Latest news with #Ricchiuti
Yahoo
03-04-2025
- Business
- Yahoo
Boomers face a 'devastating' blow to their life savings as more tariff pain looms, finance guru warns
Baby boomers will soon open their IRA statements and may damage their retirement funds. President Donald Trump's tariffs threaten further pain, finance professor Peter Ricchiuti told BI. He said tariffs are "prosperity killers" that drag down stocks and the economy. Many people could be left disappointed when they open their IRA statements in the coming days — and President Donald Trump's "Liberation Day" tariffs threaten to make things even worse. The S&P 500 fell 5% in the first three months of 2025, marking its worst quarter since 2022, while the Nasdaq Composite slumped 10% as stocks like Tesla plunged 36%. Those declines have taken a bite out of many people's investments in the stock market, and could disrupt their retirement plans if they continue. "For the small investor, the decline in value will be devastating, particularly for retired baby boomers" who draw their incomes from their retirement accounts, Peter Ricchiuti, a senior professor of finance at Tulane University's Freeman School of Business, told Business Insider. The sell-off is partly in reaction to Trump's topsy-turvy tariffs in recent weeks, which have made it "impossible" for business owners to make decisions, Ricchiuti said. The former investment manager, who once oversaw Louisiana's $3 billion portfolio as the assistant state treasurer, said that running a company has become a "game of Whack-A-Mole" because everyone is trying to guess which industry will be hit next. Trump unveiled tariffs of at least 10% on imports from all foreign countries on Wednesday, with higher rates for countries with a large trade deficit with the US. Goods from China, the number-two exporter to the US after Mexico, will be subject to a 54% tariff from April 9 if nothing changes. The news sent S&P futures down more than 3% in premarket trading on Thursday, as key constituents Tesla and Nvidia tumbled 8% and 6% respectively. Tariffs push up costs for companies and prices for consumers, while uncertainty discourages hiring, expansion, and spending. Those forces slow corporate earnings growth, eroding valuations and sending stocks lower, Ricchiuti said. Strategists at Goldman Sachs cut their S&P 500 forecast last week, citing the incoming tariffs as their main rationale. They predicted the index would decline a further 5% this quarter and gain 6% over the next 12 months, down from 0% and 16%, respectively. One pressing concern is that Trump ratcheting up import taxes will cause countries around the world to retaliate by imposing reciprocal tariffs on imports from the US. Ricchiuti said that's one reason why tariffs never succeed in leveling terms of trade and instead act as "prosperity killers." During Trump's first term, he imposed sweeping tariffs on goods ranging from steel and aluminum to solar panels and washing machines, and broad-based duties on imports from China. The tariffs led to material price increases and reductions in Americans' real income, studies have found. Another worry for investors and everyday Americans alike is that if tariffs lead consumers to cut back on spending and companies to retrench, overall economic growth could suffer. Ricchiuti flagged there is mounting concern on Wall Street that Trump's trade battles will "cause a recession or even the much-feared stagflation." BlackRock CEO Larry Fink described the national mood in his yearly letter on Monday. "I hear it from nearly every client, nearly every leader — nearly every person — I talk to: They're more anxious about the economy than any time in recent memory," he wrote. Another wave of tariff chaos is now threatening to hit stocks that have already retreated. The timing is terrible for boomers living off their nest eggs, who could see their retirement funds dwindle if they're pulling money out at the same time their stock holdings are falling in value. Ricchiuti bemoaned that the economy was on a good path with falling inflation and record corporate earnings and stock prices ahead of Trump's inauguration. "The worst part of all this is that these economic wounds are self-inflicted," he said. Read the original article on Business Insider Sign in to access your portfolio
Globe and Mail
12-03-2025
- Business
- Globe and Mail
iRobot (NASDAQ:IRBT) Sounds Alarm Over Status as Going Concern
It was not so long ago that household robot maker iRobot (IRBT), the people who brought us the Roomba, was on top of the world. A potential buyout target from Amazon (AMZN), the leader in autonomous cleaning robots, and more made iRobot a household name. But times have changed, and now, iRobot is warning that it may not be a 'going concern' much longer. Shares cratered, down nearly 34% in Wednesday afternoon's trading. Light Up your Portfolio with Spark: Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. In order to address this very serious problem that could ultimately take iRobot out of the market, it has begun a 'strategic review' of its operations. After posting fourth quarter earnings that featured not only revenue that was lower than expected, but also a bigger overall loss than expected, it became clear that iRobot was going to have a tough time just paying its bills. It was expecting to grow its sales as it rolled out new products, but even iRobot seems to doubt just how far that will go. A recent filing noted: 'Given these uncertainties and the implication they may have on the company's financials, there is substantial doubt about the Company's ability to continue as a going concern for a period of at least 12 months.' How About More New Products? Even as iRobot faces concern about whether or not it can remain a concern, it is still trying, to the last, to win the market over with new products. In fact, it just rolled out fully eight new models, including one that offers—for an automated housecleaning robot, anyway—a major new feature: a dust compactor. Reports note that the new Roombas will all offer better suction, improved navigation, and even bagless options for storing all the dust they pick up off the floor. But these new models will not come without some drawbacks: the Combo Essential model is out the door, replaced with the Roomba 105 and 205. The I and J series Roombas, meanwhile, will be thrown over for the Roomba Plus 405 and 505. Roombas will run between $299 and $899, reports note. Is iRobot a Good Stock to Buy? Turning to Wall Street, analysts have a Hold consensus rating on IRBT stock based on one Buy assigned in the past three months from Needham analyst James Ricchiuti, as indicated by the graphic below. Despite a 57% loss in its share price over the past year, Ricchiuti has no price target on the stock. See more IRBT analyst ratings Disclosure Questions or Comments about the article? Write to editor@
