Private equity owned Multi-Color Corp. won court approval to start tapping a $250 million Chapter 11 loan, defeating an challenge from rival lenders that floated a competing financing. Judge Michael Kaplan said Monday he’d authorize Multi-Color to start drawing on its preferred financing, which is supported by a group of senior lenders and equity sponsor Clayton Dubilier & Rice . The label design ...
Private equity owned Multi-Color Corp. won court approval to start tapping a $250 million Chapter 11 loan, defeating an challenge from rival lenders that floated a competing financing. Judge Michael Kaplan said Monday he’d authorize Multi-Color to start drawing on its preferred financing, which is supported by a group of senior lenders and equity sponsor Clayton Dubilier & Rice . The label design and printing business sought court protection last week in New Jersey to enact a plan to cut nearly $4 billion in debt. Kaplan’s ruling gives Multi-Color initial access to $125 million and it will seek permission later in the Chapter 11 case for the remaining amount, which is customary. The financing is linked to the broader restructuring plan and was needed ease Multi-Color’s transition into Chapter 11. Multi-Color advisers had testified that the company’s cash would soon be exhausted if it couldn’t access the new financing, Kaplan said. Rival lenders including Canyon Capital Advisors LLC argued the company’s preferred financing unfairly favors a group of lenders by rolling-up as much as $250 million in existing debt. The competing creditors are also argued at a court hearing Friday that they offered Multi-Color alternative financing on better terms. As part of their challenge, rival lenders also opposed Multi-Channel’s decision to seek Chapter 11 protection in New Jersey. Multi-Channel is headquartered in Atlanta and company lawyers argued the choice of New Jersey was valid because the company opened bank accounts in the state. Kaplan said Friday he’d deny the venue challenge, but the issue could be raised later in the bankruptcy. Rival lenders are expected to challenge Kaplan’s ruling through an appeal. Multi-Color advisers testified at Friday’s hearing that its preferred financing was favored because it provides a path to exiting bankruptcy relatively quickly. Roll-ups are often sought by lenders ahead of bankruptcy because it moves their existing debt to the front of t...
denisik11/iStock via Getty Images The following segment was excerpted from the Warden Capital 2025 Year End Letter. Not a whole lot has changed overall, so I won’t spend too much time on this subject. Broadly my position remains the same - AI capex is at unsustainable levels and it won’t be possible to generate economic returns on it unless we have true AGI imminently. The rest of the economy cont...
denisik11/iStock via Getty Images The following segment was excerpted from the Warden Capital 2025 Year End Letter. Not a whole lot has changed overall, so I won’t spend too much time on this subject. Broadly my position remains the same - AI capex is at unsustainable levels and it won’t be possible to generate economic returns on it unless we have true AGI imminently. The rest of the economy continues to be soft - unemployment continues to tick up, real estate is soft, and job growth has slowed to almost nothing. So I still believe if the AI bubble bursts, it could get rough for the rest of the economy. I remain quite confident the current tack will not yield AGI anytime soon, although it has continued to improve, and I expect it to continue! Again the best use case is coding, and LLMs have continued to improve here. The markets have finally woken up to the consequences of this for the software space - if it's easier to build software, all else equal that would certainly be negative for incumbent software firms. Unfortunately the software firm I am short, Palantir ( PLTR ), has surprisingly not fallen very much despite being massively more highly valued than any other software firm. Perhaps I should have taken a broader basket, but I remain convinced that Palantir has a lot of potential downside given its rich valuation. And it is especially nice as a hedge against a downturn. Interestingly on the model progress front - we have reached what seems to be the first time that the current state of the art models are not universally better than previous models. This indicates to me we may be getting pretty close to the potential performance frontier of what LLMs can do. And the reason I can state this confidently is that as I have hinted, I am working on an AI project in the finance space (which we will be launching quite soon!), and Gemini 3 is, for several of our use cases, inferior to Gemini 2.5. Overall G3 is still better when looking at a range of use cases (I use i...
We're only a month into 2026, but there have been some interesting moves in the world of artificial intelligence (AI) stocks. On one hand, software companies like HubSpot (NYSE: HUBS) and ServiceNow (NYSE: NOW) that incorporate AI into their products have been under pressure. On the other hand, companies that make memory products crucial to AI infrastructure have been soaring. In this video, longt...
