Using active management to identify idiosyncratic stock ideas is key to pursuing alpha, according to David Eiswert, a portfolio manager in the U.S. Equity Division of T. Rowe Price. In an interview with Eiswert released by T. Rowe Price, the portfolio manager for the Global Focused Growth Equity Strategy said that being active and going against market sentiment when it is appropriate is what the money manager does best and the best way to find strong investment opportunities.

Finding those idiosyncratic ideas is what we do best, in my opinion. That means being active but also testing and perhaps going against market sentiment when it is appropriate, Eiswert said. That is the way to find the best ideas to include in the portfolio.

Eiswert added, Having that laser focus on fundamentals and finding insights about improving economic returns is what can differentiate you from the pack and add value for clients.

Amid a period of a pandemic, the war in Ukraine, record-high inflation, and aggressive monetary tightening from the Federal Reserve, T. Rowe has sought sources of opportunity, including discounted entry points for compelling and rare businesses, which Eiswert said, requires an active and forwardlooking approach.

Staying engaged with stocks during periods of distressed sentiment has been important to fully benefit from the transition in sentiment from despair to hope, he explained. While it is always tempting to wait for patterns of recovery to be established, history teaches us that the early identification of fundamentals stabilizing, or the stop getting worse point, has been central to return generation.

While in a bear market and possibly facing a recession, volatility has historically proven to present opportunities. And the opportunity set is among the broadest Eiswert has seen for some time.

Innovative, highgrowth companies are trading at much more reasonable valuations, while idiosyncratic stock ideas not tied to broader market direction are also a focus, he said. Geopolitical and macroeconomic uncertainty will remain part of the nearterm environment, but long term, stock prices are ultimately driven by changes in earnings power and cash flow generation.

As part of itslineup of active exchange traded funds, T. Rowe Price offers a suite of actively managed equity ETFs, including theT. Rowe Price Blue Chip Growth ETF (TCHP), theT. Rowe Price Dividend Growth ETF (TDVG), theT. Rowe Price Equity Income ETF (TEQI), theT. Rowe Price Growth Stock ETF (TGRW), and theT. Rowe Price U.S. Equity Research ETF (TSPA).

T. Rowe Price has been in the investing business for over 80 years through conducting field research firsthand with companies, utilizing risk management, and employing a bevy of experienced portfolio managers carrying an average of 22 years of experience.

For more news, information, and analysis, visit theActive ETF Channel.

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Active Management Key to Finding Idiosyncratic Investment Opportunities - ETF Trends

In recent months, the critical minerals sector has been at the top of government legislative and regulatory agendas and has been subject to substantial media attention. "Critical minerals" is a generic term that refers to a list of minerals and metals considered essential to the transition to a low-carbon energy economy, renewable energy development and infrastructure, and national security. Although there is no definitive, global list of "critical minerals," minerals such as aluminum, lithium, nickel, cobalt and rare earth elements are generally considered "critical minerals" as they are indispensable for electric vehicles (EVs), wind turbines, electricity network, consumer electronics and defense and security technologies.

Over the past few years, Chinese companies have attempted to increase their access to lithium mines worldwide to meet the growing global demand for batteries. Demand for lithium, a vital element in battery production, is expected to leap in the coming years as the auto industry phases out internal-combustion engines and rolls out EVs.1

As the United States and allied governments move to prioritize their own domestic critical minerals supply chains, foreign companies operating or investing in the critical minerals and mining sectors should expect enhanced scrutiny. Chinese and other foreign investors have already faced heightened scrutiny in the U.S. and Australia, and based on the recent divestitures and new guidance issued by the Canadian government, similar treatment is expected in Canada as well.

Since President Joe Biden's inauguration in January 2021, the Biden Administration has taken steps to strengthen domestic industrial supply chains measures that continue to have strategic implications for U.S. national security. These efforts include several initiatives aimed at expanding and protecting the U.S. critical minerals supply chain. In February 2021, Biden issued an Executive Order on America's Supply Chain, which called for a comprehensive, government-wide approach to addressing vulnerabilities in U.S. supply chains resulting from threats to critical mineral supplies and other key sectors, including semiconductors, pharmaceuticals, and information and communications technologies. In June 2022, the United States and key partner countries established the Minerals Security Partnership (MSP) which has been dubbed "a metallic NATO" to further bolster critical mineral supply chains.2

In September 2022, Biden signed an executive order (E.O.) detailing key factors as well as key industries and business sectors for the Committee on Foreign Investment in the United States (CFIUS) to consider when reviewing transactions for national security risks.3 (See previous Holland & Knight alert, "New Executive Order Creates Roadmap of Heightened CFIUS Scrutiny for Cross-Border M&A," Sept. 20, 2022.) The E.O. directs CFIUS to consider how a proposed transaction will affect the resilience of critical U.S. supply chains. The E.O. notes that foreign investment that shifts ownership, rights or control to a foreign person in critical mineral resources can pose a threat to U.S. national security. These considerations include the degree of diversification through alternative suppliers across the supply chain, including suppliers located in allied or partner countries, supply relationships with the U.S. government and the concentration of ownership or control by the foreign person in a given supply chain.

