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FAANG (Facebook, Amazon, Etc.) Stocks Have Lagged This Year. Here’s Why

Topline: The once high-flying FAANG stocks—Facebook, Apple, Amazon, Netflix and Google parent Alphabet—have mostly lagged the broader S&P 500 index over the past year, signaling that the market may turn to new leadership for the next leg of its advance.

  • With the recent exception of Apple—which reached a new record high last week, the FAANGs have been in somewhat of a slump, as high price volatility takes a toll on their long-time status as momentum stocks.
  • Amazon and Facebook are both 13% off their record highs, while Netflix is down 31% from its peak last year; Google, on the other hand, is just 4% from its record high.
  • These popular, high-profile names have driven the bull market to new heights in recent years, and as a result were increasingly treated as parts of a whole when it came to trading patterns.
  • But over the last 6 to 12 months, the FAANGs have not been leading the market as they once did, with Wall Street now pricing in slower growth rates, rising costs and the potential for more government oversight.
  • “These stocks have made people a lot of money, but they won’t trade as a group the way they did for several years,” says Charles Lemonides, chief investment officer of ValueWorks LLC.
  • Lemonides predicts that Wall Street will increasingly stop talking about the FAANGs as a group, as they go from being growth stocks absolutely adored by the investing public to companies that are perceived to have their own different business challenges.
Today In: Money

Key background: Analyst recommendations are increasingly varied on each of the FAANGs, which adds to the notion that they aren’t viewed as a group anymore. Most Wall Street analysts still assign “buy” ratings, though: 52% for Apple, 87.5% for Alphabet, 69% for Netflix, 96% for Amazon and 87% for Facebook, according to Bloomberg data.

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I am a New York—based reporter for Forbes, covering breaking news—with a focus on financial topics. Previously, I’ve reported at Money Magazine, The Villager NYC, and The East Hampton Star. I graduated from the University of St Andrews in 2018, majoring in International Relations and Modern History. Follow me on Twitter @skleb1234 or email me at sklebnikov@forbes.com

 

Source: FAANG (Facebook, Amazon, Etc.) Stocks Have Lagged This Year. Here’s Why

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Jim Cramer explains his latest take on the FAANG stocks, plus Microsoft.

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Borderless Investing: Eduardo Saverin And Raj Ganguly Grow B Capital

Eduardo Saverin and Rajarshi “Raj” Ganguly are two of the three cofounders of B Capital Group, a venture capital firm with close to $800 million, split between a first and a second fund (still being raised). The third cofounder is legendary investor Howard Morgan. Brazilian Saverin, 37, is based in Singapore and best known for being the cofounder of Facebook – whose shares in it give him a net worth estimated at about $10 billion.

Americans Ganguly, 43, and Morgan, 73, come from diverse backgrounds. Ganguly, based in Los Angeles, spent his early career at Bain Capital, overseeing a number of investments. Morgan, based in New York, helped start ARPAnet, the internet’s precursor, in the 1970s, and later was president of hedge fund Renaissance Technologies.

B Capital has dual headquarters in Los Angeles and Singapore, as well as offices in New York and San Francisco, with a total of 40 full-time staff. B Capital focuses on companies already in series B or C rounds, generally over $10 million in revenue, and looks to invest roughly $20 million. The trio would like to keep the total number of companies in each fund to about 20.

The firm has the slogan “innovation without borders,” reflecting the founders’ belief that innovation can originate anywhere, not just in Silicon Valley. B Capital also uses global consultancy Boston Consulting Group (BCG) to help it grow startups and match them with larger firms. Saverin and Ganguly sat down with Forbes Asia in an exclusive interview in September at Singapore’s Shangri-La hotel to discuss their goals for B Capital.

Today In: Asia

Forbes Asia: How are you deploying your capital into startups?

Eduardo Saverin: Primarily we focus on companies that have an existing level of traction. There are a lot of places where you could invest in technology, but you need to have an edge and focus. For us, together with our relationship with BCG, it’s about accelerating growth. Most companies we invest in have a B2B angle. When the company is still an idea on a napkin, it’s hard for us to introduce them to some of the largest companies in the world. So we tend to invest where there’s a particular amount of value that we can bring through those corporate introductions and value acceleration, which means they tend to translate to series B and beyond. But frankly the staging is fungible. It’s about traction.

Raj Ganguly: As we build the firm we want to be really conscious of being able to invest into some companies really early, probably smaller amounts of capital, and as some of those companies scale and grow, we want to bring larger amounts of capital to those companies. Then finally for some of the companies that really continue to go into highly accelerated growth mode, we would actually not just double-down, but we would take outsized ownership stakes. As we’re growing the capital, we’re increasing our ability to invest across multiple stages. The best use of our capital, rather than finding a new investment, is finding a company in our portfolio where we can see the trajectory of the company before an outsider can see it.

What is the value-add you want to bring to your entrepreneurs?

Ganguly: We focus on doing three things really well ourselves and then partnering with BCG and others for everything else. We focus on helping make introductions and really helping get that growth flywheel going. The second part is we are focused on hiring key C-level talents into companies once we invest into them. We find that every single time we make an investment, if we can help them with one or two better hires on the margin, it fundamentally changes the direction of the company. And third, we help them raise strategic capital. We think, while it’s great to have other venture capital firms and folks like that, there are so many large enterprises sitting on over $1 trillion of capital and many of them want to invest and partner with startups. They could be much more strategic in the capital and the value that they bring.

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Juliana Tan for Forbes Asia

Can you give an example of this value-add to a portfolio company?Saverin: One of our early investments was in a company in the clinical trials space called Evidation Health. It’s a perfect example of a business where they can develop all the technologies that they would like. The truth is, success will come from adoption of virtual clinical trials from the largest pharma companies in the world. When we first met the business, it was working with a lot of smaller biotech firms, which are the traditional early adopters of such technologies. But leveraging our partnerships, including BCG, we had a chance to meet with some of the largest pharma companies in the world.

Through those discussions we understood that, unlike traditional tech innovation cycles where things over time get a little bit cheaper and faster, in the pharma world, you were seeing kind of a reverse innovation cycle where it was getting more expensive and taking longer to get to market.

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Juliana Tan for Forbes Asia

And one of the largest pharma companies in the world took one of their existing trials that they had already done, and then just replicated it through a virtual standpoint, and saw both the speed, the cost effectiveness, and the depth of the data. That gave us conviction to invest, because we knew there was a real appetite for experimentation. Today, that business has most of the largest pharma companies in the world as customers. Some of them have become investors.

