Bitcoin price drop continues as risk-off ripples across markets – Yahoo News

Yahoo Finance’s David Hollerith details the drops in bitcoin and other cryptocurrencies as crypto market caps have fallen off significantly and future crypto trends could be dependent on the outcome of this week’s Fed meeting.
AKIKO FUJITA: –with Bitcoin. And for that, let’s bring in Yahoo Finance’s own David Hollerith David, in the price action we’ve been tracking from the weekend all the way into today’s activity, we’ve got to know, what sticks out to you the most? And what’s really driving some of this?
DAVID HOLLERITH: Yeah, I’ll start with the second question first, what’s driving this. It seems like the risk-on story that pinning to the macroeconomic backdrop, meaning cryptocurrencies are trading a lot like technology stocks that are higher up the risk curve, I think that’s the majority consensus of what investors and analysts have been saying.
So everyone’s sort of looking at this upcoming Federal Reserve meeting that’s taking place on Wednesday to see the results of how that might be interpreted. But again, the global market cap of cryptocurrencies has lost $1.43 trillion since its peak earlier in November 2021.
And the correlation between tech stocks and cryptocurrencies has reached a 0.62, which doesn’t really have a lot of meaning without context. But to give you an idea, that’s sort of the highest correlation we’ve seen between stocks and cryptocurrencies. So right now, cryptocurrencies are very much trading like risk-on stocks.
Now, why that’s the case, we’re still not totally sure. It’s sort of unclear whether or not investors think that institutions have come in, and they’ve bought into the asset class, and that has sort of made it like a very risky or more risky technology stock, or if it’s because cryptocurrencies act as a kind of inflation hedge, in which case, the Federal Reserve raising interest rates to combat inflation could, in a sense, undercut the narrative for cryptocurrencies.
So we’re kind of watching all that development. But as far as the drawdown since Friday and what we’re expecting this week, a lot of people have seen that Bitcoin and other cryptocurrencies are a little bit oversold at this point. So there’s reason to believe we will see a little bit more of a recovery in the next couple of days. But again, a lot is hinging on the FOMC meeting, which is taking place on Wednesday.
The dividend yield on the S&P 500 is currently near a 20-year low of around 1.3%. Meanwhile, even traditionally higher-yielding sectors like real estate investment trusts (REITs) are offering relatively low yields (less than 3% on average) following that sector's big run-up last year. Four that stand out as great buys right now are EPR Properties (NYSE: EPR), Enbridge (NYSE: ENB), Medical Properties Trust (NYSE: MPW), and Kinder Morgan (NYSE: KMI).
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet's Quant Ratings, we zero in on five names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Etsy Inc. recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
If you are new to investing or even an experienced investor, this trio of stocks should be considered as key holdings for your portfolio.
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Investing in equal parts of Rio Tinto (NYSE: RIO), Kinder Morgan (NYSE: KMI), and Autoliv (NYSE: ALV) gives an investor an average dividend yield of 5.8% and exposure to different sectors of the economy. Scott Levine (Rio Tinto): With a market cap of nearly $130 billion, Rio Tinto is one of the largest mining stocks available to investors.
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There's no denying that Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has become a force to be reckoned with. Not many companies can boast that their signature product or service has become a verb: "Google it." Beyond search, Alphabet is a leader in digital advertising, smartphone operating systems led by Android, and cloud computing with its fast-growing Google Cloud.
Both the growth stock-dependent Nasdaq Composite and broad-based S&P 500 underwent their largest correction since the March 2020 pandemic-induced crash. The first stock that could deliver a 567% (or greater) return over the next decade and make people millionaires off a $150,000 investment is cloud-based lending platform Upstart Holdings (NASDAQ: UPST). The traditional lending process, at least for personal loans, can be slow, arduous, and costly, for both banks and the customer attempting to take out a loan.
Buy cheap? Even in the stock market, buyers like to find a bargain. Defining a bargain, however, can be tricky. There’s a stigma that gets attached to low stock prices, based on the reality that most stocks don’t fall without a reason. And those reasons are usually rooted in some facet of poor company performance. But not always, and that’s why finding stock bargains can be tricky. There are plenty of low-priced equities out there with sound fundamentals and solid future prospects, and these opt
While there are a lot of ways to build wealth on Wall Street, putting your money to work in dividend stocks is among the most effective. The first ultra-high-yield dividend stock you can buy hand over fist if you want a mountain of annual dividend income is Annaly Capital Management (NYSE: NLY).
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Value stocks have been on a pretty good run the last two years, outperforming growth stocks. For the one-year period ended Feb. 9, value stocks have returned 17%, while growth stocks have returned 11.4%, as measured by the Russell 1000 Value and Growth indexes, respectively. Of course, the market goes in cycles, and growth stocks have beaten value stocks over the long term, generally speaking.
With more than 300 companies on this list, it's easy to overlook some high-quality dividend growth stocks. Three that might have flown under the radar of dividend investors are Brookfield Renewable (NYSE: BEP)(NYSE: BEPC), Brookfield Infrastructure (NYSE: BIP)(NYSE: BIPC), and SL Green Realty (NYSE: SLG).
Growth stocks have been battered over the last year of trading. While volatility may continue to shake the market in the near term, investors now have a sizable collection of great companies trading at much more attractive prices to choose from. With that in mind, a panel of Motley Fool contributors has identified three of their favorite beaten-down growth stocks.
The market may rise or fall on any given day, for many reasons. Those short-term fluctuations are unavoidable and unpredictable. But the longer you stay invested, the more likely you are to make money.
Market crashes happen. You can't prevent them, but you can put yourself in a position to emerge stronger once they pass.
With big pullbacks for these companies, you might want to look to buy while their valuations are more favorable.
For some people, the idea of building an investment portfolio is overwhelmingly daunting. Thankfully, there's a good solution for those who are nervous about hand-picking stocks, or for those who would simply rather take a more hands-off approaching to investing — buying index funds. Index funds are passively managed funds that aim to match the performance of the benchmarks they're associated with.