The Economist devotes its last cover to “The triumph of big government”. The brief is an interesting piece on governments getting bigger all the time. A citation of Bob Higgs’ Crisis and Leviathan would have been nice, as the piece deals with the core ideas of that, marvelous book, but to its credit The Economist interviewed and quoted a couple of libertarians, like John Cochrane, Johan Norberg and Mark Littlewood of the IEA. Mark is credited with the only thing which looks like a proposal in the entire piece, albeit a vague one. He suggests allowing people to pay less in taxes in return for renouncing some state services. If the tax cut is attractive, but still less than the cost of supplying the service, that saves money”. But, writes The Economist, “because the people keenest to step out from under the umbrella of the state will always be those who already rely least on its protection, the state’s tax revenue would probably decline by a lot more than demand for its services.”
The article insists on the many forces behind government growth and quite correctly puts the decade of the 1980s in perspective. Though Reagan and Thatcher’s rhetoric produced such a shock on the international left that they are still dreaded by many, in fact the cases in which government spending was reduced are very few:
Examples of genuine state retrenchment in developed countries are few and far between. Sweden managed it in the 1980s. In the early 1990s Ruth Richardson, then New Zealand’s finance minister, cut the size of the state drastically. Wags called her plan “Ruthanasia”. The patient did not die. State spending is now six percentage points lower as a share of GDP than it was in 1990. But this is a rare achievement, and perhaps one doomed to pass. Grant Robertson, the current finance minister, pledged to “address the most inequitable of the changes made 30 years ago” as he promised a large boost to welfare payments.
Even austerity, The Economist writes, has been little more than a left wing scapegoat:
Some countries buck the trend, a bit, for a while. Germany’s spending as a share of GDP in 2019 was the same as it was in 2006, Angela Merkel’s first full year as chancellor. But the stable level was also a pretty high one. And German attempts to impose frugality elsewhere were short-lived. Spain and Italy both went on courses of strict austerity during the euro-zone crisis of the early 2010s. But in both cases public-sector spending, relative to GDP, was higher in 2019 than in 2006.
The magazine’s editorial asks how classical liberals should respond to the new era of Big Government which has been ushered by the pandemic and generous fiscal policies made possible by non-conventional monetary policies. Its response is a catalog of good intentions:
One task is to maximise the role of markets and individual choice. Climate change should be fought with a price for carbon, research-and-development subsidies and highly scrutinised public investments, not by rationing flights, promoting green national champions or enlisting central banks to distort financial markets. The welfare state should focus on redistributing cash and letting those in need choose what to do with it, not setting up new bureaucracies such as President Joe Biden’s proposed federal child-care system. Taxes should be broad-based and friendly to investment.
The state must also seek to be nimble and efficient. Income support for households should be automated where possible as the financial sector becomes more digitised. Much form-filling can be eliminated, as Estonia’s war on paperwork has shown. If there were fewer, better-paid bureaucrats, the public sector could attract more talented staff. And politicians should be willing to start afresh when tackling new problems, rather than relying on lacklustre incumbent departments. The biggest successes of governments during the pandemic have come from internal startups like Operation Warp Speed, which helped bring about America’s development of vaccines.
The state should strive to be impartial. Narrow interests, whether the unions and anointed victim groups favoured by the left, or the right’s chums in business, will always seek to capture it. To resist, bureaucrats do not need relentless cynical, self-serving attacks on their integrity from politicians, but transparency and support for the ethos of public service. Though rising total spending on the old is justified, a full-scale gerontocracy is not. Retirees with deep pockets do not need public handouts. On the contrary, they should bear a heavier burden as taxes shift from wages, towards property, inheritance and consumption.
We have here something which is often troubling in classical liberal accounts of current affairs. Classical liberals tend to be realists: they see the “objective” forces behind government growth (pressure groups but also, for the Economist, “prices of the services welfare states provide, such as health care and education, grow faster than the economy because of their high labour intensity and low rates of productivity increase”) but then, when it comes to a positive program, they come up with a few good ideas which would nonetheless require a profound modification in the very system of politics which produced bigger government in the first instance. We tend to be (me included) consistent realists when it comes to the reason why we got here, but idealists when it comes to how to move forward, by appealing to the best sense of the people and leveraging the rationality of our message. Does this work? I would have expected, in the Economist’s piece, some attempt at creative constitutional engineering. Tipping points could be searched for to make the growth of government at least a bit more difficult. When it comes to how (if) the growth of government could be slowed or stopped, there are two relevant questions the Economist seems not to consider.
