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It is hard to believe that this year is almost over. However, here we are, and it is fair to say that it has been an interesting year for the real estate market. As we are about to head into 2022, here are several trends that real estate investors might want to know about.

1. Retailers will invest more on order fulfillment

Though shopping malls were having a hard time before the pandemic, the last 20 months of the pandemic have hit them hard. A lot of retailers have gone into bankruptcy and closed their stores, leaving mall owners with vacancies to fill.

In 2022, malls might face difficulties of their own because more brands might opt to sink dollars into fulfillment and distribution centers and less money into store openings and renovations.

2. Workers will return to Office buildings 

Office buildings have for the most part been vacant since the beginning of the pandemic. But with COVID booster shots becoming widely available to Americans, offices are beginning to slowly but surely bring their workers in.

In 2022, there is a good chance businesses will put an end to remote work and make their employees show up for work at least a few days each week. Some businesses have already made the choice to let workers do their jobs from home on a permanent basis. However, for companies not making that decision, 2022 might be the year when more workers find their way back to the office.

3. Leisure travel will help hotels

Given that 2021 is coming to an end and many businesses still have not brought workers back to offices, it is not likely that business travel will effectively take off in 2022. That’s one thing hotels will need to deal with, and properties that routinely serve business travelers could face vacancies and earnings concerns as well.

Meanwhile, leisure travel might spring some life back into the hotel industry. That is great news for hospitality REIT investors after a terrible 2020 and a shaky 2021.

4. The short-term demand for rentals will continue to boom

While hotels should have a decent stream of bookings next year, travelers might still prefer short-term rentals. This option might be particularly appealing to households with children during the start of the year.

As of now, children below the age of 5 are not eligible for a COVID-19 vaccination. That might change early on next year, but it will take a while to get that part of the population vaccinated. This means those who invested in short-term rentals might really benefit from ongoing demand.

Will 2022 be a great year for real estate investors?

Only time will tell what 2022 will bring. But it will be interesting to see just how well these predictions play out as a new year unravels.

Author: Steven Sinclaire

Black Friday shoppers were not the only ones out trying to find bargains after Thanksgiving. Thieves were also busy.

Police in LA and cities around the country spent their weekend searching for suspects in a series of “flash mob” burglaries on Friday, which is part of a rising U.S. crime trend in which a group of thieves target a store, grab everything on the shelves they can carry and flee.

At least two such burglaries were reported on Saturday by the LA Police Dept. and the LA Sheriff’s Department. KCAL-TV, a local news station, counted about six robberies on the city’s west side on Friday.

In one incident, eight men walked into a Home Depot outlet located in Lakewood, south of downtown LA, went directly to the tool aisle and stole a bunch of crowbars, sledgehammers and hammers valued at $400 before fleeing, the sheriff’s office said.

According to the television station KTTV, the robbery at Home Depot on Friday night involved about 20 suspects who arrived at the store in as many as 10 vehicles and donned ski masks before they raided the tool aisle.

“We attempted to stop them,” Home Depot worker Luis Romo told KTTV. “We had closed the front doors, and they raised their hammers up and anybody that got in their way, they were going to get hurt.”

The LA City News Service stated four suspects in that burglary were apprehended on Saturday by Beverly Hills authorities.

In a similar robbery on Friday, a group of about 10 men robbed a store in Fairfax and began grabbing merchandise and pushing workers out of their way before fleeing from the scene.

The spike in retail crime had prompted the LA Police Dept. to put its officers on a tactical citywide alert on Friday afternoon.

Mass robberies were also reported on Friday at the two Best Buy locations in the Minneapolis-St. Paul area, one of the Best Buy locations was robbed by as many as 30 individuals, while a spree of pre-dawn store burglaries was being investigated in Chicago.

In one of the largest flash-mob burglaries reported on the West Coast recently, authorities in the San Francisco suburb located in Walnut Creek were searching for 80 suspects who ransacked a dept. store last Saturday.

Author: Blake Ambrose

The consumer price index jumped 6.2% year over year during October, the Labor Department stated. The increase was the largest yearly gain since Nov. 1990. Prices rose by 0.9% month over month.

