With a  consensus recommendation of Buy, KO looks to be one of the best bear market stocks to buy.

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7. AbbVie

A picture of an AbbVie (ticker: ABBV) buildingA picture of an AbbVie (ticker: ABBV) building
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  • Market value: $273.5 billion
  • Dividend yield: 3.5%
  • Analysts’ consensus recommendation: 1.88 (Buy) 

Pharmaceutical giant AbbVie’s (ABBV, $155.30) defensive characteristics stem from it being part of the healthcare sector, as well as a low-volatility Dividend Aristocrat. 

But the Street is outright bullish on the name for other reasons as well. 

High on analysts’ list are ABBV’s growth prospects and its pipeline. AbbVie is best known for blockbuster drugs such as Humira and Imbruvica, but the Street is also optimistic about the potential for its cancer-fighting and immunology drugs.

“After the recent weakness in ABBV, we revisited the model, and we came away even more confident regarding the growth prospects and pipeline,” writes Wells Fargo Securities analyst Mohit Bansal, who rates AbbVie as his Top Pick. “We think the consensus forecast significantly underestimates post-2023 growth. There are multiple pipeline catalysts in the 2022 to 2023 timeframe which are not in consensus models.”

At Truist Securities, analyst Robyn Karnauskas (Buy) largely agrees with that view. Although ABBV is suffering with the expected erosion of sales of Humira, newer drugs such as Rinvoq and Skyrizi are rapidly gaining momentum, the analyst says.

The bottom line is that bulls outweigh bears on this name by a comfortable margin. Twelve analysts rate ABBV at Strong Buy, four say Buy, seven call it a Hold and one says Sell.

AbbVie also stands out as a top bear market stock to buy because of a half-century of annual dividend increases. Same goes for ABBV’s low beta. The latter indicates relatively low correlation to the S&P 500, and is evidenced by ABBV stock gaining 14% for the year-to-date through May 17. That beat the broader market by 28 percentage points.

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6. Medtronic

A Medtronic (ticker: MDT) glucose monitorA Medtronic (ticker: MDT) glucose monitor
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  • Market value: $142.6 billion
  • Dividend yield: 2.4%
  • Analysts’ consensus recommendation: 1.85 (Buy) 

Medtronic (MDT, $106.39) is another low-volatility healthcare stock with a long history of dividend growth that analysts say remains poised for even more market-beating returns.

Shares in one of the world’s largest manufacturers of medical devices gained nearly 3% for the year-to-date through May 17, a period in which the S&P 500 shed more than 14%. Even better, with an average price target of $123.18, the Street gives MDT implied upside of 17% in the next 12 months or so.

That’s why analysts’ consensus recommendation stands at Buy, with fairly high conviction. Of the 26 analysts surveyed by S&P Global Market Intelligence covering MDT, 13 rate it at Strong Buy, four say Buy and nine call it a Hold.

Part of MDT’s appeal stems from its reasonable valuation. Shares change hands at 18.8 times analysts’ 2022 earnings per share (EPS) estimate. And yet MDT is forecast to generate average annual EPS growth of nearly 10% over the next three to five years.

“We see this as an attractive valuation,” notes Argus Research analyst David Toung (Buy), adding the company “has solid post-pandemic growth opportunities from both current and soon-to-be-launched products.”

Indeed, the Street singles out MDT’s strong portfolio of existing products, as well as promising new ones under development.

“We believe Medtronic’s deep product pipeline should drive improving revenue growth and enable margin improvement resulting in high single-digit EPS growth and multiple expansion,” writes Needham analyst Mike Matson (Buy).

The best stocks to buy for bear markets often return cash to shareholders, too. And MDT’s history in that regard is as solid as they come. This Dividend Aristocrat has increased its payout annually for 44 years and counting.

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5. General Dynamics

An F-16 Fighting Falcon, made by General Dynamics (ticker: GD)An F-16 Fighting Falcon, made by General Dynamics (ticker: GD)
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  • Market value: $64.3 billion
  • Dividend yield: 2.1%
  • Analysts’ consensus recommendation: 1.81 (Buy) 

Shares in defense contractor General Dynamics (GD, $232.02) benefit in down markets both from their relatively low volatility and dependable dividends. That alone makes GD worth considering as one of the better bear market stocks to buy.

What puts General Dynamics over the top, however, is its robust long-term growth forecast and potential for high share-price appreciation, analysts say.

GD’s defensive characteristics have certainly been well documented so far in 2022. Shares gained 11% for the year-to-date through May 17, a period in which the S&P 500 fell more than 14%. 

And the Street sees more outperformance ahead. Of the 16 analysts issuing opinions on the stock tracked by S&P Global Market Intelligence, nine call it a Strong Buy, two say Buy, four have it at Hold and one calls it a Sell.