Ganguly: It just announced, a few weeks ago, a landmark partnership in dementia with Apple and Eli Lilly. We’ve been a part of helping make some of those connections.

What’s unique about B Capital’s approach to investments?

Ganguly: There are four key parts of our model. It’s about global thematic investing, one single team leveraging global data. It’s about deep local expertise in each market that we invest in. It’s about being the single highest value-add investor in every company and having the capital through partnerships with our investors and through our own capital to fund the growth of these companies as they scale. Our risk model is a lower risk model than early stage, which is about investing in ideas on a napkin, and having one of 20 companies that you know will drive your whole returns. Our model is about backing companies that have customer traction, that have a founding team that has high potential. We are looking for large potential customers and large potential partnerships that further mitigate risks. We believe our approach has upside because we’re investing in companies that are growing at 100% plus a year.

Saverin: The VC game is an information edge game. You need to leverage it not just in the first investment, but across the lifecycle of the company. Our model is about rolling up our sleeves and getting deeply involved, where entrepreneurs want us to, and where we can tremendously add value.

You believe in innovation without borders, can you expand on that idea?

Saverin: Companies are becoming global increasingly by design. There’s no border to where innovation can be received and used. Whether you start a company in Silicon Valley or in Africa or any part of the world, there really is the increasing impetus to go beyond your existing borders. When you start thinking about the evolution of innovation, some of it is the enablers, including the engineering talent. When you go to Silicon Valley, that’s actually one of the hardest places in the world to get engineering talent because of the massive competition. In other parts of the world you can ask is there enough raw talent, even though it’s not as competitive? So we’ll see a broader equalization. It would be hard for me to believe that as tech enablement becomes a big part of much larger industries, that all that innovation will come from one place. If that were to happen, I’d do anything I can to change it because the truth is the whole world is consuming technology.

What opportunities do you see in Southeast Asia?

Ganguly: We understood early that e-commerce was being inhibited in the region because e-commerce companies had to do their own delivery. That’s what really convinced us that we wanted to invest in all the picks and shovels around e-commerce, but no longer invest in e-commerce, or at least not focus on e-commerce. So today we’re investors in Ninja Van, BlackBuck, Mswipe and Bizongo, all companies that enable e-commerce.

Given WeWork’s pulled IPO, have valuations gotten overdone?

Ganguly: Where we are in the cycle and when it changes, that’s not our business. We don’t time the market, but we fundamentally take a long-term perspective. There are times when you’re in a cycle and you have to pay a little bit more for that. But if you have the right time horizon, we think it’s still far better to do that than to be looking for value plays where you’re looking at the second- or third- or fourth-best company. We always say that you might sleep better if you have a value play, but you won’t sleep very well when you exit because the valuation differential is even more stark when you exit a lower-tier player. It used to be that you were forced to go public because you had to pay out early investors. That’s no longer the case. You can now continue to stay private, and have access to very large amounts of private capital. Your early investors can cash out because later stage investors are willing to buy them out. There’s a very active secondary market. What’s changed is I think there’s no longer this belief that going public is something that you have to do. There are a lot of questions about whether going public drives long-term value. While it’s worked for some companies, it hasn’t worked for others.

What would be the process if a portfolio company might fit with Facebook?

Saverin: We are trying to facilitate introductions with any enabler, hopefully a win-win on both sides. So Facebook of course would be part of that equation, and parts of its strategy that converge with some of our focus areas, especially in financial services. Many companies will already have some type of relationship with Facebook, given where Facebook is today, through WhatsApp or otherwise. The innovation ecosystem touches Facebook all the time, so it’s just a question of extent.

Where is B Capital going to be in 10 years?

Saverin: That’s an important question. I usually think about it in two ways. We are incredibly ambitious, and we want to have an institution that will outlive us, so we are always thinking of the very long term. One thing I say every single day, whether in our partner meetings, or when we speak to our entrepreneurs, is to always push focus. Focus on what you’re doing today, that’s how you’re going to get to a bigger vision ten years from now, and even a vision well past our lifetimes. But at a really top level what I want us to do is to enable technology to get into the hands of consumers faster by leveraging the existing distribution networks of the largest companies in the world. Push intrapreneurship, it doesn’t necessarily need that push, but enable them to not only think of disruption but a positive win-win transformation. It’s not about the top ten tech companies that will take over a market by themselves, but the enablement of every company in the world with technology in collaborative innovation.

What do you mean by collaborative innovation?

Saverin: This is a really high-level idea, that can be seen in the platform technologies, such as Facebook, WeChat and others. They have created massive innovation acceleration by enabling other businesses to come on top of their platforms to gain distribution and engagement. What we are looking for is a win-win using the distribution assets of the largest companies in the world to ultimately get API-ed to the innovation ecosystem. If we get even 0.5% of the way in driving that, we will be doing the right thing for ten years from now. I think it’s not always a success when a startup out-innovates and massively disrupts a big company, when it could have leveraged a big company’s distribution, the licenses, the regulatory know-how, and so on, so that consumers could get the advantages of technology much faster.

This conversation has been edited and condensed for clarity.

Pamela covers entrepreneurs, wealth, blockchain and the crypto economy as a senior reporter across digital and print platforms. Prior to Forbes, she served as on-air foreign correspondent for Thomson Reuters’ broadcast team, during which she reported on global markets, central bank policies, and breaking business news. Before Asia, she was a journalist at NBC Comcast, and started her career at CNBC and Bloomberg as a financial news producer in New York. She is a graduate of Columbia Journalism School and holds an MBA from Thunderbird School of Global Management. Her work has appeared in The New York Times, Washington Post, Yahoo, USA Today, Huffington Post, and Nasdaq. Pamela’s previous incarnation was on the buy side in M&A research and asset management, inspired by Michael Lewis’ book “Liar’s Poker”. Follow me on Twitter at @pamambler

Source: Borderless Investing: Eduardo Saverin And Raj Ganguly Grow B Capital

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Eduardo Saverin, Co-Founder, Facebook & Co-Founder at B Capital Group alongside Raj Ganguly, Co-Founder at B Capital Group discuss how global trends in innovation and venture capital can be leveraged to benefit entrepreneurs beyond Silicon Valley. Fore more news and insights visit SuperReturn365: https://goo.gl/9nEbXA

 

How’s the Consumer Doing? Financial Sector Earnings Next Week Could Help Tell Us

Key Takeaways:

  • Big banks to kick off reporting season the week of October 14
  • Earnings for sector expected to fall slightly, analysts say
  • Brexit, trade, consumer health on topic list for Financial earnings calls

During Q2 earnings season, Financial sector results helped renew investor confidence in the U.S. consumer.