We're only a month into 2026, but there have been some interesting moves in the world of artificial intelligence (AI) stocks. On one hand, software companies like HubSpot (NYSE: HUBS) and ServiceNow (NYSE: NOW) that incorporate AI into their products have been under pressure. On the other hand, companies that make memory products crucial to AI infrastructure have been soaring. In this video, longtime Motley Fool analysts Matt Frankel and Tyler Crowe discuss why. *Stock prices used were the morning prices of Jan 29, 2026. The video was published on Feb.1, 2026. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 942%* — a market-crushing outperformance compared to 196% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of February 2, 2026. Matt Frankel, CFP has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends HubSpot and ServiceNow. The Motley Fool has a disclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
bhofack2/iStock via Getty Images Chipotle Mexican Grill’s ( CMG ) earnings are expected to fall by 4% during its fourth quarter earnings on February 3, with analysts’ focus on the company’s comparable sales number. The California-based firm is expected to report earnings of $0.24 , representing a 4% Y/Y decline, while the top line is expected to grow 4.2% to $2.97B. Over the last 3 months, EPS est...
bhofack2/iStock via Getty Images Chipotle Mexican Grill’s ( CMG ) earnings are expected to fall by 4% during its fourth quarter earnings on February 3, with analysts’ focus on the company’s comparable sales number. The California-based firm is expected to report earnings of $0.24 , representing a 4% Y/Y decline, while the top line is expected to grow 4.2% to $2.97B. Over the last 3 months, EPS estimates have seen 3 upward revisions and 10 downward revisions, while revenue estimates have seen 5 upward revisions and 15 downward adjustments. Chipotle had guided FY25 comparable restaurant sales to decline in the low-single-digit range for the first time in 20 years, signaling persistent demand and pricing pressures. Seeking Alpha analyst Juxtaposed Ideas argues that the guidance is particularly worse since the management also issued a notably more aggressive store opening guidance for FY2026, of around 350 to 370 new restaurants, including 10-15 international partner-operated restaurants. The analyst says this could further impact its profit margins. “Aggressive new restaurant openings and international expansion in FY2026 may trigger further margin erosion, worsened by the intensified marketing, menu innovation, and promotional efforts,” Juxtaposed Ideas said. Investors will be watching Chipotle’s ability to maintain traffic and pricing momentum amid a still-challenging consumer backdrop, as per GuruFocus. They will also be looking for signs that menu innovation, loyalty incentives, and digital ordering have helped drive traffic recovery, it added. Overall, Seeking Alpha analysts remain cautious on the stock with a Hold rating, while Wall Street analysts are more optimistic, assigning it a Buy rating. Over the last 2 years, CMG has beaten EPS estimates 100% of the time, and while it has beaten revenue estimates 38% of the time. More on Chipotle Mexican Grill Chipotle Mexican Grill: More Headwinds Than Tailwinds - Overbought Technical Suggests Potential Volatility (Down...
Earnings Call Insights: Revvity, Inc. (RVTY) Q4 2025 Management View CEO Prahlad Singh stated that "we closed the year on a high note, with our fourth quarter revenue, organic growth and adjusted EPS, all surpassing our expectations. This strong fourth quarter performance enabled us to exceed our adjusted EPS guidance for the entire year." Singh described a challenging environment involving change...
Earnings Call Insights: Revvity, Inc. (RVTY) Q4 2025 Management View CEO Prahlad Singh stated that "we closed the year on a high note, with our fourth quarter revenue, organic growth and adjusted EPS, all surpassing our expectations. This strong fourth quarter performance enabled us to exceed our adjusted EPS guidance for the entire year." Singh described a challenging environment involving changes in NIH funding, tariffs, policy uncertainty, and a U.S. government shutdown, but said "we were still able to deliver $5.06 in adjusted EPS, surpassing the initial guidance we provided a year ago." He highlighted 3% organic growth for the year, noting, "our ability to achieve our initial organic growth guidance and exceed our EPS guidance in spite of these hurdles speaks to Revvity's resilience." Singh reported positive momentum in Diagnostics with "organic growth being up 7% in the quarter overall," and noted that Life Sciences segment organic growth was flat year-over-year, with "positive low single-digit growth from our pharma customers and a low single-digit year-over-year decline in sales from our academic and government customers." He also emphasized improved demand for Life Sciences instruments, describing "a strong double-digit sequential increase in total revenue as compared to the third quarter." Singh announced the closing of the ACD/Labs software acquisition in mid-January and the upcoming launch of Signals Xynthetica, an AI models as a service platform, highlighting a collaboration with Lilly's TuneLab initiative. He said, "Signals is embedded in nearly all major pharma companies around the world already. And now with Xynthetica and our collaboration with Lilly TuneLab, we can uniquely deliver functional AI capabilities directly to scientists in a completely transformative way." CFO Maxwell Krakowiak said, "both our organic growth and adjusted earnings per share came in better than we expected. With the stronger finish, we were also able to take the opportunit...
