Latest news with #cashreserves
Daily Mail
3 days ago
- Business
- Daily Mail
Simple savings habit helps Americans dodge recession and build wealth
Americans have been surprisingly strategic with their cash. New research finds that more US consumers are shifting money out of traditional checking and savings accounts and into financial vehicles that offer investment income. It's a trend that helps explain the surprising strength of the US economy — which continues to grow despite high inflation and uncertainty around tariffs. The analysis, conducted by the JPMorganChase Institute, examined the accounts of 4.7 million households. Researchers found that when including brokerage accounts, money market funds, and certificates of deposit, people's total cash reserves are actually rising. That finding offers a fresh perspective at a time when standard bank balances, adjusted for inflation , remain flat and historically low. 'Families across many income bands are now seeing a turnaround in their total cash,' said Chris Wheat, president of the institute. The shift explains a previously puzzling economic contradiction: consumer spending has remained strong , even though checking and savings balances appeared stagnant. So far, this earnings season, companies have continually reported that consumers keep spending cash at record numbers. GM reported a seven percent increase in US car sales . Hasbro said its revenue also shot up seven percent. Delta Airlines beat Wall Street's profit guidance. Some consumers have even had cash lying around to invest in new meme stocks . But that continued spending and stagnant wage growth might have just been a product of Americans making smarter financial moves. Wheat also noted that in today's higher-interest environment, consumers parking cash in accounts that yield returns, rather than making risky, long-term investments. Still, he cautioned that the trend might be temporary, and it's unclear whether it will continue. JPMorganChase Institute also uncovered that the investment shifts were more popular for middle- and high-income earners. The analysis also found that households earning under $35,000 saw their total cash balances increase at an annual rate of 5 to 6 percent. It found the lowest income quartile typically holds just over $1,000 in bank accounts. The median balances of the highest income quartile exceed $8,000.
Daily Mail
3 days ago
- Business
- Daily Mail
A simple new savings habit among Americans is helping the US dodge a recession... and grow their wealth
Americans have been surprisingly strategic with their cash. New research finds that more US consumers are shifting money out of traditional checking and savings accounts and into financial vehicles that offer investment income. It's a trend that helps explain the surprising strength of the US economy — which continues to grow despite high inflation and uncertainty around tariffs. The analysis, conducted by the JPMorganChase Institute, examined the accounts of 4.7 million households. Researchers found that when including brokerage accounts, money market funds, and certificates of deposit, people's total cash reserves are actually rising. That finding offers a fresh perspective at a time when standard bank balances, adjusted for inflation, remain flat and historically low. 'Families across many income bands are now seeing a turnaround in their total cash,' said Chris Wheat, president of the institute. The shift explains a previously puzzling economic contradiction: consumer spending has remained strong, even though checking and savings balances appeared stagnant. So far, this earnings season, companies have continually reported that consumers keep spending cash at record numbers. GM reported a seven percent increase in US car sales. Hasbro said its revenue also shot up seven percent. Delta Airlines beat Wall Street's profit guidance. Some consumers have even had cash lying around to invest in new meme stocks. But that continued spending and stagnant wage growth might have just been a product of Americans making smarter financial moves. Wheat also noted that in today's higher-interest environment, consumers parking cash in accounts that yield returns, rather than making risky, long-term investments. Still, he cautioned that the trend might be temporary, and it's unclear whether it will continue. JPMorganChase Institute also uncovered that the investment shifts were more popular for middle- and high-income earners. The analysis also found that households earning under $35,000 saw their total cash balances increase at an annual rate of 5 to 6 percent. It found the lowest income quartile typically holds just over $1,000 in bank accounts. The median balances of the highest income quartile exceed $8,000. While some Americans have been parking their cash in smart places, other metrics of financial health have shown some serious warning signs. Millions of consumers are combating inflation with a record-setting arsenal of credit card debt — to the tune of $1.18 trillion. Meanwhile, a record number of consumers are turning to an inceasing array of on-demand pay options and buy-now, pay-later microloans.
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Is Warren Buffett Right About the Stock Market? Here's What Investors Should Know.
