adplus-dvertising
Connect with us

Investment

Institutional Investors Are Using Reddit to Make Investment Decisions. Here’s Where They Lurk.

Published

 on

At long last, the Reddit retail investors may finally be enjoying their day in the sun: Major institutional investors are taking note of what they do — and they’re making investment decisions based on it.

A new survey shows that 58 percent of the institutional investors polled have made an investment decision based on information they found on Reddit.

Since 2020, when retail trading began to take off, the social media forum site has become a haven for retail traders interested in both meme stocks like AMC and plain vanilla passive investing.

The Brunswick Group surveyed 257 institutional investors in North America, the United Kingdom, and the European Union about how they use social media and other digital tools to inform their investment decisions. The majority of the respondents — 94 percent — were either portfolio managers or buy-side analysts.

300x250x1

“It’s kind of impressive year over year, not only how much they’re absorbing the information, but also [that they’re] making decisions based on it,” said Janelle Nowak-Santo, a partner at Brunswick.

The survey pointed out a convergence between institutional and retail investors, with institutions tapping into sites like Reddit and traditionally retail-oriented newsletters and podcasts for information.

In fact, according to the survey, 49 percent of respondents consider Reddit to be of “high importance” when it comes to evaluating a stock. This result is similar to TikTok’s ranking, and trails sites like YouTube and Instagram by about 10 percentage points.

“There’s an inundation of information from all sources,” Nowak-Santo said. “I’d have to guess that in order to be prudent in their research, they’re actually using more of that information to make their decisions.”

So where on Reddit are these investors finding this information? The survey showed that popular investor subreddits include r/investing and r/cryptocurrency, with over half of all respondents saying that they follow those forums. Others that are commonly referenced include r/WallStreetBets and r/personalfinance. And their popularity may grow in the months to come, with 46 percent of respondents saying that they plan to increase their use of the platform.

“I think that’s just another interesting insight that [shows that] this gap between institutional and retail is narrowing,” Nowak-Santo said.

But Reddit is less important when it comes to data harvesting via machine learning, AI, and natural language processing. Just 23 percent of those surveyed said their firms are harvesting data from the social media site.

Google search results, perhaps not surprisingly, are the most popular place to harvest data. YouTube, however, ranks second, with 47 percent of investors tapping into the video platform’s data.

The survey also showed that investors are turning their focus from traditional mediums to newsletters and podcasts. In fact, 61 percent said they plan to increase their use of e-mail newsletters for equity evaluation in the coming year, while half of respondents said the same for podcasts.

These platforms are also considered to be more trustworthy than social media, ranking fourth and fifth, respectively, among those who took the survey, after investor relation sites, Google, and LinkedIn.

Among those surveyed, the Robinhood Snacks newsletter was most popular, tied with Value Investor Insight. Meanwhile, The Economist’s Money Talks is the favorite podcast among investors, with Invest Like the Best trailing close behind.

728x90x4

Source link

Continue Reading

Investment

Biden issues his first veto on retirement investment resolution – CNN

Published

 on




CNN
 — 

President Joe Biden issued the first veto of his presidency Monday on a resolution to overturn a retirement investment rule that allows managers of retirement funds to consider the impact of climate change and other environmental, social and governance factors when picking investments.

Republican lawmakers led the push to pass the resolution through Congress, arguing the rule is “woke” policy that pushes a liberal agenda on Americans and will hurt retirees’ bottom lines, while Democrats say it’s not about ideology and will help investors.

The resolution, which would rescind a Department of Labor rule, passed both chambers of Congress with Democratic Sens. Joe Manchin of West Virginia and Jon Tester of Montana voting with Republicans in the Senate.

300x250x1

“I just signed this veto because legislation passed by the Congress would put at risk the retirement savings of individuals across the country. They couldn’t take into consideration investments that wouldn’t be impacted by climate, impacted by overpaying executives, and that’s why I decided to veto it – it makes sense to veto it,” Biden said in a video posted to social media Monday afternoon.

Biden is seen signing the veto in the video, taken in the Oval Office earlier Monday.

The veto makes good on Biden’s frequent promise to veto legislation passed by the GOP-controlled House he disagrees with. Even before Republicans took control of that chamber, Biden often mentioned his ability to nix their priorities. “The good news is I’ll have a veto pen,” he told a group of donors in Chicago just days before November’s midterm elections.

Opponents of the rule could try to override Biden’s veto, but at this point it appears unlikely they could get the two-thirds majority needed in each chamber to do so.

Biden’s first presidential veto reflects the reality of a changed political order in Washington with Republicans now in control of the House after they won back the chamber from Democrats in the 2022 midterm elections.

Previously, Democrats controlled both the House and the Senate. Now, the president’s party only has a majority in the Senate.

Most legislation passed by the current GOP-controlled House will not be able to pass the Democratic-controlled Senate. But the resolution to overturn the investment rule only needed a simple majority to pass in the Senate. Republican lawmakers advanced it under the Congressional Review Act, which allows Congress to roll back regulations from the executive branch without needing to clear the 60-vote threshold in the Senate that is necessary for most legislation.