Analysts who took a survey by Refinitiv were thinking that prices would rise by 0.6% in October and 5.8% yearly.

“Inflation is expanding,” said Greg McBride. “In addition to groceries, shelter, and energy continuing to post record monthly increases, the price tag for a new or used car is once again going into overdrive.”

Energy prices rose 4.8% in the last month, and were up by 30% over the course of 2020. The October price increase was mainly the result of a 6.1% hike in the price of gasoline.

Food costs, meanwhile, ticked up 0.9% last month as the groceries at home category saw an increase of 1%. All food costs are up by 5.3% year over year.

Core prices, which don’t include energy and food, rose 0.6% month over month and 4.6% over the past year. Economists were thinking there would be respective increases of 0.4% and 4.3%.

Also contributing to the increase were used and new car prices, which in October increased 1.4% and 2.5%, respectively. Also, Prices for new automobiles were 9.8% over levels from just a year ago, while the prices for a used vehicles were up 26.4% from October 2020.

The price of shelter inched up 0.5% last month and was 3.5% over year-ago levels.

“We are witnessing the early signs of an inflationary surge that is likely going to continue, with businesses responding to increasing input costs with raising their own prices, which in turn produces higher input prices for others,” said Brad Armstrong. “It is a cycle that just keeps on repeating itself.”

Wednesday’s statement surely captured the Federal Reserve’s attention, which earlier in the month announced their plans to cut down its $120 billion a month in asset purchases while also taking notice of higher than expected inflation levels. The central bank still thinks inflation will be “transitory.”

Author: Blake Ambrose

Nvidia and Palantir work in different areas, but both tech firms are profiting from their secular expansion of the AI market.

Nvidia’s GPUs are often connected with video games, but a growing amount of data centers are installing its top-end GPUs to deal with AI tasks. Palantir’s data mining systems accumulate and work on data from many different sources to aid government agencies and private companies to make AI-driven choices.

Both companies have given impressive gains over the previous 12 months. Nvidia’s stock has more than doubled as it kept selling more data center and gaming GPUs. Palantir’s stock increased around 160% as it surprised investors with its good revenue growth and great long-term targets. But should investors who missed those gains consider purchasing either stock?

Nvidia’s growth vs Palantir

Nvidia’s revenue increased by 53% to $16.7 billion during fiscal 2021, which ended this Jan., while its adjusted net income went up 75% to $6.3 billion. Its adjusted gross margin increased 310 basis points to reach 65.6%.

In the first part of fiscal 2022, Nvidia’s revenue went up another 75% y/y to $12.2 billion as its adjusted net income went up 99% to $4.9 billion. Its current adjusted gross margin went up 50 basis points to reach 66.4%. Its growth was mostly driven by its data center and gaming GPUs, which gave the company 83% of its revenue during the last quarter.

Nvidia now trades at 55 times its forward earnings and 25 times its sales this year. Those valuations may seem high, but they are fairly reasonable compared to Wall Street’s good expectations for the firm.

Palantir now trades at 34 times the sales this year. That valuation also seems to be high, but it might be justified if Palantir reaches its target of bringing in over 30% revenue growth for the next four years.

But numerous headwinds — including enterprise market competition, the loss of possible government contracts, and the public’s watchful eye of its secretive deals with federal agencies — could still restrict its long-term gains.

The best: Nvidia

Palantir could be a more direct move in the AI market than Nvidia is, but it is also more risky. Nvidia is more diversified, and more profitable, and faces less controversies, and its stock is much cheaper.

Author: Steven Sinclaire

Most folks need substantial assets to support themselves while in retirement. With a current monthly average benefit of around $1,559, Social Security is not going to be enough for you to live a comfortable and happy retirement.

Fortunately, there are some tax-advantaged retirement accounts like IRAs that can help. These accounts can be powerful portfolio builders, as a new report from June has revealed: It seems more people, including Warren Buffett’s investing deputy Ted Weschler, have expanded their IRA accounts to hundreds of millions, if not billions.

