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This Top-Ranked Crypto Is Skyrocketing In Popularity

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The most recent Brand Intimacy Study done by MBLM had an intriguing result in the world of cryptocurrencies as it showed that Cardano (ADA), which had a quotient score of 52.6, was the highest-ranking crypto brand among those polled.

The Brand Intimacy Study ranks the perceived degree of intimacy of more than 600 of the top companies in the world according to the perception of their consumers using artificial intelligence and big data. To calculate an intimacy quotient score between 0 and 100, the research examines emotional connection, archetypes, and phases (sharing, bonding, fusing). The emotional connection to a brand is more powerful the higher the score.

The “crypto” category was introduced to the Brand Intimacy Study for the first time this year, and according to MBLM, the sector’s performance “reveals how people connect with various crypto brands and tests their loyalty amid the ebbs and flows of the turbulent crypto environment.”

With an average intimacy quotient score of 37.7, cryptocurrency outperformed the cross-industry average of 36.8 to place eighth overall among a total of 19 distinct industries. The Financial Services industry was ranked 14th and had an average score of 32.1.

According to MBLM, “this may indicate that younger generations are starting to turn away from conventional financial services in favor of cryptocurrency.”

Looking more closely at the cryptocurrency statistics, Cardano’s quotient score of 52.6 outperformed a number of other well-known cryptocurrency brands like Bitcoin, which had a score of 51.9, and Ethereum, which had a score of 42.8.

Cardano came in at number 26, Bitcoin at number 30, and Ethereum at number 120 on the overall list of brands. Polkadot (DOT) outperformed Ethereum and came in at position 111 with a quotient score of 43.5.

In terms of total brand ranking, Tesla came in second with a score of 67.5, followed by Apple with a score of 65.3, and Disney with 68.1.

Archetypes of the crypto industry

In order to get its quotient score, the Global Intimacy Study considered six distinct archetypes: indulgence, identity, nostalgia, fulfillment, ritual, and enhancement.

MBLM claims that fulfillment, which “focuses on surpassing expectations and providing exceptional, efficient service,” is the prevailing model for the crypto sector. In the crypto space, enhancement, which emphasizes how using the brand improves consumers’ life, performed very well.

MBLM stated,“Cardano has developed stronger emotional ties, which has catapulted it to the top of the cryptocurrency rankings despite the fact that Bitcoin is the most frequently owned and traded digital asset.”

“Leans greatly toward luxury, which concentrates upon pampering and satisfaction,” is how Cardano’s main archetype is best described. When compared to Bitcoin, which “did the best in the ritual typology, showing the brand has grown more embedded in people’s everyday lives and is a vital part of their daily life,” this was exactly the opposite.

One of the key contributing elements for the extreme contrast in these two projects’ top archetypes, according to MBLM, is the age gap between them.

“As the usage of Bitcoin grows more commonplace, it is recognized as a reliable means of payment. Cardano is fresh, thus investing in it seems like a particular joy or luxury,” according to the research.

“Cardano’s cheaper cost and novelty provide its users the freedom to take a chance without having to put as much money up front in the expectation that the coin’s value would soar. Its marketing is also friendlier, fostering a connection and emphasizing the currency’s audacious goals.”

Author: Blake Ambrose
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2 SPACs That Could Explode By 10x

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It shouldn’t come as a huge surprise that the SPAC frenzy of 2020 and 2021 was unsustainable when looking back at the time. There have been days when more than ten businesses with blank checks went public, and there are still hundreds of SPACs looking for merger targets.

The majority of ex-SPACs were among the worst-hit equities as the market’s desire for speculative investments diminished in 2022 as a result of inflation, recession worries, and other factors. For patient investors, there are still several that seem to be outstanding long-term options, particularly at their present price levels. Here are two in particular that I hold and have the potential to be 10-baggers.

Could this business really reshape the financial sector?

The banking disruptor SoFi (SOFI 3.45%) is down more than 75% from its 52-week high and around 40% off its SPAC value ($10 per share in all three of these examples).

