Money

If you earn six figures, you’re more likely to lose your job

Published

4 months ago

August 17, 2023

ticker NEWS

The economic landscape is proving to be challenging even for the wealthy, as high earners in the United States face an alarming rate of layoffs.

Americans earning more than $125,000 annually are experiencing layoffs at a rate three times higher than those with lower or moderate incomes, according to a study conducted by Bank of America.

The study cites data related to jobless benefits deposited in customer accounts to support its findings.

The report highlights a notable shift in unemployment trends, with July witnessing a significant 70% increase compared to the previous year in the number of individuals earning six figures who received unemployment benefits.

Sectors that traditionally offer high-paying positions, such as technology and finance, have been hit hard by layoffs over recent months.

Tech nightmare

Tech giants like Meta (formerly Facebook), Amazon, and Alphabet, as well as other companies based in Silicon Valley, have collectively laid off over 227,000 employees since the start of the year, according to Layoffs.fyi.

Meanwhile, major financial institutions like Goldman Sachs, Morgan Stanley, and Citigroup have also let go of thousands of employees.

The report indicates that the layoffs are disproportionately affecting high-income households, while those with lower and middle incomes have shown more resilience.

The phenomenon comes as a surprise, especially considering the robust recovery of the stock market in 2022, which significantly boosted the value of 401(k) retirement accounts.

Asset drop

However, the number of American adults with assets totaling at least $1 million has seen a decline of 1.8 million, falling to 22.7 million at the end of the previous year.

This information comes from the Global Wealth Report compiled by analysts at Credit Suisse and UBS. The report further points out that the US, with the highest concentration of millionaires globally (38% of the total), experienced a notable decrease in the number of individuals possessing at least seven figures in net worth.

The decline in wealth among millionaires is attributed to several factors, including the 33% drop in the NASDAQ and 20% dip in the S&P in 2022. This led to substantial losses for individuals who had witnessed strong growth in their 401(k)s and IRAs in previous years.

$1.4 loss

The report also underscores the challenges faced by the ultra-wealthy. In 2022, the 500 richest individuals globally experienced a collective loss of $1.4 trillion, as reported by the Bloomberg Billionaires Index.

Factors such as supply chain disruptions, geopolitical events like the Russian invasion of Ukraine, China’s struggles with COVID outbreaks, rising inflation, and stock market fluctuations have collectively contributed to the erosion of wealth among the nation’s wealthiest individuals.

Money

Tech giants drive global mega-cap surge amid inflation relief

Published

1 day ago

December 1, 2023

ticker NEWS

Tech giants have taken the lead in propelling global mega-cap stocks to new heights.

This surge comes as a welcome relief for investors who have been closely monitoring the impact of rising inflation on the financial markets.

The tech sector, including giants like Apple, Amazon, and Microsoft, has been instrumental in driving the rally. These companies have reported robust earnings and strong growth prospects, which has boosted investor confidence. As a result, the market capitalization of these tech behemoths has reached unprecedented levels, contributing significantly to the overall rise in global mega-cap stocks.

The easing of inflationary pressures has played a pivotal role in this resurgence. Central banks’ efforts to tame inflation through monetary policy adjustments have begun to bear fruit, reassuring investors and stabilizing financial markets. As concerns over rapidly increasing prices recede, investors have become more willing to invest in mega-cap stocks, particularly in the tech sector, which has demonstrated resilience in the face of economic challenges.

Will the tech giants maintain their momentum and continue to lead the mega-cap surge, or are there potential risks on the horizon?

Money

Real reason bosses want employers back in the office

Published

3 days ago

November 30, 2023

ticker NEWS

As the world gradually recovers from the pandemic, employers are increasingly pushing for their staff to return to the office after years of remote work.

The driving force behind this push is the sharp decline in commercial property values, which has left many businesses concerned about their real estate investments.

Commercial property values have plunged in the wake of the pandemic, with many companies downsizing or reconsidering their office space needs.

This has put pressure on employers to reevaluate their remote work policies and encourage employees to return to the office. #featured

Money

Businesses cash in on Black Friday sales

Published

3 days ago

November 30, 2023

ticker NEWS

Black Friday, the annual shopping frenzy, has become a global phenomenon rooted in economic strategies.

Retailers deploy various tactics to lure consumers, creating a win-win scenario for both shoppers and businesses.

The concept of Black Friday traces its roots to the United States, where it marks the beginning of the holiday shopping season. Retailers offer significant discounts on a wide range of products to attract a massive customer influx. This strategy, known as loss leader pricing, involves selling a few products at a loss to entice customers into stores, hoping they will buy other items at regular prices.

Retailers also employ the scarcity principle by advertising limited-time offers and doorbuster deals. This sense of urgency compels consumers to make quick decisions, boosting sales.

Furthermore, online shopping has revolutionized Black Friday economics. E-commerce giants use data analytics to customize deals, targeting individual preferences. Cyber Monday, the digital counterpart to Black Friday, capitalizes on the convenience of online shopping. #featured