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Are inflation and debt pushing you to raid your retirement savings early? You’re not alone. 2023-08-05 - Some Americans are struggling to feel comfortable with their finances, thanks in part to inflation, and they’re looking to their retirement accounts for help. A handful of plan providers have noticed more workers raiding their retirement savings, either as a loan or a hardship distribution. Reasons included debt repayment, emergency scenarios and large purchases. “People are dipping into retirement savings because they lack emergency savings,” said Catherine Collinson, chief executive officer and president of nonprofit Transamerica Institute. “There are telling findings that illustrate what people have been through over the last few years.” There are a few ways to take an early withdrawal from a workplace retirement account, such as a 401(k) plan. A loan allows workers to pay back the amount they took over time, whereas a hardship distribution is used for “immediate and heavy financial need,” according to the Internal Revenue Service. The latter is taxed. Early withdrawals can also come with a 10% penalty, unless the individual is 59 1/2 years old or qualifies for an exception. Loans must be paid back to the plan, with interest, in a predetermined timely fashion, and if the worker is separated from the employer (such as through a resignation or after being fired), he or she must repay the remaining balance or face taxes and penalties. See: I took out a 401(k) loan but am changing jobs. What do I do now? Mixed sentiments Workers are worried about their finances, but they’ve continued to contribute to their retirement plans, said Tom Armstrong, head of customer analysis and insight at Voya Financial. “Everything is getting more expensive,” Armstrong said. But he’s noticed a juggling act among Voya’s plan participants. Three-quarters of respondents said they worry about the impact of inflation on their ability to save for the future, but more than eight in 10 people also said continuing to make contributions to a retirement plan is important. Younger Americans may be struggling the most Even though Gen Z and millennials are increasing their savings rates, they have concerns about student loans and budgeting, Armstrong said. Hardship distributions did slightly tick up among Voya’s plan participants in the second quarter of 2023, but it’s something the company will monitor closely, Armstrong said. After a government-granted hiatus, student loan borrowers will need to begin repaying their debt in October, if they haven’t already. That, coupled with the looming holiday season and other financial stresses, may put more pressure on savers, he said. Transamerica found the same trend in its latest report released last month. Gen Z workers are saving, but they’re also dipping into their savings, Collinson said. Almost three in 10 have taken a hardship withdrawal or early withdrawal from a retirement account, the Transamerica report found — the most of any of the four generations the organization surveyed. Don’t miss: Thinking about borrowing from your 401(k)? When it makes sense to take from your retirement account — and when it doesn’t How others are faring Vanguard found an increase in hardship withdrawals among plan participants in 2022: 2.8% versus 2.1% in 2021 and 1.7% in 2020. During the COVID-19 pandemic, Americans were given looser restrictions around withdrawing from retirement plans through the CARES Act. Instead of considering withdrawals as “hardship distributions,” they were classified as “coronavirus distributions” (of which, 5.7% of plan participants had taken one). Participants used their hardship distributions in 2022 for various emergencies: the most common was to prevent a foreclosure or eviction, followed by medical expenses. Loan usage also increased, although rates were below what they were prior to the pandemic, Vanguard found. A little more than one in 10 plan participants (12%) had a loan outstanding in 2022, with the average balance at about $10,500. Fidelity Investments saw the opposite — the number of plan participants with 401(k) loans declined to an “all-time low” in the first quarter of 2023, to 16.6% compared to 16.7% the quarter before and 21% five years before. Fears about inflation and stock market volatility SPX has some Americans wondering how secure their futures will be. More than six in 10 workers said inflation is an “obstacle to saving for a comfortable retirement,” up from 45% the year before, and another four in 10 said the stock market was an obstacle, up from one-third the year before, according to a recent Schwab survey. Also see: Read this before you take out a loan on your 401(k) What to do Savers should carefully consider all of their options before taking early withdrawals from retirement accounts, since doing so could lead to penalties and tax implications. Of the two, loans are a softer option, as borrowers are paying the money back to themselves (with interest) and face no other tax burdens if they repay the balance before separating from their jobs. Hardship withdrawals, on the other hand, are typically more permanent and come with immediate tax consequences. Non-hardship withdrawals could face an additional penalty. When possible, workers of all ages should look to protect themselves with insurance, including health insurance through the workplace or marketplace, life insurance, disability insurance, home or renters insurance and auto insurance, Collinson said. These coverages could provide protection when the unexpected arises, and act as one more barrier before raiding a retirement plan. Emergency situations were a common reason for the withdrawals in the first place, which is why all savers should focus on building an emergency reserve. Funding an emergency account and a retirement plan “doesn’t need to be mutually exclusive,” Collinson said. “If we have learned anything, it’s have emergency savings, so that if a disaster strikes, there are funds to go to,” she said.
Millennials are losing the home-buying edge to baby boomers 2023-08-05 - Millennial home buyers are losing their edge to score properties in a tough, expensive housing market. As seen in the chart below, which was presented during a National Association of Realtors’ webinar, millennials were leading home-buying for a big part of this decade, but recently started losing ground to baby boomers. Based on the NAR’s data, 39% of home buyers are baby boomers, while only 28% were millennials. Millennials are considered to be those between the ages of 24 and 42, per the NAR. Baby boomers, those born in the years after WW II and aged roughly 57 to 76, have considerable equity in their current home that they can tap to produce all-cash offers, but millennials — many of whom are first-time buyers — are finding it hard to beat the competition and buy homes. “We should see that millennials are the biggest generation of home buyers… [and] for eight years out of the last decade, they were the biggest generation,” Jessica Lautz, deputy chief economist and vice president of research at the NAR, said during the presentation. “In the last year, unfortunately, they dropped off and we’ve seen baby boomers have taken over… [W]e are seeing that [millennials are] being priced out of the market, losing those bidding wars with all-cash buyers,” she explained. CoreLogic recently noted that almost four in ten sales were all-cash transactions. “Half of older boomers are all-cash buyers,” Lautz added. “So unfortunately we’re just not seeing them as active in the housing market.” The NAR also found that there was a “dramatic shift” in the median age of a typical repeat home buyer: In 1981, they were 36 years old, and today, that buyer is typically 59. Instead, the typical home buyer was buying their home at 36. The price of an existing home in June was $410,200. Many home buyers, finding limited home listings on the market presently, are turning to new homes. But new homes are not much cheaper: The price of a new build in June was $415,400.
Warren Buffett’s Berkshire Hathaway swings to Q2 profit, operating earnings up 6% 2023-08-05 - Warren Buffett’s Berkshire Hathaway swung to a profit in the second quarter owed to its investment portfolio and insurance holdings, according to a release out Saturday. The holding company with businesses that range from insurer Geico and railroad BNSF Railway to Dairy Queen restaurants and its own energy division posted net income of $35.9 billion, or $24,775 a class A share equivalent. That compared with a loss of $43.8 billion, or $29,754 a class A share equivalent, a year earlier. ...