The question heading into Q3 is whether banking executives still see the same kind of strength, and if they think it can continue amid trade wars, Brexit, and signs of weakness in the U.S. economy.

Over the last three months, as the broader stock market rallied to an all-time high, slammed the brakes, and then re-tested earlier peaks, consumer health arguably did much of the heavy lifting. It felt like every time stocks pulled back, they got a second wind from retail sales, housing or some other data or earnings news that showed consumers still out there buying.

Today In: Money

The banks played a huge role in setting the stage by reporting better-than-expected Q2 results that showed signs of strong consumer demand even as some of the banks’ trading divisions took a hit. Next week, six of the biggest banks come back to talk about their Q3 experience and what they expect for Q4. Analysts expect Financial sector earnings to drop slightly in Q3.

That said, most of the major banking names have done an excellent job keeping costs in check as they wrestle with fundamental industry headwinds like falling interest rates and slowing revenue from their trading divisions. This time out, it wouldn’t be surprising to see more of the same, and you can’t rule out a bit more vigor from the trading business thanks to all the volatility we saw in the markets last quarter.

Earnings growth may not be there for Financials this time around, or it could be negligible. At the end of the day, though, Financial companies are still likely to be remarkably profitable considering a yield curve that remains relatively flat and global macroeconomic concerns, according to Briefing.com. This sector knows how to make money, but it might just not make as much as it did a year ago. Earnings will likely show large banking companies still in good financial condition with the U.S. consumer generally in decent shape for now, as the U.S. economy arguably remains the best-kept house on a tough block.

Investors have started to pick up on all this, judging from the S&P 500 Financial sector’s good health over the last month and year to date. The sector is up 3.4% from a month ago to easily lead all sectors over that time period, and up 15% since the start of 2019. The 15% gain is below the SPX’s 17% year-to-date pace, but it’s an improvement after a few years when Financials generally didn’t participate as much in major market rallies.

What to Listen For

No one necessarily planned it, but it’s helpful in a way that banks report early in the earnings season. Few other industries have larger megaphones or the ability to set the tone like the biggest financial institutions can. The other sectors are important, too, but they often see things from their own silos. Combined, the big banks have a view of the entire economy and all the industries, as well as what consumers and investors are doing. Their positive remarks last quarter didn’t really give Financial stocks an immediate lift, but it did apparently help reassure investors who were nervous about everything from trade wars to Brexit.

Going into Q3 earnings, those same issues dog the market, and bank executives have a front-row seat. How do they see trade negotiations playing out? Can consumers hold up if trade negotiations start to go south? How’s the consumer and corporate credit situation? Will weakness in Europe spread its tentacles more into the U.S.? And is there anything bank CEOs think the Fed or Congress can do to fend off all these challenges?

On another subject closer to the banks’ own business outlook, what about the shaky initial public offering (IPO) situation? That’s getting a closer look as a few recent IPOs haven’t performed as well as some market participants had expected. One question is whether other potential IPOs might get cold feet, potentially hurting businesses for some of the major investment banks.

All the big bank calls are important, but JP Morgan Chase (JPM) on Tuesday morning might stand out. Last time, CEO Jamie Dimon said he saw positive momentum with the U.S. consumer, and his words helped ease concerns about the economic outlook. More words like that this time out might be well timed when you consider how nervous many investors seem to be right now. On the other hand, if Dimon doesn’t sound as positive, that’s worth considering, too.

While few analysts see a recession in the works—at least in the short term—bank executives might be asked if they’re starting to see any slowdown in lending, which might be a possible sign of the economy putting on the brakes. Softer manufacturing sector data over the last few months and falling capital investment by businesses could provide subject matter on the big bank earnings calls.

Regionals Vs. Multinationals

While big banks like JPM operate around the world and might be particularly attuned to the effects of trade, regional banks make most of their loans within the U.S., potentially shielding them from overseas turbulence.

Regional banks also might provide a deeper view into what consumers are doing in the housing and credit card markets. With rates still near three-year lows, we’ve seen some data suggest a bump in the housing sector lately, and that’s been backed by solid earnings data out of that industry. If regional banks report more borrowing demand, that would be another sign pointing to potential strength in consumer sentiment. Refinancing apparently got a big lift over the last few months, and now we’ll hear if banks saw any benefit.

One possible source of weakness, especially for some of the regional players, could be in the oil patch. With crude prices and Energy sector earnings both under pressure, there’s been a big drop in the number of rigs drilling for oil in places like Texas over the last few months, according to energy industry data. That could potentially weigh on borrowing demand. Also, the manufacturing sector is looking sluggish, if recent data paint an accurate picture, maybe hurting results from regional banks in the Midwest. It might be interesting to hear if bank executives are worried more about the U.S. manufacturing situation.

Another challenge for the entire sector is the rate picture. The Fed lowered rates twice since banks last reported, and the futures market is penciling in another rate cut as pretty likely for later this month. Lower rates generally squeeze banks’ margins. If rates drop, banks simply can’t make as much money.

The 10-year Treasury yield has fallen from last autumn’s high above 3.2% to recent levels just above 1.5% amid fears of economic sluggishness and widespread predictions of central bank rate cuts. The long trade standoff between China and the U.S. has also contributed to lower yields as many investors pile into defensive investments like U.S. Treasuries, cautious about the growth outlook.

Another thing on many investors’ minds is the current structure of the yield curve. The 10-year and two-year yields inverted for a stretch in Q3, typically an indication that investors believe that growth will be weak. That curve isn’t inverted now, but it remains historically narrow. Still, some analysts say the current low five-year and two-year yields might mean healthy corporate credit, maybe a good sign for banks.

Q3 Financial Sector Earnings

Analysts making their Q3 projections for the Financial sector expect a slowdown in earnings growth from Q2. Forecasting firm FactSet pegs Financial sector earnings to fall 1.8%, which is worse than its previous estimate in late September for a 0.9% drop. By comparison, Financial earnings grew 5.2% in Q2, way better than FactSet’s June 30 estimate for 0.6% growth.

Revenue for the Financial sector is expected to fall 1.6% in Q3, down from 2.6% growth in Q2, FactSet said.

While estimates are for falling earnings and revenue, the Financial sector did surprise last quarter with results that exceeded the average analyst estimate. You can’t rule out a repeat, but last time consumer strength might have taken some analysts by surprise. Now, consumer strength in Q3 seems like a given, with the mystery being whether it can last into Q4.