There are, undoubtedly, a few causes for the poor performance. First off, student loan refinancing was SoFi’s first line of business and it still represents a significant portion of the firm. Federal student loans are still being postponed, so it’s understandable that this area of the company has struggled. In addition, banks may see a general increase in loan defaults and a decline in consumer demand due to concerns about inflation and the impending recession.

But SoFi’s business is still expanding fast, and it seems that the firm is attracting clients away from conventional banks and brokers. SoFi’s membership base has increased by 69% year over year to 4.3 million, and its financial services offerings, particularly its SoFi Money (checking/savings) and SoFi Invest (brokerage) platforms, are flourishing. With this type of growth and SoFi’s adjusted profitability, a discount of more than 10% to book value seems very attractive.

Is this the social network that gets the least attention?

Nextdoor (KIND -1.88%) trades for a far lower price than most of its social media competitors with a market worth of about $1.27 billion. This is equivalent to less than a tenth of what Pinterest is now valued at. The stock is now valued at around 65% less than SPAC.

There is no doubt that Nextdoor has to work hard to monetize and become profitable. The firm just reported a negative 68% net margin in the second quarter, and its average revenue per user is a tiny portion of what other significant social media platforms receive from American consumers.

Having said that, Nextdoor could succeed if it can find a way to make money. Unlike the majority of other social networking sites, Nextdoor’s user base is rapidly expanding. Due to lower expenses per visit than other platforms, the platform is demonstrating its worth to advertisers with its approximately 37 million weekly active users, an increase of 26% from a year earlier. The firm might be a huge winner for patient investors if it can maintain its growth and expand to profitability.

Author: Scott Dowdy
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2 Dependable Stocks With Big Dividends

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The stock market’s direction is difficult to predict. Who knows? One day it’s up 200 points, the next… Medical Properties Trust (MPW 1.4%) and Physicians Realty Trust (DOC 1.15%) are healthcare companies that all provide dividend yields of 5% or more if you’re searching for a decent spot to store your money at a rate that better keeps up with inflation.

Both have declined so far this year, offering a chance to invest right now in reputable businesses that will reward your patience by paying you (in dividends) as you wait for their shares to increase. Both are profitable, and according to price-to-earnings (P/E) ratio and other metrics, they now seem like good deals.

Medical Properties anticipates further expansion.

The shares of Medical Properties Trust have decreased by more than 30% this year. The organization, a real estate investment trust (REIT), has 46,000 beds distributed over 440 locations in nine countries and four continents, making it one of the biggest hospital owners in the world.

On August 3, the business released its second quarter results. In comparison to the same quarter last year, when it reported $251 million in FFO and $0.43 per share, it reported funds from operations (FFO) of $275 million, or $0.46 per share. Additionally, sales increased 4.8% from the previous year to $400.2 million. The business maintained its full-year FFO projection of $1.78 to $1.82 per share for the future.

A dividend track record is also being established by Medical Properties. This year, the REIT boosted its quarterly dividend by 4% to $0.29 per share, marking the ninth year in a row that it has risen. As a result, the shares now yield around 6.94%. Given that Medical Properties is a solid REIT with consistent free cash flow, its FFO payout ratio of 63% is relatively secure. The average number of years left on the leases of its tenants is 17.8.

The Medical Properties Trust has had a very successful run. Over the previous ten years, the firm has raised yearly FFO by 881%, demonstrating that it should have no trouble continuing to pay and increasing dividends. Additionally, the company is now trading for a fairly affordable price for a REIT based on its price-to-FFO ratio of 6.9 during the last 12 months.

Physicians Realty Trust continues to be trustworthy

A REIT that specialized in medical office buildings is called Physicians Realty Trust. It owned 289 of these structures as of June 30, and 94.9% of them were leased. With shares down a little more than 3% this year, the company’s stock has suffered less than the other one highlighted.

On August 4, the REIT released its second quarter results. FFO was $0.27 per share compared to $0.26 per share during the same quarter previous year, while revenue came in at $132.2 million, an increase of 17% year over year.

