Big tech needs more time to work off major excesses, top money manager Jeff Mills warns

Big tech needs more time to work off major excesses, top money manager Jeff Mills warns

Bryn Mawr Trust’s Jeff Mills believes big tech will eventually regain its market leadership. President Donald Trump describes Democratic challenger Joe Biden as a “tool” of “radical socialists” who are bent on taxing every American business and household into bankruptcy Multi-asset investment platform, eToro, is excited to announce that it has launched GoodDollar: a non-profit initiative that leverages decentralized It's a marathon, not a sprint. As you traverse the journey that is life, it is important to accumulate some wealth and/ or get several investment instruments to work for you. Depending on your financial muscle and backgrounds, different people will accumulate wealth differently: Some property (a piece/ plot of land or real estate) here; some stocks/ shares (in listed or private companies) there; some T-bills

Big tech’s record win streak may just be on hiatus.

Bryn Mawr’s Jeff Mills believes the group will regain its market leadership. 

But before it does, he warns investors will have to brace for some more wild swings as the group works off major excesses.

“Earlier in the summer, you had something like 85% or 90% of technology stocks trading over their short-term 50-day moving average. That’s very healthy, solid momentum. That has broken down now into the mid-50s,” the firm’s chief investment officer told CNBC’s “Trading Nation” on Friday. “But we’re still not oversold.”

The tech-heavy Nasdaq is coming off its worst week since March 20. It’s now just a hair out or correction territory, which implies at least a 10% drop from record highs.

Former high-flying mega cap growth names Apple and Tesla, whose stock splits went into effect on Aug. 31, are among the stocks contributing to the index’s major losses.

“Those names have been trading off of this kind of weird game theory,” said Mills, a CNBC contributor. “Investors really know that stock splits don’t create value, but they believe other investors believe they do. So, everybody piles in, the momentum increases and stock prices go to points that maybe don’t make sense.”

Technicals aside, Mills contends technology’s fundamentals are still intact, and the backdrop supports growth names over cyclical stocks, which are closely tied to economic performance.

According to Mills, there’s still too much uncertainty surrounding the economic recovery and political backdrop for a meaningful market rotation to unfold.

“You’ve had this disconnect between what was going on in the labor market, and how consumers were actually behaving because of this income replacement that we had. Now that’s a big question mark,” he said. “Until we see a true improvement in those fundamentals, it’s going to be very difficult to get a lasting rotation from growth into value.”

He doesn’t expect to see a rotation into cyclicals from growth stocks, which includes tech, for another 12 to 24 months. So for now, Mills suggests proceeding cautiously.

“Technology remains 15% above that 200-day moving average,” Mills said. “So, I would wait for a little bit more downside before dipping my toes into tech.”



Author: Stephanie Landsman

AP EXPLAINS: Biden sizable but not radical tax plans

AP EXPLAINS: Biden sizable but not radical tax plans

President Donald Trump describes Democratic challenger Joe Biden as a “tool” of “radical socialists” who are bent on taxing every American business and household into bankruptcy. Some progressives say Biden is a corporate crony who will never address systemic inequalities in U.S. society.

In reality, Biden has taken a relative consistent approach over five decades in politics and during his latest White House bid. The former senator and vice president backs an active federal government that he says should support but not constrict private enterprise, and he believes the highest federal tax burden should fall on the wealthiest.

“Go out and make a million bucks,” Biden would sometimes tell deep-pocketed donors during his early campaign fundraisers. “Just pay your fair share” back into the system.

A look at his tax plans:


Biden says no individual with taxable income of $400,000 or less would see a federal tax increase under his plans, at least directly. Less than than 2% of U.S. households report that level of income. There are several policy provisions tied up in Biden’s promise, but income tax rates often get the most attention.

