(CRON) – In today’s edition of Winners & Losers, financial expert Rob Black discusses the rise in Wall Street stocks, the FDA ban on Juul e-cigarettes, and how to move from renting to buying a home.
Winner: Wall Street Seeks a Comebackto
Stocks rose as the market tried to recover some of the severe losses suffered in 2022, even as Wall Street continued to weigh the risks of a recession.
The bounce is likely a temporary reversal accompanied by a strong oversold.
Shares of consumer goods such as Clorox rose 3%. Costco, Kellogg and McCormick shares rose 2%.
Federal Reserve Chairman Jerome Powell spoke for the second day on monetary policy with Congressional legislators. Powell noted that a recession is an “opportunity.”
Nike completely leaves Russia three months after the suspension of its activities in this country. For Nike, which derives less than 1% of its revenue from Ukraine and Russia combined, the move is more symbolic than material.
Elon Musk called Tesla’s new factories in Germany and Texas “giant cash ovens” that are losing billions of dollars.
In 2021, Americans donated $485 billion to charity, a new record (but not enough to keep up with inflation).
Media mogul Rupert Murdoch and model and actress Jerry Hall are divorcing after six years of marriage. For 91-year-old Murdoch, this will be the fourth divorce. Hall, 65, was previously married to The Rolling Stones singer Mick Jagger. Murdoch owns Wall Street Magazine, New York Post and Fox News.
The Department of Education has agreed to write off a $6 billion debt of about 200,000 student loan borrowers who filed a class action lawsuit against it.
Winner: FDA bans Juul e-cigarettes
US health officials have banned Juul Labs e-cigarettes.
This morning, the Food and Drug Administration announced an order from Juul Labs to remove its e-cigarettes from the market.
They were huge in the bay area. The e-cigarette brand gained popularity in 2017 after a massive social campaign. The brand has become known for its fruity flavors and has come under scrutiny by the FDA due to concerns that its marketing campaign is targeting minors.
The brand was most popular among those under the age of 18.
Last year, more than 2 million U.S. middle and high school students used e-cigarettes in 2021.
In 2019, Juul Labs stopped selling fruit flavored e-cigarettes.
In recent years, the brand’s sales have fallen. Between 2018 and 2021, the company’s value dropped from $38 billion to less than $5 billion.
Shares in maker Marlboro Altria, which owns a 35% stake in Juul, fell more than 8% in trading on Wednesday morning.
Winner: Rent when you want to own a house
Article in USA today the question is, if house prices skyrocket, will we become a nation of renters?
Homeownership is at the heart of the American Dream. A home is the most valuable asset many of us will ever own, a pool of capital that can be used to pay for a child’s education or cushion retirement savings.
If you decide to rent in the last few years, you may find yourself between a rock and a hard place, worrying about skyrocketing rents and not knowing when to buy a house.
Home ownership for adult-headed households aged 25 to 40 was about 8% lower than in 2000.
Rising house prices are partly driven by a shortage of housing to meet demand.
Rents continue to rise, up 5.2% compared to 2021.
Paying for a higher rent can make it harder to save for a down payment on a home.
Solutions to these problems can be:
- Consider buying off market and renting close to work.
- Consider investing in REITs, which are stocks that buy real estate so you can gain exposure.
- Consider waiting for the housing market recession that comes every 13-15 years and buy when the market hits foreclosures and bankruptcies if you have nerves of steel.