Analysts forecast General Dynamics to generate average annual EPS growth of 11.6% over the next three to five years. And, notably, their average target price of $266.07 gives GD implied upside of about 15% in the next 12 months or so.

“Over the long term, GD management is focused on driving growth through modest sales increases, margin improvement, and share buybacks,” writes Argus Research analyst John Eade (Buy). “The company also aggressively returns cash to shareholders through increased dividends (most recently with a hike of 6%).”

If we do find ourselves slogging through a bear market – or just a sideways market – 15% price upside would be outstanding. And as a Dividend Aristocrat with 31 consecutive years of payout increases to its name, shareholders can at the very least count on GD for equity income.

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4. Iron Mountain

An Iron Mountain (ticker: IRM) datacenter against a white backgroundAn Iron Mountain (ticker: IRM) datacenter against a white background
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  • Market value: $15.6 billion
  • Dividend yield: 4.6%
  • Analysts’ consensus recommendation: 1.71 (Buy) 

Iron Mountain (IRM, $53.99) is a real estate investment trust (REIT) with a twist. While the company is growing out a more modern datacenter arm, its legacy business is to store, protect and manage documents. In some cases that means it merely shreds them. The good news is that when corporate customers do indeed store paper documents, they tend to do so for very long periods of time.

That sort of predictability not only helps Iron Mountain maintain a generous dividend, but it allows IRM stock to trade with relatively low volatility. No wonder analysts particularly like Iron Mountain as one of the best bear market stocks to buy. 

“We view IRM as a defensive stock in the current environment, with significant valuation discounts to more traditional REITs (storage and data centers), an improving organic revenue growth story, and the very strong likelihood that the dividend will start to be raised at a 5% to 7% annual pace starting in 2023,” writes Stifel analyst Shlomo Rosenbaum (Buy).

Only seven analysts cover the stock, per S&P Global Market Intelligence, but their consensus recommendation comes to Buy with fairly high conviction. Four pros rate IRM at Strong Buy, two say Buy and one has it at Sell. Meanwhile, their average target price of $61.67 gives IRM implied upside of nearly 20% in the next year or so. 

Such returns would be extraordinary in a bear market, but then, IRM has been holding up its end of the bargain on defense so far. Shares have improved by 2.3% for the year-to-date through May 17 to beat the S&P 500 by about 12 percentage points.

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3. Mondelez International

A stock of Oreo cookies made by Mondelez International (ticker: MDLZ)A stock of Oreo cookies made by Mondelez International (ticker: MDLZ)
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  • Market value: $91.0 billion
  • Dividend yield: 2.1%
  • Analysts’ consensus recommendation: 1.67 (Buy) 

Consumer staples giant Mondelez International (MDLZ, $65.45) is one of the best stocks for a bear market for many of the same reasons that it’s one of the best stocks to stave off sizzling inflation. 

The company’s vast portfolio of snacks and foods include Oreo cookies, Milka chocolates and Philadelphia cream cheese, to name a few. Sales of such consumer favorites tend to hold up well amid rising prices thanks to fickle palates and brand loyalty. 

Where MDLZ stands out among analysts, however, is in its ability to handle higher input costs thanks to a longstanding hedging program. The company also has been successful in passing higher costs on to consumers.

“We hold a strong growth outlook for Mondelez as its sales growth continues to outperform our expectations driven by strong market share performances and strong category growth rates,” writes Stifel analyst Christopher Growe (Buy). 

Nine consecutive years of dividend increases and a stock that trades with much lower volatility than the S&P 500 should also serve investors well in a tough market. Indeed, MDLZ was essentially flat for the year-to-date through May 17, vs. a decline of more than 14% for the broader market. 

Stifel is in the majority on the Street, which gives MDLZ a consensus recommendation of Buy, with high conviction. Twelve analysts rate it at Strong Buy, eight say Buy and four have it a Hold. 

Pricing power, market share gains and low volatility all help make the case for MDLZ as one of the best bear market stocks to buy.

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2. UnitedHealth Group

UnitedHealth Group (ticker: UNH) signUnitedHealth Group (ticker: UNH) sign
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  • Market value: $462.1 billion
  • Dividend yield: 1.2%
  • Analysts’ consensus recommendation: 1.63 (Buy) 

Blue-chip stocks in defensive sectors such as healthcare tend to hold up better in bear markets, which is why it’s no surprise to see UnitedHealth Group (UNH, $492.93) make the cut.

This Dow Jones stock is the market’s largest health insurer by both market value and revenue – and by wide margins at that. But UNH’s sheer size alone is hardly a reason to hold it through a market downturn.

Shareholders can also take comfort in 13 consecutive years of dividend increases, a stock that’s historically been much less volatile than the broader market, and an outsized profit-growth forecast.

