PGIM's Tom Porcelli: We still have 'enormous worry' that U.S. fiscal situation will deteriorate
John Stoltzfus, Oppenheimer Asset Management chief investment strategist, and Tom Porcelli, PGIM Fixed Income chief U.S. economist, join CNBC's 'Money Movers' to discuss reactions to Moody's downgrade of U.S. debt.
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CNBC
32 minutes ago
- CNBC
Self-made millionaire shares the hardest money conversation he and his wife have ever had: 'I'm sweating thinking about it'
Self-made millionaire, author and TV host Ramit Sethi knows a thing or two about money. He's even published books on how to get rich and how couples can manage their finances together. But his own financial journey hasn't been perfect. He recently sat down with his wife, Cassandra, for a special episode of his Money for Couples podcast where they answered some of the same questions he asks couples every week in an interview with friend Julie Nguyen. The Sethis have been married since 2018, and Ramit has often shared tidbits about their relationship on his podcast and in his books, highlighting some of the strategies they've used to navigate combining finances, earning different incomes, creating shared goals and more. On the podcast, Ramit and Cassandra agreed on the most difficult money conversation they've ever had as a couple: negotiating their prenup before getting married. "I'm sweating thinking about it right now," Ramit said. "[The] first time I brought it up, I remember I had talked to so many people, gotten advice, planned what I was gonna say and I was very nervous about it." Cassandra received the idea of a prenup well, he said, but things went south from there. Many money experts recommend getting a prenuptial agreement, even to those with modest finances. A prenup is a legal contract outlining how a couple wants their finances handled in the event of a divorce. Without one, couples could wind up leaving those decisions — like who gets certain assets or who pays spousal support — up to a judge. Prenups are for everyone, money expert Suze Orman told CNBC Make It in 2020, and individuals should feel comfortable bringing it up with their partner. "If you cannot talk money to the person that you are about to marry, you are doomed for failure because money is going to run through your relationship more than anything else," she said. When Ramit brought up the idea of a prenup up to Cassandra, he had already started his business and written his first book on money. Cassandra didn't know much about them, but was willing to learn. And while they both agreed to get a prenup, their negotiations turned contentious due to differing expectations and understandings of money. Ramit saw the negotiations as strictly financial and tried to let the numbers speak for themselves. Cassandra, on the other hand, was more tapped into the emotional considerations, which Ramit wasn't really thinking about. Ramit tried to make a "generous" offer in his prenup proposal, he said, but Cassandra was more concerned with their relationship and ensuring their feelings and emotions were aligned. "We started going back and forth and I was very confused, very hurt because I'm like, 'I'm not trying to trick anybody here,'" Ramit said. Cassandra eventually suggested the couple sit down with a therapist and talk through their emotions to figure out where things weren't aligning. The therapist asked how they each view money. "That really opened up conversations that we hadn't been able to have because my answer was like, 'growth, of course, look at the compounding.' And her answer was, 'safety,'" Ramit said. Despite the turmoil, the process helped the couple deepen their relationship by revealing not just how they each think about money, but also how they should be communicating those feelings with each other, they said. While Ramit was more focused on the actual numbers, Cassandra didn't have the financial knowledge to get a sense of security from the amounts in their savings and investment accounts. "I'll never forget something Ramit said to me during that time. You were like, 'I really need you to get better at money,'" she said. "I took that very seriously because deep down inside I was like, 'I know I'm not that great at money. I could get better.'" While she worked on learning about prenups and managing money in general, Ramit acknowledged he needed to improve at talking about emotions so he could more clearly communicate where he was coming from and better understand Cassandra's perspective. "In retrospect, you were not asking me to pull out a f------ spreadsheet. You were feeling this," he said. "Looking back, I needed to listen to what you were saying. I should have been asking more questions." Now seven years into their marriage, they still consider what they learned from their prenup negotiations the most valuable lessons they've learned from each other, they said. Cassandra said Ramit's mindset around abundance and trusting your earning power "has been really eye-opening." And Ramit is grateful to have learned from Cassandra the importance of checking in on your feelings and talking about them. "It has really changed the way that I relate to people a lot," he said.
