Three picks from investor Kevin Simpson to capitalize on this market melt-up
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Yahoo
10 hours ago
- Yahoo
The 'one' reason this strategist is nervous about the economy
Simplify Asset Management chief strategist Michael Green joins Market Domination Overtime with Josh Lipton to discuss recent economic data and the markets reaction. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime. What would you say, um, you learned this week, Michael? What were your big lessons, your big takeaways? Well, to me, the most interesting part of the week was the fact that we sold off on the, um, CPI or the, I'm sorry, that we rallied on the CPI beat, and then we sold off on the PPI miss very briefly. The irony between those two is that the CPI outperformance was perceived as relatively positive for rate cuts. And then, of course, the PPI miss was very heavily tied into a particular segment of the, of the economy. It was tied to what's called, um, tradeable services in particular portfolio management services. As a portfolio manager, I can assure you I did not raise my prices this week or this past month. What actually did happen is that that index is basically just a proxy for the S&P 500. So the great irony of this past week was we beat on CPI. That causes the, the S&P to rise. The S&P rising causes PPI to miss, which causes momentary distress. That was a fun learning this week. It felt like, Michael, the markets looked at those prints, CPI and PPI, and said, listen, they looked it over and said, there's nothing in these reports that derail the Fed from giving us that cut we expect in September. Is that what you saw? Well, we certainly saw that with the CPI. We saw that pricing back off a little bit with the PPI miss, in particular, as I mentioned the areas and services, etc. Those are areas that are going to pass through to CPI and PCE in the next month. Um, that actually lowers the prospect that we're going to get that giant rate cut, the 50 basis point cut that I think a lot of people had tried to price in. Um, we've already heard, um, Fed, you know, Fed presidents and governors come out and speak and say, we're a little less favorable. Maybe we're going to be a little bit more cautious after the PPI print. I've had some economists on the show, Michael. Let's get your take on this. Who say, listen, stop being so worried about the inflation boogie man. Inflation is going to come, and then it's going to, it's going to, it's going to come, and then it's going to ease. It's going to be transitory. It's not going to be persistent. Stop worrying. What do you make that argument? So I generally fall in that camp, and I, I guess I'm one of the economists that you have on TV that say that sort of thing. But the, the, the simple reality is that the underlying forces in the global economy are actually quite deflationary, not inflationary. Slowing population growth, slowing labor force growth, this means all else equal that we need to make less investments to maintain the capital labor ratio, which is used for productivity gains. All else equal, this suggests that there's less pressure than people want. A year ago, all we heard about is the shortage in housing. Now we're hearing about rising inventories and supplies. Um, we have a very, very bifurcated economy right now. And the one thing that I would say that caught my attention and makes me a little bit nervous is in the inflation reports what we saw is a rapid acceleration and how much the government is paying for things. One of the views on inflation that I happen to subscribe to is ultimately, if the government decides to pay more for stuff, the rest of us are going to have to pay more for stuff. And so I'm a little cautious that we could see a pickup in inflation that's a little bit more durable, but we're just going to have to see how that plays out. Overall, I think we have to be very, very cognizant that slow growth is not particularly inflationary. Related Videos How markets could have a 'déjà vu' moment with Sept. rate cut Trump–Putin meeting, retail sales, consumer data: What to Watch How some retail investors view crypto now Intel stock jumps on report Trump admin. is considering stake Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Yahoo
Should You Buy XRP While It's Less Than $4?