There are currently seven rates (10% to 37%) applied to varying income brackets. Biden’s plan would raise only the top rate, pushing it to 39.6%, what it was before the Republicans’ 2017 overhaul. That rate kicks in for income beyond $510,000 or so, and more for married couples filing jointly. Separately, Biden proposes capping certain itemized deductions for higher earners. Those changes could mean variable tax increases for individuals down to that $400,000 income threshold — more for married joint filers.

The nonpartisan Committee for a Responsible Budget figures that companies would pass along some of the burden of Biden’s higher corporate taxes to consumers, imposing cost increases ranging from 0.2% to 0.6% on most households at lower income thresholds.



The most obvious philosophical changes in Biden’s plan come on payroll and investment taxes, significant slices of individuals’ tax burdens beyond income tax.

The existing 12.4% payroll tax, which is split between employers and workers and finances the Social Security program, applies only to the first $137,700 of a person’s income. That cap goes up annually with inflation. But it means high-earning professions — top salaried lawyers, physicians, business executives, for example — don’t pay Social Security taxes on wages beyond the threshold.

Biden proposes instituting the tax again beginning at $400,001 of income. The untaxed gap between the cap and $400,001 would close over time with the annual inflationary increases. That would eventually mean a Social Security system where all wage earners, regardless of their income and profession, paid the full freight of payroll taxes.

Biden applies a similar philosophy to investment income. Generally, current law taxes gains on long-term investments — those held for more than a year — and certain dividend income at capital gains rates that top out at 20%. That’s lower than the marginal income tax rates for many in the investor class.

Gains on short-term holdings of less than a year are subject to personal income tax rates. Biden proposes extending that principle to all investment gains for any income beyond $1 million, a change that could significantly affect the wealthiest investor class. Think of billionaire investor Warren Buffett and his lament that current law essentially leaves his secretary with a higher effective federal tax rate than he has.



Biden offers a slew of business and banking tax law changes, but with three headliner proposals. He wants a 28% percent corporate tax rate. That’s higher than the current 21% but lower than the 35% rate before the 2017 overhaul. President Barack Obama had pushed for a 28% rate but Republicans in Congress refused to negotiate.

Separately, Biden wants a 15% minimum tax on “book profits” – net annual income – for corporations with at least $100 million in income. It’s essentially a corporate version of the alternative minimum tax that some wealthier individuals use to figure their personal income tax.

Some observers have called the idea the “Amazon rule” or the “Amazon tax,” alluding to the online retail giant’s ability to use existing law to pay essentially no federal income tax despite its billions in profits.

Lastly, Biden wants to double the current 10.5% minimum tax that multinational corporations pay on foreign profits.



To the chagrin of some progressives, Biden opposes a tax based on individuals’ net worth. He’s also avoided rekindling debate over taxes imposed on heirs of large estates. But Biden does want one estate tax change that could significantly affect wealthy inheritors and raise tens of billions in revenue each year.

Currently, beneficiaries can sell off assets they inherited and pay capital gains based only on any accrual between the time they gained ownership of the asset and the time they sold it. That basically exempts from taxation any gains accrued by the deceased owner. Biden proposes eliminating that inheritor benefit and instead applying capital gains taxes based on the original value of an asset.



Independent estimates project Biden would raise as much as $3.7 trillion in new revenue over a decade, which would come to about 1.3% to 1.4% of the overall economy, according to the Committee for a Responsible Federal Budget. For context, federal tax receipts for most of the post-World War II era have bounced ranged between 15% and 20% of the gross domestic product, and they’re currently on the low end of that range.

It’s worth noting that presidents rarely enact their exact campaign tax proposals. It’s a reality of negotiations with Congress and powerful lobbying forces on Capitol Hill. But administrations have generally applied principles outlined during campaigns. For Biden, that means comprehensive tinkering that adds up to a notable, but not seismic upswing for the federal treasury, driven by higher tax bills for the wealthiest Americans and largest corporations.