Even though the firm hasn’t raised the dividend in five years and has maintained it at $0.23 every quarter, the yield amounts to 5.08%. The payout ratio of the corporation is 85%, which is within the safe range for a REIT since the dividend has been constant while FFO has increased. Its trailing P/FFO ratio is 9.8, which is somewhat higher than the trailing P/FFO ratio of 6.9 for Medical Properties Trust but is still a great deal.

Author: Scott Dowdy
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This Cybersecurity Stock Is About To Shock Everyone

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Palo Alto Networks (PANW -0.83%) is without a doubt one of the top suppliers of cybersecurity solutions. With Strata, a new security platform that offers next-generation firewall solutions, Cortex, its endpoint security solution that is powered by artificial intelligence, and Prisma, its cloud-based security services, the company offers an integrated three-pronged strategy to combat the growing threat of cybersecurity.

The company’s strong financial results have given rise to a rising stock cost. Palo Alto Networks shares have increased by 55% over the last year, defying the current general market dip, but this is only the beginning. The stock has increased dramatically over the last three, five, and ten years, respectively, by 179%, 3,305%, and 801%.

For the first time in the history of the business, Palo Alto Networks revealed intentions to split its shares on Tuesday. Investors are now reevaluating the cybersecurity pioneer and its stock as a result of this event. Recap the details of a stock split and decide whether to acquire Palo Alto Networks shares.

The specifics

Palo Alto Networks announced on Tuesday that their board of directors had authorized a 3-for-1 stock split of its most common shares that are in the form of a stock dividend, which means shareholders would receive extra shares of stock. The announcement came along with the financial report for its fiscal fourth quarter, which ended on July 31. (not a dividend that is in the usual sense).

After the close of business on September 6, two more shares will be issued to each shareholder of record for each share they already possessed. The shares will start trading with split adjustments on September 14.

Investors in Palo Alto Networks won’t need to do anything else to get the extra shares. Historically, investment brokerages have taken care of the technicalities, and the freshly issued shares would just show up in shareholders’ accounts.

It’s important to keep in mind that these extra shares could not show right away after the market close on September 13. From brokerage to brokerage, the time for the stock’s appearance may vary, and it might take several days for the new shares to show up in investment accounts.

The procedure could be better understood by putting some numbers in the equation. After the split, shareholders will have three shares, each worth $190, for every share of Palo Alto Networks stock they already own, which is trading for around $570 per share as of this writing.

Do stock splits assist investors?

From a mathematical perspective, the overall value of the investment owned by each investor remains constant, as it shows in the example given above. The price of one Palo Alto Networks share, which is presently trading at $570, will be equivalent to the price of three post-split shares, which will be priced at $190 and (3 x $190 = $570). Similar to cutting a pizza, if the pie is cut into six or twelve pieces, the quantity of pie that is available for consumption remains the same. Investors in Palo Alto Networks will similarly just have more shares available at reduced prices.

However, there is a psychological factor at work with investors that, at least in the short term, may sometimes boost demand for the stock. For instance, some potential stockholders would not have been able or willing to pay over $600 a share for the stock, but they might be far more eager to do so for less than $200. Although the early rise in stock price might be alluring, history indicates that the boost may not last long and eventually give way to the company’s performance.

However, a brief glance at Palo Alto Networks’ most recent financial data reveals a stock that is moving and has promising commercial and financial prospects, indicating that investors may want to take another look at the firm.

Author: Scott Dowdy
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The Next Market-Shaking Meme Stock

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In recent weeks, meme stocks have had a comeback. Bed Bath & Beyond and AMC Entertainment Holdings, for example, have recently shown a great deal of volatility, rising in value before plummeting. Meme stocks are a bit of a roller coaster for investors, and depending on when you take a chance on purchasing, they may result in either tremendous gains or severe losses.

SIGA Technologies (SIGA -1.36%) is one company that has shown potential as the next popular meme stock. Here’s why it’s been very volatile recently and could continue to be in the coming weeks and months.

