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Tag: Should

3 charts that show why the US should stop ignoring its debt problem

3 charts that show why the US should stop ignoring its debt problem

Finance
By most measures, the U.S. economic outlook is bright. GDP (gross domestic product) growth could exceed 4 percent in the second quarter, unemployment is at decade-lows and wages are ticking up. But one figure paints a darker picture: U.S. national debt. Gross federal debt stands at a massive $ 21.2 trillion. Economists and policymakers are increasingly urging the U.S. government to address the debt now while the economy is on solid footing and before the next crisis hits. "Even if you think that public debt just doesn't matter to economic outcomes, the thing you have to...
Where investors should hide out during a trade war

Where investors should hide out during a trade war

Finance
Those seeking protection against an intensifying trade war between the United States and its economic allies should buy shares of domestic, consumer-facing companies, according to investors. Utilities — classic defensive plays with domestic-only markets — could also benefit if this is a prolonged conflict, some said. Others are sticking with the hot small cap trade in the face of this escalating conflict. With both Beijing and Washington slapping each other with $ 34 billion in new tariffs Friday, some market strategists voiced concern a ...
TCS share buyback: Should you tender shares?

TCS share buyback: Should you tender shares?

Finance
NEW DELHI: Software services behemoth TCS has announced a mega Rs 16,000 crore buyback under the tender route. The question is should you tender your shares. The buyback -- at a price of Rs 2,100 per share -- accounts for 38 per cent of the IT major's cash balance and 18 per cent of net worth. According to Sebi regulations, 15 per cent of the offer size -- that is, 2,400 crore in this case -- will be reserved for small shareholders holding shares up to a value of Rs 2 lakh as on the record date. The latest shareholding pattern of the company suggests that the 15 per cent reserved shares i.e. 1.14 crore account for 8.5 per cent of the total retail investors held. This means that if all the retail shareholders of the IT firm decide to tender their shares, the acceptance ratio would be in ex...
Why you should start paying off your student loans as soon as possible, even before graduation

Why you should start paying off your student loans as soon as possible, even before graduation

Finance
When Ruth B., now 26, graduated from college in May 2014, she already had a few months of student loan payments under her belt. Ruth, who asked that her last name not be used, had taken out federal loans to help cover her tuition and living expenses every year. But in her senior year her family finances changed when her younger brother started college, as well. "My senior year I couldn't count on my mom to help me out, so I took out a private loan from Sallie Mae to cover everything that financial aid wouldn't cover," Ruth said. Ruth realized right...
Should I pay off my debt or save for emergencies first?

Should I pay off my debt or save for emergencies first?

Finance
Three simple ways to pay off credit card debt Why do financial experts recommend creating an emergency fund before paying off credit card debt?—Brandon You have some credit card debt and you're up for doing the hard work of paying it off. Then along come financial experts who tell you: Hold on! Emergency fund first! But why wouldn't you pay off debt as quickly as possible, especially when the average credit card charges a 16.73% interest rate? "Because life happens," says Rey Cruz, a certified financial planner with Cruz Investments and Wealth Management in Aurora, Illinois. And relying on a credit card in an emergency is incredibly expensive. In addition to the cost of borrowing, it isn't a safe fallback, says Cruz. "You can't extend your credit if the credit ...