Weschler’s Roth IRA was around $264 million in 2018. Meanwhile PayPal co-founder Peter Thiel, has around an account that started with $2,000 in 1999 and now has around $5 billion.

How wealthy people do it

So how do super wealthy people do like Weschler has and amass so much money, when contribution limits are low and their incomes are so high?

Well, they might be using Roth IRA conversions — taking normal IRA accounts and/or 401(k) accounts and changing them into Roth IRAs. You must pay taxes on the money converted when you do this, but after that, the money grows with the prospect of never getting taxed again.

(Also not that 401(k)s have much higher limits, so they can grow fatter than an IRA account. The 2021 limit for 401(k)s is around $19,500, plus $6,500 for people 50 and older, for a total of $26,000 being possible.)

Wealthy people are often well connected to particularly good investment opportunities. For example, they can put money into a business that is still young and not yet being sold on the open markets. And if they use their self-directed Roth IRA, they might be able to park their shares of future hugely successful companies inside it.

Imagine Netflix, as one example, which began trading after its IPO back in 2002. Some early investors might have been able to get their shares for a split-adjusted $1 or $2 back. They are now worth about $625, representing a 632-fold increase. That would be enough to transform a $6,000 investment into around $4 million.

If you can buy shares of such a huge outperformer before it hits the market, you might get it at much cheaper prices, getting even better gains in the future. This combined with the tax-free nature of your Roth-IRA account could make your retirement a dream come true.

Author: Steven Sinclaire

Many growth stocks struggled in recent weeks amid COVID-19 uncertainty and just how our economic recovery might turn out in the weeks ahead. Research company Ipsos confirms that there has been a “great decline” in consumer confidence in the United States this month, and globally, there was a relatively small 0.2 basis point improvement in the index from last month.

Those issues are showing on the market, as there are more buying opportunities than there were only a few months back when hopes were better. But analysts, who usually set stock price targets going into the next 18 months, are optimistic about the following two stocks: GrowGeneration and Boston Beer Company. Many analysts think these stocks can increase by over 70%, and it is hard to argue with these projections.

1. GrowGeneration

Gardening and Hydroponics company GrowGeneration has been performing well, but shares of the company are now lower 27% year to date — far under the S&P 500’s gains of 18%. The company is coming away from a strong Q1 performance where their sales of $126 million for the time period ending June 30 were higher 190% y/y. It even increased its guidance and predicts the top line for next year to be between $455 million and $475 million — even at the lower range, that would be a y/y increase of 136%.

But what could cause investors to be wary of the investment is that GrowGeneration is not cheap. While the business is profitable, investors are giving a multiple of 100 times earnings for the stock. On the SPDR S&P 500 ETF Trust, 26 times profits is the average.

However, given this company’s growth opportunities inside the cannabis industry and the possibility for GrowGeneration to give more growers the supplies they need to cultivate marijuana, there is still lots of potential.

2. Boston Beer

Boston Beer had an underwhelming performance in its Q2 results, which were published in July. Although the company’s net sales of $603 million for the time frame ending June 26 were higher by 33% y/y, that fell under the $658 million that analysts were anticipating. Its per-share profit of $4.75 was also under forecasts of $6.69.

Overzealous forecasting might be to blame, as the company admitted within its press release that it “overestimated our growth in the hard seltzer sector.” Hard seltzer, which has less calories than many other alcoholic drinks, has been sky-rocketing amid the pandemic.

Although things are slowing down, the company’s popularity in hard seltzer might again translate into strong sales numbers if the delta variant does not derail the economy’s reopening. In the previous two periods, Boston Beer’s net sales have gone up by 65% and 53%, respectively. And hard seltzer sales have been crucial to the company’s strong numbers.

Shares of Boston Beer are lower by 40% in the past six months (the S&P 500 is higher by 15%), weighed down greatly by the earnings mishap. But for investors, this might be a great opportunity to buy. Numerous analysts here have made their price targets of well more than $1,000 for the stock, representing a huge upside of over 70%. Some even believe the growth stock might more than double in value.

Author: Blake Ambrose

As prices go below $1,800 an oz, the gold market is having a hard time getting its footing. Analysts are expecting to see more pain in the short term.