Upcoming Earnings Dates:

  • Citigroup (C) – Tuesday, October 15
  • JPMorgan Chase & Co. (JPM) – Tuesday, October 15
  • Wells Fargo (WFC) – Tuesday, Oct. 15, (B)
  • Goldman Sachs (GS) – Tuesday, October 15
  • Bank of America (BAC) – Wednesday, October 16
  • Morgan Stanley (MS) – Thursday, October 17

TD Ameritrade® commentary for educational purposes only. Member SIPC.

I am Chief Market Strategist for TD Ameritrade and began my career as a Chicago Board Options Exchange market maker, trading primarily in the S&P 100 and S&P 500 pits. I’ve also worked for ING Bank, Blue Capital and was Managing Director of Option Trading for Van Der Moolen, USA. In 2006, I joined the thinkorswim Group, which was eventually acquired by TD Ameritrade. I am a 30-year trading veteran and a regular CNBC guest, as well as a member of the Board of Directors at NYSE ARCA and a member of the Arbitration Committee at the CBOE. My licenses include the 3, 4, 7, 24 and 66.

Source: How’s the Consumer Doing? Financial Sector Earnings Next Week Could Help Tell Us

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JP Morgan Chase: https://www.zacks.com/stock/quote/JPM… PNC Bank: https://www.zacks.com/stock/quote/PNC… US Bank: https://www.zacks.com/stock/quote/USB… Banks are usually at the front of earnings season and help to set the tone for the rest of the market. However, with a terrible interest rate outlook, can the space still post good profits and give us a positive lead-off for this earnings season? Follow us on StockTwits: http://stocktwits.com/ZacksResearch Follow us on Twitter: https://twitter.com/ZacksResearch Like us on Facebook: https://www.facebook.com/ZacksInvestm…

Why Your Managers Should Become Opportunity Managers

To successfully recruit, hire, train, retain and build the capacity of Opportunity Youth, organizations need a strong corps of frontline managers who have unique skills to successfully supervise, support and develop these young adults. We call these managers “Opportunity Managers”.

Opportunity Managers build strong working relationships with their team members. They are kind and empathetic, set clear (and high) expectations, and create an inclusive culture with high levels of support. These leaders are also strong at the day-to-day tactics of people management including coaching, giving and receiving positive and constructive feedback, communicating effectively with their team, and creating an environment where entry-level employees can grow over time. Given the skills that Opportunity Managers possess, it is no surprise that these managers frequently have a profound impact on the lives and the careers of the young adults that they supervise.

Becoming an “Opportunity Manager”

At Grads of Life, we believe that strong managers are “made”, not “born”. Skills such as relationship-building and effective communication are skills that can be learned. We have developed the Opportunity Manager Training (OMT). The OMT is an engaging, relevant, and actionable online training to help frontline managers learn to effectively supervise and support their team. The training is 100% online, self-paced, and contains actionable modules that frontline managers can begin using immediately.

One such module highlights the impact that a frontline manager had on one of her team members.

The Return on Investment

Kelly’s experience is a powerful example of how skilled managers can help their team. Research shows that when frontline team members – especially Opportunity Youth – feel supported, the business thrives. In 2007, The GAP created the This Way Ahead Initiative to recruit and train Opportunity Youth to work in its stores. The initiative has expanded over time because participants stayed with GAP twice as long as their peers and have higher employee engagement scores. Given the high cost of turnover and low employee engagement scores, it makes business sense to engage with new ways to improve on retention and engagement metrics.

Having frontline managers who effectively manage diverse teams also benefits the managers themselves. McKinsey surveyed frontline managers and found that over 80% of them are unhappy with their performance. The study found that the majority of managers surveyed are not engaged in “high value” practices such as coaching their team members, a practice that ultimately improves the performance of the organization. As managers become more effective in their work, and as their team members become more productive, these managers will likely enjoy their work more. This pattern can lead to a virtuous cycle.

When strong managers support their team, their team members have greater workplace engagement and higher performance rates. When team members perform better, not only does your business grow but you now have a pipeline of committed, high-performing individuals who can grow your business and grow with your business. It’s a win-win-win.


Learn more about our Opportunity Manager Training, and how Grads of Life can help your organization grow your frontline talent.

Philip Price is the Product Management Lead at Grads of Life. He designs, builds and develops online programs and face-to-face trainings to help workplaces become more inclusive and effective. This past year, Philip designed and built the Opportunity Manager Training, an innovative program designed to help frontline managers more effectively supervise and support diverse young adults in the workplace. Prior to joining Grads of Life, Philip designed and developed online training programs for frontline healthcare workers and built leadership development programs for managers at Fortune 1000 companies.

Philip is an educator at heart. He is committed to serving young people who have not traditionally been served well. He has led schools in Philadelphia, PA and Providence, RI and has worked with young people as a teacher and outdoor educator in Providence RI, New York City, Florida and South Africa.

Philip holds an MBA from American University, and MA from Columbia University Teachers College and a BA from Brown University. He lives in Philadelphia with his family.

Source: Why Your Managers Should Become Opportunity Managers

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https://youtu.be/NANOjjCdmRI
Introducing Sandler Opportunity Manager for CRM, Desktop & Tablet devices Sandler CRM is designed to help Sandler clients integrate the Selling System® into their professional day-to-day lives. The tool provides constant post-training reinforcement and can be integrated into your existing CRM system, used as desktop application, or accessed on your tablet device. Sandler CRM is available on Salesforce.com, Oracle on Demand and many other CRMs systems. Sales organizations will benefit from more accurate forecasting, better teamwork across the organization and maximization of its CRM investment. Make the most of your training by finding out more about the Sandler reinforcement tools today.

Peloton IPO Disappoints, But Fintech Lender Oportun Gains 8% In Nasdaq Debut

Oportun Financial, a fintech company that offers low-cost loans to those it calls “credit invisible,” raised $94 million in its IPO on Thursday. The company, which offered 23% of its outstanding shares to the public, debuted on the Nasdaq under the ticker OPRT.

The trading day’s most anticipated IPO, fitness startup Peloton, ended in disappointment after the stock closed 11% lower than its IPO price, but Oportun closed its first day of trading with an 8% gain and showed no signs of slowing down in the hours immediately following the market’s close.