Siga’s popularity has increased since it treats monkeypox.

The most recent international health emergency is the monkeypox epidemic. As of August 22, there have been over 41,000 instances of the disease worldwide, spread over more than 90 nations. Though it hasn’t received the same kind of pandemic declaration as COVID did a few years ago, anxiety is undoubtedly high.

The fact that Siga’s Tpoxx medication is approved for “compassionate use” by the Centers for Disease Control and Prevention is one of the factors contributing to the company’s stock price increase of more than 200% this year. Patients who meet a number of requirements, such as having a serious disease or condition, not having access to a suitable treatment, the benefits outweighing the risks, and being unable to participate in a clinical trial, may be granted access to an experimental medical product that hasn’t been approved.

Even this limited FDA clearance for Tpoxx has provided the firm a significant edge since the FDA hasn’t completely authorized any therapies for monkeypox. Jynneos, a vaccine produced by the Danish biotech firm Bavarian Nordic, has received FDA approval for emergency use in high-risk people. The issue is that supplies are few and the US government is dividing dosages into fifths by injecting the vaccine intradermally, under the skin, to reach a larger population. People will require a medication like Tpoxx in the meantime while case numbers keep rising.

In 2018, the FDA authorized Tpoxx for the treatment of smallpox, and to until, the major justification for nations to purchase it has been to keep some on hand in case of bioterrorism using that illness. Although instances of monkeypox have been increasing and the therapy is effective against it as well, Tpoxx demand has increased. In an effort to profit from higher sales figures, retail investors have started buying up the shares. Investors could even want Siga to replace Moderna.

Trade volume has increased dramatically.

Siga’s share price has been growing, and its trading volume has also dramatically increased.

Less than 200,000 shares of the stock were often traded every day at the beginning of the year. The daily quantities are now 5 million or more, nevertheless. The sharp rise shows the stock has strong momentum and has gained enormous popularity among ordinary investors.

Short interest is also rising.

Short interest, or the number of speculators predicting the company will lose money, is another characteristic of meme stocks.

If the firm succeeds and disproves the doubters, a significant short interest might eventually result in a short squeeze.

Is investing in Siga too risky?

Following a surge in Tpoxx orders, Siga’s revenues increased 92% year over year to $16.7 million for the quarter that ended June 30.

Since investors are essentially wagering on how large of an issue monkeypox will be for the globe, predicting how long this trend will endure is difficult. If it turns into another COVID, the healthcare stock can wind up imitating Moderna. Shares in Siga might drop shortly, however, if monkeypox turns out to be less harmful and more manageable.

For the majority of investors, the stock is probably too risky to gamble on right now. This isn’t a stock you need even think about adding to your portfolio unless you have an exceptionally high risk tolerance and are okay with severe volatility.

Author: Blake Ambrose
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Is Tesla Stock About To Explode By 40%?

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According to CFRA analyst Garrett Nelson, the Inflation Reduction Act’s recent $7,500 tax credit for electric cars may have a significant positive impact on Tesla shares and the company’s financial results.

For Elon Musk & Co., the Inflation Reduction Act’s passage was akin to “Christmas in August,” Nelson said in a note to clients. “Most versions of the EV industry’s two best-selling EVs (Tesla’s Model 3 and Tesla’s Model Y) have become eligible to receive the the $7,500 federal electric vehicle tax credit effective Jan. 1, 2023,” Nelson said. Prior to the 200K units per manufacturer threshold, all Tesla cars had their tax credit eligibility phased away.

Nelson increased the price he had set for Tesla’s shares, from $1,125 to $1,245, implying a 43% increase over the company’s current level of trade. Nelson’s #1 selection in the automotive industry is Tesla’s shares.

For EVs costing up to $80,000 for trucks and $55,000 for cars, the Inflation Reduction Act offers purchasers a $7,500 tax credit. In order to be eligible for the tax credit, purchasers must have a household income of no more than $150,000 for single people or $300,000 for married couples. EVs built in North America are the only vehicles eligible for the tax credit.

