Mar 27, 2017 08:02 AM EDT
Wall Street has been put on defensive mode ever since Donald Trump became the president of the United States. This led to investors pulling out $8.9 billion from US stock funds that ended on March 22 according to a research conducted by EPFR Global.
The amount is said to be the biggest retreat since last June. Notably, the hardest-hit stocks were the ones that skyrocketed after the presidential elections. Investors have yanked money from banks, manufacturers and small-cap stocks, which is considered to be the most vulnerable when it comes to fluctuations of the US economy.
Investors are not the only one backing away as the stock market has also lost 250 points this week. It is the worst weekly performance recorded since the week prior to Trump's announcement as president. Analysts put the blame on the Republicans who have since challenged the Obamacare by trying to pass a bill to repeal and replace it. Investors fear that a failure on health care could be detrimental to the massive tax cuts that Trump has promised.
The Bank of America Merrill Lynch said that failure to pass the repealed health care is unlikely to cause a TARP moment. This refers to the nine percent crash in the S&P 500 after Congress rejected the Wall Street bailout package in September 2008, CNNMoney has learned. But BofA reiterated that a failure on health care could cause a credibility hit that would temporarily push stocks and Treasury yields lower.
According to EPFR, the retreat from US stocks means that investors have taken the defensive route as they question whether the Trump administration has the necessary focus and political skills to get its economic agenda through Congress. One instance is when investors pulled out $1.1 billion from small-cap stocks last week, which is the most in the past six months. Similarly, industrial stocks also suffered biggest outflows since mid-January.
The problem is: where should investors put their money?
Two investment pots that benefitted from the uncertainty of the US economy are emerging markets and bonds that have enjoyed significant inflows in the past week. Gold has also gone back into style with investors pouring in $1.1 billion into gold funds for the past weeks. Again, the future depends whether Trump and the Republicans can resolve the issue on health care.
People who travel for business two weeks or more a month report more symptoms of anxiety and depression and are more likely to smoke, be sedentary and report trouble sleeping than those who travel one to six nights a month, according to a latest study conducted by researchers at Columbia University's Mailman School of Public Health and City University of New York.
President Trump said Friday he is declaring a national emergency on the southern border, tapping into executive powers in a bid to divert billions toward construction of a wall even as he plans to sign a funding package that includes just $1.4 billion for border security.
Amazon's decision to abandon plans to build a new campus in Long Island City, Queens, has drawn cheers from several politicians, community organizers and other locals opposed to the expansion.
One of the hottest topics at the World Economic Forum in Davos, Switzerland has been Alexandria Ocasio-Cortez's proposed 70% marginal tax rate on all income above $10 million.
In recent decades, Europe has experienced a downward trend in the annual number of deaths. Not only was this trend not arrested by the economic recession that started in 2008, in fact, the rate of decline increased during the recession years.
Discovering that your new designer handbag or gold watch is a fake is costly and annoying, and counterfeit medical devices or drugs could have even more serious consequences. But seemingly as soon as manufacturers develop a new method to ensure product authenticity, counterfeiters find a way to outsmart it. Now, researchers have created an "unclonable" tag that can never be replicated, even by the manufacturer. They report their results in ACS Applied Materials & Interfaces.
The traditional model for setting auto insurance premiums has been to base rates on the motorist's driving history, age, gender and even marital status (in some states). Thanks to new technological options, insurance companies, and motorists have started to work together to give the insurance companies access to better data on an individual driver's risk level, and give the same driver a sense of greater control over how much he or she will pay in insurance premiums.
Consumer brands have long used old-fashioned focus groups, interviews and surveys to best gauge consumer wants, desires and needs as part of processes that range from product development, to marketing and sales. As machine learning and artificial intelligence (AI) have emerged, there is an increasing interest in the ability to harness these solutions to save time and money, and to yield more reliable consumer insights.