FDA approves first-ever pill for postpartum depression in new mothers 2023-08-05 - The Food and Drug Administration late Friday approved the first-ever pill that can be taken at home for postpartum depression. The medication, called zuranolone, and jointly developed by pharmaceutical companies Biogen Inc. BIIB, +0.44% and Sage Therapeutics SAGE, +0.25% , is taken daily for two weeks, the FDA said in its release. In a pair of clinical trials involving women who experienced severe depression after having a baby, the drug improved symptoms including anxiety, trouble sleeping, loss of pleasure, low energy, guilt or social withdrawal as soon as three days after the first pill. “Postpartum depression is a serious and potentially life-threatening condition in which women experience sadness, guilt, worthlessness — even, in severe cases, thoughts of harming themselves or their child,” said Tiffany Farchione, M.D., director of the Division of Psychiatry in the FDA’s Center for Drug Evaluation and Research. ”And, because postpartum depression can disrupt the maternal-infant bond, it can also have consequences for the child’s physical and emotional development,” she said. Women who are breastfeeding or had mild or moderate depression weren’t included in the trials. Until now, the only available option for this condition has been an intravenous injection that the FDA approved in 2019. It requires patients to stay in a hospital for two-and-a-half days. Postpartum depression affects one in eight new mothers in the U.S., according to the Centers for Disease Control and Prevention. Researchers suggest the actual rate may be higher and that half of such cases go undiagnosed. Research finds that postpartum depression is more intense and lasts longer than the typical worries, sadness or tiredness that many women experience after giving birth. The condition can make it harder for mothers to bond with their babies and may increase the likelihood of developmental delays in infants. Drug overdoses and suicides are leading causes of maternal death in the U.S., contributing to nearly one in four pregnancy-related deaths, according to the CDC. Zuranolone stimulates a brain receptor called GABA that slows down the brain and helps control anxiety and stress. The drug, through trials, is thought to calm women suffering from postpartum depression enough to allow them to rest, which also improves symptoms. Shares of Biogen are up 23% over the past year, and Sage has lost 14%, while the S&P 500 SPX is up 8% over the same time.
AMD’s stock breaks with chip selloff to finish week higher as analyst cites ‘important buying opportunity’ 2023-08-05 - Advanced Micro Devices Inc. went against the grain this past week as shares not only outperformed AI-rivals like Nvidia Corp. on Friday, but finished the week higher when the rest of the sector sold off. AMD AMD, +2.36% shares rose 2.4% Friday to close at $115.82, or for a 2.6% gain on week, while Nvidia NVDA, +0.37% shares gained 0.4% on the day to close at $446.80, but finished at a loss of 4.4% on the week. In comparison, the PHLX Semiconductor Index SOX declined 0.2% Friday for a 4% weekly drop. Nvidia reports its earnings after the market close on Aug. 23. Shares of Intel Corp. INTC, +1.14% fell 4.6% for the week, contributing to the Dow Jones Industrial Average’s DJIA weekly decline of 1.1%. Tech stocks had a rough midweek, their recent outsized gains becoming outsized losses with respect to the broader market, after Fitch Ratings cut its top U.S. credit rating to AA+ from AAA late Tuesday. High flyers like Nvidia, with its more than 200% gains on the year, and chip-related stocks — with the SOX index’s more than 45% rally — all fell sharply on Wednesday. That move included a drop for AMD shares, which had been on the rise after hours Tuesday following an earnings beat. Read: Palantir earnings: What to expect from the software company riding the AI wave But while that blow left the rest of the sector dazed for the rest of the week, and some analysts questioned if the chip maker’s expectations were too high, a wave of analyst support for AMD followed, and turned it into one of the week’s few winning chip stocks. Following Benchmark analyst Cody Acree calling AMD “among the best positioned companies” to take advantage of AI, Morgan Stanley analyst Joseph Moore, in a Thursday-dated note released to non-clients Friday, said the “post quarter selloff” of AMD “creates an important buying opportunity.” Moore has an overweight rating on AMD and a $138 price target. “The AMD quarter should have been a relief, given near universal sentiment that they would guide well below expectations for servers (they didn’t), and that their expectation for margin recovery in PCs was unrealistic (it wasn’t),” Moore said in the note. Read: Qualcomm stock logs worst day since pandemic shortages as chip glut produces ‘lackluster’ earnings Other chip makers like Qualcomm Inc. QCOM, +2.36% didn’t have it as easy, with shares finishing the week down 6.2%, after the phone handset supplier reported it was still dealing with inventory drawdowns. In the coveted AI data-center category, Moore said interest in AMD’s rollout of MI300 class CPU + GPUs is high. “Substantial demand from customers is known, but the timing of qualifications remains a key variable,” Moore said. “There will be inevitably be surprises when bringing up new silicon.” Read: AMD stock rises 3% after earnings beat, CEO predicts ‘multiple winners’ in AI race “There will also be a competitive reaction to first silicon; for example, we don’t think that Nvidia will price inference products aggressively to compete with powerpoint presentations about chips that aren’t out, but they will be fully engaged when AMD is trying to convert initial interest into wins,” Moore wrote. Read: AMD among ‘best positioned’ AI players, analyst says “The supply chain is building to the best case, and this is a chip with the longest manufacturing lead times that we have ever seen, at 8 months or so, in a market where customer interest is the highest we have ever seen,” the Morgan Stanley analyst noted. Of the 45 analysts surveyed by FactSet, 30 have buy ratings, and 15 have hold ratings, along with an average price target of $140.42. In the broader market, the S&P 500 index SPX declined 0.5% Friday to finish the week down 2.3%; and the tech-heavy Nasdaq Composite COMP slipped 0.4%, to finish the week down 2.9%
As Uber drivers complain of deactivations and ‘policies that keep us in poverty,’ company issues its own civil-rights audit 2023-08-05 - Uber Technologies Inc. released its civil-rights audit on Friday, an outside review it agreed to undergo last year after pressure from shareholders, to mixed reactions. Shareholder groups had submitted a proposal expressing concerns about the effects of Uber’s policies and practices on the civil rights of all stakeholders in the giant app-based platform — drivers, riders, employees and communities. The groups, which withdrew the proposal after the company agreed to the audit, said some of the ride-hailing giant’s policies and actions, including its “misclassification of independent contractors [that] has been found to disproportionately affect racial minorities,” seemed contradictory to the company’s stated commitments to be anti-racist. Uber UBER, -1.55% , like other app-based gig companies, treats its drivers and couriers as independent contractors and has fought to change labor laws around the nation and world as it tries to keep from having to classify its workers as employees. Other shareholder concerns included: inadequate disclosure around sexual assaults on the platform; research that found evidence of racial discrimination in the company’s pricing algorithm; a lack of diversity in Uber’s leadership; and more. The shareholder group that led the push for the audit expressed optimism that it would lead to some changes, but pointed out lack of specifics in some areas. Others called attention to some glaring omissions. Tejal Patel, executive director of SOC Investment Group, which led the investor groups that pushed for the audit, on Friday called the audit “just a snapshot.” Patel said the audit contained some good recommendations — such as consolidating the company’s equity and fairness into a team — but did not delve deeply enough into some important issues, including the effects of Uber’s business model and its efforts to continue to treat its drivers as independent contractors. “The issue of misclassification is an undercurrent throughout the report,” Patel said. “They brought up Proposition 22 [the voter-approved law in California that allows gig companies to avoid classifying its drivers and couriers as employees but offers them some benefits], but there’s no analysis of how these policies are affecting protected classes.” She added that under the law, for example, drivers are eligible for optional occupational-accident insurance, but there’s no mention of cost or how many drivers have actually opted in. Veena Dubal, law professor at UC Irvine whose research focuses on law, technology and work, said Friday that the audit “is a great example of how company-paid-for