short term – John Hesch http://johnhesch.com/ Sat, 12 Mar 2022 10:08:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://johnhesch.com/wp-content/uploads/2021/07/icon-150x150.png short term – John Hesch http://johnhesch.com/ 32 32 Why the government has offered the lowest interest rate on the Employees Provident Fund in over 40 years https://johnhesch.com/why-the-government-has-offered-the-lowest-interest-rate-on-the-employees-provident-fund-in-over-40-years/ Sat, 12 Mar 2022 10:08:28 +0000 https://johnhesch.com/why-the-government-has-offered-the-lowest-interest-rate-on-the-employees-provident-fund-in-over-40-years/ The retirement fund organization Employees Provident Fund Organization (EPFO) on Saturday lowered the interest rate on the employees’ provident fund to 8.1% for 2021-2022, the lowest rate offered by the EPFO ​​since more than four decades, the Press Trust of India news agency reported citing sources. This is the lowest level since 1977-78, when the […]]]>

The retirement fund organization Employees Provident Fund Organization (EPFO) on Saturday lowered the interest rate on the employees’ provident fund to 8.1% for 2021-2022, the lowest rate offered by the EPFO ​​since more than four decades, the Press Trust of India news agency reported citing sources. This is the lowest level since 1977-78, when the EPF interest rate was 8%.

In March 2020, the EPFO ​​had lowered the interest rate on deposits to the provident fund to a seven-year low of 8.5% for 2019-20, from 8.65% forecast for 2018-19.

The forecast EPF interest rate for 2019-20 was the lowest since 2012-13, when it was reduced to 8.5%.

Why low interest rate?

The lowest interest rate offered by the government on the provident fund is due to the low interest regime currently prevailing in the economy. The Reserve Bank of India has kept interest rates at record highs for the past 10 policy meetings to support economic growth that has been ravaged by the Covid-19 pandemic.

Currently, the RBI’s repo rate or lending rate is stable at an all-time high of 4% and the reverse repo, or the rate at which it absorbs excess cash from lenders, unchanged at 3.35%.

With RBI interest rates at record lows, banks are also charging lower interest rates on home loans, car loans, personal loans and other types of loans. The State Bank of India, the largest lender in the country, charges 6.7% interest and even private lenders offer home loans from the same interest rate.

Auto loans are offered by the State Bank of India in the range of 7.2 to 7.7 percent, according to data on its website.

Hence interest rates on deposits are also at lower levels, State Bank of India is offering fixed deposit term interest rate from 211 days to less than one year at 4.4% and on longer-term fixed deposits with tenors of 2 years and 3 years. are offered at 5.1 percent.

However, with rising inflation due to soaring crude prices internationally following Russia’s invasion of Ukraine and soaring prices for various industrial metals due to supply chain disruptions of supply following sanctions on Russia, it remains to be seen when the low interest rate regime cycle will turn with various central banks also hinting at higher interest rates.

Earlier this month, US Federal Reserve Chairman Jerome Powell said he supported a traditional quarter-point increase in the Federal Reserve’s benchmark short-term interest rate during the Fed meeting later this month, rather than a bigger hike proposed by some of its policymakers. , reported the Associated Press news agency.

But Powell opened the door for a bigger hike in case inflation, which has hit a four-decade high, doesn’t come down materially this year, as the Fed expects.

]]>
Latest Updates on Auto Loan Interest Rate Increase https://johnhesch.com/latest-updates-on-auto-loan-interest-rate-increase/ Fri, 11 Mar 2022 22:15:26 +0000 https://johnhesch.com/latest-updates-on-auto-loan-interest-rate-increase/ Like many Americans, you might wonder what’s going on in the world at the gas pump, the grocery store, and the parking lot — all places where inflation is evident. Right now we’re seeing a 40-year high rate of inflation that’s really hitting Americans in their pocketbooks. A rise in interest rates could help deflate […]]]>

Like many Americans, you might wonder what’s going on in the world at the gas pump, the grocery store, and the parking lot — all places where inflation is evident. Right now we’re seeing a 40-year high rate of inflation that’s really hitting Americans in their pocketbooks. A rise in interest rates could help deflate this situation, but how this affects you in 2022? We’ll take a look.

How do interest rates and inflation affect you? The consumer price index (CPI) is a measure of price changes over time. In other words, how much consumers spend on average on a number of goods and services like food, energy and gasoline. According to the New York Times, the CPI rose 7.9% in February. This is the fastest rise in inflation since 1982.

For you, that means you’re seeing prices go up on everyday items, and you’re seeing them go up quickly. Demand for these items is on the rise, impacted by tight supply chains and global events. But prices remain high when people are willing to pay them.

This is where the Federal Reserve comes in. A rise in interest rates would combat the accelerating inflation that is spreading nationwide. The original plan was to be a series of rate hikes this year, but the Fed will proceed with caution in light of recent global events.

According to ABC News, Federal Reserve Chairman Jerome Powell said he supported a traditional quarter-point increase in the benchmark short-term interest rate. This increase is expected to come later this month. In light of the four-decade high rate of inflation, Powell did not close the door on the possibility of a bigger rate hike if needed. Other Fed officials signaled support for similar small rate hikes, while a few indicated support for a larger increase.

