Latest news with #marketvolatility
Yahoo
3 hours ago
- Business
- Yahoo
Delaying Your 401(k) Rollover Could Cost You $76K, Study Finds
Even though much of the financial world is now digitized, rolling over your 401(k) still often involves a more complicated process that can't be done online. Many plans require you to transfer funds via mail, which can lead to delays in getting your funds invested into your new account. Find Out: Read Next: While you might not think too much about the consequences of this lag time, it can lead to thousands of dollars in lost retirement savings, according to a new study conducted by PensionBee. Here's a look at how much you stand to lose due to delays in a 401(k) rollover. Putting off rolling over your funds and mail delays that are out of your control can have serious financial consequences, especially when you take a long-term view. According to the PensionBee study, even brief two- to eight-week market absences during rollovers can cost savers tens of thousands of dollars, particularly during periods of market volatility. The study found that for savers with a $100,000 401(k) balance, an eight-week processing delay could mean $76,000 in lost returns over 30 years. A $50,000 balance could experience a $38,442 loss due to an eight-week processing delay, and a $10,000 balance could experience a $7,688 loss. Even shorter-term delays can lead to significant losses — a two-week rollover delay could compound to a $37,512 loss over 30 years if you're starting with a $100,000 balance. Be Aware: As these figures show, delaying your 401(k) rollover can have significant financial consequences. But the risks of delaying a rollover go beyond lost returns. 'Everyone thinks they'd never forget a retirement account, but there are 30 million unclaimed accounts that tell us otherwise,' said Romi Savova, founder and CEO of PensionBee. 'For job-changers, each position can become another account left behind. The average person switches jobs 12 times, so the sheer volume of personal admin can be very difficult to manage.' Forgetting to roll over old accounts can make you subject to fees that can eat away at your savings. 'People are often unaware that there are fees associated with retirement accounts,' Savova said. 'While your employer may cover some or all of your fee burden while you're employed, that responsibility can shift entirely onto former employees, often with minimal notice.' If you have a 401(k) account with a balance of $7,000 or less, these fees can eliminate your entire savings. 'Employers can automatically force out small balances into poorly performing Safe Harbor IRAs, which can deplete balances entirely,' Savova said. 'These bad defaults are marked by high fees and low returns, often below 2%. If you don't act fast and have an account under $1,000, your employer may cash it out automatically, leaving you to foot the associated fees and tax penalties.' Rolling over a 401(k) can be a complicated task, but it's important to tackle it sooner rather than later. 'While the system needs to change, consumers can immediately take several steps to minimize downsides,' Savova said. 'First, take an active role in the process. Rolling over a 401(k) is a multistep process, and delays at any point can be costly. When it comes to retirement, time in the market is more important than timing the market — even a few weeks or months out can mean thousands lost over a lifetime.' If you're rolling a 401(k) balance from a former employer into a new 401(k), you may not have a lot of choices, but if you choose to roll into an IRA, make sure you are choosing your provider wisely. If possible, find a provider that offers digital-first solutions with automated tracking. 'The best providers will offer digital rollover solutions, avoiding checks in the mail, and excellent customer support when speaking with your old provider is inevitable,' Savova said. 'Customer-focused providers handle the paperwork burden, proactively follow up with your previous plan administrator and keep you updated throughout the process.' Also, pay attention to more than just fees when choosing a provider. 'While high fees over 1% should generally be avoided, also consider the customer support model and technological capabilities,' Savova said. 'The right provider becomes a partner in your retirement journey, not just a place to store your money.' More From GOBankingRates I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on Delaying Your 401(k) Rollover Could Cost You $76K, Study Finds 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
Forbes
17 hours ago
- Business
- Forbes
5 Top Undervalued Stocks To Buy For June 2025
The market's current volatility has created compelling opportunities for discerning investors willing to look beyond short-term noise. While headline indexes remain near historic highs, numerous quality companies are trading at significant discounts to their 52-week peaks, presenting attractive entry points for long-term wealth building. These dislocations often occur when broader market sentiment overshadows individual company fundamentals, creating the exact conditions where patient investors can capitalize. This analysis identifies five fundamentally strong companies currently trading at compelling valuations. Each selection represents a different sector, offering diversification benefits while maintaining focus on established businesses with durable competitive advantages, consistent cash generation and shareholder-friendly management teams that have