Wall Street Celebrates Biden's $1.9 Trillion Stimulus Package But Fears

Things are now crystal clear- it's not all cheers for US President Joe Biden's newly launched historic $ 1.9 trillion coronavirus stimulus package; indeed, many describe this as "the investor's- double-edged sword" with many unintended implications. Of course, the new President's widely hailed economic stimulus plan- post the Trump administration – holds the potential to boost economic revival. But, as noted, most analysts are anxious about just how the nation will pay for this unusual package.

Ironically, the Wall Street gurus eagerly anticipated the new President's stimulus bold plan. No wonder, in the weeks after the Democrats seized control of the US Senate in early January, pundits noted that news about the much-anticipated stimulus package was directly instrumental in lifting the broad S& P index by almost 3%. Yes, this was widely hailed as positive- and most welcome- news.

But the unexpected was yet ahead- For starters, Bond yields are known to move inversely to prices. Hence-unsurprisingly- the impending moves - would be characterized by a significant slide in Treasuries. Why, pundits well understood that the only way the government could raise such funds was through creating more debts. Of course, such a move would push the crucial yields of benchmark 10-year notes to the highest levels. In turn, this would nudge the borrowing costs higher throughout the economic spectrum.

Soon, some industry insiders felt free to predict the apparent trends. For instance, Jeff Buchbinder, who is the LPL Financials' equity strategist, had this to say: "At the moment, the markets are generally celebrating the expected stimulus. Most analysts consider this a sure bet and a strong bridge leading to a fully reopened national economy. Regardless, there's a sobering chance that- on the other side- the markets should prepare to pay for this. How? "Simple: in terms of tax hikes that might cap equity valuations or much higher interest rates," he said.

Not surprisingly, already some investors are getting anxious about stock evaluations. Yes, many worry that- in the coming year- the earnings must be particularly strong; this is the only way to justify the hefty multiples. Significantly, the S& P 500 is already at about 22.3 times the forward earnings estimates. According to data from FactSet, this is nearly equal to the March 2000 all-time high of 24.4.

Interestingly, in December 2020, even before the new admiration had taken over, the S& P had dipped by almost 0.4%. By the beginning of January 2021, this went up by about 1.1%. We must also note that the year's rally was primarily characterized by cyclic stocks that typically benefit from stimulus package dynamics. Obviously, this includes banks- significantly, the banks have been up by more than 10% for the year, down to our times.

In the meantime, over the same time, the technology sector- which is among last year's winners- is down by almost 1%. There's no doubt that rising yields are now threatening to weigh heavily on longer-duration cash flow companies, including growth shares and tech.

Furthermore, pundits note that President Biden's bold economic stimulus plan- anchored on a courageous rescue package- is coming at a moment when companies and investors are forced to go back to the drawing board regarding their estimates on the projected time for the end of the pandemic. It's also coming when the US- like other leading nations- is slowly rolling out the Covid-19 vaccination program.

According to the US Labor Department, In January 2021, the initial unemployment rose considerably to 965,000. This is the highest level since August 2020. It's also-clearly- above the 795,000 figure earlier quoted by leading economists who spoke to Reuters. And in December 2020- for the first time in 8 months- the rate of job losses fell slightly, giving a ray of hope to many.

Regardless, as noted, rising bond yields are-in the meantime- raising anxiety about a looming inflation post the projected economic recovery schedule. Despite this, the US Federal Reserve Chairman, Mr. Jerome Powell, recently said that he doesn't expect the Central bank to commence the trimming of the monthly bond purchases "prematurely." Instead, Mr. Jerome said: "We should begin talking about the exit now- this is the right time."

America's Top Banks & What Makes Them Tick

Goldman Sacks bank is a US investment bank with its headquarters in New York city. The bank specializes in offering various financial solutions such as investment management, client services, investments, and lending services. It has over 34000 employees to ensure the customers' needs are catered for.

The bank's success- it has over $.5.2 billion in net income- results from its ability to innovate and develop solutions to serve the customers better. What makes it tick? The institution has a friendly and welcoming staff as well as a people-oriented approach to business.

JP Morgan Chase & co

JP Morgan Chase is one of the most profitable banking institutions in the United States, with over $21 billion in net profits annually. It offers banking solutions in sectors such as private banking, assets management, and investment banking. The customers are guaranteed to experience quality banking services due to this diversity. Indeed, with over 240,000 branches worldwide, the customers are guaranteed to have the best in a secure environment.

Morgan Stanley Bank

With its annual profits surpasing $8.8 billion, Morgan Stanley bank is an industry giant, especially within the Wall Street corridors. The bank offers services in investment securities, mergers and acquisitions, real estate, and wealth management. The bank has an array of service offerings; this is is one of its best success secrets-. It employs aover 56,000 workers who cater to the customer's wealth management and investment banking needs.