The first one is to what extent is the growth of government economically harmful. Are people suffering, and will they be poorer because of it? Who will it harm the most? Answering this question will be useful to try to identify who could be the next constituency for limited government. The Economist seems to think that, since the world is more complex, governments needs to do more, hence the case for classical liberalism is intellectually more challenging now than it was at Thatcher’s time. I don’t think that is the case. Actually, perhaps the sophistication of the argument of statists would be an interesting test for that assumption. Do we find contemporary advocates of bigger governments to be more sophisticated than, say, John Maynard Keynes or William Beveridge? My impression is that the argument for government is actually less sophisticated and simply assumes that government is the best answer to a whole series of problems, without proving very much. I think the problem is different. In Thatcher’s time, it was pretty clear that the constituency for reducing the scope and action of government lay within the productive middle class that saw itself as penalized by taxation and regulation and which retained a strong culture of autonomy and self help. Is that still the case now? It seems to be that it is now, but another constituency for a smaller government hasn’t been found yet.(0 COMMENTS) subsidies pandemic euro gdp spain italy germany sweden
Top Trending Stocks to Buy Today
A few companies have started the season off strong. Let’s examine the top trending stocks investors are excited about.
The post Top Trending Stocks to Buy Today appeared first on Investment U.
There is a ton of uncertainty in the investing world right now. First, new COVID-19 strains have turned into an ever-present threat to the entire economy. Second, many companies are still struggling with supply chain issues. Finally, analysts expect interest rates to rise at any minute. However, despite all of this turmoil, a few companies have started the season off strong. This is much-needed good news for investors. Let’s examine a few of these top trending stocks and see why investors are excited about them.
NOTE: I’m not a financial advisor and am just offering my own research and commentary. Please do your own due diligence before making any investment decisions.
What Creates Top Trending Stocks?
When you hear the word “trending”, most people think of a viral social media post. These are posts that everyone is talking about and sharing with each other. Honestly, trending stocks are not that different.
There are tons of factors that could lead to a stock starting to trend. Stocks can also trend for both good and bad reasons. For example, a stock might start trending in a good way because it announced a brand new service (Walt Disney Company and Disney Plus). A stock could also start trending in a bad way because of a CEO scandal (Activision and Bobby Kotick). A stock could even start trending for reasons that have nothing to do with the company (i.e. The GameStop Short Squeeze).
The most important thing is to figure out why a stock is trending, whether the news is good or bad, and how to react to it.
For this article, I’ve focused on stocks that recently crushed their Q4 2021 earnings reports. These stocks are all trending because they are performing better than investors expected them to. Let’s take a look.
No. 4 Levi Strauss & Co. (NYSE: LEVI)
Levi’s was founded in 1853. When things are looking bleak, it’s a good idea to invest in companies that have been around since 1853. They have a very proven ability to overcome tough times.
Apparently, even after 169 years, Levi’s are still in. In Q4 2021, Levi’s posted multi-decade records for revenue and profitability. Chip Bergh, President & CEO, attributed this success to a few factors. First, he praised Levi’s strong brand equity. This allows it to maintain pricing control and refrain from discounting too heavily. He also mentioned that Levi’s is expanding its direct-to-consumer business. This DTC division has much higher margins than Levi’s traditional business. It has helped to increase Levi’s profitability.
For Q4 2021, Levi’s reported revenue of $1.7 billion. This was up 22% from 2020 and 7% from 2019. Levi’s also beat both its earnings per share (EPS) expectations (2.43%) and revenue expectations (0.32%).
In more good news, Levi’s set super high growth expectations for 2022. It forecasted growth of 11-13% for next year. Chip even went so far as to say, “As good as this past year has been, I’m confident the future will be even better.”