weathered multiple economic cycles. The selection process prioritized companies trading at least 10% below their 52-week highs while maintaining strong underlying business fundamentals. Key evaluation criteria included consistent profitability, reasonable debt levels, competitive market positions, and management teams with proven track records of capital allocation and effective financial management. Special attention was given to dividend sustainability and growth potential, as these metrics often indicate management confidence in future cash flows. Additionally, each company needed to demonstrate resilience during recent market turbulence while showing clear catalysts for future growth. The focus remained on large-cap, established enterprises rather than speculative plays, ensuring each selection offers both value characteristics and quality business attributes that should appeal to conservative investors seeking both income and appreciation potential. ExxonMobil stands as America's largest publicly traded oil company, operating across the entire energy value chain, from exploration and production to refining and chemicals. The company has transformed its operational focus over recent years, prioritizing high-return, low-cost assets while maintaining one of the industry's strongest balance sheets. Recent strategic initiatives include expanding low-carbon solutions and optimizing its Permian Basin operations, which continue generating substantial free cash flow even at moderate oil prices. The company's integrated business model provides natural hedging between upstream and downstream operations, while its world-class refining network benefits from favorable crack spreads. Management has demonstrated disciplined capital allocation, returning significant cash to shareholders through both dividends and share repurchases while maintaining the financial flexibility to invest in growth opportunities. Exxon's current valuation appears compelling given its strengthened operational efficiency and commitment to shareholder returns. The company trades at a meaningful discount despite generating robust cash flows and maintaining a fortress balance sheet with minimal debt concerns. Recent quarterly results demonstrated the effectiveness of the company's cost reduction initiatives, with strong margins achieved across all business segments. The energy transition presents both challenges and opportunities, but Exxon's low-carbon investments and carbon capture initiatives position it well for evolving market demands. The company's dividend yield of 3.86% appears sustainable based on current cash generation capabilities. In comparison, the stock's 18.7% discount from recent highs creates an attractive entry point for investors seeking exposure to the energy sector through a financially stable, dividend-paying leader. Fifth Third Bancorp operates as a diversified financial services company serving customers across the Midwest and Southeast through approximately 1,100 locations. The bank has established a reputation for prudent risk management and exceptional customer service, consistently maintaining strong credit quality metrics across various economic cycles. Recent strategic focus areas include digital transformation initiatives, commercial lending growth, and expansion of fee-based services, including wealth management and payment processing. The bank's geographic footprint covers economically diverse markets with steady population and business growth, providing a stable foundation for loan demand and deposit gathering. Management has consistently demonstrated disciplined expense management while investing in technology infrastructure to compete effectively with larger national banks and emerging fintech competitors. Fifth Third presents compelling value at current levels, trading at a significant discount despite maintaining solid operational metrics and capital strength. The bank's conservative approach to credit risk has positioned it well to withstand potential economic uncertainty, while rising interest rates are expected to benefit its net interest margins over time. Recent quarters have shown steady loan growth and improving efficiency ratios, indicating that management's operational execution remains strong. The 3.89% dividend yield appears well-covered by earnings, with management maintaining a conservative payout ratio that provides flexibility during challenging periods. Regional banks like Fifth Third often outperform during economic recovery phases, and the current 22.5% discount from recent highs creates an attractive entry point for investors seeking exposure to well-managed financial institutions with strong local market positions and proven management teams. Mondelez International operates as a leading global snacking company, owning iconic brands including Oreo, Cadbury, Toblerone, and Trident across the chocolate, biscuits, gum, and candy categories. The company maintains strong market positions in key geographic regions, with particular strength in emerging markets where rising disposable incomes drive consistent demand growth. Recent strategic initiatives focus on expanding premium product offerings and enhancing direct-to-consumer capabilities. The business benefits from recurring revenue characteristics as consumers regularly repurchase favorite snack brands, creating predictable cash flows that support consistent dividend payments and growth investments. Mondelez has demonstrated pricing power during inflationary periods while maintaining market