CFIUS will also consider how a transaction will affect the U.S. technological leadership in areas affecting U.S. national security, including microelectronics, artificial intelligence (AI), biotechnology and biomanufacturing, quantum computing, advanced clean energy and climate adaptation technologies.

In addition, the E.O. directs CFIUS to examine investment trends and the totality of an investment pattern to identify transactions that will harm national security, even if such transactions may appear to constitute limited threats when viewed in isolation.

Australia is the world's top producer of lithium and rutile and the world's second-largest producer of zircon and rare earth elements. As such, like the United States, Australia has also pursued enhanced regulation of foreign investment and transactions involving the critical minerals sector. The Foreign Investment Review Board (FIRB), which examines certain proposed foreign investments and makes recommendations to the Australian government, identifies the extraction, processing or sale of critical minerals as a key area of national security concern. Accordingly, in its guidance note, FIRB encourages foreign persons looking to invest in Australian businesses or entities involved in the extraction, processing or sale of rare earth elements, lithium, graphite, cobalt, vanadium, copper, nickel, silicon and high-purity alumina to seek government's approval first.4 Absent a voluntary notification, FIRB may unilaterally initiate a national security review and impose unfavorable conditions and, in extreme cases, order divestiture up to 10 years after the transaction has been completed.

Notably, in 2020, FIRB blocked a $20 million investment backed by Baogang Group Co. Ltd., a Chinese state-owned enterprise (SOE) and a major steel producer, in Northern Minerals Limited, a holder of significant deposits of rare earth minerals. In April 2020, FIRB approved the investment by another Chinese investor, Yibin Tianyi Lithium Industry Co. Ltd., in AVZ Minerals Limited (AVZ Minerals) only after the Chinese investor agreed to lower its proposed investment from AU$14.1 million to AU$10.7 million. The new amount represented a less than 10 percent stake in AVZ Minerals.

On Nov. 2, 2022, the Canadian government ordered the divestiture of three Chinese investors in Canadian companies engaged in the critical minerals sector in Canada and abroad after concluding these transactions threaten national security.5

Under guidance issued by the Canadian government on Oct. 28, 2022, Canada has the broad authority to review critical minerals investments in Canadian entities and Canadian assets (including domestic and overseas assets) across all stages of the minerals processing chain (e.g., exploration, development and production, resource processing and refining, etc.) by foreign SOEs and private investors tied to foreign governments. For such investors, applications for acquisitions of control of a Canadian business involving critical minerals will only be approved on an exceptional basis. Other investments, including greenfield and minority investments, regardless of the value, whether direct or indirect, are subject to a national security review. The participation of foreign SOEs or entities linked to or subject to influence by hostile or non-likeminded regimes or states will support a finding that there are reasonable grounds to believe the investment poses a threat to national security.7

Likewise, on Dec. 7, 2022, the Canadian Minister of Innovation, Science, and Industry introduced the National Security Review of Investments Modernization Act8 to amend the foreign investment screening regime under the Investment Canada Act and more closely align Canada's review process with that of CFIUS and the National Security and Investment Act in the U.K. The bill proposes several substantial amendments that, if passed, would affect foreign investments in businesses that operate directly or indirectly in certain "prescribed business activities," including a pre-closing notification requirement. The list of these prescribed business activities has not been published but will likely include sensitive sectors such as the critical minerals, critical infrastructure, advanced technologies and defense sectors.

These efforts come as the Canadian government has moved to prioritize critical minerals as crucial building blocks for the green energy transition and other key sectors, including AI, agriculture and microelectronics. On Dec. 9, 2022, Canada unveiled its new Critical Minerals Strategy.9 The Critical Minerals Strategy, backed by nearly CA$4 billion in funding, sets out a vision for Canada to become a global supplier of choice for critical minerals and the clean digital technologies they enable. Under the strategy, the Canadian government hopes to increase investment, boost extraction, enhance regulatory oversight and harmonize policies with allies, all while being mindful of growing national security considerations tied to critical mineral supply chains.

Canada's tough stance on Chinese investments in the critical minerals sector is one example of the broader geopolitical risks associated with minerals dependency and a convergence in treatment of foreign investments in the critical minerals sectors by the U.S. and its closest allies. China is the dominant global player in refining strategic minerals, and it holds 78 percent of the world's cell manufacturing capacity for EV batteries.10 Moving forward, further efforts are expected by the U.S., Australia, Canada and allies to counter Chinese dominance in this space, including through foreign investment screening. Holland & Knight is closely monitoring relevant regulatory changes and the latest developments related to the critical minerals supply chain.

Notes

1 Joe Wallace and Hardika Singh, Electric-Car Demand Pushes Lithium Prices to Records, The Wall Street Journal (Sept. 21, 2022).

2 MSP Partners include Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea, Sweden, the United Kingdom, the United States and the European Commission.

3 See E.O. 14083, Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States, 87 Fed. Reg. 57369 (Sept. 15, 2022).

4 See Foreign Investment Review Board, Guidance 8 - National Security (April 12, 2022).

5 See Innovation, Science and Economic Development Canada, Government of Canada Orders the Divestiture of Investments by Foreign Companies in Canadian Critical Minerals Companies (Nov. 2, 2022).