Citigroup Bank

With over 2,500 branches spread out in 19 countries, Citigroup bank is a state-of-the-art pioneer in modern banking. The institution offers services mainly in the investments sector and digital banking. In 2020, it was named the best digital bank ( according to Global magazine) for the 19th consecutive year. This shows how consistent the bank is in serving customers.

Wells Fargo Company

Wells Fargo specializes in community banking, wealth management, investment banking, and small businesses. With a net income of over $10 billion, Wells Fargo has emerged as a force to reckon with in the banking industry. Its focus on small retail businesses and community banking has enabled it to scale the heights of success. Its diversified portfolio of services allows customers to get the best services in the sector.

Bank of America Corp

If you want a lender whose rates are the best, then Bank of America Corp is the place to be. The bank's headquarters is in Charlotte, North Carolina. It has other subsidiaries across the United States to cater to customer's needs. Its success comes from banking and non-banking services, wealth management and investment banking.

US Bancorp

Standing tall at its headquarters in Minneapolis, US, Bancorp bank employs over 60,000 people to ensure the best services in its numerous branches and subsidiaries around the country. The bank offers services such as mortgage banking, insurance, credit card services, and ATM processing. With annual net profits of over $6 billion, the bank can attribute its success to expansion into the consumer retail banking space in multiple locations.

Capital One Financial Corp

Capital One Financial Bank mainly offers services such as consumer banking, commercial banking, credit card services, and digital banking. With headquarters countrywide, Capital one bank has steadily recorded high profits of up to $3.7 billion. Its extensive banking services portfolio has made it possible to offer various services to ensure the customers get the best services.

PNC Bank

PNC Bank has over 2,000 branches in over 15 states in the United States, and the signs indicate it will continue expanding phenomenally. Based in Pittsburg, PNC bank was formed by merging Pittsburg National Corporation and Providence National Corporation. Its success primarily rsulted from being innovative in technology. Indeed, this was among the the earliest banks to integrat the E-Wallet seamlessly into their operations.

Bank of New York Mellon

The bank of New York Mellon recorded a net income of $3.6 billion in 2020, and this shows how much success the bank has since achieved. Today, the Bank of New York Mellon is among the most significant asset management banks worldwide. The financial institution is managing assets valued at close to $1 billion. In addition to asset management, the bank also provides investment banking solutions, wealth management, and collateral management services.

How the Cryptocurrency Era is Radically Shaping the US Financial Sector

Cryptocurrencies have become a booming industry, with financial experts estimating the industry to be worth nearly $200 billion. With significant business captains of industry such as Elon Musk participating and endorsing this new form of currency, it is a technological innovation that will considerably redefine how the financial sector looks like in 2021 and the future.

The phenomenal rise in cryptocurrency popularity in the last few years has proved that technological change is-indeed-inevitable. In the United States alone, over 2,000 businesses are now accepting Bitcoin as payment from consumers. This new acceptance is a significant shift from the standard cash-in-hand transactions that most people have used fir decades.

Further, financial markets worldwide have now provided traders with the opportunity to trade in Bitcoin- the trend has been steadily rising in the last couple of months. Blockchain technology has not only presented opportunities for ordinary traders but also to big business moguls. Recently, Tesla made the news headlines when its CEO, Elon musk, purchased $1.5 billion worth of bitcoin. This move rallied bitcoin on an upwards trajectory even further. The trend shows how much potential power bitcoin actually possesses.

What's more, in the future, bitcoin is projected to be on track as the world's most valuable currency. Well, in time bitcoin may become even more valuable than the Euro or the sterling pound. Bitcoin's rising value is the reason many countries are now advocating for cryptocurrency use. Of course, the year 2020 was stressful, especially to financial markets- even though bitcoin also felt the effect, it has been able to rise steadily. In the future, we will begin to see more banking and lending institutions accepting cryptocurrencies as their preferred payment method.

Also, in the future, we might see the expansion and growth of economies, and this will be due to cryptocurrency activities. The mining of bitcoin will provide business opportunities for many people worldwide, especially in developing countries. Russia is now accounts for 6.9% of the world's total cryptocurrency mining capacity- showing how lucrative this activity is. More economies worldwide are likely to follow suit in setting up infrastructures around cryptocurrencies. This will, undoubtedly boost their economies.

The banking industry has often demonstrated a lack of transparency in many ways. The onset of cryptocurrencies has- clearly- changed this dynamic and will continue to do so in the future. Transactions in the crypto world are transparent, as it enables customers to get an inside look at what goes on throughout the stages of a transaction. Privacy will also be enhanced in the future as crypto transactions involve high levels of encryption, guaranteeing users' privacy.

Access to funds in the financial world has mostly been restricted to big players in the industry, especially when it comes to substantial lump sums of money. Currently, most customers often jump through hoops to access cash from banking institutions. Cryptocurrencies will change this-more individuals will be able to access money regardless of their power ranking. E-wallets will also continue to become popular as more people realize the importance of owning the new currencies.