Analysts praise UNH on a number of fronts, with contributions from the Optum pharmacy benefits manager business being a regular highlight. A steep decline in hospitalizations due to COVID-19 is also a welcome relief.

“We maintain our Strong Buy rating on UNH as we believe shares continue to offer an attractive risk-reward tradeoff, and expect management to execute on its mid-teens EPS growth target,” writes Raymond James analyst John Ransom. 

The Street, which gives the stock a consensus recommendation of Buy with high conviction, expects the company to generate annual EPS growth of nearly 14% over the next three to five years. 

Lastly, this low-vol stock is performing as expected in 2022. It is off less than 2% for the year-to-date through May 17. That’s better than the S&P 500 by 12 percentage points.

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1. T-Mobile US

T-Mobile (ticker: TMUS) storeT-Mobile (ticker: TMUS) store
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  • Market value: $161.2 billion
  • Dividend yield: N/A
  • Analysts’ consensus recommendation: 1.55 (Buy) 

Telecommunications stocks have always been favored for dividends and defense, and those are good attributes to have in a bear market. Where T-Mobile US (TMUS, $129.00) stands out is that shares in the wireless carrier have tremendous price upside too, analysts say.

You can chalk TMUS’s bright future up to the company’s $30 billion merger with Sprint. The deal closed two years ago, but the benefits have been escalating ever since. 

That’s because the “trove” of mid-band spectrum Sprint brought to TMUS allowed the telco to rapidly build out its next-generation 5G mobile wireless network, notes Argus Research analyst Joseph Bonner (Buy). The high-speed network, in turn, gave the company a competitive advantage over Verizon (VZ) and AT&T (T).

“The success of the company’s service plan innovations has been evident in its robust subscriber acquisition metrics,” Bonner writes. “T-Mobile remains the best positioned of the national carriers to take market share.”

T-Mobile’s clear advantages over peers is key to the Street’s consensus recommendation on the stock, which stands at Buy, with high conviction. It also factors into analysts’ average price target, which, at $167.55, gives TMUS implied upside of 30% in the next year or so.

With a five-year beta of 0.51, TMUS can kind of be thought of as being half as volatile as the S&P 500. That low-vol character has paid off handsomely so far this year. TMUS is up nearly 11% for the year-to-date through May 17, a period in which the broader market has fallen more than 14%. 

If the recent past is prologue, TMUS will prove itself as one of the best bear market stocks to buy.

Source: kiplinger.com

Posted on May 18, 2022

5 Ways to Make Your Money Work for You

Save more, spend smarter, and make your money go further

Making your money work for you is an important step on the road to financial security and independence. Earning money by trading your time is important, but it’s just as important to find a way to make money without having to be actively involved. While you might dream of being able to make money while you sleep, there are plenty of steps you can take that will help put your money to work.

Pay Down Your Debt

The most important thing that you can do to make your money work for you is to pay down and eliminate your high-interest debt. This includes things like credit card payments, some auto loans, and other types of consumer debt. You may be paying up to 20% or more in interest — which means that when you put money towards paying off that debt you’re getting a 20% return on your investment. It’s hard to beat that kind of guaranteed return.

Start a budget, figure out your income and expenses and start paying down that debt. The exact debt repayment strategy that you use is less important. What is important is that you make a plan and start sooner rather than later. Once you have eliminated your high-interest debt, you can start with the other suggestions in this article.

Open a High-Yield Savings Account

One place to start can be to open up a high-yield savings account that is separate from your checking account where you keep the money to pay your regular monthly expenses. This is important for two reasons. The first is that keeping your savings separate from the money you use for your regular savings helps keep you from raiding your savings to pay your bills. 

The second reason is that a savings account may offer slightly higher interest rates than a checking account. Currently, interest rates are at historical lows. That is great for refinancing or taking out a mortgage, but not great for savings accounts. Still, a high-yield savings account is a great place to put your emergency fund money. For anything more than that, you’ll want to look at investments that offer higher returns.

Grow Your Wealth Through Investing

If inflation hovers around 2-3% every year, any investments you have should make at least that much. Otherwise, while you may have more money, that money will be worth less than it was the year before. If all of your money is in a savings account earning 1% interest or less, then you are actually LOSING money to inflation each year. There are many ways to earn residual income, and you’ll want to pick the one that makes the most sense for you. As one example, Investing in the stock market has historically returned around 7% per year.

Take Advantage of Credit Card Rewards

Another way to make your money work for you is to take advantage of credit card rewards. Many credit cards offer rewards of up to 5% back or more in certain spending categories. There are also several cards that offer initial welcome bonuses that are worth $1000 or more. Taking the time to strategically use credit cards can be a worthwhile investment. Check out our list of the best rewards credit cards to see if one of them might make sense for you.

