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FINSUM

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Wednesday, 26 June 2024 13:04

Best National Park Lodges This Summer

National Park lodges like the Old Faithful Inn in Yellowstone captivate visitors with their historical charm and breathtaking views, often making reservations hard to come by. However, several alternatives outside park boundaries offer similar scenic beauty and unique experiences.

 

  • At Blackberry Mountain in Tennessee, guests can enjoy luxurious treehouses with panoramic views of the Great Smoky Mountains, complemented by gourmet dining and wellness activities. 

 

  • Flathead Lake Lodge in Montana provides a ranch experience with horseback riding and access to the largest freshwater lake west of the Mississippi, offering an exciting alternative to Glacier National Park’s Many Glacier Hotel.



  • In Hawaii, the serene Volcano Village Estates features charming bungalows and cottages surrounded by a Japanese garden, offering a peaceful retreat near Hawaii Volcanoes National Park. These accommodations provide unique ways to experience the natural splendor and adventure of national parks without the crowds.

Finsum: We’ve already previewed some summer parks but these destinations could up the luxury of the experience. 

Over the past twenty years, alternative investment strategies like hedge funds, private equity, and real estate have grown in popularity among investors seeking diversification and steady returns. This trend was initially driven by the low-yield environment post-2009 financial crisis, making alternatives attractive due to their higher yields and low correlation with public markets. 

 

However, the landscape shifted post-2021 with rising inflation and interest rates, as well as increased geopolitical tensions, challenging traditional investment approaches. Hedge funds have gained renewed relevance, offering uncorrelated returns amid market volatility. 

 

Similarly, private credit has thrived, benefiting from the retreat of large banks from direct lending and providing attractive yields and diversification. Despite rising interest rates, alternatives with lock-up periods continue to outperform public markets, supporting a balanced, blended investment strategy for consistent returns.


Finsum: Remember the real advantage to alts is their uncorrelated returns and more specifically uncorrelated volatility to traditional markets.

Wednesday, 26 June 2024 12:58

Two Income ETFs For Interest Rate Shifts

Since 2012, high-yield income stocks and ETFs have declined in value as rising interest rates have made bonds, Treasury bills, and CDs more attractive. However, buying high-yield ETFs now could be advantageous if interest rates decline in the future. Notable high-yield options include the JPMorgan Equity Premium Income ETF (NYSE: JEPI) and the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ). Both ETFs use equity-linked notes (ELNs) tied to covered calls and have low expense ratios of 0.35%.

 

JEPI comprises 130 equities and routinely writes monthly calls on the S&P 500, yielding 7.5% annually. In contrast, JEPQ includes 98 equities and writes monthly calls on the Nasdaq-100, yielding 10.9% annually due to the Nasdaq 100’s higher volatility.

 

 Both ETFs offer steady monthly payments that are higher and less volatile than those from other dividend-focused ETFs, despite limited gains in strong markets due to their covered call strategies.


Finsum: As interest rates fall underlying bond prices could help boost the performance of these funds. 

Wednesday, 26 June 2024 12:53

Structured Notes Break Digital Ground

Tiger Brokers, an online brokerage firm in Singapore, has introduced a new feature on its trading app aimed at providing a streamlined experience for high-net-worth clients interested in structured note products. Many investors are increasingly looking for alternative investments that can provide consistent and reliable cash flows. 

 

However, traditional financial services often present barriers with high fees and substantial minimum investment requirements, making it challenging to access quality investment options. Tiger Brokers' Fixed Coupon Notes (FCN) remove these barriers by eliminating high purchase thresholds and the cumbersome, lengthy procedures associated with opening private bank accounts. 

 

Their CEO, Ian Leong, reenforced their commitment to technology and improving the accessibility to investors. 


Finsum: Many financial products were guarded from the general public, but technology is paving a way for accessibility 

Bitcoin has experienced a decline, dropping about 9% from its recent high of over $71,000 to below $65,000. Barry Bannister, chief equity strategist at Stifel, suggests this might indicate an impending correction in the S&P 500.

 

Bitcoin's have been tightly related to the Nasdaq 100, which closely mirrors the S&P 500 with its top tech holdings. Bannister argues that Bitcoin's recent drop reflects uncertainty about the Federal Reserve's potential rate cuts amid ongoing inflation pressures. 

 

Despite Bannister's caution, many strategists remain optimistic, raising stock market targets and betting on a soft economic landing. However, concerns persist about the market's narrow rally and the potential for future volatility as AI and other high-flying stocks continue to dominate.


Finsum: Many investors are putting buy on bitcoin, so the future is uncertain to say the least. 

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