📈 Stocks / Finance

Three Affordable Stock Market Areas Identified Amid Fed Stimulus Announcement

Business Insider

Bank of America advises investors to focus on value stocks in three sectors: real estate, financials, and energy, as the Federal Reserve is cutting rates while corporate profits are growing. This unique situation is seen as a "rare double whammy of stimulus," allowing these stocks to thrive as more investors seek higher returns.

Savita Subramanian, the US stock-strategy chief, highlights that these sectors provide quality income and are appealing because of their high dividends. She notes that shifts in investor behavior will likely favor these value stocks over growth stocks in the near future.

Apollo and State Street Explore Viability of Private-Debt ETFs

Wealth Management

Apollo Global Management and State Street Global Advisors are seeking approval to launch a new credit ETF that combines public and private debt, with 80% of assets in investment-grade securities and up to 20% in high-yield bonds. This ETF, if approved, could open the $5 trillion private-asset market to everyday investors, a space previously dominated by wealthy individuals and institutions. However, experts warn that the plan faces challenges, especially regarding the liquidity of private investments, which typically don't trade frequently. Critics are concerned about how the fund will manage potential market stress and maintain proper valuations on illiquid assets.

Hedge Fund Manager Proposes Overhaul for Struggling CVS

NY Post

Hedge fund manager Larry Robbins will meet with CVS executives to discuss a plan to improve the struggling drugstore chain, where Glenview Capital has invested around $700 million of its $2.5 billion fund. CVS shares fell nearly 24% this year after cutting its profit forecast and facing high medical costs at its insurance arm, Aetna. The company is also laying off about 2,900 employees and has been accused by the FTC of inflating insulin prices. CVS is trying to save $2 billion by streamlining operations and using new technology.

🪙 Crypto

Gemini Closes Customer Accounts in Canada

Coin Telegraph

Gemini, the crypto exchange founded by the Winklevoss twins, will close all customer accounts in Canada by December 31, 2024. Canadian users have 90 days to withdraw their assets. This decision comes after new rules were set by Canadian financial authorities, leading other exchanges like Binance to leave Canada as well. Though Gemini tried to register under the new regulations, it chose to exit the market instead.

🌎 Global Economy

US Job Openings Increase to 8 Million Amid Strong Labor Market

ABC

In August, U.S. job openings unexpectedly increased to 8 million from 7.7 million in July, showing the labor market's strength. Job openings were higher in construction and local government, while layoffs decreased. Although the number of people quitting their jobs dropped to its lowest since August 2020, overall hiring has slowed down. Economists predict that September will see an addition of 143,000 jobs, with the unemployment rate steady at 4.2%.

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