The gold market continues to digest news that Pres. Joe Biden will re-nominate Powell as the head of the Federal Reserve. After the news was announced, markets had higher expectations that the United States central bank will tighten the interest rates more aggressively next year.

Dec. gold prices are sloping near their session lows, as they’re trading at $1,786.50 an ounce, down over 1% on the day.

Some analysts believe even with inflation pressures remaining supportive for gold, it hasn’t been able to withstand the growing headwinds from increasing bond yields. The 10-year bond yield is currently trading at a 30-day high at 1.66%.

Daniel Briesmann noted that heightened expectations of an aggressive monetary policy action have driven higher real yields.

“We were astonished that the market’s reaction to Powell’s nomination was so strong. After all, the Fed’s future monetary policy path is not likely to change with Powell in charge,” he stated.

Briesmann stated that he was trying to see if support would hold above gold’s 100-day and 200-day moving averages, which both were at just below $1,800 an oz.

“Just yesterday morning, we had cautioned that gold’s price increase was on shaky ground,” he stated.

Ole Hansen, leader of commodity strategy at the Saxo Bank, mentioned it is hard to see when this new selling pressure will come to an end. He said that hedge funds and money managers had built up their speculative bullish betting in the last two trading weeks, following the new U.S. inflation data, which showed a yearly rise of 6.2%, the largest jump in 31 years.

“There’s no point in searching for levels until the speculative long liquidation has ended,” he stated. “Unfortunately, it looks as though we have a ways to go before ends. From a technical point of view, I will worry a lot more if it breaks under 1781.”

Ipek Ozkardeskaya, high level analyst at the Swissquote Bank, said that she believes gold prices will keep struggling as interest rates move higher.

“Because north is the only feasible direction for the United States yields, gold will likely stay under the pressure of higher yields, and the United States dollar might again be a better safe haven if we see any selloff throughout the equities as well,” she stated.

Author: Blake Ambrose

With another week of penny stock trading off to a decent start, investors continue to look for the best small caps to purchase. Now, to do this, there are some things that investors should consider. Right now, one of the largest factors affecting blue chips and penny stocks is inflation. This is the outcome of the billions in stimulus handed out over the past year along with the recently passed $1 trillion infrastructure bill. 

Also, we are seeing the price of oil start to decrease, following the release of 50 million barrels from strategic reserves. Penny stocks are impacted by a lot of what we are seeing from current world events. However, with investors wishing for a bullish future, there’s also a lot to look forward to. Keeping that in mind, let’s take a look at two penny stocks to keep an eye on.

RLX Technology Inc. (NYSE: RLX)

RLX Technology Inc. is a penny stock that increased by over 9% on Nov. 22nd before slightly correcting. And during premarket trading on Nov. 23rd, shares of RLX stock went up by a very respectable 12%, removing it from penny stock territory. RLX distributes e-vapor products to the Chinese market. The company is directly involved in the manufacturing, distribution, development and sale of its items, making it a vertical entity. Also, RLX has several branded partner retailers and stores that sell its products, vastly increasing its market reach.

Back in Aug., RLX published its financial results for its second quarter of this year. During this period, its net revenues rose 6% to $393.6 million. The company’s gross margin was about 45.1% compared to its 46% gross margin in the first quarter of this year. In that same period, its gross profit rose by 3.8% to $177.6 million in all. These numbers are really encouraging and show both the vaporizer market in China and the growth of the company.

Transocean Ltd. (NYSE: RIG)

RIG is a global industrial corporation that has a specialty in offshore contract drilling. For gas and oil wells, the corporation obtains drilling equipment, work personnel and drilling rigs. Currently, Transocean has ownership or has a stake in 37 of it mobile offshore drilling sites. There are 10 harsh environment floaters and 27 ultra-deepwater floaters among these units, with two more ultra-deepwater drillships in the works.

On Nov. 1st, Transocean published the financial results of third quarter. During this period, it had achieved total contract drilling earnings of $626 million compared to $656 million during last quarter. Its earning efficiency went up by 0.1% to 98.1% compared to the prior quarter. The company’s maintenance and operating expenses also declined during this period from $434 million down to $398 million.