audits will never address the real issues.” “While it evaluates executive compensation in relationship to [diversity, equity and inclusion] goals, it completely ignores the most pressing civil rights emergency created by Uber,” Dubal said. “The workers who create the company’s profits — the drivers — are majority Black, immigrants and other workers of color. Uber’s business model ensures that they are paid low, erratic and unpredictable wages. How can you investigate Uber’s efforts to promote civil rights and DEI and ignore this central fact?” According to the audit, Uber estimates that 49% of U.S. drivers and couriers on its platform are white, which would mean that a majority of them are people of color. Uber has said that the median hourly earnings of U.S. drivers is $34, including tips. But worker-group estimates and other studies have shown that earnings of drivers are much lower — less than minimum wage —- when the expenses they incur, such as fuel, vehicle maintenance and other costs, are taken into account. “The ‘audits’ that consumers, investors and regulators need to be paying attention to are the hundreds of independent academic studies from all over the world that reveal the dangers and precarities of Uber work for migrant and racial-minority workers,” Dubal said. “It should not be lost on people that people of color and immigrants are the majority of Uber drivers,” said Daryush Khodadadi-Mobarakeh, worker leader with the California Gig Workers Union, on Friday. “Uber actively pursues policies that keep us in poverty and prevent us from having a voice on the job and a seat at the table. If Uber wants to address the issues we face daily adequately, management will meet with us.” Uber spokesperson Noah Edwardsen did not address MarketWatch’s questions about criticisms of the audit on Friday, saying only that “the assessment highlights many existing strengths, including expanding access to mobility options and the establishment of our Marketplace Fairness and Product Equity teams. It also offers recommendations to further improve.” The audit mentions a widespread issue among Uber drivers, which is deactivations— or getting kicked off the platform and being unable to earn either temporarily or permanently. The issue has affected platform workers so much that cities and states have proposed or adopted ordinances and laws that try to address it. “Some drivers have suggested that the deactivation process has had a disparate impact on drivers of color,” said the audit, which mentioned that the company has “a global team that governs and oversees the deactivation process, including an established team to review deactivation appeals.” “Uber is in the process of reviewing and evaluating its deactivation policies to help improve the experience for drivers, including drivers of color,” the audit also said. From our archives (April 2023): Uber drivers say they’re ‘totally dependent’ on their income — but risk being deactivated at any time “Many of us have experienced temporary or permanent bans from driving inexplicably and without warning,” said Khodadadi-Mobarakeh of the Gig Workers Union. “We have no process to appeal these bans, and often we have no knowledge that we have even received notice of our deactivation until after the fact.” Edwardsen did not respond to several specific questions about deactivations and the other driver-related issues and recommendations in the audit, including about a timeline for addressing them. “Where appropriate we’ll work to implement recommendations immediately, and a working group will be established to assess the remaining recommendations and work on implementation,” he said. The audit, conducted by former U.S. Attorney General Eric Holder and the law firm he now works for, Covington & Burling, offers several recommendations related to the civil rights of Uber drivers and couriers, who make up the overwhelming majority of the workers central to the company’s business. In the United States, Uber has more than 1 million drivers and couriers, and about 11,000 corporate employees, according to the civil-rights audit, which focused on the company’s U.S. business. Covington & Burling did not immediately respond to a request for comment. Among the other driver-focused recommendations in the audit:
Cathie Wood Splurges $10.6M On Robinhood Stock Even As Google Parent Cut Stake In Trading App By Over 87% - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), ARK Fintech Innovation ETF (ARCA:ARKF), ARK 2023-08-05 - Ark Invest bought a good chunk of Robinhood Markets, Inc. HOOD shares, capitalizing on its post-earnings dip. Interestingly, a 13F form filed by Alphabet, Inc. GOOGL GOOG this week showed that the search giant liquidated much of its Robinhood Holdings. What Happened: Cathie Wood’s Ark, through its three funds, amassed 933,663 shares of Robindhood in two sessions this week. Ark's flagship Ark Innovation ETF ARKK, as well as Ark Fintech Innovation ETF ARKF and Ark Next Generation Internet ETF ARKW added Robinhood shares. On Thursday, these ETFs purchased 482,281 shares valued at $5.57 million, and in the very next session, Ark funds bought an incremental 451,382 shares valued at $5.09 million. Ark's Robinhood buy for the week is cumulatively valued at $10.66 million. Robinhood, which democratized trading with its zero-commission option, reported late Wednesday better-than-expected second-quarter bottom-line results and revenue. Some key user metrics such as monthly active users and assets under custody dropped, sending the shares down by over 7% on Thursday. See Also: How To Buy Stocks On Robinhood Robinhood fell an incremental 2.25% on Friday before ending at $11.82, according to Benzinga Pro data. Robinhood has a 2.78% weighting in Wood's flagship ARKK fund. Alphabet Cuts: A 13F form filed by Google parent Alphabet this week showed that the company substantially reduced its stake in Robinhood. At the end of the second quarter, Alphabet held 612,214 Robinhood shares valued at $6.11 million. This marked a drastic cut from the 4.93 million shares Google held at the end of the March quarter, with the value of the then holding at $47.86 million. Robinhood shares have come notably off their post-IPO intraday high of $85 reached on Aug. 4, 2021. Related Link: Trading Strategies For Robinhood Stock Heading Into Q2 Earnings Photo: Shutterstock
Saudi Arabia Boosts Oil Prices To Asia And Europe Amid Growing Market Demand And Supply Restrictions 2023-08-05 - As supply constraints and increasing demand tighten the global crude market, Saudi Arabia has raised almost all oil prices for September to Asia and Europe. What Happened: Saudi Aramco has increased the price of Arab Light crude for sale to Asia by 30 cents per barrel above the benchmark, settling at $3.50, Bloomberg reported. While the producer was expected to raise prices by 50 cents according to a survey of refiners and traders, the move comes after Saudi Arabia, the world's largest oil exporter, extended a unilateral supply cut into September. This cut could potentially be extended further or deepened, the outlet reported. In addition to the cuts, Russia has also committed to reducing its oil exports. The actions have contributed to oil posting a sixth consecutive weekly gain, marking the longest winning streak in over a year, following the extension of OPEC+ cuts and a decline in U.S. stockpiles, according to Bloomberg. To support the market and counter the decline in crude prices this year, Saudi Arabia's production has been reduced to the lowest levels in years. Also Read: Saudi Aramco, JV Partners Plan To Commence $12.2 B Refinery, Petrochemical Complex In Northeast China Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman is currently reviewing the voluntary cuts monthly, creating uncertainty about future supply levels. The global economic outlook remains uncertain, with lackluster data from China and concerns about a potential recession in the U.S. Furthermore, according to Bloomberg Economics, Riyadh may need oil prices to reach as high as $100 per barrel to cover government spending. Bloomberg reported that nearly all official selling prices to the Mediterranean and Northwest Europe were higher for September. Arab Light crude in the Mediterranean was raised by $1 to $4.50 a barrel more than ICE Brent, while the price for the same grade to Northwest Europe was raised by $2 to a premium of $5.80 to the benchmark. Now Read: BlackRock Called Out For 'ESG Facade' After Naming Saudi Aramco Chief To Board