When the federal benchmark rate goes up, it means the rate at which banks lend money to each other goes up, and everyone will see an increase in the interest rate you pay on things like mortgages and car loans. With more expensive borrowing, consumers and businesses are slowing down investments that help slow the economy. This causes demand to fall and prices to follow. It could also help alleviate supply chain issues that help keep prices high.

Will a rise in interest rates affect you? This increase is likely to impact consumers when it comes to auto loans, but it remains to be seen how much of this change is really felt in the auto market. If you’re already paying high interest due to your situation, you might not feel the pinch as much as others. And, the impact may take a little while to be felt.

For car buyers, that means being diligent about finding the best deals. Make sure you know where your credit stands and what types of interest rates you are likely to qualify for. Remember that tight inventory also leads to higher prices, so you may need to shop around at multiple dealerships to find the best deal for your situation. If you limit your search to a two-week window, called rate shopping, all of the applications you make for the same type of loan only count against your credit score once, instead of having multiple applications for credit in your reports over time.

The current federal funds rate is 0.25%, lower than it normally holds. As the Fed’s interest rate hikes begin to impact the market, we’ll know more about the direct impact on car buyers. These will be the first rate hikes since 2018, and we’ll keep you posted on how rising federal interest rates may impact you. Look for the latest updates and issues here when they become available.

]]>
Have interest rate hikes in New Zealand brought any changes? https://johnhesch.com/have-interest-rate-hikes-in-new-zealand-brought-any-changes/ Wed, 09 Mar 2022 06:25:00 +0000 https://johnhesch.com/have-interest-rate-hikes-in-new-zealand-brought-any-changes/ Wednesday, March 9, 2022, 7:25 p.m.Press release: Kalkin Summary The political action unfolded in the form of several closely spaced interest rate hikes in New Zealand over a short period. The immediate effect of an interest rate hike was felt in the foreign exchange market for the New Zealand dollar. Some experts suggest that domestic […]]]>


Summary

  • The political action unfolded in the form of several closely spaced interest rate hikes in New Zealand over a short period.
  • The immediate effect of an interest rate hike was felt in the foreign exchange market for the New Zealand dollar.
  • Some experts suggest that domestic policy measures may not be effective against inflation resulting from international forces.

In the era of COVID-19, central banks around the world have resorted to interest rate hikes to combat inflationary pressures and move closer to normalcy. For New Zealand, the political action unfolded in the form of several closely spaced interest rate hikes in a short period of time. This has left many people worried about the economy and house prices.

Despite the uncertainty, financial confidence is improving among New Zealanders. According to the latest Financial Resilience Index (FRI) from the Financial Services Council, more and more people feel secure about their jobs. At a time when the country is slowly moving towards economic stability, rising interest rates appear to pose serious affordability and consumer spending issues.

Overall, it is difficult to separate the effects of rising interest rates from a whirlwind of growing geopolitical tensions. In the meantime, some direct impacts of an interest rate hike are already visible. These effects can translate into a slowdown in spending over time if policy tightens again.

GOOD READING: New Zealand consumer confidence plummets, will it rebound soon?

NZD and mortgage rates

The hawkish policy stance taken by the Reserve Bank of New Zealand (RBNZ) has led to many short-term changes across the economy. Finally, the central bank raised interest rates by 25 basis points, bringing the current interest rate to 1%. While the move was largely expected, it was the RBNZ’s third interest rate hike since the pandemic began.

The immediate effect of an interest rate hike was felt in the foreign exchange market for the New Zealand dollar. The indication of a tightening cycle initially pushed the New Zealand dollar higher as the currency found comfort in rising resource prices. However, it recently fell from new 2022 highs after skyrocketing oil prices threatened the global economic recovery.

Besides the local currency, mortgage rates also reacted to changes in interest rates. Following in the central bank’s footsteps, commercial banks like ASB and Westpac have recently raised mortgage interest rates, but to a lesser extent. Both banks took inspiration from ANZ’s decision to raise mortgage rates to dampen inflation.

Experts suggest that rising mortgage rates are crucial for stabilizing house prices as it could discourage even the wealthiest borrowers from taking out a loan. The effects of these expectations are visible in the easing of real estate prices observed in January, with the drop in sales leading the way.

Fight against inflation

While the central bank’s efforts are focused on controlling the rate of inflation, little effect has been observed so far on consumer prices. Rising consumer prices have become a persistent problem amid supply chain constraints and lack of adequate manpower.

Some experts suggest that domestic policy measures may not be effective against inflation resulting primarily from international forces. Supply bottlenecks developed in global economies require a well-integrated solution with a broader reach.

Meanwhile, other experts say interest rates have a direct impact on investors’ risk and investment appetite. They believe that changes in interest rates can affect consumer spending and inflation. However, recent data suggests that these links have led to a slowdown in stock market activity. Alternatively, the successful recovery of the economy has helped support an improvement in corporate profit margins.

Despite tentative results, the central bank is expected to press ahead with tightening measures in the coming months. Speculation is rife that the RBNZ will undertake a more aggressive tightening of monetary policy and reduce its bond holdings of NZ$50 billion acquired under the large-scale asset purchase program in the coming months. It remains to be seen whether this will be the central bank’s longstanding response to skyrocketing inflation.

GOOD READING: New Zealand transport services take a hit amid Omicron wave

Despite continued headwinds, some experts are predicting up to ten consecutive 25 basis point rate hikes from the RBNZ. However, rising interest rates could hamper economic activity, doing little to control the larger problem of rising inflation. Meanwhile, the outlook for New Zealand’s economy remains uncertain amid the ongoing Russian-Ukrainian war, even with adequate political regulation.