share through effective brand management and innovation programs that resonate with evolving consumer preferences. Mondelez offers attractive defensive characteristics combined with growth potential in emerging markets where the company maintains leading positions. The stock's recent weakness appears overdone given the company's strong brand portfolio and consistent execution on margin improvement initiatives. Management has successfully navigated supply chain challenges while implementing strategic pricing actions that protect profitability. The consumer staples sector provides stability during uncertain economic periods, while Mondelez's global diversification reduces dependence on any single market. The 2.82% dividend yield, combined with the company's history of consistent dividend growth, appeals to income-focused investors. With shares trading 12.2% below recent highs despite posting positive year-to-date returns of 12.38%, the current valuation presents an opportunity to acquire a quality consumer products company at a reasonable price. General Dynamics operates as a premier aerospace and defense contractor, serving government and commercial customers through four main business segments: Aerospace, Combat Systems, Marine Systems, and Technologies. The company builds Gulfstream business jets, Virginia-class submarines, Abrams tanks, and various mission-critical technologies for defense applications. Recent contract wins and robust order backlogs provide revenue visibility extending several years into the future. The defense contractor benefits from stable, long-term government contracts while the Gulfstream division serves affluent individuals and corporations seeking premium business aviation solutions. This diversification provides balance between government and commercial revenue streams, while the company's reputation for engineering excellence and program execution has earned it preferred contractor status across multiple defense platforms. General Dynamics trades at an attractive valuation, despite holding a strong competitive position in defense markets that are experiencing increased spending globally. Recent geopolitical tensions have highlighted the importance of defense capabilities, while growing international demand for proven American military systems creates additional growth opportunities. The company's submarine construction programs alone provide decades of contracted revenue streams. The Gulfstream business continues recovering from pandemic-related weakness, with order activity showing improvement as corporate travel normalizes and wealthy individuals invest in private aviation. Management maintains a conservative approach to capital allocation while consistently returning cash to shareholders through dividends and share repurchases. The 2.18% dividend yield, combined with the stock's 13.2% discount from recent peaks, creates an attractive entry point for investors seeking exposure to both defense spending trends and luxury aviation recovery. Honeywell International operates as a diversified technology and manufacturing company serving aerospace, building technologies, performance materials, and safety solutions markets. The company's portfolio encompasses aircraft engines, automation systems, specialty chemicals, and safety equipment utilized across various industrial, commercial, and residential applications. Recent strategic focus emphasizes software-enabled solutions and sustainable technologies that address climate and energy transition challenges. The company benefits from multiple long-term secular trends, including aircraft fleet modernization, the adoption of building automation, and industrial digitization initiatives. Honeywell's engineering capabilities and established customer relationships provide competitive advantages in developing next-generation solutions for evolving market needs. In contrast, its diversified end markets reduce dependence on any single industry cycle. Honeywell represents quality industrial exposure at a reasonable valuation, with shares trading only 7.3% below recent highs despite delivering the strong year-over-year performance of 16.07%. The company's transformation toward higher-margin, software-enabled businesses has improved profitability metrics while reducing cyclical exposure. Recent aerospace recovery trends benefit multiple Honeywell divisions as air travel continues normalizing globally. The building technologies segment positions Honeywell to benefit from increased focus on energy efficiency and innovative building solutions. At the same time, performance materials serve the growing demand for specialty chemicals and advanced materials. Management's consistent execution of operational improvement initiatives, combined with disciplined capital allocation and a 2.01% dividend yield, makes Honeywell an attractive investment for investors seeking exposure to industrial innovation themes at a reasonable entry point. Bottom Line These five undervalued stocks represent quality companies trading at discounts to recent highs while maintaining strong fundamentals and clear growth catalysts. Each selection offers different sector exposure—energy, banking, consumer staples, defense, and diversified industrials—providing portfolio diversification benefits. The combination of attractive dividend yields, proven management teams, and compelling valuations creates opportunities for both income and capital appreciation as market sentiment eventually recognizes their underlying value propositions.
