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Forex News 24


Most Millennials Left Vacation Time Unused in 2018

Posted: 10 Jul 2019 03:07 PM PDT

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  • Almost 70% of millennials polled had unused vacation time last year.
  • While on vacation, 79% of respondents did some work and 67% answered emails.
  • More than 45% worked harder leading up to vacation, and 83% said they felt productive when they came back.

The time for summer relaxation is here, but if you’re in the U.S., you’re more likely to be reading this surrounded by the din of co-workers chattering and typing on their keyboards than by the sound of waves crashing on a sun-drenched shore. Recent studies have shown that American workers either don’t have or don’t take their paid time off (PTO), but a newly released study suggests that Americans would actually rather work than use the free time available to them.

Conducted earlier this year by Sleep Junkie, the study surveyed 1,002 currently employed U.S. workers who had taken a vacation in the past year. The goal, according to researchers, was to find out how Americans viewed vacation time, how they used it and what keeps them from taking a break in the first place.

Leaving vacation time on the table

Americans do not get the same amount of PTO as their European counterparts. According to the Organization for Economic Co-operation and Development (OECD), Spanish workers have a statutory minimum of 22 paid vacation days and 14 public holidays, with more paid days off potentially added on by their employers. According to data from 2018, America is the only advanced economic power that does not guarantee paid vacation time for workers.

Despite the fact that getting any PTO from employers is a privilege in the U.S., 68% of American workers left unused vacation time on the table, according to Sleep Junkie's latest findings. Blue-collar workers were 18% more likely to have unused vacation time by the end of the year than white-collar workers. Women were 11% more likely to let PTO go unused than men, and 69% of millennials reported having unused vacation days last year.

On average, American workers who received PTO generally had a yearly allowance of 14 days but only used 10. Researchers said the need to plan ahead for time off could be a major stumbling block for workers, as respondents asked for vacation time approximately 33 days in advance.

Some workers who tried to take time off saw their requests denied by their superiors. Researchers said this happened to nearly 72% of respondents in 2018.

Though many American workers have no PTO, a select few – approximately 1 in 10 – work for companies that offer unlimited vacation time. While this may sound like paradise, researchers found that employees with this benefit take even fewer days off than employees who have limited PTO. Researchers believe some respondents may have felt “pressured to take comparatively fewer vacation days than their co-workers to get ahead,” while others “may respond to the lack of limit with a sense of guilt when asking to take time beyond the standard two weeks.”

Vacationer’s guilt and working while away

If you’ve ever found yourself stressing about your return from vacation, your mind constantly wandering to your surely overflowing inbox and the long list of tasks that await you back at the office, researchers say you’re not alone.

According to the survey, just over 22% of respondents said they would rather work than go on vacation. Of that 22%, nearly 46% said they felt that way simply because they “preferred to work,” while 44% said they “had too much work” to take off and 39% said they “needed the extra money.” Among millennials, the number of individuals who prefer to work rather than go on vacation rises to approximately 25%.

According to researchers, 45% of respondents said they worked harder leading up to their vacation, while 38% said they worked longer hours leading up to it. The report said those percentages could be the result of people either not wanting to fall too far behind in their responsibilities or not wanting to feel guilty for leaving the office.

Speaking of guilt, which 20% of respondents said they felt for taking time away, that general feeling may also cause some people to work when they’re supposed to be relaxing. According to researchers, 21% of people admitted that they spent some of their time off doing work. Furthermore, 33% of people who’d taken a vacation in the past year said they checked their work emails while they were away.

Returning to work refreshed

Despite the stress American workers feel about taking their PTO, people generally come back from vacation feeling reinvigorated. Nearly 53% of people said they returned to work feeling relaxed after taking some vacation time, while 37% said they felt energized and 31% said they were optimistic. In addition, 83% of respondents reported feeling productive once they came back.

Researchers believe those feelings of being energized and relaxed stem from getting better rest. Approximately 43% of respondents said their rest improved while they were on vacation. That could stem from the fact that the same percentage of respondents said they experienced more sleep, even though 35% said they went to bed later and woke up later.

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A Yield Investment for Falling Rates

Posted: 10 Jul 2019 02:49 PM PDT

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Millennials are renting far longer … how this is creating an investment opportunity with big yields

$8,000.

That's the net worth of the average millennial. Unfortunately, this generation is doing worse financially than earlier generations.

Why?

Well, if we go by the numbers, education expenses have climbed 65% in the past ten years, and many millennials are saddled with student debt. Food costs have risen 26%, health care has climbed 21%, transportation is up 11%, and housing has tacked on 16%. On this last note, millennials buying a first home today will pay 39% more than buyers nearly 40 years ago.

Put it all together, and the net worth of Americans aged 18 to 35 has dropped 34% since 1996.