Start a Passive Income Stream

The holy grail of financial independence is passive income. Passive income is income that continues to make money with little to no day-to-day involvement on your part. There are many different ways to generate passive income. A few passive income ideas might be creating and selling crafts, writing a guide or book, starting a blog, or investing in the stock market.

Investing time and money in real estate can also be a way to earn (relatively) passive income. While rental real estate is not without complications, when it is all working, each month you earn rental income. That helps pay down your mortgage balance, hopefully with some extra left over each month. If you think that becoming a landlord is not for you, another way to invest in real estate is through a Real Estate Investment Trust (REIT). REITs combine some of the best parts of real estate and investing in the stock market.

The Bottom Line

There is an important difference between earning money and having your money work for you. While earning money through a job is important, the real key to financial security is earning passive income. Pay down your debt, start investing and watch the returns come in. You may not make money while you sleep, but following these tips will help set you on the right financial path.

Save more, spend smarter, and make your money go further

Dan Miller

Dan Miller is a freelance writer and founder of PointsWithACrew.com, a site that helps families to travel for free / cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 kids. More from Dan Miller

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Source: mint.intuit.com

Posted on May 18, 2022

Stock Market Today: Stocks Finish Lower as Traders Mull Recession Odds

The potential for the U.S. to slip into recession was the topic du jour Monday as stocks kicked off the week with a wobbly, uneven session.

Over the weekend, former Goldman Sachs chief Lloyd Blankfein told CBS’ Face the Nation that recession was “a very, very high risk factor.” That opinion was met by a number of other calls Monday morning.

Wells Fargo Investment Institute, for instance, says “our conviction is that the chances of an outright recession in 2022 remain low” but believes odds are growing that 2023 could see an economic contraction. UBS strategists say the chances are different depending on where you look – their global economists say “hard data” points to a sub-1% chance of recession over the next 12 months, but the yield curve implies 32% odds.

“There’s no crystal ball to predict what’s next, but historical trends can come into play here. With the [S&P 500] closing 15% below its weekly record, there’s only been two times in the past 60-plus years that the market didn’t fall into bear territory after a similar drop,” adds Chris Larkin, Managing Director of Trading at E*Trade. “This doesn’t mean it’s bound to happen, but there is room for potential downside.”

Larkin says to keep an eye on major retail earnings this week – which will kick off in earnest with Walmart’s Tuesday report – to get a pulse check on the American consumer.

Sign up for Kiplinger’s FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

Monday itself was a fairly quiet affair. Exxon Mobil (XOM, +2.4%) and Chevron (CVX, +3.1%) were among a number of plays from the energy sector (+2.7%) that popped after U.S. crude oil futures jumped another 3.4% to $114.20 per barrel.

Twitter (TWTR, -8.2%) shares dropped after Tesla (TSLA, -5.9%) CEO Elon Musk spent the weekend questioning how much of Twitter’s traffic comes from bots. Wedbush analyst Daniel Ives said the move feels more like a “‘dog ate the homework’ excuse to bail on the Twitter deal or talk down a lower price.” TWTR stock has now given up all its gains since Musk announced his stake in the social platform.

The major indexes finished an up-and-down session with mostly weak results. The Dow Jones Industrial Average managed to eke out a marginal gain to 32,223, but the S&P 500 declined 0.4% to 4,008, while the Nasdaq Composite retreated 1.2% to 11,662.

Also worth noting: Warren Buffett’s Berkshire Hathaway will file its quarterly Form 13F soon. Check back here tonight as we examine what Buffett has been buying and selling. 

stock chart for 051622stock chart for 051622

Other news in the stock market today:

  • The small-cap Russell 2000 closed out the session with a 0.5% dip to 1,783.
  • Gold futures gained 0.3% to settle at $1,814 an ounce.
  • Bitcoin was off 1.6% to $29,551.92 (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
  • JetBlue Airways (JBLU, -6.1%) ramped up its hostile takeover attempt of Spirit Airlines (SAVE, +13.5%) on Monday, urging SAVE shareholders to vote against a buyout offer from fellow low-cost air carrier Frontier Group Holdings (ULCC, +5.9%). JBLU last month offered to buy Spirit Airlines for $33 per share – a premium to the $21.50 per share ULCC offered in February – but SAVE’s board of directors rejected the bid citing concerns over regulatory approval. JBLU followed up in early May with an “enhanced superior proposal,” including paying a $200 million, or $1.80 per SAVE share, reverse break-up fee should regulators block the deal.
  • Warby Parker (WRBY) fell 5.3% after the eyeglass maker reported a loss of 30 cents per share in its first quarter. This was much wider than the per-share loss of 3 cents the company reported in the year-ago period and missed the consensus estimate for breakeven on a per-share basis. Revenue of $153.2 million also fell short of analysts’ expectations. WRBY did maintain its full-year revenue guidance of $650 million to $660 million. “We remain cautiously optimistic on shares as WRBY continues to show ability to grow the top line, open new stores, and is recession resistant as a lower cost option for non-discretionary spend,” says CFRA Research analyst Zachary Warring (Buy). “We see the company leveraging SG&A to become profitable in the second half of 2022.”