This article first appeared on GuruFocus. Tesla (NASDAQ:TSLA) shares fell more than 2% on Monday as investor concerns mounted over slowing EV demand and competitive pressures. Chinese automakers reported sharp sales declines for January. BYD (BYDDF) delivered 210,051 units, down 30% year-over-year and 50% from December. XPeng (NYSE:XPEV) sales dropped 34% year-over-year, while Li Auto (NASDAQ:LI) ...
This article first appeared on GuruFocus. Tesla (NASDAQ:TSLA) shares fell more than 2% on Monday as investor concerns mounted over slowing EV demand and competitive pressures. Chinese automakers reported sharp sales declines for January. BYD (BYDDF) delivered 210,051 units, down 30% year-over-year and 50% from December. XPeng (NYSE:XPEV) sales dropped 34% year-over-year, while Li Auto (NASDAQ:LI) fell 7.6%. Nio (NYSE:NIO) saw a 96% increase versus last year but slid 43% from December levels. Analyst Glenn Thum at Phillip Securities reiterated a Sell rating on Tesla, cutting the price target from $220 to $215. Thum cited headwinds including the loss of the U.S. EV tax credit, rising tariffs, and declining market share in China. Tesla's Q4 2025 deliveries underperformed expectations, although services and energy storage grew. Plans for over $20 billion in 2026 spending on robotaxis and Optimus robotics have yet to yield meaningful revenue, with autonomous and robotics contributions likely still five years away. The analyst also lowered 2026 profit forecasts by 29%, highlighting near-term risks tied to softening deliveries and rising costs.
Federal Reserve tightening this year would be shocking, but if the unexpected happens, this ETF could be a winner. Much to the dismay of the White House, some corners of Wall Street, and plenty of retail investors, the Federal Reserve held interest rates unchanged this past Wednesday, dashing hopes of a January rate cut. One meeting without a rate cut doesn't mean the central bank is suddenly turn...
Federal Reserve tightening this year would be shocking, but if the unexpected happens, this ETF could be a winner. Much to the dismay of the White House, some corners of Wall Street, and plenty of retail investors, the Federal Reserve held interest rates unchanged this past Wednesday, dashing hopes of a January rate cut. One meeting without a rate cut doesn't mean the central bank is suddenly turning hawkish and that monetary tightening is imminent. But for the sake of argument, let's consider the possibility that the macroeconomic environment rapidly shifts to the point that the Fed is backed into a corner and must raise rates. There's an exchange-traded fund (ETF) for that, and it's the Fidelity Dividend ETF For Rising Rates (FDRR +0.26%). Yes, this ETF protects in the event that 10-year Treasury yields rise, but even if that doesn't happen, the fund offers utility. Rates up, rates down, this ETF can deliver This $660 million Fidelity ETF follows an index of the same name. That gauge is "designed to reflect the performance of stocks of large and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends and have a positive correlation of returns to increasing 10-year U.S. Treasury yields," according to the issuer. Dispensing with the financial jargon, some sectors can thrive even when those yields rise. Other sectors are considered rate-sensitive in a negative fashion. Historically, REITs and utilities have been in the latter category due to their capital-intensive nature. So, it's not surprising that the real estate and utilities sectors combine for just 4.1% of this ETF's roster. The Fidelity rising rates ETF debuted in September 2016, and while that's not ancient in fund industry terms, those nine-plus years are instructive because the Fed has cut and raised rates over that time. For much of that period, the central bank pursued easy monetary policy, and yet the rising rates ETF has still delivered impressive perf...