One of the effects of this financial struggle is that a great many millennials are passing through life's traditional milestones at a slower rate than prior generations. For instance, they're living at home with parents longer, putting off marriage until later, and delaying buying homes.

Let's dig into this last factoid, because there's an investing implication here …

Millennials are delaying buying homes.

Now, as to "why?" we could point toward higher underwriting standards instituted after 2008, a shortage of affordable starter homes, stagnant wages, and the simple reality that $8,000 isn't going to go very far on a down-payment. (I live in Venice, California, where the average starter home is roughly $1.3 million … though I'm not a millennial, I rent.)

So, if millennials are waiting to buy homes, where are they living?

The answer points us toward an interesting investment opportunity today.

***Millennials are driving demand in the apartment rental markets, which is great for certain REITs

Apartment demand in the second quarter of 2019 spiked 11% from just a year ago. Of the reasons why, one of the biggest is because housing is simply too expensive for most millennials.

The CEO of Buzzuto, one of the largest residential, Class A apartment developers in the nation, said:

I think millennials ultimately aspire to have homes. I think it's still the American dream, but I call it the dream deferred and it's deferred because of student loans, the lack of having a large amount of equity, and they also enjoy flexibility versus fixity.

A record 82% of renters say renting is more affordable than owning. That comes from a new survey from Freddie Mac. For context, what was last year's number? Just 67%.

A report by SmartAsset found that in some cities, the median home outweighed the median income by such a wide margin that it could take almost a decade to save for a 20% down payment.

So, higher home costs and stagnant wages are driving demand for apartments … that demand is pushing rents higher (nationally, they're up 3% to an average of $1,390 per month, though much higher in select popular cities) … which is padding the bottom line of certain well-run REITs.

Now, let's do a quick pivot and make sure we're all on the same page when it comes to REITs.

***The basics of REITs

REITs (real estate investment trusts) are businesses that own income-producing real estate in all sorts of real estate sectors — think single family homes … offices … apartments …

Most REITs own dozens of properties in different geographical areas. For example, the big shopping mall REIT Simon Property Group owns hundreds of malls across America. The big office REIT Boston Properties owns over 150 office buildings across America. The big apartment REIT Equity Residential owns over 70,000 apartment units across the country.

You know how ETFs allow investors to own big groups of stocks with just one click in a brokerage account? You can think of REITs like ETFs for properties.

To be considered a REIT by the government, a company must pay out at least 90% of its taxable income to its shareholders. This means that REITs can be a great source of cash-flow for investors like you and me — and that's no small thing considering how just this morning, Fed Chair Powell's prepared remarks to the House Financial Services Committee all but guaranteed a July rate cut, which will put downward pressure on income investments.


***REITs offer investors lots of benefits that don't come when owning a single stock

For example, there's greater diversification (since you're investing in many properties all at once) … more price stability (you rarely see huge price swings in quality REITs because real estate isn't a volatile investment like a high-flying tech stock) … and of course, the greater yields — which is what's driving the wealth creation in this case.

As mentioned a moment ago, to qualify as a REIT, these businesses must pay out at least 90% of taxable income to shareholders. This usually means fat dividend checks.

For example, according to Nareit (National Association of Real Estate Investment Trusts), the average REIT dividend yield for the most recent calculated period is 4.16%. Compare that to the average dividend of the S&P 500 — currently 1.91%.

Of course, many apartment and residential REITs offer greater yields.

A quick scan of apartment and residential REITs on Dividend.com reveals a 6.98% yield from Preferred Apartment Communities, 8.21% from Armour Residential, and 10.33% from Ellington Residential Mortgage, even 12.99% from New Residential Investment Corp (please note, I'm not recommending these REITs, just illustrating the elevated yields. Always buy a REIT for its underlying quality, not a lofty yield).

***Apartment demand doesn't look to be slowing

This past spring, demand for rental apartments reached a five-year high. It has bumped the national occupancy rate to 95.8%, compared with 95.4% at the end of the second quarter of 2018.

But even though apartment construction is near 30-year highs, much of that new supply is targeting only higher-income earners. The broader rental market is tighter — so demand is still high.

On top of that, if the Fed is going to lower rates, it's going to mean lower mortgage rates. Now, while that might appear to be helpful for millennial home buyers, there's actually a different dynamic happening.

Starter homes represent about 21% of the available housing inventory in the U.S. But that doesn't mean all these homes are being purchased by young families, or in this case, millennials. In fact, last year deep-pocketed investors bought roughly 20% of U.S. starter homes — that's double the amount from 20 years ago. And in the most popular markets, they bought almost 50% of the most affordable homes and 25% of all single-family homes.

Now, here's the thing — they're outbidding millennials by paying in cash. Some are buying houses before they've even been put out on the market. So, even if mortgage rates drop, millennial buyers are still facing a major headwind here in purchasing a starter home. But that headwind is the exact tailwind that's driving profitable apartment REIT investing.