Check Out Europe’s Dividend Royalty

If you’re seeking out more stable opportunities amid an uncertain U.S. market … well, the rest of the world is admittedly looking pretty shaky, too. But that doesn’t mean there aren’t a few morsels worth a nibble. 

BCA Research notes that while there’s negative news around the globe, “European benchmarks already discount a significant portion of the negative news.” And looking ahead, inflation there is expected to peak over the summer “as the commodity impulse is decelerating” – that should help stagflation fears recede and help European shares.

Graham Secker, Morgan Stanley’s chief European and U.K. equity strategist, chimes in that his firm remains “overweight [European] stocks offering a high and secure dividend yield.”

We’ve previously highlighted our favorite European dividend stocks, which on the whole tend to produce higher yields than their U.S. counterparts.

But we’d also like to shine the spotlight on Europe’s twist on an American income club: the Dividend Aristocrats. The S&P Europe 350 Dividend Aristocrats have somewhat different qualifications than their U.S. brethren, but in general, they’ve proven their ability to provide stable and growing dividends over time.

Read on as we look at the European Dividend Aristocrats.

Source: kiplinger.com

Posted on May 17, 2022

Brace Yourself: The Price Tag on Cars is About to Go UP!

Save more, spend smarter, and make your money go further

If you’ve done any car shopping lately, this will come as no surprise: automobile prices are going through the roof. Unfortunately, that trend doesn’t appear to be slowing down any time soon.

We’ll walk you through the factors driving this sharp increase, and give you some tips on how to avoid blowing up your budget when buying a car.

How Car Prices are Changing

Research from CarGurus.com found that used car prices are up more than 30% from June 2020. Prices have been steadily rising since the Covid-19 pandemic, and numbers have never been this high.

Not all brands are increasing at the same rate. For example, Tesla has only increased by 6% in the past year while Ram trucks have increased 40.5%. You can find a complete list of car manufacturers and their year-over-year increases here.

Why Car Prices are Going Up

Global supply chains were disrupted during the pandemic last year, and many car manufacturers did not produce as many vehicles as they normally would. The influx of stimulus checks and mass avoidance of public transit caused more people to buy cars, further limiting the available car supply.

Since 2020, there has been a global chip shortage causing massive delays for automakers. The average car can have hundreds of these chips, which explains why automobile production has slowed down even as other industries have begun to ramp back up.

How to Budget for Higher Car Prices

If you need to buy a car right now, prepare to pay higher prices than you might have paid a year or two ago.

Here’s how to plan ahead:

Look at your overall budget

Whether you’re planning to buy a car in cash or take out a loan, you should look at your budget to see how much you can afford to pay.

Because prices for other goods are also rising, it’s important to allow some flexibility in your budget. Don’t buy the most expensive car you can afford, and don’t raid your savings to pay for it. While the economy seems to be rebounding, you should still keep a sizable emergency fund in case of future layoffs or furloughs.

Compare interest rates

According to Bankrate.com, interest rates for auto loans are the lowest they’ve been since 2015. If you’re getting a car loan, one of the most important factors is the interest rate and APR. The interest rate affects your monthly payments and the total amount of interest paid over the life of the loan.

Start by getting quotes from your current bank, and then get outside quotes from other banks, credit unions, and auto lenders. Compare the APR and not just the interest rate. The APR is the more comprehensive number, reflecting both the interest rate and any fees.

Get the most for your trade-in

Because used car prices are going up, you will likely earn more for your trade-in than you would have in the past. Look up your car’s value on Kelley Blue Book and Edmunds.com to see what it’s worth.

Then, maximize your trade-in value by getting multiple quotes from dealerships and listing your car for sale on sites like eBay, Craigslist, and Cars.com. You’ll earn more from a private seller but may have to deal with flaky buyers. If you’re selling a car to an individual, you’ll also need to verify that the check or cash you receive is legitimate.

When selling to a dealership, try to leverage quotes from multiple dealers against each other to create a bidding war. Remember that inventory for used cars is low, so many companies are willing to pay more than you might expect for a used car.

Get a longer-term loan

If you can’t afford to pay for the car in cash, a car loan is your next best option. Car loan terms range from 24 to 84 months, and interest rates generally increase as the term gets longer. Because car prices are higher right now, you may need a longer loan term to end up with monthly payments you can comfortably afford. Use a car loan calculator and play around with the numbers to find your upper loan limit.