Due to the additional tax incentive, 2023 buyers of electric vehicles will have competition for Tesla’s Model 3 and Model Y. The Ford Mach-E crossover has a basic MSRP of around $43,000. The base price of GM’s Chevy Bolt is roughly $38,000.

The price restriction that is imposed by the Inflation Reduction Act, which prevents buyers from purchasing more expensive models without a tax credit, according to Nelson, would benefit Tesla even more. The likes of Polestar, Lucid, and Mercedes may provide some of those more pricey options.

Furthermore, the new rule “substantially alleviates worries about EV competitiveness, since almost 70% of the 72 electric vehicle models presently for sale in the United States have suddenly became ineligible to get the tax credit under the new law,” says Nelson.

Author: Scott Dowdy
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Why Now (Could Be) The Best Time To Buy Bitcoin

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Major central banks have taken a very accommodating approach toward monetary policy to stimulate the economy ever since the Great Financial Crisis in 2008 and 2009, a strategy that was made worse by the coronavirus outbreak. Previously it was not a problem, but as a direct consequence of the money printing, prices are now rising across the US economy.

Interest rates are already rising to combat the surge in prices for everything from rent and used vehicles to groceries and petrol. The current hawkish posture of the Federal Reserve, however, might change and become dovish in the not-too-distant future, which would be incredibly positive for one asset in particular — Bitcoin (BTC 0.70%).

Bitcoin winter

To be clear, I expect Bitcoin to stay under pressure as long as the central bank keeps raising interest rates to curb inflation, which is near 40-year highs. This is due to the fact that in this climate, investors choose safer investments like Treasury bonds and even cash over riskier ones like growing tech companies or cryptocurrencies. It explains why the Nasdaq Composite, a stock index heavily weighted on technology, has fallen 17% in 2022, or twice as much as the S&P 500.

A crypto winter is a protracted period of low cryptocurrency values. As investor interest wanes over this period, money often drains out of the area. This is when flawed, fraudulent, and unsustainable initiatives and businesses are shook out, and the toughest groups and businesses will survive, much as when bubbles burst in conventional financial markets. Independent of price movements, developer activity should continue to be robust in the cryptocurrency sector.

Therefore, considering that Bitcoin is now in a significant bear market and has dropped 65% from its all-time high in November, purchasing it might be a wise financial move for someone with capital that is ready to invest. Its long-term potential is extremely enormous, and over the next year or two, we could see more benevolent monetary policy, which is why.

Turning around

With a “soft landing,” or the slowing down of inflation, the Federal Reserve hopes to prevent the economy from entering a recession. However, other investors don’t think this is a likely situation. Since the U.S. economy has contracted for two straight quarters, strictly speaking, a recession has already begun. The Biden administration, on the other hand, has released a statement claiming that there is no recession in the United States, but I believe this was done to calm the public’s fears.

The solid job market and 3.5% unemployment rate are cited by central banks, although this may be deceptive. A poll by the small-business insurance marketplace Insuranks found that 44% of Americans had side jobs to supplement their income. Additionally, more Americans work two full-time jobs now than there were in February 2020, before the pandemic crippled the economy. Additionally, consumer confidence has never been worse.

This suggests that a full-blown recession will unavoidably emerge as long as the Federal Reserve maintains raising interest rates to combat inflation. In order to encourage economic development at this juncture, the central bank will likely have to reverse direction and start slashing interest rates once again. As a consequence, the financial sector will once again get a boost of liquidity to support consumer borrowing and spending as well as lending by banks.

The investment rationale for holding Bitcoin will then become glaringly obvious when this occurs. In order to finance their enormous debt loads, governments must continue printing money and lowering interest rates, which once again fosters the return of high inflation. If only there existed a scarce, totally finite digital store of value that was not governed by a central bank. Fortunately, there is. It is known as Bitcoin.

Author: Steven Sinclaire
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Should You Buy A House Because Of Inflation?