Forbes
17 hours ago
- Business
- Forbes
5 Best Stocks To Buy Now For June 2025
Market volatility and recent trade developments have created distinct opportunities across multiple sectors, from artificial intelligence powerhouses to healthcare giants navigating regulatory changes. Savvy investors are recognizing that current market dislocations often mask underlying business strength, particularly among companies with proven track records of innovation, market leadership and adaptability to changing economic conditions. This analysis identifies five compelling investment opportunities spanning technology, healthcare, industrials and data analytics sectors. Each selection represents companies well-positioned to benefit from long-term secular trends, trading at levels that offer attractive risk-adjusted returns for investors with suitable time horizons and risk tolerance. The selection process emphasized companies demonstrating strong competitive moats, consistent revenue growth and clear catalysts for future expansion. Priority was given to market leaders within their respective industries, particularly those benefiting from transformative trends such as the adoption of artificial intelligence, healthcare innovation, industrial automation, and data-driven decision-making across enterprise markets. Each company needed to show resilient business models capable of generating sustainable cash flows while investing in growth initiatives. Special consideration was given to management teams with proven execution capabilities, strong balance sheets that provide strategic flexibility and business models positioned to benefit from ongoing technological and demographic shifts reshaping the global economy. Honeywell International stands as a premier diversified technology and manufacturing company, operating across aerospace, building technologies, performance materials and safety solutions. The company has successfully transformed itself into a software-enabled industrial leader, developing connected solutions that address critical challenges in automation, energy efficiency and digital transformation. Recent strategic initiatives focus on sustainable technologies, including renewable fuels, carbon capture solutions and next-generation automation systems. The company's diversified portfolio provides natural hedging against industry-specific downturns while positioning it to benefit from multiple long-term growth drivers. Honeywell's aerospace division serves both commercial and defense markets. At the same time, its building technologies segment capitalizes on increasing demand for innovative building solutions and energy management systems that reduce operational costs and environmental impact. Honeywell represents exceptional value in the industrial technology space, combining steady dividend income with significant growth potential from emerging technologies. The company's transformation toward higher-margin software and services has improved profitability metrics while reducing cyclical exposure. Operating margins have expanded to over 20%, with return on invested capital consistently above 15%, reflecting disciplined capital allocation and strong pricing power. Recent aerospace recovery trends benefit multiple business segments as commercial aviation continues normalizing and defense spending remains robust globally. Honeywell's Aerospace division contributed nearly 40% of total revenue in the last fiscal year and is expected to grow further as backlogs normalize and global air travel rebounds. The Building Technologies division positions Honeywell perfectly for the ongoing shift toward smart infrastructure and energy-efficient solutions, particularly as regulatory requirements drive the adoption of automated building management systems. This segment also supports a recurring revenue model through service contracts and software subscriptions, contributing to earnings stability. Management's consistent operational execution, combined with strategic investments in breakthrough technologies like sustainable aviation fuel and quantum computing applications, creates multiple pathways for long-term value creation while maintaining attractive current income through reliable dividend payments. With a payout ratio under 50% and consistent dividend increases, Honeywell remains a compelling choice for income-focused investors seeking exposure to industrial innovation. NVIDIA Corporation has emerged as the undisputed leader in artificial intelligence computing, providing the essential hardware and software infrastructure powering the global AI revolution. The company's graphics processing units form the foundation for machine learning, data center acceleration, autonomous vehicle development and scientific computing applications across virtually every industry. Recent strategic partnerships, including collaborations with major technology companies and governments, demonstrate the critical nature of NVIDIA's technology in next-generation computing applications. The company's comprehensive AI platform extends beyond hardware to encompass software frameworks, development tools and cloud services, fostering long-term customer relationships and generating recurring revenue streams. NVIDIA's data center business has become the primary driver of growth. At the same time, gaming, professional visualization, and automotive segments provide diversification and additional expansion opportunities as AI capabilities are integrated across more applications. NVIDIA occupies a virtually unassailable position in one of the most transformative technology trends of this generation, with artificial intelligence adoption still in its early stages across most industries. Recent partnerships, including collaborations with Saudi Arabia on AI initiatives, demonstrate the global strategic importance of NVIDIA's technology and provide new revenue opportunities in emerging markets seeking to build AI capabilities. The company's technological moat continues widening as competitors struggle to match NVIDIA's integrated hardware-software approach and extensive developer ecosystem. Gross margins remain strong, above 70%, reflecting the company's ability to command premium pricing in a high-demand market. While the stock trades at premium valuations, the massive addressable market for AI computing, combined with NVIDIA's dominant market share and accelerating adoption rates across enterprise and government sectors, justifies higher multiples. The company's ability to maintain pricing power while scaling production positions it for sustained revenue and margin expansion as AI infrastructure investments accelerate globally. UnitedHealth Group operates as America's largest