Here’s how the monthly payments can change depending on the term. Let’s say you receive two quotes from an auto lender for a $20,000 car. The first option is a three-year term with a 5% interest rate and a $582 monthly payment. The second option is a six-year term with a 6% interest rate and a $331 monthly payment.

You review your budget and determine that the maximum amount you can afford each month is $350. In this case, you would be better off choosing the six-year term with the higher interest rate.

It’s better to have a payment you can easily make every month than a lower interest rate and less wiggle room in your budget. You can always make extra payments on the car loan to pay it off faster if your income increases. Most auto lenders don’t charge a prepayment penalty, so there’s no extra fee if you repay the loan ahead of schedule.

Budget for car insurance

If you’re about to buy a new car, call your car insurance provider and ask them what the new monthly premium will be. In most cases, buying a newer car will increase your premiums because it will cost more to replace if there’s an accident.

But if your new car has additional safety features that could reduce the chances of an accident, then your premiums may not change as much. Still, it’s better to find out now what the premium will be instead of after you’ve bought the car.

Bottom Line

It’s impossible to predict where prices may be in the future. If you don’t need to buy a car right now, you might be better off waiting a few months to see if prices cool off.

Save more, spend smarter, and make your money go further

Zina Kumok

Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Conscious Coins. More from Zina Kumok

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Source: mint.intuit.com

Posted on May 17, 2022

Is Recession Coming? Watch These Signs

recession market scare crash downturn stock business men
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There’s no time stamp on when recessions pop up, or how long they last. Our last recession was two months long at the onset of the COVID-19 pandemic in 2020, making it the shortest on record.

The one before that was the Great Recession starting in 2007 and lasting 18 months, the longest downturn since World War II.

If the stock market and economy are keeping you on the edge of your seat, you can look for signs of a recession before it hits. That can help you determine whether you should start preparing for a recession, and the act of getting your finances ready for a possible downturn should give you some peace of mind.

An inexact science

work worry
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Before we dive into the possible warning signs of a recession, it’s worth noting that predicting a recession is not an exact science.

So, while the following warning signs historically have served as indicators that a recession might be on the horizon, that doesn’t mean they are foolproof. The economy is dynamic, and there is no list of indicators that have preceded every past recession.

Still, the following indicators tend to be a good place to start looking if you’re worried about whether a recession lies ahead.

Sign No. 1: The yield curve inverts

Positive yield curve
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Typically, long-term bonds pay more than short-term bonds, as illustrated above. This makes sense: If you agree to tie up your money for longer periods, you should be paid more for your trouble. This is why a five-year certificate of deposit (CD) pays more than a one-year CD.

Rarely, however, the reverse is true: Long-term bonds start paying less than short-term bonds. When that happens, a recession often follows. In fact, this situation, known as an inverted or negative yield curve, has proven a highly accurate recession predictor.

Why would long-term bonds ever pay less than short-term bonds? The nation’s central bank, the Federal Reserve — or “the Fed” for short — controls short-term rates, but the market controls the rates on longer-term securities.

The Fed can raise short-term rates, which is exactly what they started doing in March 2022, for the first time since 2018. But if investors start thinking things don’t look so good in the economy, they keep their powder dry by buying long-term bonds. The more they buy and bid up the price, the lower the rates on these securities go.

The yield curve did dip into negative territory in late March 2022. It quickly recovered, but it’s worth noting that it was the first time the yield curve turned negative since 2019 and, before that, 2006.

What to watch: You can find Treasury yields on the U.S. Treasury Department’s website. CNBC also tracks in real time the spread, or difference, between the yields on two-year and 10-year Treasurys.

Sign No. 2: The Leading Economic Index slips

Jenga game at risk of slipping
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The Conference Board’s Leading Economic Index (LEI) is one predictor of global economic health. The Conference Board, a nonprofit research group, describes the index as one of “the key elements in an early warning system to signal peaks and troughs in the global business cycle,” with the LEI specifically anticipating turning points in the business cycle.

Monthly dips in the Leading Economic Index aren’t alarming. However, year-over-year drops in the benchmark have been followed by recessions in the past.

The LEI increased by 0.3% from February to March, and by 1.9% over the six months leading up to March, so there’s no reason for concern based on this indicator right now.

What to watch: Keep an eye on Conference Board press releases or media coverage of the index.

Sign No. 3: Interest rates rise

Federal Reserve
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Government monetary policy can be another economic bellwether. We’ll explain what to watch, but first, a quick refresher on how it works.

The Federal Reserve influences the economy by using a couple of tools. One of those tools is control over short-term interest rates via the target federal funds rate. If the economy is in the doldrums, it can lower the federal funds rate to encourage consumers and businesses to borrow, buy and invest, which stimulates the economy. That’s why this rate was kept near zero for years following the Great Recession that began in December 2007.