blackred/E+ via Getty Images As earnings season ramps up and geopolitical tensions keep affecting the markets, below is a list of the top 10 industrials sector stocks that are regarded as cheap high flyer stocks according to SA grading system. Each of these stocks is listed according to the highest momentum grade along with their valuation grade. These stocks span a variety of industries including...
blackred/E+ via Getty Images As earnings season ramps up and geopolitical tensions keep affecting the markets, below is a list of the top 10 industrials sector stocks that are regarded as cheap high flyer stocks according to SA grading system. Each of these stocks is listed according to the highest momentum grade along with their valuation grade. These stocks span a variety of industries including electrical components and equipment, construction and engineering, marine transportation, and passenger airlines. The list is topped by ConnectM Technology Solutions ( CNTM ), FTC Solar ( FTCI ), and Orion Energy Systems ( OESX ), all carrying an A+ momentum grade with B valuation grades. Pangaea Logistics Solutions ( PANL ) and Shimmick Corporation ( SHIM ) round out the top five, with SHIM notably combining A+ momentum with an A valuation grade. Other notable mentions include Taylor Devices ( TAYD ) with A+ momentum and Allegiant Travel ( ALGT ), which pairs an A momentum grade with an A valuation grade. The list features market cap diversity ranging from smaller firms like Orion Energy Systems ( OESX ) at $53.53M to larger entities like Amentum Holdings ( AMTM ) at $8.72B. Momentum grades reflect a stock’s performance trajectory, identifying high flyers with strong upward price movement. Valuation grades indicate how undervalued a stock may be relative to its fundamentals. Both grades are given on a scale from A+ to F, with A+ representing the highest momentum or most undervalued status, and F representing the lowest momentum or most overvalued status. Here is the list: ConnectM Technology Solutions ( CNTM ), Momentum: A+, Valuation B FTC Solar ( FTCI ), Momentum: A+, Valuation B Orion Energy Systems ( OESX ), Momentum: A+, Valuation B Pangaea Logistics Solutions ( PANL ), Momentum: A+, Valuation B+ Shimmick ( SHIM ), Momentum: A+, Valuation A Taylor Devices ( TAYD ), Momentum: A+, Valuation B- Allegiant Travel ( ALGT ), Momentum: A, Valuation A Ameresco ( AMRC ), Momen...
(RTTNews) - L&F (066970.KS) on Monday posted a loss from continuing operations before tax of KRW 180.312 billion for the fourth quarter of 2025, wider than a loss of KRW 147.829 billion in the same period last year. Net loss attributable to shareholders of the parent company totaled KRW 183.003 billion, compared with a loss of KRW 116.530 billion in the prior-year period. Sales for the quarter jum...
(RTTNews) - L&F (066970.KS) on Monday posted a loss from continuing operations before tax of KRW 180.312 billion for the fourth quarter of 2025, wider than a loss of KRW 147.829 billion in the same period last year. Net loss attributable to shareholders of the parent company totaled KRW 183.003 billion, compared with a loss of KRW 116.530 billion in the prior-year period. Sales for the quarter jumped 69.1% year-on-year to KRW 617.785 billion, from KRW 363.350 billion last year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This Weeks Jobs, JOLTS Reports To Be Delayed Due To Govt Shutdown Here we go again. The government shutdown, which should be lifted in 24-48 hours once the House votes (we reported yesterday that Mike Johnson allegedly has the votes to pass the vote), is again jamming the machinery of government data reporting. The BLS has pushed back the January 2026 jobs report, originally set for Feb 6, along w...
This Weeks Jobs, JOLTS Reports To Be Delayed Due To Govt Shutdown Here we go again. The government shutdown, which should be lifted in 24-48 hours once the House votes (we reported yesterday that Mike Johnson allegedly has the votes to pass the vote), is again jamming the machinery of government data reporting. The BLS has pushed back the January 2026 jobs report, originally set for Feb 6, along with December’s Job Openings and Labor Turnover Survey and Metropolitan Area Employment data. “The release will be rescheduled upon the resumption of government funding,” Emily Liddel, an associate commissioner at BLS, said in a statement. “Due to the partial federal government shutdown, the Bureau of Labor Statistics will suspend data collection, processing, and dissemination.” The Bureau of Labor Statistics will announce new release dates once funding is restored. Tyler Durden Mon, 02/02/2026 - 12:27
Solskin/DigitalVision via Getty Images Thesis Minerals Technologies Inc. ( MTX ) is a specialty minerals company that sells into consumer, industrial, and environmental markets. When I last looked at the stock, I called it a Hold . Not because anything was fundamentally broken, per se, but because nothing was really moving either. Margins were okay, which helped, but volumes weren’t growing. Growt...