healthcare company, serving over 50 million members through its UnitedHealthcare insurance business while providing comprehensive health services through its rapidly growing Optum division. The company has built an integrated healthcare ecosystem that combines insurance, pharmacy benefits, medical care delivery and health technology solutions, improving patient outcomes while reducing overall system costs. Despite recent stock volatility related to regulatory concerns, UnitedHealth's fundamental business model remains strong, benefiting from aging demographics, increasing healthcare utilization and the ongoing shift toward value-based care arrangements. The Optum division has become a significant growth driver, providing technology-enabled services that help healthcare providers improve efficiency and patient care quality. UnitedHealth's current valuation appears compelling given its dominant market position and multiple growth drivers across both insurance and services businesses. The recent regulatory-driven volatility, exacerbated by a high-profile fraud lawsuit, has led to a steep selloff, pushing the stock down significantly and compressing its valuation to a forward P/E of just 12. For a company with UnitedHealth's scale, diversified revenue streams and consistent double-digit earnings growth over the past decade, this represents a rare opportunity to buy a high-quality business at a deep discount. The company's integrated model provides competitive advantages that are difficult to replicate. Healthcare spending continues growing faster than GDP, driven by demographic trends and medical innovation, creating a favorable operating environment. The company's investment in technology and data analytics capabilities positions it well for the ongoing transformation toward personalized medicine and value-based care delivery models. Optum's expansion into new markets and services provides significant revenue diversification beyond traditional insurance operations, while the company's strong balance sheet enables continued strategic acquisitions and organic growth investments. The combination of defensive healthcare exposure and growth potential makes UnitedHealth attractive despite near-term legal and regulatory headwinds. Johnson & Johnson stands as one of the world's most diversified healthcare companies, combining leading pharmaceutical research with innovative medical devices and trusted consumer health products. The company's pharmaceutical division develops breakthrough treatments for cancer, immunology, infectious diseases, and neurological conditions, while its medical device business serves the global surgical, orthopedic, and vision care markets. The company has demonstrated remarkable consistency over decades, generating steady cash flows that support continuous research investment and regular dividend increases spanning over 60 years. Recent strategic initiatives include expanding oncology and immunology portfolios through both internal development and strategic acquisitions, while divesting non-core consumer brands to focus on higher-growth healthcare segments with stronger competitive positioning. Johnson & Johnson offers exceptional stability combined with growth potential from its industry-leading pharmaceutical pipeline and medical device innovations. The company's diversified revenue streams provide resilience during economic uncertainty. At the same time, its strong research capabilities and established regulatory relationships enable the successful development of breakthrough treatments that command premium pricing and market share. The pharmaceutical division's focus on high-value therapeutic areas, such as oncology and immunology, aligns with some of healthcare's fastest-growing segments—meanwhile, the medical device business benefits from aging demographics and increasing demand for minimally invasive surgical procedures. Management's disciplined capital allocation, combined with the company's AAA credit rating and commitment to dividend growth, makes Johnson & Johnson particularly attractive for conservative investors seeking reliable income growth, capital preservation and upside potential from medical innovation. Palantir Technologies specializes in big data analytics platforms that enable organizations to integrate, analyze and act upon massive datasets for critical decision-making. The company serves both government and commercial clients through its Gotham platform for defense and intelligence applications and Foundry platform for enterprise customers across industries, including healthcare, energy, manufacturing and financial services. The company's software enables customers to uncover hidden patterns in complex data, optimize operations and make data-driven decisions that were previously impossible due to technological limitations. Recent commercial expansion has accelerated as enterprises recognize the competitive advantages provided by advanced analytics capabilities. At the same time, government contracts continue providing a stable revenue foundation and development funding for cutting-edge capabilities. Palantir operates at the intersection of several powerful trends, including the adoption of artificial intelligence, digital transformation and data-driven decision-making across both government and enterprise markets. The stock's strong 2025 performance reflects growing recognition of the company's unique capabilities and expanding market opportunities as organizations prioritize analytics investments to maintain competitive advantages. The company's government relationships provide both revenue stability and access to cutting-edge use cases that drive product development, while commercial market expansion offers significant scalability potential. Palantir's software platforms create high switching costs once implemented, leading to strong customer retention and expanding usage over time. The increasing importance of data analytics across all industries, combined with Palantir's proven ability to handle complex, mission-critical applications, positions the company for sustained growth as digital transformation accelerates across both public and private sectors. Bottom Line These five stocks represent diverse opportunities across technology, healthcare, and industrial sectors, each positioned to benefit from powerful long-term trends. From NVIDIA's AI dominance to Johnson & Johnson's healthcare stability, UnitedHealth's integrated model and ultra cheap valuation due to regulatory risks, Honeywell's industrial innovation, and Palantir's data analytics leadership, investors gain exposure to multiple growth drivers while balancing risk across different market segments and business models.
