What we’re reading (1/20)
“Biden Looks To Give A Big Boost To Homebuyers And Builders” (CNBC). “Anyone looking to buy a home today is likely frustrated by sky-high prices and slim pickings. But President-elect Joe Biden, who takes office Wednesday, will aim to ease those issues as he gears up to implement his plans for the housing market. From home financing to home construction, Biden’s plans are focused on affordability. Here are some policies he could push for[.]”
“Tax Season Kicks Off Feb. 12. Here’s What To Expect.” (Washington Post). “Tax season can be frustrating and tedious even in the best of times. This year, you can bet on it being even worse. Because of the pandemic, many people will be forced to meet virtually with tax experts to calculate their numbers. Meanwhile, IRS backlogs mean millions of filers could start work on their 2020 federal return before the agency has processed their return from 2019. And those who qualified for stimulus relief because of the collapse of the economy will have to wonder how that affects their taxes, as well.”
“After 144 Years, London Metal Exchange Proposes Closing Trading Ring” (Wall Street Journal). “The London Metal Exchange is proposing closing its open-outcry ring, where traders have swapped metals like copper and lead using shouts and hand signals for 144 years, in a bid to attract more financial players to its marketplace. The LME temporarily closed the ring when Covid-19 ripped through the U.K. in March, judging the tight circle of red couches that dozens of traders crowd around to be a health risk. The exchange, owned by Hong Kong Exchanges & Clearing Ltd., is now floating the idea of shutting the ring for good.”
“The Stock Market Has Been On A Tear. Here’s How You Can Safely Invest” (CNN Business). “When a market boom hits, emotions can run high. But it's not the time to give into your FOMO, or fear of missing out. Instead, use it as an opportunity to assess your financial goals, evaluate your risk tolerance and balance your portfolio investments.”
“The Hedge Fund Industry Raked In 12.3% Last Year, Its Largest Annual Return Since 2009, As Markets Bounced Back From Coronavirus Lows” (Business Insider). Worth noting the S&P 500 was up 16.3 percent. You might think the industry underperformed the market because hedge funds hedge, so they take on less risk, but it was the hedge funds that don’t actually hedge that seem to have driven up the average.