Also, financial market players in the future must be keener while trading cryptocurrencies. Over the past few months, many have witnessed how volatile Bitcoin has become, and many stakeholders in the industry expressed concerns. In the future, traders will have to be more careful while trading these currencies. More competent trading practices must be developed to counter the volatilities of cryptocurrencies. This became evident when Elon Musk stirred the market by making unusual crypto purchases.

Ultimately, financial policy formulation will take a different approach because of these currencies. Banks and monetary institutions will lose control of the money supply if these currencies are issued in a decentralized manner. Policies to regulate such currencies will be crucial, as they will determine how the coins are held. Bitcoin, for instance is likely to make governments categorize mining activities to deduce the best way to deploy taxation measures.

Finally, many have heard of businesses using cryptocurrencies to raise money from investors. This capital mobilization is called an Initial Coin Offering(ICO). In the future, there's likely to be more of this. In the end, businesses must shift more towards using cryptocurrencies to mobilize funds, create a need for better regulation and prevent illegal activities. Think of it: Through its financial market supervisory authority, Switzerland recently released regulatory measures for ICOs, and more nations are likely to follow suit in the future; this is quite interesting.

Revealed: Is Telemedicine the World's Most Profitable Investment?

This is-undoubtedly- a big question: Is telemedicine proving to be the new kid on the bloc of the most profitable investments in the US and the world in 2021? Just consider these facts: While we all agree 2020 was a relatively 'crazy year-' thinking of the coronavirus pandemic- Teledoc Health services ran a business worth an astounding $209.42 in stocks (up from $83.26 in the previous year). These figures represented an incredible growth 152% by December 23, 2020. What does all this say about telemedicine's future? Yes, the pundits have posed the question: What really sent the stocks flying in this unprecedented manner?

Interestingly, we have to think back to get everything right: The emergence of the Covid- 19 pandemic sometime in early 2020 meant that people had to develop new ideas to manage the emerging health issues. Why? Many consumers had no option but to remain at home during the seemingly endless lockdowns. Then came the answer in a rather unexpected situation- the rise in telehealth services. Once this happened, the era of telehealth services was ushered in. Soon, this form of service skyrocketed and became so popular that it quickly became the modus operandi. By the end of 2021, hundreds of doctors in the US were poised to log over a billion virtual visits. Not only was this astounding, but it was also unprecedented.

Today, many health professionals admit that we've effectively ushered in a new era in the history of medicine. In other words, humanity has actually turned a corner, marking a revolution in the way doctors practice medicine. And there's another, more interesting fact- by the beginning of 2021, many doctors in the US reported that most virtual visits were utterly unrelated to the Covid 19 problem. In other words, patients are opting for virtual consultation and diagnosis purely as a matter of personal preference.

Listen to what Jason Gorevic, the CEO at Teladoc had to say on this phenomenon: 'Without a doubt, we've transitioned to the situation where many physicians and consumers consider telehealth as the best way to dispense and access health care.' Because of this seismic shift in the way medics practice medicine, there's unprecedented demand for a singular (centralized) telehealth platform that can cater to primary care, allied health, educational resources, and mental health in a roller-coaster.' Yes, this means that medicine has finally moved on; there's no guarantee that it will ever return to its former station.

Medics were-generally- never in doubt regarding the future of the Covid 19 health crisis in the US and other parts of the world. Why, most health professionals knew well (from scientific analysis) that the second or subsequent wave of the coronavirus would be worse. Think of it, the first wave of the pandemic almost overwhelmed the world's healthcare systems. Economies everywhere on the globe were virtually devastated. The pandemic affected many people's mental health and well-being. The challenge of depression and anxiety became a new issue of national debate. New cases of these ailments soared frighteningly.

In June 2020, a new survey by the US Centers for Disease Control (CDC) revealed that almost 41% of adults in the US had undergone some 'unusual behavioral or mental health condition.' Such conditions included post-traumatic stress, anxiety, substance abuse, and depression. Amazingly these figures were three to four times the situation in 2019. Further, 10.7 % of the people interviewed admitted that-at one point in the previous 30 days- they seriously thought about ending their lives. Of course, to these, it seemed like the only solution to their problems.

The American Medical Association (AMA) says that 'over 35 of the US states have reported a phenomenal increase in opioid-linked mortality. Moreover, within the same states, AMA reported a rising concern for people with substance abuse disorder and mental health issues.'

But- soon- there was unexpected good news regarding a modern, high-tech solution to the Covid-19- related emerging medical challenges. In a press release, CloudMD, which previously ran a successful medical service in Canada, announced it was launching its ultra-modern mental health support services and technology in the US. The company planned to drive its expansion programs all over the country. CloudMD would do this in collaboration with the newly acquired RXi Group. They planned to run a well-established 'One-stop patient support logistics agency' and provide customer-related management services.