Yahoo
18 hours ago
- Business
- Yahoo
Aptos Rebounds Sharply After 10% Drop as Buyers Defend Key Support
The cryptocurrency market faces renewed pressure as global economic tensions intensify, with APT experiencing significant volatility amid broader market uncertainty. After dropping over 10% from $5.058 to $4.548, APT has begun stabilizing at critical support levels, showing resilience despite macroeconomic headwinds. Trading volumes peaked during the sell-off period but have since shifted toward accumulation patterns, suggesting institutional interest remains despite the turbulent global economic landscape. Technical Analysis Highlights APT experienced a substantial 10.08% correction, dropping from 5.058 to a low of 4.548 before staging a recovery. Sell-off intensified during the 22:00-00:00 period with above-average volume (2.7M-2.9M). Strong support established at the 4.55-4.60 zone where buyers emerged. Recovery phase showed consistent accumulation with price stabilizing between 4.60-4.70. Bullish move toward 4.75 during final hours on increased volume suggests renewed buying interest. Hourly price action formed a rounded bottom pattern before rallying in the final minutes. Substantial volume spikes at 14:01-14:02 (55K-32K) pushed prices back above 4.70. Hourly consolidation between 4.686-4.750 indicates stabilization attempts after the correction. External References "June Token Unlocks Top $3.2 Billion: Altcoins SUI, APT, ZRO Brace For Volatility", Coin Edition, published May 30, 2025.
RNZ News
a day ago
- Business
- RNZ News
From TACO to FAFO, investors love parodies of Trump acronyms
By Stephen Culp and Suzanne McGee , Reuters US President Donald Trump is seen on a TV screen below a display showing the German Stock Market Index DAX at the stock exchange in Frankfurt, Germany, on 3 April 2025. Photo: DANIEL ROLAND / AFP Four months into US President Donald Trump's second term, market observers have taken a cue from his fondness for condensing slogans into catchy acronyms like MAGA, DOGE and MAHA, and devised a few of their own that have been spreading across trading desks. Even those acronyms that do not directly reflect a specific trading strategy still capture factors that traders say are important in Trump-era markets, such as volatility and uncertainty, that investors need to consider, when making decisions. Some new labels are associated with investment strategies that aimed to capitalise on Trump's economic and trade policies, and international relations goals. Others riff off economic implications or his abrupt U-turns, as markets and trade partners react to his proposals. The 'Trump Trade' that played on the Make America Great Again theme after his November election victory and January inauguration, and contributed to record highs on Wall Street in February, is hardly discussed now that stocks, the dollar and Treasury bonds have succumbed to worries about his tariff policies . "Post the election, we heard a lot about YOLO [You Only Live Once], which seemed to promote taking outsize risks in a concentrated investment theme," B Riley Wealth strategist Art Hogan said. YOLO is an acronym used to describe the tendency that was part of the Trump trade to chase high-momentum strategies, such as cryptocurrency. "While the term YOLO was popular for a period of time, it goes against all traditional advice," Hogan said. Here are of few more acronyms that have played in the investment world in recent weeks: Coined by a Financial Times columnist, this one has been used as a way to describe Trump's to-ing and fro-ing on tariffs after his 2 April 'Liberation Day' speech. When asked about TACO in a recent press conference, the president lashed out, calling the question "nasty". "Where we end up might not be too far from what he promised on the campaign trail, so does he always chicken out?" AllianceBernstein fixed income portfolio manager Christian DiClementi said. "I wouldn't go as far as to say that. "I think he wants to rebalance the economy without pushing it off a cliff and we're watching that being executed in real-time. I think some of the ideas are thought out and some of them change on the fly." First coined last year to address European competitiveness, MEGA has resurfaced this spring as a way to describe the flurry of investor interest in and flows into European markets. Spoofing their MAGA counterparts, MEGA hats are easily purchased online. It's been revived by investors and traders in light of the outperformance of European stocks in the immediate aftermath of Trump's 'Liberation Day' tariffs bombshell. While the original Trump Trade was also known as the MAGA trade, this variation cribbed the president's motto, first appearing in response to Vice President JD Vance's brief and unfruitful visit to Greenland , the autonomous territory of Denmark, which Trump has expressed interest in annexing. At least one Canadian investor says that quip is making the rounds of trading desks in Toronto and Montreal, and sparking "wishful thinking" about simply boycotting US investments. Although the acronym also came into being well before Trump's inauguration, it is heard with increasing frequency in trading desk conversations. It is used to capture the financial market's volatility and chaos that Trump's policymaking process has created. Potomac River Capital LLC chief investment officer Mark Spindel described the market as caught in a "pinball machine as a result of that policymaking process". When reached for comment, White House spokesman Kush Desai said "these asinine acronyms convey how unserious analysts have consistently beclowned themselves by mocking President Trump and his agenda that've already delivered multiple expectation-beating jobs and inflation reports, trillions in investment commitments, a historic UK trade agreement and rising consumer confidence." - Reuters