Oportun sold 6.25 million shares (a quarter of which were from insiders) priced at $15, on the lower end of its target range of $15 to $17.  Shares jumped to $16.43, or nearly 10%, initially, but as of 2:00 p.m. EST were trading closer to $16. Shares had climbed back $16.17 by 4:00 p.m. EST.

Today In: Money

Oportun’s focus is the 100 million American borrowers with no credit or limited credit history, as well as those it says have been “mis-scored” by traditional methods that do not accurately reflect creditworthiness. The company brought in nearly $500 million in revenue last year, up from $360 million in 2017.

Oportun was founded in 2005 to serve the underbanked Hispanic community and once operated as Progreso Financiero. It has since broadened its mission and disbursed more than $7.3 billion in loans ranging from $300 to $9,000 to more than 1.5 million customers, about half of whom did not have a FICO score when they were awarded their first loan.

The San Carlos, California-based company uses traditional credit bureau scores as well as alternative data, like a borrower’s mobile phone and utility payment history, to assess creditworthiness, much in the same way that startups like Tala, which provides micro loans to the unbanked, and Kabbage, which provides small business loans, do.

Fintech IPOs have been few and far between in recent months, despite a public market newly saturated with tech giants like Slack, CrowdStrike, Uber, and Peloton. Only three fintech unicorns went public last year, according to CB Insights, and just one in the United States: online home improvement lender GreenSky, which raised $800 million in its May 2018 IPO. Its shares have fallen more than 70% since its offering.

According to a PitchBook analysis, none of the top ten most valuable fintech companies, including Stripe, Coinbase, Robinhood, and TransferWise, all of which are at least ten times Oportun’s size, are close to a public offering.

“Our decision to go public was driven in large part by our desire to get the capital we need to continue the pursuit of our mission,” Oportun CEO Raul Vazquez said. He says the company is planning to strengthen its presence in the 12 states in which it operates, expand to new markets on the East Coast, and launch a credit card product in the first quarter of 2020. Prior to its IPO, Oportun had raised $266 million from the likes of Fidelity Management and Institutional Venture Partners.

Oportun’s offering is expected to close on September 30. Barclays, J.P. Morgan Securities, and Jefferies were the lead underwriters.

Follow me on Twitter. Check out some of my other work here. Send me a secure tip.

I’m an assistant editor on Forbes’ Money team, covering markets, fintech, and blockchain. I recently completed my master’s degree in business and economic reporting at New York University. Before becoming a journalist, I worked as a paralegal specializing in corporate compliance and the Foreign Corrupt Practices Act.

Source: Peloton IPO Disappoints, But Fintech Lender Oportun Gains 8% In Nasdaq Debut

The Wall Street Journal created this video as part of their Financial Inclusion Challenge. Oportun was a finalist for using technology to help low-income workers build credit.

ONEX Is Coming Back & Its Actually Perfect For Investing

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Founded in 1984, ONEX invests and manages capital on behalf of his shareholders, institutional investors and high net worth clients from around the world. ONEX platform include: ONEX Partners, private equity funds focused on larger opportunities in North America and Europe, ONCAP, private equity funds focused on middle market and smaller opportunities in North America, ONEX credit, which manages primarily non-investment grade debt through collateralize loan obligations, private debt and other credit strategies and Gluskin Sheff’s actively managed public equity and public credit funds.

In total ONEX assets under management today are approximately $39 Billion, of which approximately $6.9 Billion is their shareholder’s capital. With offices in Toronto, New York , New Jersey & London, ONEX is experienced management teams are collectively the largest investors across ONEX platforms.

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ONEX main task is to increase customer profits. In trading, ONEX use automated bots, the latest strategies and approaches for working on each exchange, this ensures the declared high income. Safety is ONEX top priority. In every decision make, ONEX is supervised by security concerns. They use the most reliable and effective technologies available to ensure the safety of investors funds.

The investor has the right to:

  • 1. Produce awareness of others in order to attract them to participate in ONEX Financial Corporation;
  • 2. Create sites and post information about the company;
  • 3. Send to Administration comments or feedback to improve ONEX services;
  • 4. Require ONEX Financial Corporation fulfillment of the conditions of ONEX agreements

The ONEX Financial Corporation team has specifically designed smart, high-return investment packages. Each package has its own life and type of charges. Be careful when choosing an investment rate. Those who believe in us will be satisfied and get a good profit. For us, the most important thing is the loyalty of our customers, therefore ONEX Financial Corporation always tries to take into account the general situation in the cryptocurrency market, this allows us to consistently increase the company’s profits, and earn not only an increase but also a decrease in the market.

Source: https://onexfinancial.com

Microloan Startup Tala Raises $110 Million In New Funding

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Tala, a Los Angeles startup that makes microloans to consumers and small business owners in emerging markets, is announcing today that it has raised $110 million in funding. The new Silicon Valley venture capital firm RPS Ventures, cofounded by Kabir Misra, former managing partner at Softbank’s $100 billion Vision Fund, is leading the round. Tala’s backers include PayPal, billionaire Steve Case’s VC firm Revolution, Chris Sacca’s Lowercase Capital and Data Collective, among others. The new funding values Tala at nearly $800 million, according to an investor. Tala has raised more than $200 million in equity investment to date.

Shivani Siroya, 37, founded Tala in 2011 after stints as an investment banking analyst and as an analyst at the U.N. Population Fund, where she did socioeconomic research. Tala’s mobile app lets people in Kenya, the Philippines, Tanzania, Mexico and India take out small loans ranging from $10 to $500. Most use the app to invest in their small businesses, like shops and food stands. To evaluate borrower risk, Tala uses cell phone data instead of credit scores, looking at loan applicants’ habits, like whether they pay their phone bills on time.

Siroya first launched Tala’s app in Kenya in 2014. Today it has more than four million customers who take out three to six loans a year at a 10% average monthly interest rate. Its 600 employees are spread across offices in Santa Monica, Kenya, Mexico, the Philippines and India. The company made Forbes’ Fintech 50 list earlier this year.

Tala’s closest competitor is Branch, a five-year-old San Francisco company led by Matt Flannery, who previously cofounded donation crowdfunding platform Kiva.org. Branch has four million customers and an average monthly interest rate of 15%. Earlier this year, it raised $70 million in equity financing from investors like Visa and Andreessen Horowitz, plus $100 million in debt. Tala also raised $100 million in debt over the past year to help fund its loans.