© Scoop Media

]]>
How to Choose the Best Loan Company for Bad Credit https://johnhesch.com/how-to-choose-the-best-loan-company-for-bad-credit/ Tue, 08 Mar 2022 20:59:55 +0000 https://johnhesch.com/how-to-choose-the-best-loan-company-for-bad-credit/ A bad credit loan could be a viable option if you can’t get approved for a loan from a bank, credit union, or borrow money from friends and family. It is relatively easy to apply and most lenders issue quick loan decisions. Interest rates can reach up to 36% on unsecured and secured personal loans […]]]>

A bad credit loan could be a viable option if you can’t get approved for a loan from a bank, credit union, or borrow money from friends and family.

It is relatively easy to apply and most lenders issue quick loan decisions. Interest rates can reach up to 36% on unsecured and secured personal loans for bad credit or triple digits for payday loans and cash advances.

However, not all loan options are the same. Before applying, consider how to choose the best bad credit lender.

What is a bad credit loan

A bad credit loan is a personal loan for consumers with credit difficulties. You may also qualify for a bad credit loan if you have little or no credit history.

Loans for bad credit generally have no restrictions on how the funds can be used. Some borrowers cover financial emergencies, medical bills, or make expensive home repairs. Others use the money to consolidate their debts or as they see fit.

These loan products usually come with high interest rates because they are risky for the lender. But the interest rate on most bad credit loans is fixed, so the monthly payment amount won’t change. Loan proceeds are allocated in a lump sum and payable in equal monthly installments over a specified period.

Payday loans and cash advances are alternatives to bad credit personal loans. However, interest rates and fees tend to make these loans very risky options.

Types of loans for bad credit

There are four main types of bad credit loans.

Secure loan

You will need collateral to get approved for a secured loan. However, the rate will generally be lower than what you would get with an unsecured loan. Your lender can seize your property and sell it to recover their losses if you fail to repay the loan.

These loan products are also easier to obtain if you have bad credit. However, they should only be used if you can comfortably afford the loan repayments.

Unsecured loan

This type of loan is preferred if you need a bad credit loan. You won’t need collateral to qualify and you could be eligible for a hefty amount. The downside is that your interest rate will be higher with a lower credit score.

Consider targeting online lenders. They tend to offer more flexible personal loan options for borrowers with bad credit than traditional banks and credit unions.

payday loan

A payday loan can be used as a last resort if you cannot qualify for a personal loan or borrow from family or friends. It is a short term loan of $500 or less. It comes with an excessive interest rate, usually in the triple digits, and is payable on the day of your next payday.

These loans are extremely risky and can trap you in a dangerous cycle of debt if you are unable to pay and are forced to extend the term of the loan. You could rack up several hundred dollars in interest and fees each time you carry over the balance.

Cash advance

Like payday loans, cash advances are another expensive way to borrow money. They are available from some credit card issuers and involve withdrawing funds from your credit card’s available balance.

The amount you borrow will be added to your existing account balance, but you can expect to pay a higher interest rate than that charged for purchases made with the card.

How to Choose a Loan Company for Bad Credit

Beyond funding timelines, there are other factors to consider when evaluating bad credit lenders.

Borrowing costs

The cost of borrowing varies by lender and loan product. Get options from multiple lenders and compare them to see which offers the most competitive interest rate and doesn’t charge a fortune in fees.

Reputation of the lender

Bad credit loans are readily available from several financial institutions, both physical and online. Not all lenders are the same and some should be avoided. Some lenders may even be scammers.

Avoid lenders that aren’t registered to do business in your state, offer guaranteed approvals without a credit check, or require an upfront payment to approve you for a loan. It is equally important that they have a secure website and a physical address.

Loan conditions

An extended repayment term means that your monthly payment will be lower, but you will pay more interest over the life of the loan. So, a shorter loan term might be more ideal if you want to pay off what you owe faster and save a lot of interest.

Client experience

The lender should offer customer support by phone, online, or both at times that suit your busy schedule. It’s also essential that the application experience is seamless and that the lender gives you the ability to manage your loan online through a mobile app once it’s approved and you start making payments.

At the end of the line

Several loan options for bad credit could be suitable. But before applying for a loan, research loan types and shop around for quotes. When narrowing down your options, you also want to evaluate lenders based on their reputation, loan costs, terms, and customer service to find the best one for you.

]]>
Waterstone Financial, Inc. (NASDAQ:WSBF) Short Interest Up 34.9% in February https://johnhesch.com/waterstone-financial-inc-nasdaqwsbf-short-interest-up-34-9-in-february/ Mon, 07 Mar 2022 06:26:10 +0000 https://johnhesch.com/waterstone-financial-inc-nasdaqwsbf-short-interest-up-34-9-in-february/ Waterstone Financial, Inc. (NASDAQ:WSBF – Get Rating) was the target of strong short-term interest growth in February. As of February 15, there was short interest totaling 226,500 shares, a growth of 34.9% from the total of 167,900 shares as of January 31. Approximately 1.1% of the company’s shares are sold short. Based on an average […]]]>

Waterstone Financial, Inc. (NASDAQ:WSBF – Get Rating) was the target of strong short-term interest growth in February. As of February 15, there was short interest totaling 226,500 shares, a growth of 34.9% from the total of 167,900 shares as of January 31. Approximately 1.1% of the company’s shares are sold short. Based on an average daily volume of 92,800 shares, the day-to-cover ratio is currently 2.4 days.