Miami Herald
2 hours ago
- Miami Herald
Jim Cramer says these hot new stocks are ones to watch
The first half of 2025 has been an intense year for investors, to put it mildly. With the introduction of President Donald Trump's tariffs on April 2, the stock market plummeted as businesses and investors alike considered the potential effect the levies would have - and that many businesses could be devastated by them. Don't miss the move: Subscribe to TheStreet's free daily newsletter Specific tariffs, such as Trump's original 145% levy on China, would have an enormous negative impact on countless companies across a variety of sectors, including tech, retail, automotive, and more. Trump's announcement on April 9 of a 90-day pause on reciprocal tariffs was the first of many signals that perhaps the potential economic disaster might be avoided. Since then, the president has flip-flopped on many of his original promises, leading investors to hope that perhaps things would turn out okay after all. Related: Analysts unveil bold forecast for Alphabet stock despite ChatGPT threat And that trend continues in May, as the U.S. stock market has returned more than 6%. Despite gaining momentum, however, the climate is still uncertain, leaving many investors unsure if they should keep their holdings or make moves. CNBC's Jim Cramer weighed in on that very topic this past week with some good advice for those who are skeptical about how to proceed in the light of the trade war. On a recent episode of "Mad Money," Cramer shared an essential tip for those who are worried about their portfolios. "You can learn a lot about a market from looking at the stocks that make it to the 52-week high list," he said. "It's a rarefied group by nature, and it speaks loudly about what works and, of course, what doesn't," he said. Cramer is referring to a list of stocks that have hit 52-week highs, indicating their ability to persevere even through severe headwinds. Related: Veteran analyst says stock market rally not 'real' until this happens A few of the current companies on the list include semiconductor maker Broadcom, hard drive maker Seagate, cooling systems company Johnson Controls, media streaming services Netflix and Spotify, and uniform maker Cintas. A few more of the companies on the list that may be worth checking out are DoorDash, eBay, Roblox, GE Aerospace and Mosaic. "At the end of the day, this new high list is an eclectic group of stocks, mostly geared to U.S. venues. That makes sense, given the trade war," Cramer said. "I'd be a buyer of any of these names down 5 to 8% from these levels. That is my favorite percentage to start a position on a red hot stock, and not before then." While the list is a handy way to keep an eye on stocks performing over the long term, Cramer doesn't translate that to an instant buy just because something stays on the list. "The best way to target stocks on the list is to be patient and find a high-quality stock that is seeing a temporary pullback," Cramer said. However, he did stress that the list is an incredible tool to monitor the market. "Poring over the 'new high' list is a fabulous way to identify potential, and I stress that word, potential stocks to buy," Cramer said. "You only buy stocks that have pulled back from the 'new high' list if you're confident they'll make a comeback for substantive reasons unrelated to the broader market." Related: Jim Cramer sends a blunt message on Microsoft layoffs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CNBC
4 hours ago
- CNBC
Trump aims to slash Pell Grants, which may limit low-income students' college access
For many students and their families, federal student aid is key for college access. And yet, the Trump administration's budget proposal for fiscal year 2026 calls for significant cuts to higher education funding, including reducing the maximum federal Pell Grant award to $5,710 a year from $7,395, as well as scaling back the federal work-study program. The proposed cuts would help pay for the landmark tax and spending bill Republicans in the U.S. Congress hope to enact. Roughly 40% of undergraduate students rely on Pell Grants, a type of federal aid available to low-income families who demonstrate financial need on the Free Application for Federal Student Aid. Work study funds, which are earned through part-time jobs, often help cover additional education expenses. More from Personal Finance:Social Security gets break from student loan collectionsIs college still worth it? It is for most, but not allWhat to know before you tap your 529 plan President Donald Trump's "skinny" budget request said changes to the Pell Grant program were necessary due to a looming shortfall, but top-ranking Democrats and college advocates say cuts could have been made elsewhere and students will pay the price. "The money we invest in post-high school education isn't charity — it helps Americans get good jobs, start businesses, and contribute to our economy," Sen. Elizabeth Warren, D-Mass., told CNBC. "No kid's education should be defunded to pay for giant tax giveaways for billionaires." Nearly 75% of all undergraduates receive some type of financial aid, according to the National Center for Education Statistics. "Historically the Pell Grant was viewed as the foundation for financial support for low-income students," said Lesley Turner, an associate professor at the University of Chicago Harris School of Public Policy and a research fellow of the National Bureau of Economic Research. "It's the first dollar, regardless of other types of aid you have access to." Under Trump's proposal, the maximum Pell Grant for the 2026-2027 academic year would be at its lowest level in more than a decade. "The Pell reduction would impact the lowest-income families," said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit. More than 92% of Pell Grant recipients in 2019-2020 came from families with household incomes below $60,000, according to higher education expert Mark Kantrowitz. If the president's cuts were enacted and then persisted for four years, the average student debt at graduation will be about $6,500 higher among those with a bachelor's degree who received Pell Grants, according to Kantrowitz's own calculations. "If adopted, [the proposed cuts] would require millions of enrolled students to drop out or take on more debt to complete their degrees — likely denying countless prospective low- and moderate-income students the opportunity to go to college altogether," Sameer Gadkaree, president and CEO of The Institute for College Access & Success, said in a statement. Already, those grants have not kept up with the rising cost of a four-year degree. Tuition and fees plus room and board for a four-year private college averaged $58,600 in the 2024-25 school year, up from $56,390 a year earlier. At four-year, in-state public colleges, the average was $24,920, up from $24,080, according to the College Board. The Pell program functions like other entitlement programs, such as Social Security or Medicare, where every eligible student is entitled to receive a Pell award. However, unlike those other programs, the Pell program does not rely solely on mandatory funding that is set in the federal budget. Rather, it is also dependent on some discretionary funding, which is appropriated by Congress. The Congressional Budget Office projected a shortfall this year in part because more students now qualify for a Pell Grant due to changes to the financial aid application, and, as a result, more students are enrolling in college. Although there have been other times when the Pell program operated with a deficit, slashing the award amount is an "extreme" measure, according to Kantrowitz. "Every past shortfall has been followed by Congress providing additional funding," he said. "Even the current House budget reconciliation bill proposes additional funding to eliminate the shortfall." However, the bill also reduces eligibility for the grants by raising the number of credits students need to take per semester to qualify for the aid. There's a concern those more stringent requirements will harm students who need to work while they're in school and those who are parents balancing classes and child care. "These are students that could use it the most," said the University of Chicago's Turner. "Single parents, for example, that have to work to cover the bills won't be able to take on additional credits," Mayotte said. "If their Pell is also reduced, they may have to withdraw from school rather than complete their degree," Mayotte said.