DeSantis' Top Donor Threatens Funding Cut Over Unaddressed Campaign Changes: 'He Does Need To Shift' 2023-08-05 - A major donor to a pro-Ron DeSantis super PAC has said that he will withdraw support for the Florida governor unless DeSantis attracts new major donors and adopts a more moderate approach. What Happened: GOP donor Robert Bigelow told Reuters in an interview published this week that he was concerned that DeSantis would not be able to surpass former President Donald Trump. The hotel entrepreneur, who gave $20 million to the pro-DeSantis Never Back Down super PAC, said he would not donate more money for now. "He does need to shift to get to moderates. He'll lose if he doesn't … Extremism isn't going to get you elected," Bigelow told Reuters. Bigelow criticized the governor for signing a bill in April that banned abortions in Florida after six weeks. "Not until I see that he's able to generate more on his own. I'm already too big a percentage," Bigelow added. "A lot of his donors are still on the fence." Also Read: DeSantis' Last Book Made Him A Millionaire, But He Still Has Student Loans To Pay Off Bigelow said he wasn't waiting for an exact fundraising figure but that "it's going to be a lot." A spokesperson for the DeSantis campaign, Bryan Griffin, said they were "grateful" to supporters and donors who gave them "the capacity to compete for the long haul" without addressing Bigelow directly. Why It Matters: Despite advice from numerous Republican strategists suggesting that DeSantis should focus on appealing to moderates worried about Trump's policies and electability, the governor has chosen to take aright-leaning stance compared to Trump. While DeSantis has attracted prominent donors seeking an alternative to Trump, Bigelow's contribution stands out prominently. Following Bigelow, the second-largest individual donor to the Never Back Down PAC is venture capitalist Douglas Leone, who donated $2 million, a mere tenth of Bigelow's contribution, according to campaign filings. DeSantis' campaign has faced increased scrutiny in recent weeks following the termination of 38 employees, representing over one-third of the staff. The campaign's high cash burn rate has raised concerns, and it's worth noting that a significant portion of the funds raised came from donors who had already contributed the maximum legal amount. These factors indicate potential financial challenges on the horizon. Now Read: Ron DeSantis Campaign Lets Go Of Staff Amid Heavy Spending Photo: Shutterstock
'Tiger King' Joe Exotic's Last Interview Before Solitary Confinement In Prison: 'Our System Is So Corrupt' 2023-08-05 - From a federal prison, via a phone call arranged by JT Barnett, the original producer of Netflix's cult hit Tiger King, a familiar voice resounds. It's none other than Joe Exotic, the flamboyant personality known for his audacious presence on the famed show and his unconventional foray into politics. Exotic is currently running for President of the United States of America while incarcerated. More on this presidential run later in this article. 'I'm All For Completely Legalizing Recreational Cannabis Everywhere' "I think people have a right to freely consume cannabis, plus it's a smart business move," Exotic states. "I'm all for completely legalizing recreational cannabis everywhere... But you still can't transport it across state lines. We need to change that: It has to be done legally, with dispensaries, and every state needs to be able to profit from the tax dollars." However, his advocacy for cannabis legalization is not just about the tantalizing promise of potential economic and fiscal benefits. For Exotic, it's an issue of justice, fairness, equitable opportunities and common sense. "I served as a cop once," he recalls, "Back then, possession of anything under four ounces was just a ticketable offense in Texas. I never quite grasped the fuss because it's been proven beneficial in the medical world and… Can you even find a substantial number of incidents on the Internet where a person, solely high on marijuana, caused an accident and took a life? I bet you'd find very few, if any at all." Joe's Exotic Weed Story Despite being a staunch advocate for legalization, Exotic's personal encounters with cannabis are surprisingly minimal. The charismatic figure admits to having dabbled with marijuana only once. "Here's a funny story for you," he chuckles, "The only time I've ever smoked weed was right after Travis died." His friends, he recalls, said it would help him clear his mind. "They noticed I couldn't dream about him. So, following their advice, I went to the gas station, bought a pipe, and procured enough weed for one bowl. I then found myself in my living room, surrounded by John Reinke, my manager at the Zoo, Anne [McQueen], Jeff Lowe, and Lauren. After two hits, I was so stoned and paranoid that I erroneously thought Lauren was making passes at me," he shares, laughing out loud. Joe Exotic and his tiger, Sarge. COURTESY Today, Exotic steps into a new light, becoming a cannabis entrepreneur in partnership* with Kingmaker Cannabis. An unexpected turn, considering his scant personal history with the substance, yet unsurprising when we consider his inimitable flair for embracing the unanticipated. Incarceration, Justice And The Call For Reform As the conversation unfolds, Exotic expresses his concern about the two-party justice system, which he believes treats different segments of society unevenly. "The problem in this country is we have a two-party justice system...We have a justice system for the rich and a justice system for the poor," he says. Despite his incarceration, Exotic passionately advocates for the decriminalization of small amounts of drug possession and stresses the need for programs that help individuals overcome addiction. Exotic's experience within the legal system has been frustrating, to say the least. "I've been waiting a year and three weeks now. I filed a motion a year and three weeks ago for a new trial, and the judge refuses to answer it," he shares. He juxtaposes his situation with Brittney Griner, a professional basketball player who was released from Russian custody after ten months, despite her being aware that her possession of hash oil was illegal. As he puts it, "She [Brittney Griner] got her ass on an airplane... And flew internationally, across state lines and international lines with hash oil that she knew was illegal. Then she gets arrested, she gets charged, and gets freed within months... And I've been waiting five years for just a motion for a new trial." Moreover, he criticizes the current political leaders, saying, "They [current politicians] don't have a clue what's going on in the real world because they've never lived in the real world. They've always been politicians...They're so far out of touch with what reality is and what's going on in the real world." His unique perspective on drug use and the justice system is informed by his time in prison. He paints a stark picture of a prison system flooded with drugs and criticizes a system he believes transforms incarcerated individuals into drug addicts. "There are more drugs in this prison system. I made it 55 years without ever seeing heroin...until I came to prison," he assures. A Presidential Campaign And Exotic's Vision For A 'Great' America Currently serving time in federal prison while simultaneously pursuing a presidential campaign for 2024, Exotic remains unwavering in his pursuit of change. "If I die in here, I'm going to go in the history books and hopefully laws should be changed because I'll be the first presidential candidate to die innocent in federal prison," he boldly declares. Joe Exotic. COURTESY His perspectives on the system are clear, and he's unafraid to voice them: "Our system is so corrupt and so backwards that nobody can get the right help, nobody can get the right justice. And they're taking it out on innocent people because they can't get to the politicians." In his presidential run, Exotic is driven by a desire to challenge the status quo, make history and amplify the voices of the unheard. He advocates for politicians to be held accountable for their actions, even suggesting a minimum 10-year sentence for those who violate their oaths. As he states: "I am going to say what nearly 200 million people in this country are scared to say: It is time to clean up Washington." "We've got people in prison that are dying because they can't get medical help. They're treated like animals...They're not given the proper medical treatment. They're not given the proper mental health treatment," he says. Exotic's perspectives serve as a reminder of the inherent complexities and contradictions within human nature. Whether or not one agrees with his viewpoints, there is no denying that Joe is unflinchingly authentic. Cut The World Off On international policy, Exotic is unabashed in his belief in nationalistic self-preservation. He asserts that America should prioritize its domestic issues, including climate change and economic struggles, over international crises. In this sense, he is staunch in his belief that American tax dollars should primarily benefit American citizens. What’s more, he suggests a "$50 a month, non-citizen Social Security tax" for immigrants, which could contribute to the American healthcare system. His proposal? A five-year time frame for immigrants to gain citizenship or an alternative of three years of military service. "Why should anybody from Mexico or Guatemala or Pakistan or China or Japan come here and not have to sacrifice anything and still not be an American citizen? My dad fought for our freedom in Korea," he elaborates. "So, why should you have to pay for somebody to come from another country to get free healthcare?" Controversy And Conservation: Joe's Stance on Animal Rights Exotic's stance on animal conservation is as controversial as the man himself. He argues that zoos might be the only way to ensure the survival of species like tigers, given the rapid decline of natural habitats. He passionately defends his decision to call his facility a "zoo" rather than a "sanctuary," asserting that he always provided a safe haven for animals, not exploiting them. Joe Exotic. COURTESY Reflecting on his zoo, Exotic says, "I had the most beautiful, privately owned zoo in the world… Anybody who ever complained about my cages being too small... All they had to do is donate money to build a bigger cage.” Despite his many roles, from zoo owner and reality TV star to nightclub manager, one thing remains constant: Exotic's unwavering belief in personal autonomy. "I believe that you own your body and you have the right to pursue whatever you want for your body as long as you don't hurt someone else," he explains. He expresses dissatisfaction with the existing system and emphasizes the need for changes that respect the rights and freedoms of individuals, including abortion, regardless of their political affiliation. LGBTQ+ Rights And Social Perspectives An openly gay man, Exotic is vocal about LGBTQ+ rights, yet he fears that the push for acceptance of diverse identities may be becoming overbearing, risking setbacks for the community. He also brings up the complexities surrounding ongoing discussions about transgender rights. He argues that while acceptance and inclusivity are crucial, the discourse must avoid alienating the larger public. In a moment of candor, Exotic shares, "I don't know why the hell I'm gay. I fight it every day and have for 57 years." Still, he champions the LGBTQ+ community's struggles and conquests, and remains an active advocate for its rights. But Exotic's outlook is far from straightforward, and the controversy surrounding his life and views continues to attract attention. His perspectives range from the unapologetically self-serving to the passionately humane. There's no denying his steadfast belief in the power of personal autonomy and the need for an equitable justice system, even as he grapples with his own demons. As a cultural figure, Joe Exotic's life and philosophies are a testament to the complexities of the human condition. His journey from the king of an exotic animal park to a federal prisoner and a presidential candidate has been filled with twists and turns. Exotic remains an emblem of resistance, a symbol of justice for some, and a stark reminder of the deep divisions within American society for others. But above all, he remains Joe Exotic: candid, controversial, and unapologetically himself. In his own words, "I've lived my life being exotic. It's about standing up for what you believe in, being yourself, not caring what anybody else thinks. I am who I am, you love me or you hate me." As he continues to navigate through his life, one thing is for sure, whether you love him or hate him, Joe Exotic will continue to make his mark, in his own unique and unconventional way. * Author’s note: Exotic had previously announced a foray into the cannabis space in 2021, after striking a deal with “Wonder Years” star Jason Hervey. However, the deal fell through and the TV star found a new partner in 2023. Follow me on Twitter or LinkedIn. Check out my website or some of my other work here. This article was originally published on Forbes and appears here with permission. Lee en español: Hablamos con el Mismísimo Tiger King, Joe Exotic, Desde la Cárcel: Cannabis, Derechos, Animales y Campaña Presidencial
Elon Musk Debunks Scam Token Claims, Says No Crypto Plans For X: 'We Never Will' 2023-08-05 - Elon Musk says that the social media platform Twitter, now rebranded as “X, has no plans to launch any crypto tokens. Musk responded to a post by DogeDesigner on Saturday and addressed the problem of scam tokens like X (X) and TwitterDAO (TWITTER) fraudulently asserting connections to the social media platform. DogeDesigner had alerted the crypto community to be vigilant about articles related to scam tokens and emphasized that neither Musk nor X had ever initiated a crypto token. Musk replied saying, “And we never will.“ In response, one of the billionaire entrepreneur's followers asked if Dogecoin DOGE/USD was "the chosen one."
DeSantis Not Happy With NBA Players Association's Callout On Political Donation: 'It Appears The NBA Took A Break From Protesting Our Anthem' - Walt Disney (NYSE:DIS) 2023-08-05 - Florida Governor Ron DeSantis is among the frontrunners in the crowded field of Republican candidates trying to get the GOP nomination in the 2024 election. A donation to a political action committee affiliated with DeSantis is drawing the attention of the National Basketball Association and the sports world. What Happened: The Never Back Down PAC is among the groups helping DeSantis attempt to secure the GOP nomination in the 2024 election, launching an advertising campaign in April, shortly before the Florida governor declared his 2024 election campaign. The NBA’s Orlando Magic made a donation to the Never Back Down PAC, which has drawn attention as it came on behalf of the team and not the team’s owners. “A political contribution from the Orlando Magic is alarming given recent comments and policies of its beneficiary,” the National Basketball Players Association said in a statement. The statement went on to say that NBA players, governors and personnel are able to make donations and statements about their “personal political views.” The statement called into question the donation made on behalf of the Orlando Magic, “using money earned through the labor of its employees.” “The Magic’s donation does not represent player support for the recipient,” it said. On Tuesday, Alex Schultz, a political editor, shared on Twitter news of the $50,000 donation to the PAC, asking if it was the first time an NBA team had ever backed a presidential candidate. Further research by Schultz uncovered past donations by the Phoenix Suns to the Republican National Committee. The Magic said in a statement that the $50,000 donation “was given as a Florida business in support of a Florida governor for the continued prosperity of Central Florida,” Schultz shared. The donation was given a week before DeSantis formally entered the 2024 election race. Photo: Shutterstock FrontOfficeSports confirmed that there have been multiple political donations made on behalf of the Magic since 1991, when Richard DeVos purchased the NBA team. “No member of the DeVos family has endorsed or offered financial support to any 2024 presidential candidate at this point,” DeVos family spokesperson Nick Wasmiller told ABC News, as shared by FrontOfficeSports. “They are undecided.” Related Link: DeSantis Helps Gets Diversity, Equity And Inclusion Banned From Disney World Why It’s Important: The backlash of the donation to the DeSantis PAC comes as NBA media rights partner The Walt Disney Company DIS has an ongoing feud with the Florida governor. The statement by the NBPA drew the attention of DeSantis who shared his response in a tweet. “It appears the NBA took a break from protesting our anthem and bending the knee to Communist China to chirp about my policies,” DeSantis tweeted. The Magic are now owned by the DeVos family after Richard DeVos passed away in 2018. Betsy Devos, who is married to co-owner Dick DeVos, is the former secretary of education appointed by President Donald Trump. Betsy’s husband ran an unsuccessful campaign for governor in Michigan in the 2006 election as a Republican. Read Next: 2024 Election Spending And Funding: Who Spent The Most In Q2 And Has The Most Funds
Shiba Inu Rally Accelerates Over The Weekend As The Meme Crypto Goes Vertical: What's Going On 2023-08-05 - Shiba Inu SHIB/USD is seeing an extended upward momentum this weekend, with the dog-themed crypto taking a sharp leg up since early Saturday. What Happened: SHIB as well as its sister token Bone Shiba Swap BONE/USD were among the biggest gainers on Saturday, with the former advancing close to 13%. The Shiba Inu broke out of a consolidation phase Friday afternoon and has experienced a steep rally since then. Over the past 24 hours, the crypto has gained about 20% and the BONE has outperformed with a nearly 23% rally. Over the past 24 hours, SHIB has gained about 13% and traded around the psychological resistance of $0.00001, marking a four-month high. At last check, SHIB traded at $0.00000986, up 12.30% according to Benzinga Pro data. The 24-hour volume rose 236% to $683 million and market-cap increased 12.3% to $5.81 billion. See Also: How To Buy Shiba Inu (SHIB) on Robinhood Why It's Important: The Shiba rally has come despite the risk-off mood seen in the rest of the financial market. This week, Fitch's downgrade of the U.S. sovereign rating sapped risk appetite in the stock market, with tech stocks being hit the worst. Sentiment toward the crypto has improved in recent sessions ahead of the launch of Shiba Inu's blockchain project Shibarium. Developers see Shibarium as providing an alternative to Ethereum ETH/USD blockchain. It is expected to be more energy-efficient and faster, while also reducing the total supply via burns. Read Next: Shiba Inu Unveils Security Enhancement With Decentralized Identity Verification Join Benzinga’s Future of Crypto in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now! Photo: Shutterstock