Solskin/DigitalVision via Getty Images Thesis Minerals Technologies Inc. ( MTX ) is a specialty minerals company that sells into consumer, industrial, and environmental markets. When I last looked at the stock, I called it a Hold . Not because anything was fundamentally broken, per se, but because nothing was really moving either. Margins were okay, which helped, but volumes weren’t growing. Growth overall was pretty modest. Seeking Alpha And while there was a dividend, it wasn’t really enticing enough to pay me to sit around and wait. Seeking Alpha That caution did its job. Since my call, MTX has returned about 10.6% in total. That’s fine on its own, maybe, but it seriously lagged the S&P 500 ( SP500 ), and most things tech. Per SA's comps, MTX held its head above the rest. Still negative though. (Seeking Alpha) But after reviewing the latest earnings, I’m more bullish now. Execution looks better. The mix is improving. And importantly, the valuation already seems to bake in a lot of the bad news. Minerals Technologies: Areas Of Strength After a pretty flat ’25, full-year sales still came in at $2.1B , which held up better than maybe some expected, especially given the weakness in residential construction and foundry. What’s encouraging, though, is the execution. The team focused on growing the business organically by expanding more into consumer markets, entering new geographic areas, and introducing higher-margin products, and the results are beginning to appear. New products are now 19% of sales. Start with Consumer & Specialties, which is beginning to improve. Cat litter stands out. After a scratchy first half, thanks to heavy discounting from competitors, sales rose 7% in the second half after the team worked with retailers to adjust promotions and packaging. And that, in turn, led to 8% quarter-over-quarter growth this past quarter. Looking ahead, the team's nicely secured $25–30 million of new business for this year through facility upgrades in the U.S., Cana...
Phumphat Phaka/iStock via Getty Images Written by Nick Ackerman, co-produced by Stanford Chemist Monthly paying closed-end funds can help to provide cash flow to those who need it or compound the distributions to grow cash flow over time. That can make them quite flexible and not necessarily specifically only appropriate for a retired investor. Additionally, closed-end funds offer a fairly unique ...
Phumphat Phaka/iStock via Getty Images Written by Nick Ackerman, co-produced by Stanford Chemist Monthly paying closed-end funds can help to provide cash flow to those who need it or compound the distributions to grow cash flow over time. That can make them quite flexible and not necessarily specifically only appropriate for a retired investor. Additionally, closed-end funds offer a fairly unique ability to be bought at a "discount." That is, the share price can trade wildly different from the actual underlying net asset value per share. That creates a scenario where you are purchasing more assets at a lower price and can lead to potential alpha generation. However, it is important to understand that some funds trade at deep discounts perpetually, and there is no guarantee a discount will ever narrow in the future. It isn't simply about purchasing the fund with the largest discount, but more about relative discounts, primarily relative historical discount levels, as it can lead to mean reversion. Even still, it is important to understand that certain fundamental shifts or macro environments can warrant larger discounts under certain circumstances as well. Even when buying a CEF at a deep relative historical discount, it doesn't guarantee that it will be a success, but it has tended to increase the odds. With that, we wanted to highlight two funds today trading at attractive discount levels that hit our " Buy" targets while also paying monthly distributions. Both of these funds are leveraged, incorporating borrowings to potentially increase the overall total returns, but that does come with increased risk and volatility, as well as expenses. However, the upside to that is that the Fed has been cutting its key benchmark rate, reducing short-term floating rate-based instruments, which these funds stand to benefit from in the form of a reduction in interest expenses. #1 Flaherty & Crumrine Preferred and Inc Opp Fund Inc ( PFO ) 1-Year Z-score: 1.35. Discount/Premium: -6...
FactoryTh/iStock via Getty Images Capstone Copper ( CSCCF ) said Sunday it resumed partial operations at its Mantoverde copper and gold mine in Chile, even as a strike by a labor union representing more than 20% of the mine's workforce continued. Production at the Mantoverde mine is expected to run at 50%-70% of normal levels during the strike after Capstone ( CSCCF ) regained access to a desalin...