Shares of NASDAQ WSBF opened at $19.86 on Monday. The stock has a market capitalization of $481.23 million, a P/E ratio of 6.73 and a beta of 0.31. The company has a 50-day moving average price of $20.62. Waterstone Financial has a one-year low of $18.70 and a one-year high of $22.74. The company has a quick ratio of 1.26, a current ratio of 1.52 and a debt ratio of 1.07.

Waterstone Financial (NASDAQ:WSBF – Get Rating) last released its quarterly results on Thursday, January 27. The savings and loan company reported EPS of $0.53 for the quarter, beating the consensus estimate of $0.48 by $0.05. Waterstone Financial had a return on equity of 16.27% and a net margin of 25.92%. On average, equity research analysts expect Waterstone Financial to post EPS of 1.47 for the current fiscal year.

(A d)

“There are not enough semiconductor chips in the world to meet the growing demand. But due to the global chip shortage…

These four companies are well positioned to take advantage of this rapidly growing demand over the next 12 months and beyond. ”

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 1. Shareholders of record on Monday, January 10 received a dividend of $0.70. This is an increase from Waterstone Financial’s previous quarterly dividend of $0.20. The ex-dividend date was Friday, January 7. This represents an annualized dividend of $2.80 and a dividend yield of 14.10%. Waterstone Financial’s dividend payout ratio (DPR) is currently 27.12%.

Several large investors have recently increased or reduced their stake in WSBF. The New York State Teachers’ Retirement System bought a new stake in Waterstone Financial stock in the third quarter, valued at around $37,000. Citigroup Inc. increased its position in shares of Waterstone Financial by 225.9% during the third quarter. Citigroup Inc. now owns 4,664 shares of the savings and loan company worth $96,000 after buying 3,233 more shares last quarter. Metropolitan Life Insurance Co NY increased its position in Waterstone Financial shares by 71,300.0% during the second quarter. Metropolitan Life Insurance Co NY now owns 5,712 shares of the savings and loan company worth $112,000 after purchasing an additional 5,704 shares in the last quarter. BNP Paribas Arbitrage SA increased its position in Waterstone Financial shares by 109.3% in the third quarter. BNP Paribas Arbitrage SA now owns 7,056 shares in the savings and loan company worth $145,000 after buying 3,684 additional shares last quarter. Finally, MetLife Investment Management LLC increased its stake in shares of Waterstone Financial by 57.4% in the 2nd quarter. MetLife Investment Management LLC now owns 8,351 shares of the savings and loan company worth $164,000 after acquiring 3,044 additional shares in the last quarter. 56.85% of the shares are currently held by institutional investors and hedge funds.

Separately, Zacks Investment Research upgraded Waterstone Financial from a “Strong Sell” rating to a “Hold” rating in a Wednesday, February 16 research report.

Waterstone Financial Company Profile (Get a rating)

Waterstone Financial, Inc operates as a loan holding company, which provides core lending activities. The Company operates through the following segments: Community Banking and Mortgage Banking. The Community Banking segment provides personal and business banking products and services to customers primarily in southeast Wisconsin.

Featured articles

This instant alert was powered by MarketBeat’s narrative science technology and financial data to provide readers with the fastest and most accurate reports. This story was reviewed by MarketBeat’s editorial team prior to publication. Please send questions or comments about this story to [email protected]

Should you invest $1,000 in Waterstone Financial right now?

Before you consider Waterstone Financial, you’ll want to hear this.

MarketBeat tracks Wall Street’s top-rated, top-performing research analysts daily and the stocks they recommend to their clients. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the market takes off…and Waterstone Financial wasn’t on the list.

Although Waterstone Financial currently has an “N/A” rating among analysts, top-rated analysts believe these five stocks are better buys.

See the 5 actions here

]]>
What is the maximum interest rate an approved lender can legally charge?, Money News https://johnhesch.com/what-is-the-maximum-interest-rate-an-approved-lender-can-legally-charge-money-news/ Sun, 27 Feb 2022 09:00:00 +0000 https://johnhesch.com/what-is-the-maximum-interest-rate-an-approved-lender-can-legally-charge-money-news/ When looking for the best personal loan, licensed lenders are a good alternative to banks. Fast, easy and convenient, approved lenders speed up the process, turning what could take weeks into days. Depending on the type of personal loan, approved lenders are more lenient with their money, allowing them to lend to more people. This […]]]>

When looking for the best personal loan, licensed lenders are a good alternative to banks. Fast, easy and convenient, approved lenders speed up the process, turning what could take weeks into days.

Depending on the type of personal loan, approved lenders are more lenient with their money, allowing them to lend to more people. This makes approved lenders faster and more ideal for smaller sums.

However, some might think that personal loans from approved lenders are not as legitimate. This mindset, while valid at times, unfortunately limits the personal loan options available.

This is not only detrimental if you need a personal loan quickly, but it is necessary if you have a lower credit score and are unable to get a personal loan from the bank.

To better understand approved lenders on a balanced scale, here are four common myths you should avoid when considering borrowing from approved lenders.