Opponents of the rule have argued that it politicizes retirement investments and that the Biden administration is using it as a way to promote a liberal agenda.

Republican Sen. John Barrasso of Wyoming said at a news conference earlier this year, “What’s happened here is the woke and weaponized bureaucracy at the Department of Labor has come out with new regulations on retirement funds, and they want retirement funds to be invested in things that are consistent with their very liberal, left-wing agenda.”

Supporters of the rule argue that it is not a mandate – it allows, but does not require, the consideration of environmental, social and governance factors in investment selection.

Senate Majority Leader Chuck Schumer said in defense of the rule that Republicans are “using the same tired attacks we’ve heard for a while now that this is more wokeness. … But Republicans are missing or ignoring an important point: Nothing in the (Labor Department) rule imposes a mandate.”

“This isn’t about ideological preference, it’s about looking at the biggest picture possible for investments to minimize risk and maximize returns,” he said, noting it’s a narrow rule that is “literally allowing the free market to do its work.”

The statement of administration policy warning that Biden would veto the measure if presented with it similarly states, “the 2022 rule is not a mandate – it does not require any fiduciary to make investment decisions based solely on ESG factors. The rule simply makes sure that retirement plan fiduciaries must engage in a risk and return analysis of their investment decisions and recognizes that these factors can be relevant to that analysis.”

This story has been updated with additional developments.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Investment

Exclusive-Credit Suisse tells staff plans for investment banking to be informed later -memo – Yahoo Canada Finance

Published

 on


By Engen Tham and Julie Zhu

SHANGHAI/HONG KONG (Reuters) -Credit Suisse told staff its wealth assets are operationally separate from UBS for now, but once they merged clients might want to consider moving some assets to another bank if concentration was a concern, according to an internal memo.

The memo, dated Sunday and seen by Reuters, gave talking points to Credit Suisse staff for client conversations after a historic Swiss-backed acquisition of the troubled bank by UBS Group.

300x250x1

“For now, assets are still legally separated. Once that changes, you (clients) may of course want to consider moving some of your assets to another bank if concentration is a concern,” the memo said.

That response was suggested to Credit Suisse staff if they were asked by clients what they should do if they were also a UBS client and wanted to avoid too much asset concentration, which can be a concern for wealthy customers.

In a package orchestrated by Swiss regulators on Sunday, UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion in losses.

UBS will become the undisputed global leader in managing money for the wealthy through the takeover of its main rival, triggering some concerns about concentration risks for clients.

Credit Suisse also told staff to inform clients that plans for its investment banking business will be communicated in due course as details of its acquisition by UBS were still being worked out, according to the memo.

“We do not expect there to be any disruption to client services. We are fully focused on ensuring a smooth transition and seamless experience for our valued clients and customers,” a Credit Suisse spokesperson said.

Credit Suisse is also going ahead with its annual Asia Investment Conference in Hong Kong, starting on Tuesday, the spokesperson said, adding the event, however, would now be closed to media.

In a separate memo on Sunday, the bank told employees that its day-to-day operations were unaffected after it agreed to the UBS takeover.

“Our branches and our global offices will remain open, and all colleagues are expected to and should continue to come to work,” Credit Suisse said in the memo sent globally and seen by Reuters.

Reuters reported on Friday, citing sources, that a number of major banks including Societe Generale SA and Deutsche Bank AG were restricting new trades involving Credit Suisse or its securities.

Regarding counterparties having stopped business with Credit Suisse, the bank said in the client talking points memo that it believed the transaction “will help to restore confidence to the financial markets more broadly.”

Market players remain concerned about the next moves at Credit Suisse and the impact on employees, investors and clients.

UBS Chairman Colm Kelleher told a media conference that it would wind down Credit Suisse’s investment bank, which has thousands of employees worldwide. UBS said it expected annual cost savings of some $7 billion by 2027.

(Reporting by Engen Tham in Shgnghai and Julie Zhu in Hong Kong; Additional reporting by Scott Murdoch in Sydney; Editing by Sumeet Chatterjee, Himani Sarkar and Jamie Freed)

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Investment

Enbridge: Investment Grade Company Offering 7.6% Bond (NYSE:ENB)

Published

 on

Mongkol Onnuan

Author’s note: All financial data in this article is presented in Canadian dollars.

Enbridge Inc. (NYSE:ENB), a North American energy transportation and distribution giant is currently finding itself near a 52-week low. Income investors may see the rising

Enbridge 2083 Bond Data

FINRA

Enbridge Statement of Earnings

SEC 10-K

300x250x1
Enbridge Balance Sheet

SEC 10-K

Enbridge Cash Flow Statement

SEC 10-K

Enbridge Cash Flow Statement

SEC 10-K

An Enbridge Preferred Share Price Quote

Seeking Alpha

Enbridge Debt Maturities

SEC 10-K

Enbridge Liquidity

SEC 10-K

Enbridge Notes Automatic Conversion Covenant

2083 Notes 424B Filing

728x90x4

Source link

Continue Reading

Trending