On the other hand, if the economy is growing too fast, that can lead to rising prices, otherwise known as inflation. To cool things down, the Fed raises the federal funds rate, which serves to put the brakes on the economy by discouraging both consumers and businesses from borrowing and spending as much.

While interest rates don’t directly affect the stock market, if businesses have to pay more in interest, that hurts their profits, which will ultimately be reflected in a lower stock price.

Also, as rates rise, investors often sell stocks, driving prices lower. Why do they sell? Think about it: If you can earn high interest from insured bank accounts or guaranteed Treasury bonds, why take a chance on stocks?

Again, the Fed resumed raising the federal funds rate in March 2022, marking the first rate hike since 2018. The hike in May — a half-point — was the largest increase since 2000.

What to watch: The Federal Reserve’s Federal Open Market Committee posts statements, which include any votes to change the federal funds rate, after each of its regularly scheduled meetings. The meetings are also widely covered by the financial media.

Sign No. 4: Consumer sentiment falls

Upset shopper at a grocery store
C.Snooprock / Shutterstock.com

Another economic indicator published by the Conference Board, the Consumer Confidence Survey, monitors everything from Americans’ buying intentions and vacation plans to their expectations for inflation, stock prices and interest rates.

After an uptick in March, consumer confidence fell slightly in April. The Consumer Confidence Index was at 107.3 for the month, down from 107.6. During the recession at the beginning of the COVID-19 pandemic, the index was less than 90.

Fluctuation is normal, especially as economic conditions shift. The pandemic, the rising costs of products and the war in Ukraine can change how people feel about the economy from month to month. But if consumer confidence continues to drop, that could be a sign of a looming recession.

What to watch: The Consumer Confidence Survey is updated monthly. Track press releases for it on the Conference Board’s website. The survey is also widely covered in the media.

Sign No. 5: Business confidence cools

Upset businessman holding his head at his computer
Rido / Shutterstock.com

Like consumer confidence, business confidence can shed light on the direction of the economy.

The Conference Board’s Measure of CEO Confidence remained in positive territory — 57 — in the first quarter of 2022. (The board considers measures of more than 50 points as positive, and lower readings as negative.) But this measure marked the third consecutive quarter of decline.

CEOs’ assessment of the current general economic conditions, and their expectations for the near future, also declined.

The outlook of small-business owners isn’t any rosier, according to the National Federation of Independent Business’ Small Business Optimism Index.

In March, inflation overtook labor quality as the top problem among small businesses. In fact, the share of owners raising their average selling prices reached its highest level in the survey’s 48-year history.

Moreover, the share of owners who expect better business conditions over the next six months fell to its lowest level in the survey’s history.

What to watch: Business confidence gauges like the Measure of CEO Confidence and CFO Survey are updated quarterly. The Small Business Optimism Index is updated monthly.

Sign No. 6: Vanguard’s risk forecast worsens

Vangaurd
Casimiro PT / Shutterstock.com

Vanguard is one of the biggest asset management firms in the world, so its economic outlooks can help paint a picture of how to monitor fluctuation in the economy.

Before the recession that started in late 2007, Vanguard’s six-month forecast had said the probability of a recession in six months was greater than 40%, according to The New York Times.

The firm’s forecast for 2022 — subtitled “Striking a better balance” — was overall optimistic, if cautiously so:

“While the economic recovery is expected to continue through 2022, the easy gains in growth from rebounding activity are behind us. We expect growth in both the U.S. and the euro area to slow down to 4% in 2022.”

In March, however, Vanguard downgraded its 2022 estimated growth for the U.S. from 4% to 3.5% — which is where it remained going into May.

What to watch: Vanguard posts its monthly market perspectives on its “Our Insights” webpage and issues press releases about its annual outlooks.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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Source: moneytalksnews.com

Posted on May 16, 2022

How Much is an iPod Worth?

In a file photo dated 2015, an iPod, iPod Nano and iPod Shuffle are displayed at an Apple store in New York.

In this 2015 file photo, from left, an iPod, iPod Nano and iPod Shuffle are displayed at an Apple store in New York. AP Photo by Mark Lennihan

Apple announced that it’s discontinuing the iPod, so is now a good time to sell your old iPod?

Apple introduced the first iPod in 2001, revolutionizing the way we listen to music, and Apple products can surprisingly hold their value. From Apple’s vintage original to the final 7th generation iPod Touch, here’s how much your old iPod is worth.

How Much Is an iPod Worth?

Your iPod’s value will depend on the model, age, condition and storage capacity. At the lower end are iPods with heavy cosmetic damage, while on the higher end are iPods in excellent condition, often with large storage capacities.

There are five categories of iPod: the Classic, Mini, Nano, Shuffle and Touch. You can go to Apple’s support page if you need help identifying your iPod model.

The estimated prices are subject to change and are based upon data found as of the publish date. The sale prices are based on sold and completed listings from online auction and e-commerce sites, including eBay and Amazon.