In even more good news, Levi’s increased its dividend. This is usually the ultimate sign of security for investors. It shows that the business has so much money that it can afford to pay some back to investors. In total, Levi’s paid out $104.4 million in dividends during 2021.
No. 3 Tesla (Nasdaq: TSLA)
Tesla is rarely not one of the top trending stocks. Usually, Tesla only trends because of Elon Musk and his antics. This time around, however, Tesla is trending because of very substantial news. Namely, it crushed its earnings report.
Of all industries, electric vehicles were one of the hardest hit by supply chain issues. There are so many pieces (literally) that go into building a car. These pieces are sourced from all over the globe. This leads to a massive supply chain. Additionally, the average EV uses 2,000 processing chips. This means that the EV industry also had to battle the ongoing global chip shortage. A little surprisingly, Tesla was able to navigate these issues with no problem.
In Q4 2021, Tesla produced 305,000 vehicles. It also delivered 308,000 vehicles in Q4 and 936,000 for the year. This resulted in $17.72 billion in Q4 revenue. This was enough to beat both its revenue expectations (6.49%) and EPS expectations (6.88%). In total, Tesla reported a yearly gross profit of $4.8 billion. This was a 135% year-over-year (YOY) increase.
Interestingly, Elon Musk spent a good portion of the earnings call not discussing electric cars. Instead, his focus on was a new humanoid robot called Tesla Bot. Musk described Tesla Bot as, “the most important product that Tesla is developing this year.” He sees it as a potential answer to the current labor shortage.
No. 2 ServiceNow (NYSE: NOW)
ServiceNow is a cloud computing company. It focuses on managing workflows for IT, employees, creators, and customers. Essentially, ServiceNow creates digital experiences to make life easier for your company. Out of all of the top trending stocks, ServiceNow is the most relieving. Let me explain…
In recent months, the technology sector has been beaten down. Badly. It’s been the toughest stretch for tech stocks since the 2008 Financial Crisis. Many once-popular names like Peloton, Roku, and Fiverr are down 70% or more from their all-time high. This is the case for most Nasdaq. This is why ServiceNow’s earnings report was so critical. ServiceNow sells critical software for businesses. It also works with 80% of the companies in the Fortune 500. If ServiceNow’s business was slowing down, it could be a very bad sign for the economy overall. Luckily, that wasn’t the case.
In Q4 2021, ServiceNow reported revenue of $1.5 billion. This was a 29% increase from 2020. It was also enough to beat both its revenue expectations (2.1%) and EPS expectations (0.59%). The management team at ServiceNow also expects this growth to continue into 2022. They’ve forecasted revenue growth of 26% for 2022.
This earnings beat came at the perfect time. ServiceNow is one of just a few tech stocks that has notched any green days at all lately.
Top Trending Stocks No. 1 Intel (Nasdaq: INTC)
Intel falls into a very similar category as ServiceNow. It is one of the world’s largest companies and sells a wide variety of different business solutions. Due to this, a slowdown in Intel’s business can be viewed as a bad sign for the overall economy. Luckily, Intel also just recently beat earnings. It also helps us round out this list of top trending stocks.
Intel reported Q4 revenue of $19.45 billion. This was enough to beat both revenue expectations (6.4%) and EPS expectations (19.75%). Notably, Intel trades at a price-to-earnings ratio of under 10 right now. This means that it is valued incredibly cheaply for the amount of money it makes. Most companies of Intel’s size trade at P/E ratios of closer to 20 or 30.
One reason why Intel is trading so cheaply might be due to investor uncertainty. Intel recently got a new CEO (Pat Gelsinger) in February 2021. He is currently investing heavily to help Intel increase its production capacity. The company plans to present more detailed plans on February 17, 2022. To read more on Intel, check out my Intel stock forecast.
I hope that you’ve found this article valuable in learning a few of the top trending stocks to buy. Please base all investment decisions on your own due diligence.nasdaq stocks covid-19 interest rates
Best Penny Stocks to Buy Next Month? Check These 3 Out
Can these penny stocks push up next month?
The post Best Penny Stocks to Buy Next Month? Check These 3 Out appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.