Key Points Healthy investor demand for cryptocurrencies has XRP pushing toward its all-time high. Potential spot XRP ETFs are yet another catalyst on the way. However, XRP is likely to remain a risky investment. 10 stocks we like better than XRP › Cryptocurrency investors are enjoying a huge bull market right now. Ironically, it's not Bitcoin stealing the show (though the flagship crypto's price has doubled during the past year), but XRP (CRYPTO: XRP), which has seen its price rise by almost 500%. XRP is now more than $3.25 per share (as of Aug. 12), leaving investors wondering whether the token is ready to surpass $4 for the first time. The Trump administration's pro-crypto stance and policies have been game-changers for XRP and the broader sector, and XRP specifically has another exciting catalyst on the horizon. Here is what you need to know, and whether XRP is a buy for less than $4. XRP and other cryptocurrencies have a lot of momentum right now There are many positive developments in the cryptocurrency landscape. Donald Trump campaigned on supporting cryptocurrencies, and his administration has largely followed through since assuming office in January. Trump announced an executive order to establish a better regulatory framework for the crypto industry, as well as strategic reserves for Bitcoin and other digital assets. XRP's developer, Ripple, had been engaged in a lawsuit with the Securities and Exchange Commission (SEC) since late 2020 over the company's sale of XRP tokens to exchanges and institutional investors. A judge issued a mixed ruling in the summer of 2023, but the two sides had appealed and cross-appealed the verdict. Both parties have moved to drop their appeals, ending the litigation. Ripple developed the XRP ledger for cross-border transactions. XRP is the native token for the XRP ledger. With the litigation overhang dissipating, it's more likely that companies, governments, and other institutions, for which Ripple developed XRP and the XRP Ledger, may embrace them for their intended purpose. Trump also just signed an executive order to open up U.S. 401(k) retirement plans to alternative assets, which would include cryptocurrencies. This likely won't have an immediate effect on demand. Still, it underscores cryptocurrency's progress into the mainstream investing scene, and may increase buying activity in XRP and broader digital assets over the long term. A new catalyst on the horizon for XRP Cryptocurrency prices rely on buyer demand, since they have little or no underlying tangible value. The two largest cryptocurrencies, Bitcoin and Ethereum, have spot exchange-traded funds (ETFs) that accumulate the coins. For instance, the Grayscale Bitcoin Trust ETF holds more than 180,000 bitcoins alone, so you can see how these institutional funds can have a lot of buying power. Perhaps it's only natural, since XRP is the third-largest cryptocurrency, but multiple institutions have filed applications to launch spot ETFs that hold XRP. There are at least nine applications filed with the SEC to launch spot XRP ETFs, and that doesn't include some of the financial sector's most prominent players, like BlackRock. The SEC could issue a decision on some of these ETFs as early as this fall. Should investors buy while XRP is less than $4? I can see why XRP's price has risen so much lately. The litigation was a storm cloud over XRP that arguably helped prevent it from surpassing its previous highs from years ago. Meanwhile, Bitcoin has continued to surge to new heights amid growing interest in cryptocurrencies. With all these positive developments, XRP has made up a bit of ground over the past year. But as I've written previously, XRP is still a very small player in cross-border transactions, and its long-term future remains highly speculative. Even if XRP's price does breach $4, it, like other cryptocurrencies, has historically been a rollercoaster and may not sustain those highs. There is nothing wrong with having some exposure to XRP, because it does have a path to increased usage and value over the coming years. As always, approach cryptocurrencies with a lot of caution, and avoid letting them represent too much of your total investments. Should you buy stock in XRP right now? Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and XRP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,783!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,122,682!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy. Should You Buy XRP While It's Less Than $4? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 hours ago
- Yahoo
Consumer sentiment falls for first time in 4 months as inflation expectations surge
Consumer sentiment soured in August for the first time in four months as Americans grew antsy about where inflation is headed. The latest University of Michigan consumer survey released Friday showed year-ahead inflation expectations soared to 4.9% in August from 4.5% in July. That pessimism was seen across demographic groups and political affiliations. Overall, sentiment dropped 5% month over month, the survey showed. On an annual basis, inflation has held at 3% or lower so far this year, though core inflation stripping out more volatile food and energy prices rose 0.3% between June and July, the largest gain in six months. Hotter-than-expected wholesale inflation data released this week suggested consumers may face more pricing pressure in the months to come. Learn more: July CPI breakdown: Consumers are feeling the crunch of accelerating inflation Still, 'consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' said Joanne Hsu, the survey director, in a statement. (High country-specific tariffs took effect last week.) Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's 條款 and 私隱政策 Consumers in the survey also expect the job market to weaken, following what is now a three-month streak of disappointing jobs numbers. Though the unemployment rate has been hovering between 4% and 4.2% since May 2024, the US economy added 73,000 nonfarm payrolls in July, less than the 104,000 expected by economists. Meanwhile, May and June jobs figures were revised sharply downward to a total gain of just 33,000 jobs. 'The share of consumers expecting unemployment to worsen in the year ahead was about 32% in 2022 and as recently as November 2024, but is now about 60%, a reading last seen in the Great Recession,' Hsu wrote in a report that was also released Friday. But tariff worries and recession talks aside, consumers are still getting out their credit cards: Retail sales in July were up 0.5% from the month prior. Read more: What is inflation, and how does it affect you? Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at