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Real estate prices have grown at a little faster pace than the inflation rate over the last 55 years, making it traditionally an excellent inflation hedge. Some are questioning if it’s still a smart time to invest in real estate, however, since the increase of house prices is beginning to slow.

Here’s a deeper look at how the shifting real estate market is being impacted by decades-high inflation and whether it makes sense to purchase now or wait.

The effects of inflation on the real estate market

Surges in inflation are not simply noticeable in the grocery shop or the petrol station. Virtually everything’s cost of products and services is affected by high inflation, including real estate and real estate investments. The operational expenses of an investment are impacted by rising prices for things like electricity, water, property taxes, and insurance.

Fortunately, rental growth has outpaced inflation by a wide margin. Investors should thus be able to pay the rising expenses of owning and managing a rental property. Over the last several years, real estate inflation, which is related to the value of the property, has also surpassed the rate of inflation, rising by as much as 19% annually. As a result, real estate is now a superb hedge against inflation.

The pace of price increase is already slowing down, thus the increase in housing prices in the next months may not be sufficient to surpass the 8.5% inflation rate of today. Home prices increased by 10.8% between July 2021 and July 2022, according to the National Association of Realtors, even if prices remained below the record high reached in June 2022. The rate of rental increase is likewise declining month after month.

High inflation also has an influence on interest rates. The Federal Reserve has already increased interest rates five times and has said it will do so again before the year is through. A rising interest rate environment increases the cost of borrowing, which may have an effect on an investment’s bottom line and reduce its profitability.

Not only do higher borrowing rates affect people purchasing investment properties. They also have an effect on real estate investment trusts (REITs), since REITs leverage their holdings heavily with debt.

Is it better to purchase now or wait?

Real estate seems to be still outperforming inflation in terms of prices and rentals, making it a profitable investment at the moment. However, buyers of assets amid a downturn in the property market should think very carefully before doing so. Prices would ultimately rise again, but there’s a possibility that the property’s value and the demand for rental property might temporarily decline. If this happens, the protection against inflation wouldn’t be lessened.

A little decline in inflation in July suggests that investors may soon get some respite. Investors should take advantage of current market possibilities rather than waiting for prices to decline or inflation to revert to more typical levels.

Lots of REITs have seen their share values fall as a result of inflationary pressures and growing interest rate worries. Given their dividend rates and potential for long-term development, many REITs may, when held for five to ten years or more, provide a rate of return that is greater than inflation. With the property market in flux, buying cheap nearly always boosts your prospects of earning more money in the long run. The time to purchase is now.

Author: Blake Ambrose
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How Pros Are Making A Fortune Off Gold

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Even if gold prices are once again trapped below $1,800 an ounce, one investment company believes the market is still strong overall.

Joe Foster, strategist and portfolio manager, and Imaru Casanova, the deputy portfolio manager for VanEck’s gold strategy, said in their most recent comments that they anticipate gold prices to remain at present levels despite the U.S. currency regaining strength.

The experts also said that any U.S. dollar weakening could help gold as investors continue to seek for safe-haven investments in an uncertain environment.

The Federal Reserve’s hawkish monetary policy stance and rising interest rates continue to support the U.S. dollar. Foster and Casanova said that the rate hikes may soon come to a stop because of the tightening cycle.

“As the economy weakens, we do think the Fed will have to stop raising rates, but we also think there is a big chance that inflation will stay high for a lot longer than expected. Real rates would remain negative as a result, supporting greater gold prices,” the analysts said.

Markets expect either a 50 basis point increase or a 75 basis point increase in interest rates from the Federal Reserve in September, according to the CME Fed Watch Tool. Markets anticipate a slower rate of rate increases as the year draws to a close.

“Markets continue to be split on whether or not this policy would rein in inflation or cause the economy to enter a recession. Some participants think the US economy is already in a recession, while others think inflation will start to decline. Both scenarios seem to favor an earlier than anticipated conclusion to the Fed’s tightening cycle, which we regard as a powerful trigger for the price of gold.”