3 Penny Stocks to Add to Your Watchlist in February 2022
With February only a few days away, trading penny stocks remains extremely popular. Now, to make money with penny stocks in 2022, investors need to have a thorough understanding of what is going on in the stock market. Right now, the most pressing factors include Covid, inflation, the Fed monetary policy, and certain geopolitical tensions. And because penny stocks are so speculative, these factors all have a major and material effect on how they trade.
[Read More] Why These 3 Penny Stocks Are Exploding Today
So, when you’re making a penny stocks trading strategy, having all of these in mind will help immensely. And, your strategy should also be able to adapt to the ever changing conditions of the stock market. As we all know, trading penny stocks in 2022 is not easy. And in the past week or so, the market has been in a major downtrend. But, with a lot to look forward to regarding the future, investors are excited about the next few months. With all of that in mind, let’s take a look at three penny stocks to add to your watchlist in February 2022.
3 Penny Stocks to Watch in February 2022
- Gingko Bioworks Holdings Inc. (NYSE: DNA)
- Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
- Root Inc. (NASDAQ: ROOT)
Gingko Bioworks Holdings Inc. (NYSE: DNA)
Today, shares of DNA stock managed to climb by almost 7% at midday. While many large gains like this occur without news, there are a few reasons why DNA stock is climbing right now. Today, Bank of America Securities announced coverage of Gingko Bioworks, initiating a Buy rating and an $8 price target.
While price targets are simply that, they are still crucial for investors to consider. This seems to be the main reason that DNA stock is climbing right now. However, the company did make an exciting announcement a week or so ago. On January 19th, Gingko announced the acquisition of Project Beacon Covid-19 LLC. This is a Boston-based social organization that is working on increasing the availability of Covid testing in Massachusetts.
“As we embark on a new wave of the pandemic and grapple with the spread of the Omicron variant, large-scale testing will be critical to help keep kids in schools and mitigate the spread of COVID-19. ntegrating Project Beacon’s capabilities with our Concentric by Ginkgo offering will enable us to further empower communities in Massachusetts and beyond with the tools they need to make important public health decisions.”The Chief Commercial Officer of Gingko, Matt McKnight,
This is very exciting news, and any company involved in treating, diagnosing, or curing Covid-19, has come into the public eye in the past few months. So, with that in mind, will DNA stock make your list of penny stocks to watch?
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
Today, shares of SHIP stock managed to climb by almost 12% at midday. It’s tough to say why SHIP stock is moving so heavily right now, but, it did make an exciting announcement on January 24th. On Monday, the company stated that it expects its Q4 TCE (time charter equivalent) to exceed $36,000 per ship per day. This is above the previous guidance of $35,200 per ship per day.
“As a result of our pro-active hedging strategy in 2H21, we estimate that we will overperform the current spot market rate by approximately 50% in the first quarter. Moreover, our robust EBITDA generating capacity in multiple freight environments attests to our firm belief that our shares are currently significantly undervalued.”The CEO and Chairman of Seanergy, Stamatis Tsantanis
This is great news and could be the reason that SHIP stock is moving right now. In the past five days, shares have climbed by around 16%, which is no small feat. Considering all of this, will SHIP stock be on your penny stocks watchlist next month?
Root Inc. (NASDAQ: ROOT)
Another sizable gainer of the day is ROOT stock, which shot up by over 15%. Before we get into why, it’s important to understand what Root Inc. does. The company is a provider of insurance, revolutionizing the industry through data science and technology.
[Read More] 5 Top Penny Stocks To Buy Under $5 Right Now
It works to provide customers with a personalized and fair experience in modern insurance. The big news for the company came today when it announced a new term loan facility with BlackRock Financial Management Inc. The deal, with $300 million, will provide the company with ample credit to move forward with certain operations.
“We are pleased with the successful execution of this new term facility. It accomplished several important objectives including extending our debt maturity and further enhancing our liquidity position with a partner focused on the long-term success of Root.
We are executing on a disciplined strategy to create enduring value through strong underwriting results, the development of our embedded product, and prudent capital management.”The CEO and Co-Founder of Root, Alex Timm
Specifically, this deal with carry an interest rate of around 9% and includes an issuance of warrants from Root to Blackrock equal to 2% of issued and outstanding shares. This includes an exercise price of $9 per share. This is exciting news for the company and should help to stimulate growth for it in the short and long term. Considering that, will ROOT be on your buy list in February or not?