With its new capital, Tala plans to make a bigger push into India and expand to new countries, potentially in regions like West Africa, Southeast Asia and Latin America. It also plans to launch new products. In Kenya, Tala has already tested a micro health insurance offering that would cover customer visits to a hospital. It expects to launch its first microinsurance product in the next 12 months. It has also piloted a financial education and coaching program, and it plans to test additional products over the next year.

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I cover fintech, cryptocurrencies, blockchain and investing at Forbes. I’ve also written frequently about leadership, corporate diversity and entrepreneurs. Before Forbes, I worked for ten years in marketing consulting, in roles ranging from client consulting to talent management. I’m a graduate of Middlebury College and Columbia Journalism School. Have a tip, question or comment? Email me jkauflin@forbes.com or send tips here: https://www.forbes.com/tips/. Follow me on Twitter @jeffkauflin. Disclosure: I own some bitcoin and ether.

Source: https://www.forbes.com/

Trust: How do you earn it? Banks use credit scores to determine if you’re trustworthy, but there are about 2.5 billion people around the world who don’t have one to begin with — and who can’t get a loan to start a business, buy a home or otherwise improve their lives. Hear how TED Fellow Shivani Siroya is unlocking untapped purchasing power in the developing world with InVenture, a start-up that uses mobile data to create a financial identity. “With something as simple as a credit score,” says Siroya, “we’re giving people the power to build their own futures.” TEDTalks is a daily video podcast of the best talks and performances from the TED Conference, where the world’s leading thinkers and doers give the talk of their lives in 18 minutes (or less). Look for talks on Technology, Entertainment and Design — plus science, business, global issues, the arts and much more. Find closed captions and translated subtitles in many languages at http://www.ted.com/translate
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5 Things Wealthy People Invest Their Money Into

I never had access to money during my childhood, or even as I grew into a teenager and young adult. Both of my parents lived paycheck-to-paycheck and struggled with debt, so that’s really all I knew.

As a result, I was never really exposed to the investing world, nor did I learn to think of entrepreneurship as a viable career option. My parents were busy trying to keep the lights on and food on the table — the thought of having extra money to invest and build wealth would have been completely foreign to them.

Eventually though, I got my first introduction to the concepts behind investing and building wealth. I majored in finance in college, learned about mutual funds and ETFs, and found out how the stock market really works.

As I began my career as a financial advisor and transitioned to entrepreneurship, I was always looking for ways to increase my base of knowledge. I read books like Rich Dad, Poor Dad and Crush It: Why NOW is the Time to Cash In On Your Passion by Gary Vaynerchuk. However, books like these didn’t teach me how to invest my money. Instead, they taught me how to invest in myself and my personal growth.

5 “Non-Investment” Investments Rich People Learn to Make

The thing is, these are areas where rich people really do invest time and time again. That’s because they know something most people don’t — they know that growing wealth is about more than throwing money into the stock market, becoming an entrepreneur, or taking big risks to fund a promising startup.

Building wealth is just as much about becoming the best version of yourself, staying in constant learning mode, and building a network of like-minded people who can help you reach your goals.

Want to know exactly what I’m talking about? Here are some of the most common non-financial investments rich people love to make:

Accelerated Learning

Most rich people read a lot of books written by people who inspire them in some way or have unique experience to share. I’ve always been a big reader too, diving into books like The 4-Hour Workweek by Tim Ferriss and The Millionaire Messenger by Brendon Burchard.

Reading is such a smart and inexpensive way to fill some of your free time and increase your knowledge, which is something the wealthy already know. If reading a few hours per week could help you stay mentally sharp while you learn new things, why wouldn’t you make that decision over and over?

But there are other ways to accelerate learning that don’t involve reading or books. You can also take online courses in topics that relate to your career. As an example, I’ve personally taken courses on YouTube marketing, productivity, search engine optimization, and affiliate marketing.

Going to conferences to learn new skills from others in your field is also a smart move rich people make. FinCon is a conference for financial bloggers I attend each year that I can attribute making millions of dollars from — mostly from meeting brands, learning new skills, and networking with my peers.

Personal Coaching

Personal coaching is another smart investment rich people make when they know they need some help reaching their potential. Morgan Ranstrom, who is a financial planner in Minneapolis, Minnesota, told me he wholeheartedly suggests a high-quality coaching program for anyone who needs help taking that next step in their business.

Ranstrom has worked with various life and business coaches that have helped him understand his values and clarify his goals, become a published author, and maximize his impact as a professional and business owner.

“For individuals looking to break through to the next level of success, I highly recommend investing in a coach,” he says.

Personally, I can say that coaching changed my life. I signed up for a program called Strategic Coach after being in business for five years, and this program helped me triple my revenue over the next three years.

The thing that scares most people off about coaching is that it’s not free; in fact, some coaching programs cost thousands of dollars. But wealthy people know the investment can be well worth it, which is why they’re more than willing to dive in.

Mentorship

Mentorship can also be huge, particularly as you are learning the ropes in your field. One of the best mentors I had was the first financial advisor that hired me. He was a million-dollar producer and had almost a decade of experience under his belt. I immediately gained access to his knowledge since his office was just next door and, believe me, I learned as much as I could.

Todd Herman, author of The Alter Ego Effect, shares in his book how he mentored under the top mindset coach in his industry when he couldn’t really afford it. He lived in a Motel 6 for almost a month to make the program fit in his budget though. Why? Because he knew this investment was crucial for his career. And, guess what? He was right.

Over the last year, I’ve participated in mentoring with Dr. Josh Axe, an entrepreneur who has built a $100 million health and wellness company. Just seeing how he runs his business and his personal life have been instrumental to my own personal growth.

The bottom line: Seek out people who are where you want to be, ask them to mentor you or sign up for their mentorship programs , and you can absolutely accomplish your goals faster.

Mastermind Groups

It’s frequently said that Dave Ramsey was in a mastermind group called the Young Eagles when he first started his business. Entrepreneurs such as Aaron Walker and Dan Miller were also in the group, and they leaned on another for advice and mentorship to get where they are today. Ramit Sethi, bestselling author of I Will Teach You to Be Rich, is in a mastermind group with Derek Halpern from Social Triggers.com and other successful entrepreneurs.

I also lead a mastermind group for men. Believe it or not, one of our members has been able to increase his recurring annual revenue over $300,000 because of advice he has received.

These are just a few examples of masterminds that have worked but trust me when I say most of the wealthy elite participate in some sort of mastermind group or club.

Mastermind groups are insanely helpful because they let you bounce business ideas off other entrepreneurs who may think differently than you but still have your best interests at heart. And sometimes, it’s a small piece of advice or a single statement that can make all the difference in your own business goals — and your life.