Author: By BILL BARROWAssociated Press

eToro Launches GoodDollar and Leverages Yield Farming and Staking to Begin Delivering a Sustainable Global Basic Income

eToro Launches GoodDollar and Leverages Yield Farming and Staking to Begin Delivering a Sustainable Global Basic Income

Multi-asset investment platform, eToro, is excited to announce that it has launched GoodDollar: a non-profit initiative that leverages decentralized finance to offer a protocol for distributed basic income. First proposed at Web Summit 2018, the concept has since advanced into a working economic model, wallet, and digital basic income coin that was launched this week.

The launch of GoodDollar means that anyone with an internet connection and phone number can receive its native cryptoasset, G$, store it in the GoodDollar wallet, and transact. A pool of G$ is given away daily to users, who can use the digital asset to facilitate barter and trade locally and globally.

GoodDollar presents a sustainable, financially inclusive use case that uses new products such as staking and yield-farming, which have driven the $15 billion market cap boom across decentralized finance in recent weeks. Through staking in protocols such as Compound, AAVE, DMM, and others, GoodDollar supporters earn a yield-payout while also funding GoodDollar’s G$ basic income coin. GoodDollar G$ is backed by a monetary reserve of cryptoassets: its value is derived from the interest generated by third-party permissionless protocols. Through the amassed reserve interest, G$ coins are minted: individual and corporate supporters receive market-rate yield-payouts in G$, and a daily amount is set aside to be distributed as basic income. At launch, DAI is the first supported cryptoasset in GoodDollar’s monetary reserve, and Compound is the first integrated protocol.

“For years we have heard the hype about blockchain’s ability to deliver on financial inclusion, yet most of the gains in the crypto market continue to benefit a small set of savvy and connected users. GoodDollar wants to close this gap by offering every person easy access to basic digital assets,” says GoodDollar founder, Yoni Assia. “Now anyone with an internet connection can have their own digital wallet to hold and use crypto assets. We hope GoodDollar will serve the next 100 million crypto users, through freely distributing a new form of internet money that can be used to generate economic activity. And just as importantly, GoodDollar offers crypto holders an opportunity to do good with their crypto: yield-farming via GoodDollar means that you can do well for yourself while doing good for others, and unites the interests of capital holders and basic income recipients.” 

In the wake of the coronavirus outbreak, based on recent study, 71% of Europeans now support some form of basic income and more than 20 nations are exploring UBI as a key policy proposal. By utilizing the tools of blockchain and decentralized finance, GoodDollar turns the UBI concept into reality, launching a ‘trickle-up’ value structure that delivers purchasing power directly to the hands of people, and is transparent and fair.

GoodDollar’s launch includes the release of the G$ token and wallet, a simple application where users ‘claim’ their G$ daily. With social log-in features and a non-KYC verification process, the wallet is designed to place money in the hands of those who need it most. In the days since release, thousands of GoodDollar wallets have already been created by users from over 40 countries, including: South Africa, Nigeria, Ghana, Kenya, Senegal, Argentina, and Venezuela.

The next phase of GoodDollar’s development will introduce referral bonuses for users who share and promote the network, features to enable individual and corporate staking, integrations with new protocols, and expanded tools to facilitate trade, barter, and merchant partnerships.

About GoodDollar

GoodDollar is a people-powered framework to generate, finance, and distribute global basic income via the GoodDollar token (G$). Its goal is to provide a baseline standard of living and reduce wealth inequality through the creation of a universal basic income. The project was founded by Yoni Assia, the Co-founder and CEO of eToro, the global investment platform with over 14 million registered users, and based on his theory of social money first presented in 2008. eToro has financed the GoodDollar project as part of its corporate social responsibility initiatives.

About eToro

eToro was founded in 2007 with the vision of opening up global markets so that everyone can invest in a simple and transparent way. The eToro platform enables people to invest in the assets they want, from stocks and commodities to cryptoassets. Its global community of more than 14 million registered users can share their investment strategies and anyone can emulate the most successful traders. Due to the simplicity of the platform, users can easily buy, hold and sell assets, monitor their portfolio in real time, and transact whenever they want.