Actions speak louder than words. That's why investors have much to glean from Warren Buffett's latest moves, even though he hasn't clearly spelled out what he's thinking about the stock market these days. If you combine his actions with his general advice about investing in the stock market, you can get a good idea about what you should be doing with your money in today's market. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Selling and saving It's easy to see how Buffett is approaching the market today. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is required to regularly update shareholders with quarterly reports and file a 13F with its trades, and the holding company has been a net seller of stocks for the past 10 quarters. Berkshire Hathaway has also built up its cash reserves to its highest-ever levels, and that continues to rise to new highs. At the end of 2025's first quarter, the company had $346 billion in cash and U.S. Treasury bills. At the annual shareholder meeting in May, Buffett effectively said that he just doesn't see the right opportunities to spend the money, adding, "We'd spend $100 billion. I mean, those decisions are not tough to make, when something is offered that makes sense to us and that we understand and offers good value, and where we don't worry about losing." He explained that his team is "very, very, very opportunistic," and that opportunities don't come up "in an orderly fashion." Buffett is in the business of waiting for the right opportunities, not trading for the sake of trading. "If you told me I had to invest $50 billion every year until we got down to $50 billion, that would be the dumbest thing in the world to invest in that manner," he said. That's a pretty clear assessment of why he's holding cash right now. It's his job to be strategic about buying and selling, but Buffett also said he can understand an investor who will make a few good investments and hold on to them forever. That could be the right decision for many investors who don't have Buffett's day job. Pools and pizza Does that mean there aren't great opportunities out there? Not necessarily. Although Buffett has sold more than he's bought, he has still identified new stocks to buy. Some recent purchases include Pool Corp. and Domino's Pizza. That might be surprising to many investors since these aren't the kinds of stocks that elicit a lot of hype. I'd wager many investors never heard of Pool Corp. before Buffett bought it. But it isn't surprising to Buffett followers who understand his investing philosophy. He loves to buy pieces of great businesses, which means they have some kind of moat, excellent management, and don't need to use a lot of money to make a lot of money. There are many ways to have a moat, but he's described his favorite companies as having a global brand name that travels. Domino's easily falls into that, as the largest global pizza chain. Pool Corp. has more of a niche than Domino's, but it's also a global leader. If you're looking for great stocks, you can find great candidates that fit your investing criteria even now. You might want to hold on to some cash and wait for opportunities, but you also need to be in the market to benefit from its long-term ascent. If you're already in the market, you need to stay in the market and let your money compound over time, even through volatility. That's why it's important to have an emergency fund. You should also make sure you're well-diversified, with several long-term, Buffett-type winners that can shield your portfolio in challenging times. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway 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 $722,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $968,402!* Now, it's worth noting Stock Advisor 's total average return is1,069% — a market-crushing outperformance compared to177%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 June 30, 2025
Bloomberg
16-06-2025
- Business
- Bloomberg
Retailer Gabe's in Talks to Give Keys to Lenders, Get More Cash
Warburg Pincus -backed Gabe's is closing in on a debt deal that would hand over control of the discount retailer to some of its lenders, according to people familiar with the situation. The cash-strapped chain and its creditors have been ironing out details of an out-of-court plan that would help shore up its cash reserves, said the people, who asked not to be identified discussing private negotiations. Gabe's has also been looking to cut deals with various landlords and vendors to help bring down expenses, said other people familiar with the matter.
New York Times
06-06-2025
- Business
- New York Times
Manchester United financial results reveal drop in cash reserves ahead of summer transfer window
Manchester United's cash reserves fell to £73.2million during the third quarter, despite Sir Jim Ratcliffe injecting $300m (£238.5m) since becoming a minority owner. According to the Old Trafford club's latest financial results, United's cash reserves fell by £22.5m during the three months up until the end of March. Advertisement Although this was an improvement on £67m in cash during the same period last year, it follows significant investment by Ratcliffe since purchasing a 28.9 per cent minority stake last year. United's cash position is set to be a complicating factor during an important summer transfer window, as the club's hierarchy looks to back head coach Ruben Amorim with the signings of Matheus Cunha and Bryan Mbeumo. United agreed a deal for Cunha with Wolverhampton Wanderers last week, but only after Wolves rejected a proposal to pay the £62.5m fee over five years, insisting on three payments over two years instead. United's third quarter results revealed they still have the ability to borrow up to £90m in cash under their revolving credit facility, which could help finance transfer spending but would add to a debt pile of £713.2m. In March, Ratcliffe claimed that United were in danger of running out of cash and going bust by Christmas had they not carried out a range of cost-cutting measures across the club, including cutting up to 450 jobs. Ratcliffe also revealed that even if United make no new signings this summer, the club will 'write a cheque for £89m' this summer to pay for players already at the club, including Casemiro, Andre Onana and Rasmus Hojlund. According to the third quarter results, United have already spent a net £195.6m in cash on intangible assets this season — predominantly transfer fees — which is already £41.9m than they spent during the entirety of the 2023-24 season. Despite United's cash issues, the club reiterated that it remains 'committed to, and in compliance with, both the Premier League's Profitability and Sustainability Rules (PSR) and UEFA's Financial Fair Play Regulations (FFP)'. As The Athletic revealed this week, United's PSR and FFP calculations are based upon the account of Red Football Ltd — a UK-registered subsidiary, which posted significantly lower losses than their New York-based plc last season. Despite recording their lowest finish of the Premier League era in 15th place, United tightened their projected revenue guidance for the 2024-25 campaign to between £660-670m — expecting to be at the higher end of this range. United's year-on-year broadcast income to the end of March fell by £49.1m, a result of failing to qualify for the Champions League and an underwhelming Premier League campaign. Improvements in matchday, up £18.5m (18 per cent) and commercial income (up £13.4m, or 6 per cent) lessened the blow, and have ensured United's full-year revenue projection is consistent with 2023-24 levels. Advertisement Wages fell by £42.6m compared to the same period last year — a result of missing out on the Champions League but also the January loan exits of Marcus Rashford, Antony and Tyrell Malacia. United's wage bill to 31 March was 15 per cent lower than in 2023-24, and at its lowest level this far into a season since 2019-20. United also paid £2.7m in exceptional costs during the third quarter as a result of the club's ongoing restructuring and the exits of senior leadership figures. Omar Berrada, United's chief executive, said: 'We were proud to reach the final of the UEFA Europa League, but ultimately, we were disappointed to finish as runner-up in Bilbao. 'We had a difficult season in the Premier League, which we all know fell below our standards and we have a clear expectation of improvement next season.' Berrada added: 'We remain focused on infrastructure, with the redevelopment of our Carrington Training Complex continuing and on track, which will be the heart of our club, providing world class facilities for all our teams and our staff. 'We have also announced our aspiration to pursue a new 100,000 seat stadium, sitting at the heart of the regeneration of the Old Trafford area, which would be a catalyst for growth and investment in our local community. 'We are continuing to work with all the relevant stakeholders, including central government, to support their vision for growth.' (Top photo of majority owner Avram Glazer and minority shareholder Jim Ratcliffe:)