Building Relationships

When it comes to the top tiers of the business world, there’s one saying that’s almost always true:

“It’s not always what you know, but who you know.”

According to Alex Whitehouse of Whitehouse Wealth Management, successful people forge relationships that catapult their careers.

“The right connections can help land better jobs, accelerate promotions, or start lucrative businesses,” he says.

But it’s not about cheesy networking events. To get the most value, focus on meeting people at professional conferences, mastermind groups, and high-quality membership communities, says Whitehouse.

This is a strategy most successful people know — meet other people who you admire and build a relationship that is beneficial for everyone.

But, there’s a catch — and this is important. When you meet someone new who could potentially help you in your business, you can’t just come out of the gate asking for favors. I personally believe in the VBA method — or “Value Before the Ask.” This means making sure you provide value before asking a favor from anyone.

In other words, make sure you’re doing your share of the work to make the relationship a win for everyone. If you try to build relationships with other entrepreneurs just so you can ride their coattails, you’ll be kicked to the curb before you know it.

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

 

I am a certified financial planner, author, blogger, and Iraqi combat veteran. I’m best known for my blogs GoodFinancialCents.com and LifeInsurancebyJeff.com and my book, Soldier of Finance: Take Charge of Your Money and Invest in Your Future. I escaped a path of financial destruction by being a college drop out and having over $20,000 of credit card debt to eventually become a self-made millionaire. My mission is help GenX’ers achieve financial freedom through strong money habits and unleashing their entrepreneurial spirit. My work has been featured in The Wall Street Journal, USA Today, Reuters and Fox Business.

Source: 5 Things Wealthy People Invest Their Money Into

Warren Buffett is the godfather of modern-day investing. For nearly 50 years, Buffett has run Berkshire Hathaway, which owns over 60 companies, like Geico and Dairy Queen, plus minority stakes in Apple, Coca-Cola, and many others. His $82.5 billion fortune makes him the third richest person in the world. And he’s vowed to give nearly all of it away. The Oracle of Omaha is here to talk about what shaped his investment strategy and how to master today’s market. I’m Andy Serwer. Welcome to a special edition of “Influencers” from Omaha, Nebraska. It’s my pleasure to welcome Berkshire Hathaway CEO Warren Buffett. Warren, welcome. WARREN BUFFETT: Thanks for coming. ANDY SERWER: So let’s start off and talk about the economy a little bit. And obviously, we’ve been on a good long run here. WARREN BUFFETT: A very long run. ANDY SERWER: And does that surprise you? And what would be the signs that you would look for to see that things were winding down? WARREN BUFFETT: Well, I look at a lot of figures just in connection with our businesses. I like to get numbers. So I’m getting reports in weekly in some businesses, but that doesn’t tell me what the economy’s going to six months from now or three months from now. It tells me what’s going on now with our businesses. And it really doesn’t make any difference in what I do today in terms of buying stocks or buying businesses what those numbers tell me. They’re interesting, but they’re not guides to me. For more of Warren Buffett’s interview with Andy Serwer

click; https://finance.yahoo.com/news/influe…

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The 80/20 Rule And How It Can Change Your Life

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What is the 80/20 Rule and could it actually make 80% of your work disappear?

If you’ve studied business or economics, you’re well familiar with the power of the Pareto Principle.

The Man Behind The Concept

Vilfredo Federico Damaso Pareto was born in Italy in 1848. He would go on to become an important philosopher and economist. Legend has it that one day he noticed that 20% of the pea plants in his garden generated 80% of the healthy pea pods. This observation caused him to think about uneven distribution. He thought about wealth and discovered that 80% of the land in Italy was owned by just 20% of the population. He investigated different industries and found that 80% of production typically came from just 20% of the companies. The generalization became:

80% of results will come from just 20% of the action:

Pareto’s 80/20 Rule

This “universal truth” about the imbalance of inputs and outputs is what became known as the Pareto principle, or the 80/20 rule. While it doesn’t always come to be an exact 80/20 ratio, this imbalance is often seen in various business cases:

• 20% of the sales reps generate 80% of total sales.

• 20% of customers account for 80% of total profits.

• 20% of the most reported software bugs cause 80% of software crashes.

• 20% of patients account for 80% of healthcare spending (and 5% of patients account for a full 50% of all expenditures!)

On a more personal note, you might be able to relate to my unintentional 80/20 habits.

I own at least five amazing suits, but 80% of the time or more I grab my black, well-tailored, single-breasted Armani with a powder blue shirt. (Ladies, how many shoes do you own, and how often do you grab the same 20%?)

I have 15 rooms in my house, but I spend about 80% of my time in just my bedroom, family room, and office (exactly 20%).

I’m not sure how many miles of roads are in the small town where I live, but I bet I only drive on 20% or less of them, as I make daily trips to my kids’ schools, the grocery store, the bank and gas station.

On my smartphone, I have 48 different mobile apps pinned to the tiles, but 80% of the time I’m only using the eight on my home screen.

When I go grocery shopping, I definitely spend the most time in the aisles that are around the edges of the store: produce, the fish market, dairy, breads—and generally skip the aisles in the middle of the store (except for health and beauty).

As a massive introvert, I don’t actually socialize too much, but when I do, 80% of my time is spent with the same 20% of my friends and family members.

In my research into the productivity habits of high achievers, I interviewed hundreds of self-made millionaires, straight-A students and even Olympic athletes. For them, handling every task that gets thrown their way—or even every task that they would like to handle—is impossible. They use Pareto to help them determine what is of vital importance. Then, they delegate the rest, or simply let it go.

How You Can Use It

So how can you apply Pareto’s principle to gain more time in your life?

Are you an executive? You’re surely faced with the constant challenge of limited resources. It’s not just your time you need to maximize, but your entire team’s. Instead of trying to do the impossible, a Pareto approach is to truly understand which projects are most important. What are the most important goals of your organization, or boss, and which specific tasks do you need to focus on to align with those goals. Delegate or drop the rest.

Are you a freelancer? It’s important to identify your best (and highest-paying) clients. Of course, you don’t want all your eggs in one basket. But too much diversification will quickly lead to burnout. Focus on the money makers and strengthening those long-term relationships.

Are you an entrepreneur? The temptation always exists to try the new and exciting. There’s nothing inherently wrong with that, but it boils down to your goals. Are you trying to grow your current business? Would an 80/20 mindset help you to stay focused on your strategic plan and spend less time chasing endless new opportunities?