4 myths you should avoid when considering a personal loan from an approved lender

PHOTO: Value Champion

Myth 1: All loan sharks are loan sharks

Loan sharks (or “Oh long”) are unlicensed lenders who use illegal tactics to promote, encourage and lend personal loans. Often they go through unsolicited telemarketing text messages and messages regarding their personal loans.

In case of default, they charge exorbitant interest rates and resort to unregulated harassing methods to drive out debts. These tactics often harm neighborhood communities and can lead to unwarranted violence in order to get their money back.

These are the loan sharks we should all avoid. Unfortunately, many approved lenders get it wrong.

Licensed lenders, on the other hand, can be recognized by their license number. These figures are administered by the Department of Justice and can be found on their comprehensive list of approved lenders on their website.

To compare approved lenders and their personal loan rates based on your needs, Lendela is a good option.

Lendela allows users to compare different personalized personal loan offers based on their needs and credit history, so one can be sure that they are getting a legal personal loan from approved lenders that suits their budget. and their credibility.

Myth 2: You can’t take out a personal loan with a low credit score

The truth is you can. Approved lenders are open to providing personal loans to people with low credit ratings, provided they have clear evidence of a steady stream of income from employment to repay the loan. They will not charge any excess interest rate and may sometimes provide debt consolidation services.

In fact, taking out a personal loan from an approved lender can help improve your credit score. Since the credit score is usually difficult to improve, this is a good opportunity to move it to a better place.

Myth 3: Secured personal loans from approved lenders are better than unsecured loans

Backed by collateral, secured personal loans are generally preferred for low interest rates. It allows borrowers to borrow a larger amount from an approved lender and allows them to spread their payments over a longer period. Examples include mortgages and auto loans.

Unsecured personal loans (for example, student loans) have no collateral. Instead, they are granted by an approved lender based on the reliability of the borrower.

However, that means it comes without the benefits of a secured personal loan – higher interest rates while borrowing a lower amount. They also need to repay their loan as soon as possible.

Although secured loans may seem favorable due to their advantages, approved lenders would need more time to process, evaluate and approve the collateral. This makes the borrowing process much slower, which may not be favorable for borrowers who are in dire need of money.

To choose the best option, one must consider the reason for the loan. If you are a short term borrower, select an unsecured loan. However, if you are able to wait through the entire collateral approval process, secured personal loans might be your best bet.

Myth 4: Approved lenders have higher interest rates than banks

Approved lenders are actually tightly regulated and they are not able to charge an interest rate higher than that stipulated by the Department of Justice.

In fact, the regulations facing banks are slightly more lenient. Although their interest rates are lower, there is no law preventing them from charging higher interest rates. As a result, some banks charge much more than all approved lenders.

So what is the maximum interest rate an approved lender can legally charge?

Lend money
PHOTO: Value Champion

According to the Department of Justice, approved lenders can legally charge late payment interest of up to 4% per month. This limit is effective whether it is a secured or unsecured personal loan and the income the borrower earns.

Interest can only be charged on the remaining money that has not been paid. This means that if Person A took out a $10,000 personal loan and repaid $8,000 on time, only the remaining $2,000 should be charged for late interest.

Remaining amount that has not been paid:

$10,000 – $8,000 = S$2,000

Therefore, $2,000 is payable in interest

Interest may also be charged only for amounts that have been paid late. For example, Person B took out a personal loan of $10,000 repaid in installments of $2,000. He did not pay his first installment. This means that only the $2,000 of this late payment is chargeable to late payment interest.

Other fees approved lenders may charge according to the Department of Justice include:

  • A fee not exceeding $60 for each month of late repayment
  • A commission not exceeding 10% of the principal of the loan when a loan is granted
  • Court-ordered legal costs for a successful claim by the lender to recover the loan.

This article was first published in ValueChampion.

]]>
Paul Ince set to take charge of Reading for the first time against Birmingham https://johnhesch.com/paul-ince-set-to-take-charge-of-reading-for-the-first-time-against-birmingham/ Mon, 21 Feb 2022 15:05:15 +0000 https://johnhesch.com/paul-ince-set-to-take-charge-of-reading-for-the-first-time-against-birmingham/ Interim Reading boss Paul Ince has some decisions to make ahead of Tuesday night’s Sky Bet Championship game against Birmingham. The 54-year-old former Manchester United and England midfielder, whose son Tom is on loan to the Royals from Stoke, took charge on Saturday night just hours after Veljko Paunovic left after guiding the club to […]]]>

Interim Reading boss Paul Ince has some decisions to make ahead of Tuesday night’s Sky Bet Championship game against Birmingham.

The 54-year-old former Manchester United and England midfielder, whose son Tom is on loan to the Royals from Stoke, took charge on Saturday night just hours after Veljko Paunovic left after guiding the club to a 3-2 win at Preston. in what turned out to be his last match at the helm.

Ince had little time to enforce the rule on a side winning for the first time in 12 league games at Deepdale, where former Rangers winger Brandon Barker made his debut as a late substitute after signing a short-term contract.

Centre-back Tom McIntyre was also used on the bench at the weekend for the first time since being ruled out with injury in August, but midfielder Josh Laurent has missed the last two games due to injury. ankle problem and Dejan Tetek, Femi Azeez, Felipe Aararuna, Scott Dann and Alen Halilovic are still out.

Birmingham boss Lee Bowyer will check Manchester United players Tahith Chong and Teden Mengi before naming his squad.

