Finance Knuggets

Apr 26, 2024

I recently read an article discussing the possibility of doing a 1031 exchange into a REIT, but investment strategist Daniel Goodwin explained that it’s not possible. However, there are two REIT-like alternatives that allow deferral of capital gains taxes while providing exposure to institutional-quality real estate assets. The article also mentioned that General Motors stock rose more than 4% after the company disclosed higher-than-expected earnings and revenue for its first quarter. Additionally, there was a discussion about the benefits of whole life insurance as a multipurpose financial planning tool, highlighting its importance and overlooked benefits.

Another article I read discussed the chip sector, with Bank of America strategists predicting a potential bounce in May and suggesting that Nvidia is near a “trough valuation.” There was also a report about Donald Trump receiving around 36 million more shares in the parent company of Truth Social, thanks to a generous earnout provision, giving him a 65% ownership stake valued at $4.1 billion. Additionally, there was a significant offer by BHP Group to buy London-based mining giant Anglo American for nearly $39 billion in stock, which would create the world’s largest copper miner.

I also came across an article discussing the history of financial exchanges, tracing back to a time when a dozen big brokers met to trade their assets and collectively set rules for trading, which evolved into nonprofit membership organizations known as “exchanges.” The article highlighted the evolution of these exchanges into modern-day futures exchanges for traders.

This week in the world of finance, there have been several significant developments. Klarna, a BNPL company, has sold off assets of Hero, an e-commerce expert platform, for roughly $1.3 million. Additionally, U.S. firms continue to struggle despite a strong valuation for a Latin American BaaS company. In the fintech sector, Apex Fintech’s earnout may not pay out as much as initially anticipated.

In other news, BlackRock- Temasek JV has raised $1.4 billion for its first fund, a significant move that puts heavy financial power behind startups aiming to tackle the climate change crisis. LanzaJet is also raising $100 million for ethanol jet fuel, with the potential to cut aircraft emissions by as much as 80%. Furthermore, South Korea’s Channel Corp. is raising a $30 million extension to grow its AI capability and expand into the U.S.

The FTC has sued to block Tapestry from buying rival luxury goods maker Capri for $8.5 billion, which underscores how tough Lina Khan continues to be on industry consolidation. On the investment front, Microsoft will invest $1.5 billion in G42, the United Arab Emirates’ top artificial intelligence firm, as part of a deal to end any cooperation with China. These developments, among others, reflect the dynamic and ever-changing landscape of the financial world.

Stay Well!