All of this news shows that Transocean is trying hard to grow. Also, we have to take into consideration that the demand for gas and oil globally has increased significantly in the last year. And with some predicting this demand will only increase, RIG stock might be worth keeping your eye on. With a YTD increase of over 30%, does RIG have what it takes make your penny stock watchlist?

Author: Scott Dowdy

Ethereum’s native asset, Ether, might rebound close to 60% in the sessions that are coming up as bull’s hopes are pinned on a classic bullish continuation pattern.

A perfect cup and handle retest

Hyland’s chart conveys Ether going back to the old place of resistance of its prior cup and handle pattern. In a corrective transition that began after Ethereum reached its peak high of $4,867 on November 10. 

Ethereum had a small rebound after testing the cup and handle resistance as its short-term support, raising the prospect of a move that extended to the upside in the future.

The first breakout ventures out of bullish technical setups normally require more confirmation.

These early gains contain two groups of purchasers: longs who chase the breakouts but watch their small profit disappear after a sudden bearish reversal, and longs who enter a position deep in the pattern wishing for a breakout (which ends in failure), which causes them to defend their positions.

However, the tables start to turn when the decline slows down midway, which will result in a full-fledged rebound or sideways action. Short sellers, as a result, lose confidence, while longs who survived the prior pullback gain confidence in the winning bullish technical setup.

A positive rebound can set a bullish response loop in motion, which will prompt the price to prepare for the last leg in the pattern. Hyland said, Ether’s testing the “huge Cup & Handle pattern” resistance line as support was seemingly perfect — which could point to a sharp rebound.

Why $6,500?

The purchase point in a cup and handle pattern begins when the price goes over its resistance level with a rise in trading volumes.

Traders usually find their profit objective by measuring the distance of the cup’s top right to its bottom and then adding the difference to the purchase point.

The cup’s max depth is around $2,500, while its breakout point nears $4,100. As a result, the breakout target of the pattern comes to be at or higher than $6,500. 

Conversely, going below the pattern’s resistance line— coinciding with multi-month uptrend support — risks invalidating the bullish setup. That might lead Ether’s price to the very next support line close to $3,090.

Author: Scott Dowdy

Altcoins have become a major driver of the thriving crypto market, which briefly topped a $3 trillion cap this year, with shiba inu and other cryptos leading in popularity growth and value, according to analysis released this week.

Bitcoin is still the largest crypto with about 42% volume dominance and a $1.1 trillion market cap, and its skyrocketing value has captured funds and attention from retail and institutional investors.

“And while BTC is undoubtedly still the king of cryptos, there are thousands of other tokens and coins, some of which have actually enjoyed higher surges of popularity and value than BTC has in the last year,” said BrokerChooser, in a report.

​​The business, which hosts reviews of brokers in 227 nations and territories, said it compared interest via Google search data and price in terms of US dollars between Sept. 2020 and Sept. 2021 for the 50 most recent biggest crypto coins.

Shiba inu rose the most by each measure, with its value increasing by 2.4 million percent over a year’s period ended Sept. 2021. A new rally shot shiba inu to the 11th spot among the world’s most valuable cryptos, a position that has since dipped slightly, to 12th place, according to CoinGecko.

Dogecoin price increased by 9,567% growth this year.

“Envisaged as being a fun and light-hearted crypto to poke fun at the growing world of crypto, dogecoin ended up producing its own community and taking off in a big way, particularly after being routinely mentioned by Elon Musk on Twitter,” said BrokerChooser, noting the Tesla boss has stated dogecoin is part of his personal portfolio.

Behind dogecoin was Terra, which trades as LUNA, with its price increase of 6,496% to $31.66 in Sep. The token, created by South Korean firm Terraform Labs, is used for staking and governance on a decentralized financial payment network that powers a basket of stablecoins for cross-border transactions.

Terra’s price “exploded” in Jan. when it raised $25 million in a funding round from Coinbase Ventures, Pantera Capital, Galaxy Digital, and others, stated BrokerChooser.

Author: Scott Dowdy

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