Midfielder Chong hasn’t played since October after undergoing thigh surgery but is back in training and one step closer to a comeback.

Defender Mengi missed Saturday’s 2-2 draw at Stoke with a hamstring problem but Bowyer doesn’t expect him to be out for too long.

However, Marc Roberts (hamstring), Troy Deeney, George Friend, Scott Hogan (all calf) and Taylor Richards (ankle) are still on the casualty list.

The best videos delivered daily

Watch the stories that matter, straight from your inbox

]]>
Fed officials push back on rapid interest rate hikes | Economic news https://johnhesch.com/fed-officials-push-back-on-rapid-interest-rate-hikes-economic-news/ Fri, 18 Feb 2022 21:06:00 +0000 https://johnhesch.com/fed-officials-push-back-on-rapid-interest-rate-hikes-economic-news/ By STAN CHOE and CHRISTOPHER RUGABER, AP Business Writer NEW YORK (AP) — The Federal Reserve is expected to start raising interest rates next month to help contain too-high inflation, New York Federal Reserve Chairman John Williams said Friday. But he added that rate hikes may not need to start as strong as some have […]]]>

By STAN CHOE and CHRISTOPHER RUGABER, AP Business Writer

NEW YORK (AP) — The Federal Reserve is expected to start raising interest rates next month to help contain too-high inflation, New York Federal Reserve Chairman John Williams said Friday. But he added that rate hikes may not need to start as strong as some have suggested.

With inflation at its highest level in two generations, the Fed is expected to seek to cool the economy by raising its benchmark short-term interest rate from its record low of near zero. , where he has been throughout the pandemic. The only question has been how deep and how fast will it be, as too aggressive an approach could stifle the economy while too cautious could let inflation soar further.

“I personally don’t see any compelling case for taking a big step early,” Williams said following an event at New Jersey City University to discuss the economy and interest rates.

Williams, who is vice-chairman of the committee that sets interest rate policy at the Fed, said he saw a hike in March as the start of an “evolving” process to bring rates closer to interest to a level where they no longer stimulate the economy. He also said he expects inflation to decline from its current level due to a confluence of factors, including Fed actions and hoped-for improvements in inflation bottlenecks. supply chain. Last month, inflation hit 7.5% in January compared to a year ago.

political cartoons

Williams’ comments were echoed by other Fed officials, who spoke at a policy conference in New York. This support for a steady approach to rate hikes contrasted with previous statements by St. Louis Federal Reserve Chairman James Bullard, who said the Fed should consider a half-point rate hike when one of its next meetings, double its normal increase. His comments rattled Wall Street, which expected a slower takeoff in rates.

Federal Reserve Board of Governors member Lael Brainard said she expects the Fed at its next meeting in March to “initiate a series of rate hikes.”

Brainard is close to Fed Chairman Jerome Powell and was named vice chairman, the Fed’s No. 2 job.

Krishna Guha, an analyst at investment bank Evercore ISI, said Brainard “largely agrees” with Wall Street’s expectations that the Fed would hike rates six times this year.

She also said the Fed would soon turn to shrinking its massive $9 trillion balance sheet, which more than doubled during the pandemic due to Fed bond purchases. She said they would likely do that faster than between 2017 and 2019, when they let about $50 billion in bonds mature without replacing them.

Charles Evans, president of the Chicago Fed, said on Friday that the Fed needed to adjust its low interest rate policies, which he called “ill-intentioned.” But he also hinted that the central bank might not have to raise rates sharply this year.

Evans also said the high prices were primarily caused by supply chain disruptions and other factors resulting from the pandemic, and will likely subside in part on their own.

And given the current strength in the economy, Fed decisions are unlikely to slow hiring as much as interest rate hikes have in the past, Evans added.

Higher rates can contain inflation by slowing down the economy. But they can also cause a recession if they get too high, and they put downward pressure on all kinds of investments, from stock prices to cryptocurrencies.

Wall Street has recently been obsessed with almost every word of Fed officials, hoping to guess how quickly and how much the Fed will act.

The mix of aggressive and moderate comments left traders’ expectations in flux. Traders were only pricing in a 21% chance of such a half-point move on Friday afternoon, down from 49% a week earlier, according to CME Group.

Williams said he didn’t want to go into great detail about whether market expectations are in line with his own thinking on interest rate policy.

But he said the broad moves made sense, based on expectations that the Fed would bring its key interest rate closer to normal, like 2% to 2.5% by the end of the month. next year. That’s more than the latest forecast from Fed officials. In December, they had a median projection of 1.6% for the federal funds rate at the end of 2023.

Evans, who generally favors lower interest rates, acknowledged that if inflation remains high throughout this year, more rate hikes may be needed.

Other speakers at the New York conference focused on whether the Fed got it wrong when it adopted its new policy framework in August 2020, which aimed to keep rates low until inflation actually materializes. Previously, the Fed typically raised borrowing costs when the economy was healthy to anticipate any inflation.

Frederick Mishkin, former Fed governor and economist at Columbia University, said the Fed had “made a big mistake” in not raising rates sooner to keep inflation from taking off. Now, Fed officials may have to raise rates much more to get prices level, he added.

Evans, however, defended the Fed’s new policy framework by pointing out that in the past, when the Fed raised rates to anticipate inflation, such moves likely cost many jobs. And in some cases, inflation has not materialized.