FactoryTh/iStock via Getty Images Capstone Copper ( CSCCF ) said Sunday it resumed partial operations at its Mantoverde copper and gold mine in Chile, even as a strike by a labor union representing more than 20% of the mine's workforce continued. Production at the Mantoverde mine is expected to run at 50%-70% of normal levels during the strike after Capstone ( CSCCF ) regained access to a desalination plant that supplies water to the mine, the company said. The decision to resume operations follows a Chilean court ruling on Friday that allowed authorities to remove striking workers from the desalination plant. While Mantoverde is considerably smaller than top-tier mines in Chile such as Escondida and Collahuasi, tense labor relations there may foreshadow tough negotiations for other contract renewals. More than 600 union members at the mine downed tools on January 2 after collective bargaining failed to reach an agreement; last week, workers rejected a revised offer that included final payments equivalent to more than $17K each and a 1% wage adjustment. Mantoverde produced 62,308 tons of copper concentrate and 32,807 tons of copper cathodes, about 0.4% of global production, in 2025. More on Capstone Copper Capstone Copper: Some Near-Term Turbulence, But Good Long-Term Value Capstone Copper Q3 2025 Earnings Call Presentation Seeking Alpha's Quant Rating on Capstone Copper
Zerbor/iStock via Getty Images Dear friends, I am writing to give my year end update. Please view our evergreen disclaimer here , I may have positions in stocks mentioned here, and none of this is investing advice First as always, the returns. We unfortunately had a poor year, with returns basically flat at an .8% net return for the year. This compares to ~17.08% for the S&P, and 2.87% for the REI...
Zerbor/iStock via Getty Images Dear friends, I am writing to give my year end update. Please view our evergreen disclaimer here , I may have positions in stocks mentioned here, and none of this is investing advice First as always, the returns. We unfortunately had a poor year, with returns basically flat at an .8% net return for the year. This compares to ~17.08% for the S&P, and 2.87% for the REIT index. Longer term we are still outperforming, at 190.15% vs 61.27% for the REIT index and 155.29% for the S&P, although the S&P gap is narrowing 1 . 2026 has been off to a better start but the market is obviously volatile. The drivers of the weakness are broadly two fold. The first is we are very defensively positioned with a good sized short book - these positions obviously did not take off given the continued euphoria in the markets (although they are looking better today!). 2 The second is that my other investments are primarily value oriented, and these frankly performed quite poorly. The flip side of this is that I actually feel very good about our positioning currently, and think there is a lot of value & potential upside in the portfolio. Our new largest position, Vail Resorts ( MTN ), is probably the best example of this. Whistler, one of Vail’s major resorts. I started buying in February, when the stock was in the upper $150s. Unfortunately the stock is now trading at $133 (which I think is an incredible opportunity on the flip side) - I bought more as it fell, but our cost basis is around ~$148, so we are still down a decent bit here. Vail deserves its own write up entirely, but the quick thesis on it is that Vail owns irreplaceable assets with very limited new competition, and is cheap on almost any metric you want to use. For context the first new ski resort in 30 years opened adjacent to Deer Valley, and it took 10 years, usage of a government permitting loophole, and cost ~$1.5 billion to build 3 . Or you could buy Vail’s 15 major resorts (and a host of min...
Tippapatt/iStock via Getty Images The recent decline in the US dollar relative to foreign currencies may seem like an abstract concept for investors. But the ebb and flow of the greenback can be a crucial factor for risk and return in globally diversified portfolios. That alone is a reason to monitor the dollar’s trend for deciding if currency hedging looks reasonable. Foreign exchange risk doesn’...