VanEck added that despite the possibility that gold prices, which are now hovering around $1,800 an ounce, are in a neutral phase, there are still possibilities in the precious metals market. According to the experts, this industry is well-positioned to deal with growing inflation and input costs.

“In a situation of low gold prices, royalty and streaming firms function as a defensive investment vehicle alongside cash and gold bullion. Exposure to these businesses may also provide protection against price inflation,” analysts said.

According to the study, the VanEck gold fund now owns Franco Nevada, which accounts for 9.23% of its portfolio, Wheaton Precious Metal, which accounts for 4.91%, Royal Gold, which accounts for 2.1%, and Osisko Gold Royalties, which accounts for 1.56%.

Author: Steven Sinclaire
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Where To Invest $5,000 Right Now

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A wise investment may sometimes defy consensus. That could be the case with Pinterest (PINS -3.50%) and Peloton Interactive (PTON -3.33%). As a result of the many challenges they are experiencing, their stock values have significantly declined.

Due to overinvesting in capacity during its peak sales season, Peloton’s problems are more serious. Pinterest’s might decline if macroeconomic headwinds weaken since they are less strong. Whatever the case, it will take some time for these businesses to regain their momentum.

If you have $5,000 that you won’t need for many years, it would be a good idea to invest in Peloton and Pinterest stocks.

Believing that the good days will last forever

The company Peloton was built to succeed in a pandemic. It offers interactive fitness equipment, which saw a surge in consumer demand when governments temporarily shut down gyms. Peloton struggled to meet demand. Customers once had to wait more than ten weeks for their items to arrive.

Unfortunately, it marked the start of Peloton’s problems. At the time, management anticipated that this increase in client activity would persist. As a consequence, it made significant investments in expanding its production capabilities.

The demand for Peloton’s workout equipment dropped significantly shortly after economies began to recover. Sales have declined in the first nine months of fiscal 2022, which concluded on March 31 after increasing by more than 120% in 2021. Total operational expenditures have increased from $1.1 billion to $2.2 billion, while total revenue has decreased from $3.1 billion to $2.9 billion. Given these facts, it is not surprising that the stock has fallen significantly from its highs.

Peloton is now trading at a price-to-sales ratio of 1.1, which is close to the lowest in its brief existence as a public business, suggesting that the fall may have been exaggerated. To address the overcapacity, the newly appointed CEO has taken a number of cost-cutting measures, such as selling its manufacturing business and outsourcing the work.

In the two years before the COVID-19 epidemic, Peloton’s income increased by nearly 100%. The firm will probably resume growing in due course, making this a potentially smart moment to purchase the shares.

User losses on Pinterest have been suspended

Pinterest faces challenges as customer behavior changes once again, much like Peloton. During a period when billions of people spend the majority of their time inside, the image-based social network firm prospered. Engagement on the Pinterest app is decreasing as people choose to spend more time entertaining themselves outside of the house. Pinterest reached a record of 454 million monthly active users in Q2 of 2021 before declining to 433 million most recently.

The app for Pinterest is free to download and use, and it earns money by displaying adverts. Therefore, user counts are important. If advertisers can influence more consumers’ purchase choices, they are ready to spend more. That may help to explain why Pinterest’s revenue growth dropped from 125% in the second quarter of 2021 to 9% in the second quarter of 2022. The stock of Pinterest has dropped 74% from its peak, perhaps as a result of these weakening prospects.

Pinterest’s stock is now trading at a price-to-free cash flow ratio of 23, which is close to its lowest level in the previous year. From $473 million in sales in 2017 to $2.6 billion in 2021, Pinterest has shown strong revenue growth. This expansion was sufficient enough to provide a $326 million operational profit in 2021.

The coronavirus pandemic is causing a number of issues that are harming the market for advertising, such as a lack of materials, increased expenses, and quickly shifting consumer demand. These trends will eventually reverse as the fight against COVID-19 gains momentum throughout the globe.

But the impending challenges provide astute investors the opportunity to purchase this growing company at a discount.

Author: Blake Ambrose
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