Following remarks from Williams and Evans, the two-year Treasury fell to 1.46% from 1.49% on Thursday night. It tends to move with expectations regarding Fed rate policy. Stocks and other segments of the bond market also fell on fears of a possible Russian invasion of Ukraine.

Copyright 2022 The Associated press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

]]>
Would a bear market affect Fed interest rate hikes? https://johnhesch.com/would-a-bear-market-affect-fed-interest-rate-hikes/ Tue, 15 Feb 2022 19:56:00 +0000 https://johnhesch.com/would-a-bear-market-affect-fed-interest-rate-hikes/ Bet_Noire/iStock via Getty Images The stock market is often seen as a leading indicator of the economy, and it is widely believed that the Fed will react to what is happening in the markets. Currently, we are in a situation where the market consensus is that inflation is high and persistent. While the high is […]]]>

Bet_Noire/iStock via Getty Images

The stock market is often seen as a leading indicator of the economy, and it is widely believed that the Fed will react to what is happening in the markets. Currently, we are in a situation where the market consensus is that inflation is high and persistent. While the high is evident from the CPI statistics, which are indeed concerning, the persistence is more of a question mark, but that’s for later. Nevertheless, the markets are anxious about the inflation situation, and it is clear that the rate hikes, already explicitly promised by the Fed, are priced in by the market, where the promised rate hikes are aimed at combating inflation.

We believe that a bear market in the wake of immediate rate hikes is not particularly likely to affect Fed decision-making, since inflation is a major concern for the economy and the market. In fact, if we enter a difficult period due to inflation fears, rate hikes could even come sooner and with more conviction than expected. However, with built-in rate hikes, a bear market following rate hikes is unlikely. What worries us most is what will happen if inflation persists after rate hikes. We think this is entirely possible, and the markets could react very badly to this news, as it should. If that happens, the Fed hikes are likely to reverse. Overall, inflation remains at the center of the discussion, and our belief in its dynamics is very different from the market consensus, which could create a buying opportunity.

What is the impact of Fed interest rates on the market?

the Fed interest rates, or the federal funds rate, is one of the most fundamental rates in the economy because it is dictated by the Federal Reserve, which controls the money supply and refers to the rate at which the funds’ key day-to-day liquidity between depository institutions owned at The Fed is borrowed from and lent to. The rate of these short-term overnight loans eventually spreads out to the rest of the economy for loans of longer duration and with higher credit risk that are priced above the basic federal funds rate. Thus, when the federal funds rate is raised, interest rates experience a general increase and credit becomes less in demand and therefore less available. This is also spreading due to the mechanics of debt, and there is a reduction in the availability of credit which reduces household and industry spending.

Would a bear market affect Fed rate hikes?

There have been times in the past when the market seemed to hold the Fed hostage, when its temper tantrums “dictated” monetary policy. It was such a widely recognized phenomenon that a term was coined for it, known as “Sale of Greenspan‘. Although there is a political discussion here, what can certainly be said is that the stock market, being the rather efficient opinion machine that it is, is a leading indicator of the economy, and the Fed is undoubtedly paying some attention to it. So, what would be the interactions between the markets and a rise in rates in this case?

Fed rate hikes are almost certain to happen at least initially, as the language has been fairly unequivocal at this point and focused on fighting inflation. A degree of market jitters are to be expected as rates actually rise, especially with all the leverage introduced into the economy following the initial pandemic outbreak. However, in this case, rate hikes are already priced in to some degree, so a negative impact on markets beyond that point is not guaranteed. We don’t believe rate hikes will actually cause a bear market and are therefore unlikely to have an immediate impact on the decision to raise rates.

Is inflation transitory?

Our concern is whether rate hikes, which honestly might even be appreciated by the markets given that inflation is the real boogeyman, will actually help reduce inflation. Our belief is that over the longer term, despite the Fed’s withdrawal of this language, inflation is transitory. In the medium term, however, that is not the case, and that is because inflation comes from physical and not immediately changeable constraints on the supply side, and not so much on the demand side. Our non-consensus view is that COVID-19 has actually had a positive impact on the productivity of our economies by accelerating and proliferating digitalization, hence even disinflationary pressure. Moreover, it permanently shifted demand from services to goods, for which our production capacity was not prepared. Planned closures and maintenance in anticipation of greater declines or at least uncertainty about the economy in 2020 have created drawdowns on stocks. In addition, capacity had to increase to meet higher levels of demand for goods. We are seeing an increase in production facilities across the industry, with an example among our holdings being Suzano (NYSE:SUZ), a major pulp producer that is increasing its production by 20% with a project lasting about three years. Other companies like Costamare (NYSE: CMRE) in maritime transport, are increasing the size of their fleet. Besides very clear bottlenecks in logistics, with submerged ports, and generally tight commodity environments, we are seeing substantial inflation. This includes oil where OPEC maintains discipline due to pandemic-related reduced mobility.

We believe that inflation is transitory, in the sense that it will take about 2-3 years before all shortages and rising commodity prices are normalized by increases in production capacity, which will take about as long, if not longer, again due to shortages and high commodity prices. Until then, we believe that interest rates will not have such a significant impact on inflation, as a lot comes from the supply side.

