MarketWatch rounded up 10 of its most interesting topics over the past week.
1. Dow breaks streak as fear mounts
The Dow Jones Industrial Average
declined 2.5% during the first quarter, following a nine-quarter winning streak. Mark DeCambre explains the fear-based breakdown for the oldest stock index.
2. Sign of a bear market
We may be in the early days of a bear market for stocks, usually defined as a 20% decline. True, the Dow is down “only” 7.6% from its closing high on Jan. 26, while the S&P 500
is down 8.1% from its closing high on the same day. If the losses morph into a bear market, it may continue into 2019, explains Mark Hulbert.
3. Tesla’s cash bleed
Moody’s Investors Service has downgraded Tesla
to a corporate debt rating of B3 from B2. Both are below-investment-grade ratings. As a result, it will probably cost Tesla more if it chooses to raise more cash through debt offerings. If instead the company issues more shares to raise cash, it further dilutes the ownership percentages of Tesla’s current shareholders,who already face the likely conversion to common stock of $230 million in convertible bonds due in 2018 and $920 million in March 2019.
John Thompson of Vilas Capital Management believes Tesla is only four months away from bankruptcy.
4. Yes, you can easily make a lot of money
Are you going to roll your eyes when someone reminds you of the magic of compounding? Maybe you already know. If so, spread the word. Paul Merriman explains in very simple terms how easy it is to accumulate a lot of money over the long haul by making a very small sacrifice each month.
Also see: A less risky alternative to retiring early that still gives you plenty of freedom
5. Looking for toy bargains?
Toys ‘R’ Us is going out of business. Here’s the best way to shop during the liquidation sales.
6. FAANG stocks or WNSSS stocks?
Jeff Reeves presents a list of tech companies whose shares have outperformed the FAANG group and appear likely to continue to do so. So look beyond Facebook
and Google holding company Alphabet
7. Trump and Amazon
President Trump said this on Twitter on Thursday:
I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!
— Donald J. Trump (@realDonaldTrump) March 29, 2018
Shares of Amazon initially declined after that, but then recovered and closed with a gain of over 1%. Here’s more on why investors shouldn’t react to this type of comment from the president.
8. An unexpected place to have lunch (or get engaged)
used to be called Restoration Hardware. But the company has done a lot more than change its name to increase sales and its share price. Here’s how an old, boring business is transforming itself.
9. If you expect a high income-tax rate when you retire, this is the time to consider converting to a Roth IRA
The new tax law means you might be seeing the lowest federal income-tax rates of your lifetime. Bill Bischoff explains the factors you need to consider if you wish to maximize tax savings on your retirement nest egg.
10. How McDonald’s makes hungry customers even hungrier
Here’s a fascinating look at design elements in McDonald’s
restaurants that can make you more hungry while easing the pain of spending money.
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