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Author: Guest Author

Don't Listen to Anyone Who Says You Should Have X Amount Saved by 30

Don’t Listen to Anyone Who Says You Should Have X Amount Saved by 30

From Men’s Health

In November of 2017, personal finance journalist Jean Chatzky tweeted that a 30-year-old should aim to have the equivalent of a year’s salary saved for retirement. She added that 40-year-old should aim to have saved the equivalent of three times their annual salary; a 50-year-old, six times; a 60-year-old, eight times; and a retiree, ten times their salary. The internet lost its collective mind over Chatzky’s parameters, describing them as unrealistic.

Ultimately, saving your money is a marathon, not a sprint, and one that everyone must do at their own pace. For what it’s worth, Fidelity advises pretty much the same thing as Chatzky, but spared itself the vitriol by not tweeting about it. T. Rowe Price, meanwhile, cuts you a little slack: aim to have half your annual income saved by 30, and the equivalent of a year’s both by 35.

The fuss over how much one “should” have saved by the age of 30 reminds me of the time a financial services company came to the office and gave us benchmarks of what we should have saved by a certain age. Many of us felt deflated. The numbers seemed so daunting, people felt they were behind before they had even begun. And if saving seems like an impossible goal, you can feel too defeated to even try—like, What is even the point?

Here’s the thing. Generalities are just that: general. Think guidelines, not commandments. I don’t know what your salary is, where you live, the cost of living there, what your bills amount to, if you have student or medical debt, if you’re in graduate school, whether you’re helping support family or others, if you’re a single parent, if you’ve lost fiscal ground because of divorce, if you’re unemployed or underemployed or recovering from a spell of joblessness. You get the idea—a ton of specifics affect your ability to save. And I don’t know what kind of retirement you want to have, which helps determine how much you’ll need to get there.

Photo credit: Oscar Wong - Getty Images

So, as someone who’d rather not be raked over the coals or make anyone feel bad, I won’t give you a number. Mostly because I can’t. My advice amounts to this: Try to save 10 percent of gross income. Then, as your salary progresses, work your way up to 20. Even if you save less than 10 percent, that’s something.

But I’m no expert, so I went to one to ask her about it. “There are no required benchmarks you need to hit by a certain age,” says Shannon McLay, CEO and founder of The Financial Gym. “As a general gauge, we recommend striving for five key numbers; saving 15 percent of your gross monthly income, having a six-month emergency fund, achieving a 750 credit score, maintaining two investment accounts, and keeping your debt-to-income percentage to 35 percent.”

She adds: “While these numbers offer guidelines from which you can create goals, it’s crucial to stress that finances are fixable, and you should not feel ashamed if your numbers don’t match! In the end, it’s much more important to focus on your personal financial goals rather than measuring them against a general rule of thumb.”

Theodore Roosevelt once said, “Comparison is the thief of joy.” If you’re going to be motivated or inspired by others, cool. But if you’re only going feel inferior or like a failure, don’t. That said, if you are the type who likes to see how you’re doing compared to others, knock yourself out with these figures:

  • Per Fidelity, the average 401k balance for females aged 30-34 is $27,300 (for males in same age group, it’s $34,000).

  • Per Vanguard’s How America Saves 2019 report, the average 401k balance for a person aged 25-34 is $21,970.

  • Per an April 2019 survey conducted by the Transamerica Center for Retirement Studies, estimated median retirement savings for Millennials (defined by the center as born between 1979 and 2000) is $23,000.

  • Then there’s this guy, who says a 30-year-old should target a 401k balance between $100,000-$300,000.

Still, remember: Marathon, not a sprint. Go at the pace you’re comfortable with.

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The Importance Of Your Next Of Kin Knowing About Your Wealth And Investments

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Big tech needs more time to work off major excesses, top money manager Jeff Mills warns

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