Why graphic designers think generative A.I. needs them as much as they need it 2023-08-05 - As generative artificial intelligence programs producing images, such as OpenAI's DALL-E, Midjourney and Adobe 's Firefly take off, graphic designers — many of whom operate as sole proprietorships — can't ignore the usefulness of a tool that helps them to better meet the endless demand for visual content. But amid fears that AI will supplant creative professionals, they are exploiting a current limitation in the technology: the results are only as good as the human mind prompting the A.I. programs. "The advances in AI affecting the world of graphic design are much of the same advances we're seeing elsewhere," said Nicola Hamilton, president of the Association of Registered Graphic Designers. "ChatGPT is becoming increasingly capable of doing our writing and planning, while Midjourney and DALL-E are creating pretty advanced artwork when given the right prompts," she said. For Hamilton, and many graphic designers, dealing with new technology is nothing new — it's core to the evolution of their creative profession, dating back all the way to the democratization of printing, through the introduction of computers, the birth of the internet, and the prevalence of social media. "Graphic design is a fairly young profession. Originally we were tradespeople (printers, typesetters, sign painters) and our common understanding of design is tightly tied to both the popularization of advertising and the technological revolution," Hamilton said. How much time does generative AI save? As designers experiment with gen AI, they are starting to answer a few big questions that surface amid any professional technology advance: How much time do the new tools really save designers? And can designers maintain the upper hand over the tech? "The most promising (or terrifying) work in AI-generative artwork seems to be coming from Midjourney," Hamilton said. She pointed to a project she saw presented at the Design Thinkers conference in Vancouver in June as an example of how to answer these questions. Pum Lefebure, co-founder & chief creative officer at Washington, D.C.-based agency Design Army, created a campaign with the help of Midjourney for a high-end eyewear retailer Georgetown Optician — a fictitious planet of giant eyeballs. "It's visually stunning, but as she revealed on stage, was a massive undertaking to create. Learning how to prompt the AI still requires an extensive knowledge of image making and a lot of hours," Hamilton said. Jake Lefebure, Pum's husband, and co-founder and CEO of Design Army, said his firm sees AI as a tool, not a solution. "We use AI in a way that is more a creative tool process, as opposed to how a lot of people envision it: tell it what to do and all your problems can be solved." As an image board, or mood board, working alongside the designer across many iterations of a campaign, AI can play an important role, Lefebure said. But he added, "It takes a lot of finessing and you really need to train the AI. You need to craft the vocabulary to get the results you want. It's not a mind reader." If how a designer articulates and phrases prompts dictates the results, that may become among the proprietary advantages at work in competition for campaigns. Lefebure did not want to discuss any best practices his firm has learned about generating successful image generation results. Manipulating imagery is not a new practice for graphic design professionals. Stock photography, for example, has always played a role in the creative process. "We use AI as a tool to create with, not something to just spit out into a design," Lefebure said. Adobe's importance in the gen AI image era While the names of the emergent generative AI starups such as OpenAI and Midjourney are first becoming known to many, these innovations are also beginning to be incorporated into the design products from one of the most successful companies in the S&P 500, Adobe. Hamilton said new AI applications are rolling out across Adobe products more slowly, but they are making big impressions. Adobe Photoshop's new AI Generative Fill, "is turning a lot of heads right now," she said. "I don't know how many designers know it by that name right now. I've been seeing each individual application of Firefly as a tool in its respective program — mostly applied through Photoshop. That being said, Adobe has a pretty tight grip on the industry. Once they move a feature out of beta, it'll be industry standard in no time." Sole proprietor graphic designers competing with design firms may see the ubiquity of AI in such tools as time-savers and workload scalers. Hamilton says one of the most-repeated statements about AI is that "it's just a tool." But she said there are multiple, specific examples of the way small to medium-sized design studios are making it a useful tool today. Among these examples: to build workback schedules (a reverse timeline calendar of tasks to meet project deadlines); to write rough drafts of client copy; and to build better mockups to present to clients. "Right now, the best thing designers can do is think of AI as a playground — it's a place to experiment so that we can get to know the tool and begin to better understand the possible applications," she said.
On tap next week: Two key inflation reports and 4 Club earnings releases. Here's what we're looking for 2023-08-05 - All three major U.S. stock indices pulled back this week, with the S & P 500 closing down more than 2% and the Nasdaq Composite losing roughly 3%. Each average attempted to cut losses on Friday, helped by strong earnings from Club name Amazon (AMZN) and a slightly weaker-than-expected jobs report for July, before fizzling out in late-day trading. Nonfarm payrolls expanded by 187,000 last month, while the employment rate came down slightly, to 3.5%, the Labor Department said. The report suggests the Federal Reserve is succeeding, however gradually, in its efforts to cool the labor market and rein in inflation by raising interest rates. Other macroeconomic data this past week included ISM Manufacturing on Tuesday, the ADP Employment report on Wednesday, and a Factory Orders report and ISM Services release on Thursday. But the main driver behind this week's sluggish performance in equities markets was Fitch Ratings' downgrade of the United States' long-term foreign currency issuer default rating to AA+, from AAA. The agency cited "eroded confidence in fiscal management" by the U.S. government. Looking to next week, we'll be watching economic data and more second-quarter earnings. 1. Economic releases : The Labor Department releases its monthly consumer price index and producer price index on Thursday and Friday, respectively. We'll be look for signs of disinflation on an annual basis in both reports, especially in the core index, which strips out food and energy prices due to their volatility. In addition to the CPI's core index, we'll be honing in on the shelter index, which represents about a third of total CPI. Housing costs have been a thorn in the Fed's side, as a lack of supply has helped keep prices elevated. High rates are compounding still-elevated prices and, as a result, U.S. home prices are now at a 37-year low for affordability , according to Black Knight. Though we have seen the rate of inflation slow, as measured by the shelter index, it's still far too high, coming in at 7.8% for the 12-month period ended in June. The lower the print the better, as it could give the Fed the data it needs to forgo another interest-rate hike and signal to investors that rates may have peaked. That would be bullish for sentiment and a positive for equities through the end of the year. Meanwhile, the PPI is nearly at the 2% inflation rate the Fed targets, with the core index coming in at 2.6% in June. By contrast, the core CPI index was 4.8% in June on an annual basis. For that reason, we'd be content if the July figure doesn't indicate a resurgence of rising wholesale costs, which is a concern given a recent uptick in energy prices. 