No matter what your situation, it’s important to remember that there are only so many minutes in an hour, hours in a day, and days in a week. Pareto can help you to see this is a good thing; otherwise, you’d be a slave to a never-ending list of things to do.

So, what 20% of your work drives 80% of your outcomes?

 

More Selloff Strategies: Cramer’s ‘Mad Money’ Recap

When investors encounter tough days in the stock market, they need a game plan for how to respond, Jim Cramer told his Mad Money viewers Friday. That means knowing what type of selloff you’re dealing with and how best to navigate it. Fortunately, history can be your guide in identifying those inevitable moments of weakness and keep you from panicking.

Stocks finished down Friday, as Donald Trump’s recent threat to levy 10% tariffs on an additional $300 billion of Chinese imports overshadowed the latest U.S. jobs data.

The Dow Jones Industrial Average, which hit a session low of 334 points, finished down 98 points, or 0.37%, to 26,485. The S&P 500, which saw its worst week of the year, fell 0.73% and the Nasdaq dropped 1.32%. The Dow had its second worst week of the year as it fell 2.6%.

Cramer told his viewers that the U.S. stock markets have only seen two truly horrendous selloffs since he began trading in 1979. Those were the Black Monday crash in October 1987 and the rolling crash of the financial crisis from 2007 through 2009. But while both of these declines saw huge losses, they were in fact very different.

Many investors don’t remember Black Monday, where the Dow Jones Industrial Average lost 22% in a single day. Even fewer remember that the market lost 10% during the week prior, and continued its losses on the Tuesday after. While it wasn’t known at the time, this crash was mechanical in nature, caused by a futures market that overwhelmed the ability to process the flood of transactions. In the confusion, buyers stepped aside and prices plunged.

The carnage wasn’t stemmed until the Federal Reserve stepped in with promises of extra liquidity. But in the end, the economy was strong. There was nothing wrong with the underlying companies, the market just stopped working. That’s why it only took 16 months to recover to their pre-crash levels.

Investors witnessed similar mechanical meltdowns in the so-called “flash crash” of 2010 and its twin in 2015. On May 6, 2010 at precisely 2:32 p.m. Eastern, the futures markets again overwhelmed the markets, only this time machines were doing most of the trading. The crash lasted for a total of 36 minutes, during which time the Dow plunged 1,000 points from near the 10,000 level.

In August of 2015, another flash crash occurred at the open, with the Dow again falling 1,000 points in the blink of an eye. In the confusion, traders couldn’t tell which prices were real and which ones were pure fantasy. Only those with strong stomachs risked trading at the heart of the decline, but those traders were rewarded handsomely.

In all of these cases, Cramer said, the machinery of the markets was broken. Even the circuit breakers put in place after 1987 were not able to stem the declines and in fact, did very little to even slow them down. But for those investors who were able to recognize what was actually happening, these declines were a once- (well, twice-) in-a-lifetime gift.

Cramer and the AAP team are making three more trades as they reposition on this week’s selloff, including Burlington Stores, (BURLGet Report) and Home Depot (HDGet Report) . Find out what they’re telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

The Great Recession

The Great Recession was a totally different animal. The market began falling in October 2007, but didn’t bottom until March 2009, almost two years later. Afterwards, it took until March of 2013, four years later, for the markets to get back to even. Cramer said this kind of decline is the most dangerous, but fortunately, it’s truly a once-in-a-lifetime event, only occurring every 80 years or so.

The Great Recession was caused by the Fed raising interest rates 17 times in lock step, trying to cool an already cooling economy. The recession could have been avoided had the Fed done their homework and actually talked to CEOs, as Cramer did at the time.

Cramer recalled talking to the CEOs of banks, all of whom told him that defaults on mortgages were on the rise in a fashion none of them had seen before. Cramer’s famous “They know nothing” rant on CNBC stemmed from those conversations, as the Fed did nothing until the first banks began to collapse. The market fell 40% before finally finding its footing.

How can investors identify this type of devastating decline? Cramer said investors can ask whether the economy is on a solid footing. Is business declining? Is employment falling? Are interest rates still rising even as cracks are appearing? If big companies are unable to pay their bills, the problem could be a lot deeper than you think.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Today’s Market

Today’s market is not like 2007, however, Cramer said. Business is stronger, our banking system is stronger and there’s still time for the Fed to take their foot off the brakes and wait for more data before proceeding.

So you’ve just spotted a mechanical breakdown in the market, what should you buy? Cramer said he’s always been a fan of accidental high-yielders, companies whose dividend yield is spiking because their share prices are falling with the broader averages.

He said that these stocks are always among the first to rebound, as their dividends help protect them. He advised always buying in wide scales as the market declines. That way, if the rebound is swift, you’ll still make a little money, but if it’s a larger, multiday sell off, you’ll make even more.

Cramer reminded viewers that when the Fed is cutting interest rates, almost every market dip is a buying opportunity. But when it’s raising rates, things get tricky. Not every rate hike causes a crash, however, only ones that push rates high enough to break the economy.

During these times, it’s important to remember that stocks aren’t the only investment class out there. You can also invest in gold, bonds or real estate to stay diversified.

It’s Not Just the Fed

The Fed isn’t the only reason why the market declines, and Cramer ended the show with a list of the other common culprits.

The first sell-off culprit are margin calls. Too often, money managers borrow more money than they can afford and when their bets turn south, they are forced to sell positions to raise money. We saw this happen in early 2018 when traders were betting against market volatility by shorting the VIX. When volatility returned, these traders lost a fortune and the whole market suffered.

There are also international reasons for the market to sell off, including crises in Greece, Cyprus, Turkey and Mexico, among others. Cramer said in these cases, it’s important to ask whether your portfolio will actually be impacted by these events. Usually, the answer is no.

Then there’s the IPO market. Stocks play by the laws of supply and demand after all, so when tons of new IPOs are hitting the markets, money managers often have to sell something in order to buy them. Declines can also stem form multiple earnings shortfalls as well as, yes, political rhetoric coming from Washington.

Cramer said many of these declines happen over multiple days. The key is to watch if the selling ends by 2:45 p.m. Eastern. If so, it may be safe to buy. But if not, there will likely be more selling the following day and it will pay to be patient.

By:

Search Jim Cramer’s “Mad Money” trading recommendations using our exclusive “Mad Money” Stock Screener.

To watch replays of Cramer’s video segments, visit the Mad Money page on CNBC.

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Source: More Selloff Strategies: Cramer’s ‘Mad Money’ Recap

 

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