Which Penny Stocks Are You Watching Right Now?
If you’re looking for the best penny stocks to buy, there are hundreds to choose from. While it can be complicated given the sheer number of penny stocks out there, with research on hand, it is much easier than previously imagined.
Now, to find the best penny stocks to buy, investors need to know exactly what is going on in the stock market and how to take advantage. This involves looking at the news, understanding how it may affect different industries and considering the future. With all of that in mind, which penny stocks are you watching right now?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!
nasdaq stocks pandemic covid-19 monetary policy fed penny stocks testing dna spread
Is it too late to buy Visa after shares jumped 9.0% on record revenue?
Wedgewood Partners’ CIO says Visa Inc (NYSE: V) is a promising reopening stock a day after the financial services company reported record revenue for its fiscal first quarter. Rolfe’s bull case for Visa Inc Visa reported a 40% YoY increase in its…
Rolfe’s bull case for Visa Inc
Visa reported a 40% YoY increase in its quarterly cross-border volume last night that David Rolfe sees as a positive catalyst for the stock. This afternoon on CNBC’s “TechCheck”, he said:
Now that the world is opening up post-COVID-19 pandemic, the all-important cross-border revenues are coming back. On top of it, it’s a stock that’s trading at 28 times this year’s earnings and about 24 times 2023. Probably one of the most dominant business models in the world.
His outlook is similar to Gradient Investments’ Jeremy Bryan, who also expects 2022 to be a great year for Visa. The stock jumped nearly 10% this morning and wiped its entire year-to-date loss. A double-digit single-day gain is fairly unusual for Visa; seen last in April 2020.
Fintech startups are not a threat for Visa
The chief investment officer does not see the rise of fintech solutions as a threat for Visa, which is now a sizable position for his investment management company. He added:
The narrative that Visa is going to lose market share versus some of these startup fintech companies just isn’t the case. These companies are partners; they ride on Visa’s rails. Square, PayPal, Coinbase, Strip; they are all partners.
Rolfe agreed the stock was a bit on the pricier side last year, but said it’s not anymore. “V” traded at a high of about $250 in July 2021 versus $222 at present. According to Rolfe, Wedgewood Partners has been loading up on “V” in recent weeks.
La notizia Is it too late to buy Visa after shares jumped 9.0% on record revenue? era stato segnalata su Invezz.reopening pandemic covid-19
Diageo share price ticks up on forecast-beating 20% sales rise
Easyjet share price down 3% as pandemic losses hit £2.2 billion
Elon Musk Tells 71 Million Twitter Followers To ‘Vote Them Out’, Stands With Canadian ‘Freedom Convoy’ Truckers
Probiotics regulate our immune system and could help fight off COVID – new research
Trading Penny Stocks? Top Stock Market News for January 27th, 2022
COVID-19 Can Be Stopped Without Massive Vaccination: Dr. Peter McCullough
Top Trending Stocks to Buy Today
Multiple Sclerosis Provoked by DNA Traps That Promote Immune Cell Specialization
Why Price Deflation Is Always Good News
Is the omicron variant Mother Nature’s way of vaccinating the masses and curbing the pandemic?
Spread & Containment7 hours ago
Easyjet share price down 3% as pandemic losses hit £2.2 billion
Spread & Containment10 hours ago
Eli Lilly says FDA could deny expanded use of arthritis drug for eczema
Economics12 hours ago
Top Trending Stocks to Buy Today
Stocks18 hours ago
Why These 3 Penny Stocks Are Exploding Today
Crypto4 hours ago
How can the Metaverse help the food industry?
Science20 hours ago
Covid-19 roundup: Watchdog criticizes EU Commission over president’s texts; Novavax signs vaccine deal with Israel
Bonds23 hours ago
Neurotic Futures Tumble Despite Record Apple Quarter
Government20 hours ago
Recession On Deck? BofA Slashes GDP Forecast, Sees “Significant Risk Of Negative Growth Quarter”