If you have a broken iPod, you should assume that the estimated value is even less, but you can try selling it as-is for a lower price.

Value of the iPod Classic

Price range: $30-$1,000

The most valuable iPod Classics are the original 1st generation, a piece of Apple history, and the final two generations, which are still usable today. All sell particularly well if they are still in their original packaging.

Apple released six versions of the iPod Classic over its lifetime, with the last model announced in 2007 and discontinued in 2014.

iPod Classic

Generation Condition/Packaging Selling For
1st Good to excellent condition $200 to $500
1st Original packaging $1,000
2nd Good condition At least $150
2nd Perfect condition with all the accessories $300
3rd Good condition $50 to $100
4th Good condition $36 to $60
5th and 6th Good to like new $60 to $180

Value of the iPod Mini

Price range: $20-$150

The Apple iPod Mini was a successful, scaled-down iPod that introduced the famous Click Wheel. The only decent price you can get for the iPod Mini is if you have it with the original box in excellent condition.

iPod Mini

Generation Condition/Packaging Selling For
All Good condition $20 to $60
All Original box, excellent condition As high as $150

Value of the iPod Nano 

Price range: $20-$350

The Apple iPod Nano was the successor to the iPod Mini, featuring smaller-capacity solid-state flash memory. The iPod Nano’s design changed wildly over the seven generations it was offered from 2005 to 2017.

Starting with a Click Wheel, the Nano eventually became a touch-screen device. The 1st generation iPod Nano is seen as a collector’s piece when it’s a sealed, new in-box device.

iPod Nano

Generation Condition/ Packaging Selling For
1st, 2nd and 3rd Sealed, new in box Up to $350
1st, 2nd and 3rd Used $20 to $60
4th and 5th Good condition $30 to $100
6th and 7th Good condition Starting at $25
6th and 7th Sealed in original boxes Up to $250

Value of the iPod Shuffle

Price range: $10-$160

Designed as a cheaper alternative, the iPod Shuffle lacked a screen, forcing the user to rely on a shuffle feature that randomly played music. The shuffle lasted from 2005 to 2010 and had six different generations.

As with the others, the most valuable Shuffles are in their original boxes.

iPod Shuffle

Generation Condition/ Packaging Selling For
1st Original box $50 to $160
1st No box $10 to $25
2nd Good to sealed in box $15 to $70
3rd Good to sealed in box $15 to $80
4th Good $30
4th New, in-box Up to $150

Value of the iPod Touch

Price range: $20 to $600

The iPod Touch was introduced in 2007 and continued selling up until 2022. The last generation to be produced included up to 256 GB of storage and Apple’s A10 Fusion SoC. Values can range wildly, depending on the age, condition and storage.

Apple is continuing to sell the iPod Touch 7th generation for up to $400 while supplies last, but don’t expect them to last for too long.

iPod Touch

Generation Condition/ Packaging Selling For
1st Good condition with original box & all accessories $20 to $50
1st New, in box Up to $600
2nd Good condition $20 to $50
3rd Good condition $20 to $50
4th Good condition $25 to $80
5th New in box, larger capacity Up to $100
6th Good condition $30 to $120
7th Used, good condition $130 to $330

Where Should I Sell My iPod?

If you are looking to sell your old iPods, start with online classifieds such as Facebook Marketplace or the OfferUp app for Android or iOS.

You can list your vintage iPods there for free, and they do not collect any fees if you sell the devices in person. If you list the devices as shippable, you’ll need to pay applicable fees as well as the cost of shipping (if you don’t charge your buyer).

You can also sell your old iPod on eBay. It charges fees to its sellers, but you will get a broad audience to sell your device. Take clear photographs and list your iPod at a competitive price.

For the best chance of selling your old device, research what other people are selling the same iPod model for in your condition and storage size.

Frequently Asked Questions (FAQs)

Is an old iPod worth anything?

iPods can be worth as little as $10 and as much as $1,000, depending on its model, age, condition and storage capacity.

What is an iPod Touch worth?

Apple’s iPod Touch can be worth anywhere from $20 to $600, depending on the generation. While a new, in-box 1st generation sells for as much as $600, other models fetch prices that barely cover their shipping cost. 

What iPods are worth the most?

The iPod with the most value is a sealed, in-box iPod 1st Generation from 2005. The original iPod can sell for around $1,000 in a well-preserved state. A sealed, in-box iPod Touch 1st Generation for $600. A sealed, in-box iPod Nano 1st Generation for $350.

But I heard ‘this’ iPod is worth thousands?

There are rare models that have sold for thousands of dollars in the past. In general, the market has changed since many of these iPods were originally sold.

Michael Archambault is a senior writer for The Penny Hoarder specializing in technology.

Source: thepennyhoarder.com

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