54 Mins Ago
Take a few steps to save on taxes stemming from your investments
Big returns in 2024 will likely lead to hefty taxes when you file next spring, but investors can take a few steps now to minimize the hit.
Do a check up on your investment portfolio to see how you can enhance its tax efficiency, said Jared Woodard, an investment and ETF strategist at Bank of America.
For starters, consider switching some of your existing mutual funds for exchange-traded funds. Mutual funds can spin out hefty year-end capital gains distributions, as managers sell holdings to cash out departing investors.
You can also rethink your asset allocation – and location. Treasurys, money market funds and other fixed income assets spin out interest that’s taxable as ordinary income on the federal level. They may be better held in a tax-deferred account.
Click here for other tax-efficiency tips.
— Darla Mercado
An Hour Ago
House’s proposed bill to divest or ban TikTok could have broader stock market ramifications, strategist says
On Wednesday, the House of Representatives passed a bill that gave Chinese company ByteDance roughly six months to sell TikTok before it was banned from U.S. app stores.
The bill now moves to the Senate. In the event that the bill passes through Congress, it could have major ramifications on the broader technology sector, according to Jay Woods, the chief global strategist of Freedom Capital Markets.
“If you want ByteDance to divest and sell TikTok, well, who’s big enough to buy? It’s probably one of the mega-cap names — it’s the Alphabets, the Metas, maybe Microsoft. We have seen so many regulatory hurdles with smaller deals,” he said, citing the blocked JetBlue and Spirit Airlines merger.
Besides the political posturing, this bill could also make an impact on stocks with Chinese exposure, which includes names like Apple and Tesla. Shares of the two Magnificent 7 members have already slipped in recent weeks, as sales in the China market have weakened.
“If China is going to retaliate — they probably won’t go after some of the consumer staples with a lot of exposure there, but it could happen,” he added.
— Lisa Kailai Han
An Hour Ago
Stocks making the biggest moves in extended trading hours: Robinhood, SentinelOne and more
These are the stocks moving the most in extended trading:
- Robinhood — The fintech stock added 8% after reporting its selected monthly operating data for February 2024.
- SentinelOne — The cybersecurity stock slipped 10%, despite posting fourth-quarter earnings and revenue that came above LSEG’s estimates.
- Under Armour — The stock added less than 1% after the sportswear company announced that CEO Stephanie Linnartz would be stepping out.
Read the full list of stocks moving here.
— Lisa Kailai Han
An Hour Ago