If you're interested in learning more, consider an apartment REIT like UDR. It owns or has shared-ownership stakes in 49,795 apartments, primarily in "high barrier-to-entry" neighborhoods in California and the Boston-New York region.

UDR's funds from operations (a key metric of REIT profitability) has grown 6.6% annually between 2013 through 2019 estimates, versus a median of 5.3% for its peers. And without excessive debt, it's paid out dividends for 186 straight quarters. Its dividend yield is about 3% as I write.

Of course, its total return is far higher. As you can see below, over the last 12 months, UDR is up nearly 30% compared to the S&P's 6.9% gain.

 

Bottom line — millennials are experiencing life in a different way than prior generations. And this difference is fueling demand for apartments nationwide that's supportive of longer-term investment gains — even better, if the Fed does lower rates, then quality apartment REITs could help bolster your portfolio's cash flow in a low-yield environment.

By the way, the power of REITs for compounding wealth isn't limited to apartment REITs. Our resident master income investor, Neil George, holds several REITs from various sectors in his Profitable Investing portfolios.

One of them is a diversified corporate properties REIT, offering a 4.80% yield. The other is a medical properties REIT yielding 5.43%. Neil is bullish on both investments. To learn more about them, as well as Neil's other income investments, click here.

We'll continue to keep you up to speed here in the Digest.

Have a good evening,

Jeff Remsburg



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PriceSmart Earnings: PSMT Stock Plummets as Q3 Profit Slides 25% Y2Y PriceSmart Earnings: PSMT Stock Plummets as Q3 Profit Slides 25% Y2Y

Posted: 10 Jul 2019 02:46 PM PDT

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PriceSmart (NASDAQ:PSMT) unveiled its latest quarterly earnings results late today, bringing in a profit that failed to impress as it declined when compared to the year-ago quarter, playing a role in the company's stock sinking nearly 10% after hours Wednesday.

PriceSmart EarningsThe San Diego, Calif.-based operator of membership warehouse clubs announced that its net income attributable to the company experienced a decline of about 25% when compared to the year-ago quarter, coming in at $14.1 million, which is roughly 46 cents per share. The bottom line was in line with the Wall Street consensus estimate, although the top line missed the guidance.

PriceSmart was negatively impacted by higher costs that are connected with investments to expand its omnichannel capabilities, as well as its net operating results of the Aeropost legacy business. The company added that its net sales decreased roughly 0.8% when compared to the year-ago quarter, which tallied in to $788.6 million.

The business added that its net merchandise sales increased about 0.6% as foreign currency exchange rate fluctuations played a negatively role in sales by about 3.7%. As of May 31, 2019, PriceSmart has 42 clubs in operation.

PSMT stock is sinking about 9.5% after the bell Wednesday following the company's underwhelming quarterly earnings results. Shares had been gaining about 3.3% during regular trading hours today as PriceSmart geared up to report its figures for its latest three-month period.


Article printed from InvestorPlace Media, https://investorplace.com/2019/07/pricesmart-earnings-psmt-stock-2/.

©2019 InvestorPlace Media, LLC

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She looks so content

Posted: 10 Jul 2019 02:44 PM PDT

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HOW IS THIS POSSIBLE?!? 7'6 TACKO FALL TRIPLE DOUBLE REACTION!!

Posted: 10 Jul 2019 02:42 PM PDT

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The Most Profitable Forex Trading Strategy | Forex fundamental Analysis

Posted: 10 Jul 2019 02:40 PM PDT

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This Real Estate Stock Could Stay Red-Hot

Posted: 10 Jul 2019 02:36 PM PDT

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The head of the U.S. central bank struck a dovish tone in his congressional testimony

 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

Stocks Hit New Highs After Powell Signals Rate-Cut Support

By Karee Venema

Stocks sailed to fresh highs today, as Wall Street cheered congressional testimony from Fed Chair Jerome Powell, which indicated the central bank could be ready to cut interest rates at its July meeting. In front of the House Financial Services Committee , Powell cited concerns over a slowing global economy — a theme echoed in the Fed’s June meeting minutes, which were released mid-afternoon. While the S&P marked its first-ever trek above 3,000 in intraday trading, the Dow and Nasdaq hit all-time peaks, with the latter settling at a record close.

Continue reading for more on today’s market, including:

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Index Crosses 3,000 & Delta (DAL) Earnings Ahead

Posted: 10 Jul 2019 02:29 PM PDT

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S&P 500 Outlook:

  • The S&P 500 tagged 3,000 for the first time ever as Fed Chairman Powell signals coming rate cut
  • With Fed commentary in the rearview, market focus will shift to earnings season with DAL
  • Read about earnings season and how it can impact the major stock indices

S&P 500 Outlook: Index Crosses 3,000 & Delta (DAL) Earnings Ahead

The S&P 500 crossed the 3,000 mark for the first time ever on Wednesday as Federal Reserve Chairman Jerome Powell signaled a willingness to cut the Federal Funds rate. The prospect of lower borrowing costs has spurred optimism that corporate earnings will rebound and help to extend the current period of economic expansion. With Wednesday's commentary and trade wars on hold, fundamental themes have paved the way for fresh all-time highs.