2. Earnings : As of Friday, 84% of S & P 500 companies had reported quarterly results for the three months ended in June. Of those that have reported, 79% reported an upside earnings surprise, while 65% reported better-than-expected revenue results. And we can expect earnings results to once again drive stock-market action next week. Club name Coterra Energy (CTRA) reports Monday after the bell, and our primary focus will be on free-cash-flow performance and returns to shareholders via dividends and buybacks. That said, maximizing free cash flow requires the company to realize the best prices, so we'll be keeping an eye on how effectively management has been hedging in this volatile oil-price environment. On Tuesday before the opening bell, Club holding Eli Lilly (LLY) reports. We'll be looking for signs of momentum around Mounjaro , the company's drug for diabetes and weight loss, along with any other opportunities management sees for the medication down the line. Any commentary on Alzheimer's drug donanemab would also be of interest. Finally, Club names Walt Disney (DIS) and Wynn Resorts (WYNN) will report on Wednesday after the closing bell. With Disney, it's all about the progress being made on management's $5.5 billion savings initiative, as well as what the strike in Hollywood means for both theatrical releases and the content pipeline on Disney+. We're also curious to hear more about management's plan to integrate Disney+ and Hulu content. As for Wynn Resorts, we'll be listening to hear about how demand is holding up at its Las Vegas and Boston properties, and how the Chinese reopening is playing out in the gambling hub of Macao. In preparation for these releases, be sure to check out our first-quarter earnings report card . Here's the full rundown of all the important domestic data in the week ahead: Monday, August 7 Before the bell: Tyson Foods (TSN), Viatris (VTRS), BioNTech (BNTX), Henry Schein (HSIC), Elanco (ELAN), KKR (KKR) After the bell: Coterra Energy (CTRA), Palantir (PLTR), Lucid (LCID), Skyworks (SWKS), Chegg (CHGG), Paramount (PARA), ONEOK (OKE), Beyond Meat (BYND), Celanese (CE), Compass (COMP) Tuesday, August 8 Before the bell: Eli Lilly (LLY), UPS (UPS), Datadog (DDOG), Barrick Gold (GOLD), Li Auto (LI), Capri (CPRI), Duke Energy (DUK), Under Armour (UAA), Restaurant Brands (QSR), TransDigm (TDG), Cellebrite (CLBT), Warner Music (WMG), Zoetis (ZTS), ADT (ADDT), Aramark (ARMK), GlobalFoundries (GFS), Fox Corp (FOXA), Veritiv (VRTV), Energizer (ENR), NRG Energy (NRG) After the bell: Rivian (RIVN), AMC (AMC), Upstart (UPST), Supermicro (SMCI), Twilio (TWLO), Celsius (CELH), Lyft (LYFT), Dutch Bros (BROS), Toast (TOST), Coupang (COUP), Axon (AXON), Bumble (BMBL), Akamai (AKAM), Take-Two (TTWO), Topgolf (MODG), Endeavor (EDR), Insulet (PODD), IAC (IAC) Wednesday, August 9 Before the bell: Roblox (RBLX), Sony (SONY), PENN (PENN), Wendy's (WEN), Brookfield Asset Management (BAM), GoodRx (GDRX), Brink's BCO), Valvoline (VVV) After the bell: Disney (DIS), Wynn Resorts (WYNN), Sonos (SONO), Illumina (ILMN), Plug Power (PLUG), Trade Desk (TTD) Thursday, August 10 8:30 a.m. ET: Consumer Price Index 8:30 a.m. ET: Initial jobless claims Before the bell: Alibaba (BABA), Novo Nordisk (NVO), CyberArk (CYBR), US Foods (USFD), Ralph Lauren (RL), Six Flags (SIX), YETI (YETI) After the bell: IonQ, (IONQ), Credicorp (BAP), News Corp (NWSA) Friday, August 11 8:30 a.m. Producer Price Index Before the bell: Air Canada (ACDVF) (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Traders work on the floor of the New York Stock Exchange (NYSE) on August 02, 2023 in New York City. Spencer Platt | Getty Images News | Getty Images
Beyond Big Tech: Alternative ways to invest in A.I., according to two ETF experts 2023-08-05 - While ETFs holding stocks such as Microsoft , Tesla and Meta Platforms have outperformed this year, there are other ways to play the artificial intelligence trade beyond familiar Big Tech names. For those who want to ride the AI rally while still diversifying their portfolio beyond the tech sector, there are other fields benefiting indirectly from the AI craze, two ETF experts say. Baird's head of ETF trading, Rich Lee, and VettaFi's head of research, Todd Rosenbluth, both said there is a wider choice of industries seeing AI gains than investors may initially think. "We're seeing trends towards health care, we're seeing eCommerce companies," Rosenbluth told CNBC's Bob Pisani on "ETF Edge" on Monday. "In the last four months, we've seen consistent flows and trends towards robotics," he said, highlighting ETFs such as the Global Robotics and Automation Index ETF (ROBO) , and the Global X Robotics & Artificial Intelligence ETF (BOTZ) . "AI is going to empower the industrial space and robotics to make them more efficient," he added. ROBO is up 21% year to date, while BOTZ has gained more than 34%. Rosenbluth also cited fintech as a future major beneficiary of AI. "Even the financial technology space in general is going to be driven in part by AI," he said. "It's going to help advisors do their jobs better, it's going to help investors sort through information better, it's going to help processing." Lee said the industrial sector could also see gains from the technology as it becomes more incorporated into everyday workflow. "[Industrial companies] are looking for better processing through automation," he said. "They're going to have to look at AI as part of their business processes to realize some of these gains." "So, we're going to see AI creep into other sectors and industries we may not traditionally associate with tech or AI," Lee said.
This 32-year-old scaled her side hustle into a business on track to bring in $3 million — here's how 2023-08-05 - In 2019, Jamie Stark Inlow left her 9-to-5 higher education job and moved to a mini farm in Scottsville, Virginia, to spend more time with her husband and son. She picked up higher education consulting work and a part-time job as a student program coordinator at the University of Virginia. She had a career and a family, but she felt something was missing. That was until Inlow saw potential in her neighbor's spare apartment, which sat empty above a rust-red barn. She leaped at the opportunity and turned it into an Airbnb listing that June. One listing quickly became two, then a full-fledged property management business, called Be Still Getaways, in 2020. Inlow's side hustle-turned-company now oversees over 120 rentals and inns throughout Virginia, and brought in just shy of $2 million in 2022. This year, Be Still Getaways is on track to bring in $3 million, according to documents reviewed by CNBC Make It. Jamie Inlow's side hustle-turned-company started in a barn in 2019. Now, it's on track to bring in $3 million this year. Mark Petruniak But it wasn't a straight shot to success. For the first two and half years of Be Still Getaways, Inlow had to work all three jobs. She couldn't afford to stop consulting or quit her higher education position because all of the revenue had to go back into the company. In 2021, she decided to hire staff to scale up as quickly as possible, even though she only paid herself $10,000 that year. "There were many times that I ran a payroll for staff before I ever paid a dime to myself," Inlow, 32, tells CNBC Make It. "I was still working full-time [outside of] Be Still Getaways, and that is how we scale." But the investment paid off: That year, the company finally brought in six figures and soon, Inlow was able to quit her other jobs. She started paying herself a regular salary the next summer. Here's how Inlow scaled her company, and how she plans to build in more work-life balance as the business grows. Barn-based backstory Inlow convinced her neighbor to let her list his apartment on Airbnb with a simple business plan: Give me $2,000 to buy furniture and decorate, and we'll split the profits. Within two months, it started booking up almost every night. The Brown Barn, which also housed horses, sheep and goats, was Be Still Getaways' first property. Courtesy of Jamie Inlow "It wasn't like, 'We have a couple of properties, maybe I'll dabble around making a website,'" she says. "It was go time. I got business cards. I spent every dollar that I had on search engine optimization." Clinging to her momentum, she asked her neighbor for another $110,000, then built and decorated a tiny home, also on his property. Noting the success of the apartment, he obliged. It was listed on Airbnb in March 2020. The rentals' success attracted more business partners, and by the end of 2020, Inlow managed about 20 properties. She was working upwards of 80 hours per week between her three jobs — sometimes with her toddler physically strapped to her chest — and still wasn't earning enough cash to replace her $50,000 salary. The only way up, she says, was to scale. That's when she hired an operations director and part-time contract workers to clean, stage and repair the properties. In 2021, Be Still Getaways brought in $205,000 in revenue. Upgrading and upscaling Despite expanding, it took a while to see returns. By the end of 2021, Inlow had 30 rentals under Be Still Getaways, but because the company mostly oversaw small, relatively inexpensive single-family units, profits were minimal. While Inlow slowly built up Be Still Getaways' revenue, the company garnered local attention. In fall 2021, realtor Sydney Robertson asked Inlow to partner with her on a business idea: She'd find people looking to buy and rent out vacation homes, and Be Still Getaways would help with management. The idea spawned a new branch of the company, Carriage House, and led to a business acquisition. Be Still Getaways and Carriage House acquired Cape Charles Escapes in January 2022, expanding both businesses' reach toward Virginia's coast. Those partnerships brought more luxury properties into Be Still Getaways' portfolio and revenue skyrocketed. In March 2022, Inlow was able to quit