Tippapatt/iStock via Getty Images The recent decline in the US dollar relative to foreign currencies may seem like an abstract concept for investors. But the ebb and flow of the greenback can be a crucial factor for risk and return in globally diversified portfolios. That alone is a reason to monitor the dollar’s trend for deciding if currency hedging looks reasonable. Foreign exchange risk doesn’t receive as much attention in the US compared with the rest of the world, which can be explained by the size and relative independence of the American economy and running the world’s reserve currency. But international investing levels the playing field for everyone, and so hedging forex risk, or not, can be a crucial aspect for portfolio strategies. Forex’s influence waxes and wanes across the years, depending on the macro backdrop. Theoretically, the expected return associated with forex risk is zero in the long run. But over shorter periods, currencies rise and fall, sometimes dramatically, and the US dollar isn’t immune. As a result, the forex factor can be a non-trivial influence on performance for anyone who ventures into foreign markets. For historical context, the chart below shows the US Dollar Index (a basket of major foreign currencies) since the early 1970s, with select events that coincided with peaks and troughs. The significance is that a rising (falling) dollar translates into a headwind (tailwind) for US investors holding offshore stocks and bonds. Like all risks factors, forex can help or hurt, depending on exposure, time period, and other variables. The main question for investors holding international assets: To hedge or not to hedge forex risk? There’s no right answer for everyone since every investor is different in terms of risk tolerance, investment objective, time horizon, etc. What’s clear is that whatever you decide, the results could be significant, for ill or good. As an example, consider the rolling one-year return spread for two iShares ETFs ...
This article first appeared on GuruFocus. U.S. stocks opened higher Monday, shrugging off last week's sharp declines in silver and bitcoin, as investors looked to start February on a positive note. The S&P 500 rose about 0.5%, the Nasdaq Composite climbed 0.6%, and the Dow Jones Industrial Average advanced 393 points, or roughly 0.8%. Oracle (NYSE:ORCL) shares surged after the company said it plan...
This article first appeared on GuruFocus. U.S. stocks opened higher Monday, shrugging off last week's sharp declines in silver and bitcoin, as investors looked to start February on a positive note. The S&P 500 rose about 0.5%, the Nasdaq Composite climbed 0.6%, and the Dow Jones Industrial Average advanced 393 points, or roughly 0.8%. Oracle (NYSE:ORCL) shares surged after the company said it plans to raise up to $50 billion to expand cloud capacity for enterprise customers. Bitcoin dipped below $80,000, while silver and gold remained under pressure after last Friday's steep sell-offs. Silver pared losses to trade around $80.68, and gold hovered near $4,720 an ounce. Nvidia (NVDA) shares edged down 1% as reports suggested the company's $100 billion investment in OpenAI had stalled, although CEO Jensen Huang confirmed plans for a large commitment remain. Investors also monitored earnings, with Disney (NYSE:DIS) shares rising more than 3% after beating Q1 revenue and EPS expectations. The focus now shifts to the January U.S. jobs report due Friday.
Key Points Nvidia has ridden its prowess in artificial intelligence to new heights. It wasn't always obvious that Nvidia would become the powerhouse it is today. Pigeonholing companies into particular niches can make you overlook other opportunities. 10 stocks we like better than Nvidia › Hindsight is perfect. It's easy now to look back and think that artificial intelligence chip pioneer Nvidia (N...
Key Points Nvidia has ridden its prowess in artificial intelligence to new heights. It wasn't always obvious that Nvidia would become the powerhouse it is today. Pigeonholing companies into particular niches can make you overlook other opportunities. 10 stocks we like better than Nvidia › Hindsight is perfect. It's easy now to look back and think that artificial intelligence chip pioneer Nvidia (NASDAQ: NVDA) was always destined for greatness, given that it now has the largest market capitalization of any company worldwide. Many analysts believe that Nvidia can do no wrong, and that its colossal past success warrants an unwavering belief that a prosperous future for Nvidia stock is assured. But to understand where Nvidia is now, it's valuable to look back to where it got its start and the path it took to get here. That's a core philosophy of my new Voyager Portfolio, which has been looking at a variety of different companies to assess their history, the current state of their businesses, and their prospects for the future. In this three-part series, you'll get a more complete picture of Nvidia's past, learning how it gradually evolved from being a niche player in a relatively small part of the technology sector to expand into the colossus it is today. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Painting a prettier picture Nvidia got its start in 1993, when current CEO Jensen Huang joined forces with a pair of fellow co-founders to create the company. At the time, artificial intelligence was the province of science fiction, and Huang's ambitions were of much more limited scope. Nvidia spent most of the time during the tech boom of the 1990s trying to create technology that would push the video gaming and multimedia industries beyond their two-dimensional roots and allow for realistic 3D graphics rendering. It took six years, but by 1999, Nvidia had achieved a key milestone in i...