S&P 500 Price Chart: Daily Time Frame (October 2018 – July 2019) (Chart 1)

At present, the path of least resistance for the S&P 500 is higher as the Index enjoys nearby support around prior peaks at 2,954. Similarly, the Dow Jones enjoys open-air above as the Industrial Average looks to capitalize on strength of its own. With FOMC minutes in the rearview, stock traders will now look to the arrival of earnings season next week when the big banks and some FANG members look to report their quarterly results. In the meantime, Delta Airlines (DAL) is slated to report their earnings before Thursday trading.

Delta DAL earnings revenue

Source: Bloomberg

As the only major American airline not affected by the grounding of Boeing 737 Max models, Delta has already exhibited strength relative to its industry peers. That said, earnings for the quarter may highlight this fact as DAL looks to skim market share from other travel providers. The price target consensus among Wall Street analysts is $67.40 – a 13% return from the current price. Further, data from Bloomberg reveals insiders have increased their holdings of the stock by 20% in the past six months.

Boeing (BA) Price Chart: Daily Time Frame (January – July) (Chart 2)

Boeing price chart USA price chart

Given the stock's industry, earnings-implied volatility is understandably moderate at just 3.47%. Therefore, the implied price range in Thursday trading is just $4, from roughly $57.3 to $61.5. Over the next 20 days, volatility is heightened at 14%. Although the implied range is narrow, it encompasses the stock's all-time high and nearby support – two levels that will play an important role in the impending price action.

S&P 500 Outlook: Index Crosses 3,000 & Delta (DAL) Earnings Ahead

To the topside, Delta will look to surpass recent record highs posted in November 2018 around $61.35. In the event of an earnings beat and bullish price reaction, the level will pose resistance if DAL attempts to push beyond to fresh highs. Should $61.35 be dispatched of, it would open the door for the stock to probe street consensus at $67.40.

Delta Airlines (DAL) Price Chart: Daily Time Frame (December 2018 – July 2019) (Chart 2)

delta airlines DAL stock price chart earnings

Conversely, if Delta reveals earnings beneath, or on target, support will reside at $57.87. Given Delta's current competitive advantage, expectations are likely skewed to the topside as analysts look for the airline to exploit groundings among direct competitors. For example, Southwest (LUV) operates the most 737 Max models in the United States with 34 jets, whereas DAL does not fly the model altogether. Follow @PeterHanksFX on Twitter for further commentary on DAL and other earnings previews as the season progresses.

–Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Stock Market Outlook: Dow Jones Wades Above Support, Levi Misses

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2019-07-10 21:05:00

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Bed Bath and Beyond Earnings: BBBY Stock Surges as Adj. EPS Top Mark Bed Bath and Beyond Earnings: BBBY Stock Surges as Adj. EPS Top Mark

Posted: 10 Jul 2019 02:23 PM PDT

Hits: 4


Bed Bath and Beyond (NASDAQ:BBBY) reported its quarterly earnings results late today, bringing in a profit that was stronger than what analysts called for on an adjusted basis, while revenue missed the Wall Street consensus outlook–BBBY stock is up more than 3% after hours Wednesday.

Bed Bath and Beyond EarningsFor its first quarter of its fiscal 2019, the Union, New Jersey-based domestic merchandise retail chain announced that it posted net losses of $371.1 million, or $2.91 per share. When adjusting for the impairment charge as well as severance and other costs, the company brought in earnings of 12 cents per share, which marked a decline of 26 cents per share when compared to the year-ago quarter.

Bed Bath & Beyond added that its revenue for the three-month period tallied up to $2.57 billion, which marked a decline when compared to its $2.75 billion in sales during the year-ago quarter. Analysts were calling for the business to bring in revenue of $2.58 billion, per StreetInsider.

The company added that its comparable sales for the period fell about 6.6% when compared to the year-ago quarter. Bed Bath & Beyond did face an impairment charge of $401 million during the period, which is similar to a non-cash charge of more than $500 million it faced during the same period a year ago, both of which it disclosed as "goodwill and tradename impairments related to the North American Retail reporting unit; and tradename impairments related to the Institutional Sales reporting unit."

For its fiscal 2019, the company now sees its earnings on the lower end of its guidance of $2.11 to $2.20 per share, higher than the consensus estimate of $1.98 per share.

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7'6 TACKO FALL REBUILD! NBA 2K19

Posted: 10 Jul 2019 02:07 PM PDT

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