her consulting and higher education jobs. Four months later, she started paying herself $72,000 per year. "I knew I was ready to quit my job when the demands of working full-time and working for Be Still Getaways was starting to affect my mental health and my ability to be present for my family," Inlow says. Costs of doing business Be Still Getaways brings in millions, but over a quarter of its revenue goes toward keeping the business running. Be Still Getaways earns money by charging for property outfits and taking a 20% commission every time one of its rental owners books a stay. Mark Petruniak In 2022, the same year the company brought in $2 million, it spent $587,000 on company expenses, the largest being staffing. Be Still Getaways paid its eight full-time and 60 part-time workers a combined $439,000. Paying her staff competitive wages not only helps with retention, but improves the company's overall morale, Inlow says. "This is a demanding and grueling line of work at times … It's not like weekends are off. It's not like you punch the clock at 5 p.m.," Inlow says. "For [people] to be happy and be OK with that, you have to give people good vacation and you have to pay them well." Last August, the company also started renting a local 4,000-square-foot warehouse. It houses furniture, décor and supplies for upcoming projects for $800 per month. Here's a breakdown of Be Still Getaways' 2022 expenses: Wages : $439,878 : $439,878 Supplies: $113,343 $113,343 Software: $22,854 $22,854 Company car: $7,566 $7,566 Warehouse rent: $4,000 Four months ago, Inlow's husband, formerly a physical education teacher, left his full-time job to head Be Still Getaways' lawn maintenance. While Inlow says she was excited to work with her husband, the transition was nerve-wracking. Although Inlow had been working full-time at Be Still Getaways for about nine months, it initially felt risky to have her husband join too, she says. "That was, I think, almost more scary than when I left my job because he was the benefit holder," she says. "Having that stability was beautiful and amazing, but it ultimately wasn't making him happy and that was a challenge for our family." Be Still Getaways now pays Inlow and her husband a combined $150,000 per year, she says. Looking ahead
6 signs the extreme heat is affecting your mental health, from a psychologist 2023-08-05 - Typically seasonal affective disorder is associated with the darker evenings and cooler temperatures of the winter; but summer can bring about the same symptoms of depression for some people. Extreme heat "impacts very basic comfort levels," especially once temperatures exceed 80 degrees, says Smriti Joshi, licensed clinical psychologist and chief psychologist at Wysa, a mental health app. It doesn't help that we're seeing higher temperatures than normal due to climate change, she adds. "There's a lot of feeling of helplessness and loss of control because [of] weather changes and climate change that's been happening globally that can trigger a lot of anxiety," Joshi tells CNBC Make It. Here are some symptoms of summertime (SAD)ness that you should be aware of, she says.
Goldman Sachs' future hinges on a low-profile, high-growth business 2023-08-05 - In this article GS Follow your favorite stocks CREATE FREE ACCOUNT David Solomon, Chairman and CEO, Goldman Sachs, participates in a panel discussion during the annual Milken Institute Global Conference at The Beverly Hilton Hotel on April 29, 2019 in Beverly Hills, California. Michael Kovac | Getty Images Entertainment | Getty Images What is asset management, exactly? Simply put, Goldman portfolio managers make bets across the universe of financial instruments, either on behalf of clients or using the bank's own funds. That runs the gamut from the least risky, plain-vanilla holdings like money market funds, to fixed-income products like corporate bonds funds, stock ETFs and mutual funds, and finally to alternative assets including private equity, private credit (i.e. loans to corporations), real estate and hedge funds. Compared to rivals JPMorgan and Morgan Stanley, which are big players in traditional assets like stock funds, Goldman is more weighted to the esoteric world of alternative investments, which is why it's sometimes said that Goldman wants to build a "mini-Blackstone" within the bank. Goldman gets paid through management and incentive fees, which swell as funds attract more assets. Altogether, Goldman has $2.71 trillion in assets under supervision as of June 30, which includes wealth management assets. What about wealth management? The industry has coalesced around a model where financial advisors charge fees, often 1% to 2% of a typical client's assets annually, to manage investments. They also can earn fees for loans or other products geared towards the wealthy. Goldman does particularly well with the ultra-rich, defined as those with at least $30 million to invest; it has about 8% of that cohort in the U.S., according to a company presentation. In fact, Goldman's average ultra-high net worth client keeps about $60 million at the bank. Where Goldman fares less well is serving the merely rich; it has only about 1% of the high-net worth market, or those who have between $1 million and $10 million to invest. The bank has more than $1 trillion in wealth management client assets. While significant, key rivals are both larger and growing faster: Morgan Stanley had $4.9 trillion in client assets as of June 30. Why does it matter? Goldman is still very much tethered to the ups and downs of Wall Street. The bank's trading and advisory division generated two-thirds of Goldman's $23.1 billion in revenues so far this year. A pandemic-era boom in deals and trading in 2020 and 2021 was quickly followed by a bust, and last quarter marked the industry's lowest investment banking haul in a decade. That's caused Goldman to report the steepest profit drop this year of the six biggest U.S. banks, making the push for sustainable sources of growth even more urgent. Zoom In Icon Arrows pointing outwards For Solomon, who has battled criticism over his ill-fated retail banking push, leadership style and hobbies, success in AWM would provide a welcome counterpoint to those who say he's made too many errors. Has it been smooth sailing? Not exactly. Solomon has made tough decisions to consolidate the various pockets of investment at the firm, and then to focus on raising outside funds while shrinking wagers made with house money. That's upset some insiders used to autonomy over decades of operation. He's also shuffled the deck several times. In a 2020 reorganization, Solomon pulled apart asset and wealth management and assigned Salisbury and later Sarsfield to co-lead the asset manager, a move he reversed when he reunited the businesses and named Nachmann to lead AWM. That upheaval has led to the departure of the ex-asset management co-heads, as well as other senior leaders. How's the business doing now? Despite the turbulence, AWM has been making progress against its fee and fundraising goals, supporting the idea that Goldman's reputation for savvy investing gives it an edge. The bank is on track to reach its goal of generating at least $10 billion in fee revenue by next year. And its total assets under supervision rose by $42 billion to $2.71 trillion in the second quarter. While Solomon cautioned that Goldman's "asset management journey" would take two to three years before meaningfully helping margins, he sounded optimistic. "I feel very, very good about the strategic decisions that we're making," Solomon told investors in July. "We see a clear line of sight, and we're going to make progress."
The No. 1 worst U.S. state to retire — it's not New York or California 2023-08-05 - For the second year in a row, Alaska ranks as the worst state to retire, according to a recent Bankrate study. To determine the best and worst places to retire, Bankrate analyzed all 50 U.S. states and ranked them across five weighted categories: Affordability (40%) Well-being (25%) Health-care quality and cost (20%) Weather (10%) Crime (5%) The financial services company used data from a number of sources, including the U.S. Census Bureau, the Tax Foundation and the National Oceanic and Atmospheric Administration. In addition to ranking last overall, Alaska placed 50th in the weather category. That's understandable: Winter temperatures can fall as low as -50 degrees Fahrenheit in some parts of the state. However, it ranked slightly higher for affordability, health care and well-being. Despite placing 20th on last year's list of best states to retire, New York came in 49th this year. The Empire State is well known for its high cost of living and ranked last in Bankrate's affordability category. On the other hand, New York scored higher in the weather, health care, crime and well-being categories. Meanwhile, California maintained its standing as the third worst state to retire. A massive housing shortage has caused living costs to rise in the Golden State, placing it 49th place in affordability, following closely behind New York. Here are the 10 worst states to retire in 2023, according to Bankrate.