Conclusion

If our non-consensual view turns out to be true, the markets could become very disrupted. While an initial bear market might not start with rate hikes, the failure of rate hikes to fight inflation could create serious concerns about the economy, inflation being a very pernicious force. . This could trigger a bear market, or even deleveraging, since nominal rates will remain quite high if inflation persists and corporate fundamentals are likely to be affected for all players downstream in the supply chains. At this point, further rate hikes, or at least maintaining higher fed funds rates, may no longer be desired, and with markets being an important measure for the economy, rate hikes may be reversed. So while an immediate bear market on the initial rate hikes seems unlikely, and therefore an effect on Fed policy unlikely, what happens over the 6-12 month period is more uncertain. and could include serious market concerns about the economy possibly reversing. rates.

We continue to believe that the rate of inflation is supply-driven to a large extent, so we continue to position ourselves in commodity-related positions like SUZ, or companies where cost bases are fixed and products are needed with pricing power. Therefore, we are also quite optimistic about the economy of the developed world. But we believe that a bear market could be looming in connection with the appearance of galloping inflation. With our non-consensus view, we would then see a buying opportunity.

]]>
Short-term stake in Malvern Bancorp, Inc. (NASDAQ:MLVF) increases 133.3% https://johnhesch.com/short-term-stake-in-malvern-bancorp-inc-nasdaqmlvf-increases-133-3/ Sun, 13 Feb 2022 14:20:06 +0000 https://johnhesch.com/short-term-stake-in-malvern-bancorp-inc-nasdaqmlvf-increases-133-3/ Malvern Bancorp, Inc. (NASDAQ:MLVF) enjoyed significant growth in short-term interest in January. As of January 31, there were short interests totaling 8,400 shares, a growth of 133.3% from the total of 3,600 shares as of January 15. Based on an average daily volume of 11,600 shares, the short interest rate is currently 0.7 days. Approximately […]]]>

Malvern Bancorp, Inc. (NASDAQ:MLVF) enjoyed significant growth in short-term interest in January. As of January 31, there were short interests totaling 8,400 shares, a growth of 133.3% from the total of 3,600 shares as of January 15. Based on an average daily volume of 11,600 shares, the short interest rate is currently 0.7 days. Approximately 0.1% of the company’s shares are sold short.

Hedge funds have recently increased or reduced their stakes in the company. State Street Corp increased its stake in Malvern Bancorp by 5.1% during the second quarter. State Street Corp now owns 50,792 shares of the savings and loan company valued at $939,000 after acquiring 2,447 additional shares during the period. Boothbay Fund Management LLC increased its position in Malvern Bancorp shares by 7.2% during the second quarter. Boothbay Fund Management LLC now owns 270,094 shares of the savings and loan company valued at $4,983,000 after purchasing an additional 18,206 shares in the last quarter. Petiole USA ltd acquired a new position in shares of Malvern Bancorp during the fourth quarter valued at approximately $3,134,000. Commonwealth Equity Services LLC acquired a new position in shares of Malvern Bancorp during the fourth quarter valued at approximately $197,000. Finally, Sterling Investment Advisors Ltd. acquired a new position in shares of Malvern Bancorp during the fourth quarter valued at approximately $31,000. Institutional investors hold 49.03% of the company’s shares.

NASDAQ:MLVF shares opened at $16.60 on Friday. The stock has a market capitalization of $126.53 million, a PE ratio of -1,660.00 and a beta of 1.01. Malvern Bancorp has a 1-year low of $15.12 and a 1-year high of $19.38. The company has a fifty-day moving average price of $15.79 and a 200-day moving average price of $16.93. The company has a current ratio of 1.15, a quick ratio of 1.12 and a debt ratio of 0.81.

(A d)

This guide will help you identify and execute an options trading strategy that fits your specific needs and risk profile.

Take your trading to the next level with the Options Strategy Guide.

Malvern Bancorp Inc (NASDAQ:MLVF) last released quarterly earnings data on Tuesday, February 8. The savings and loan company reported earnings per share (EPS) of $0.27 for the quarter, beating the Zacks consensus estimate of $0.25 by $0.02. Malvern Bancorp had a negative net margin of 0.22% and a negative return on equity of 0.06%. On average, sell-side analysts expect Malvern Bancorp to post earnings per share of 0.91 for the current fiscal year.

Separately, Zacks Investment Research upgraded shares of Malvern Bancorp from a “hold” rating to a “strong sell” rating in a report on Friday, Dec. 17.

Malvern Bancorp Company Profile

Malvern Bancorp, Inc is a bank holding company that provides community banking services. It involves attracting deposits from businesses and the general public and investing those deposits, along with borrowings and funds generated from operations, into commercial and multi-family real estate loans, one- to four-family residential real estate loans, construction and development loans, commercial business loans, home equity loans, lines of credit and other consumer loans.

Read more

This instant alert was powered by MarketBeat’s narrative science technology and financial data to provide readers with the fastest and most accurate reports. This story was reviewed by MarketBeat’s editorial team prior to publication. Please send questions or comments about this story to [email protected]

Should you invest $1,000 in Malvern Bancorp right now?

Before you consider Malvern Bancorp, you’ll want to hear this.

MarketBeat tracks daily the highest rated and most successful research analysts on Wall Street and the stocks they recommend to their clients. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the market ripples…and Malvern Bancorp was not on the list.

Although Malvern Bancorp currently has an “N/A” rating among analysts, top-rated analysts believe these five stocks are better buys.

See the 5 actions here

]]>