6 See Power Metals, Power Metals Completes Off-Take Agreement with Sinomine (March 17, 2022).

7 See Innovation, Science and Economic Development Canada, Updated Policy Regarding Foreign Investments from State-Owned Enterprises in Critical Minerals under the Investment Canada Act (Oct. 28, 2022).

8 See Bill C-34, An Act to Amend the Investment Canada Act, 1st Session, 44th Parliament, 2022.

9 See The Government of Canada, The Canadian Critical Minerals Strategy, From Exploration to Recycling: Powering the Green and Digital Economy for Canada and the World (Dec. 9, 2022).

10 Rodrigo Castillo and Caitlin Purdy, China's Role in Supplying Critical Minerals for the Global Energy Transition: What Could the Future Hold?, Results for Development (Aug. 1, 2022).

Continued here:
Foreign Investment in the Critical Minerals Sector to Face Enhanced ... - JD Supra

While the federal government drags its feet on cannabis reform, the real action in cannabis continues to proceed at the state level. Most recently, this is being seen in efforts toward recreational weed legalization in Florida.

Since 2014, the Sunshine State has been one of the most successful medical cannabis programs in the U.S. However, major opportunities available for legal cannabis are still brewing as those within the industry weigh up the potential for adult-use legalization in 2024.

The proposed "Adult Personal Use of Marijuana," which supports recreational weed legalization in Florida for adults over 21, is building momentum. Already, the initiative has collected about 150,000 signatures since late last year.

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We are bullish about the prospects of adult-use cannabis passing in the state and see many benefits of weed legalization in Florida from a societal and economic standpoint, not to mention the political gains for the industry with another red state going adult-use. There's plenty more work ahead, but real money and attention are focused on making sure adult recreational cannabis use passes in Florida.

Vermont's adult-use market is showing strong growth, with additional access opening across several jurisdictions. Weed legalization was signed into law in Vermont in 2018, but recreational sales in the state did not begin until October 2022. According to Vermont's state marijuana regulatory authority, 25 stores have already opened, with four more to open within a month.

During its first month of sales, Vermont generated $2.6 million in adult-use sales and projects to make up to $65 million in 2023. Vermont does not get much media attention, given the limited ability of capital to participate there. However, this is yet another positive for the citizens and the tax revenues they will generate with their ability to purchase cannabis legally. Vermont has a long history with cannabis, and it is great to see this newer program thriving.

The cannabis industry has another legal adult-use state, with New York's first legal cannabis retailer officially opening its doors as the ball prepared to drop on 2022. Housing Works Cannabis Company, located in Greenwich Village, became New York's first state-sanctioned dispensary. A series of dispensary openings are expected in the coming months following 2021's cannabis legalization in the Empire State.

Housing Works (opens in new tab) is the first of 36 recently licensed dispensaries to open. In keeping with the state's social-equity efforts, its first-selected retailer, Housing Works, is a minority-controlled social-service agency serving individuals with HIV and AIDS, as well as the homeless and formerly incarcerated.

"We're absolutely thrilled to be the first and hopefully setting a model that other folks will have to follow," said Charles King, CEO of Housing Works. "This location is a perfect location. We're between the West Village, the East Village. Tourists can come by here easily. So we think we're going to ring up a lot of sales here."

Team Poseidon has been on site for the launch of many adult-use states over the years. It's always exciting to see people celebrate cannabis legalization for the first time, and it's a great reminder of what this industry has accomplished since Colorado's first sales in January 2014. New York is off to a rocky start, but with the legal cannabis program underway, we will continue to watch its progress from here.

After a year of growing momentum for cannabis in Washington, the Senate ultimately failed to pass, or even hold a floor vote, on the SAFE Banking Act in the final days of 2022. Passing SAFE Banking would have provided cannabis businesses across the industry with much-needed access to financial institutions and given a potential pathway to placement on the major equities exchanges like other marijuana stocks. With the painful memories of SAFE's failure to pass in the rearview, the cannabis industry must learn, unite and move forward.

The next possible step for seeing substantial improvement and growth across the cannabis industry would be to address federal tax reform in cannabis. The incredible tax burden levied on cannabis operators in the U.S. affects businesses of all sizes. Because of federal 280E (opens in new tab) taxes, legal cannabis businesses possess more significant tax burdens than most other companies, which remains a problem for the industry. The most powerful step forward in helping small cannabis businesses is to repeal 280E and replace it with a more modest federal tax rate.

House Representative Nancy Mace, R-South Carolina, made a symbolic statement by filing H.R. 9702 (opens in new tab), a bill to address this very issue, on the last day of 2022. We appreciate this show of support, but the bill will have to be reintroduced in 2023 with an even less-appealing composition of House and Senate members. More work is needed from our industry to be united on this tax reform and to put real pressure on our elected officials to get things done. The industry's future is in its own hands, and we look forward to seeing what unfolds in 2023.

Read more:
Weed Legalization in Florida? This Week in Cannabis Investing - Kiplinger's Personal Finance

MT. STERLING, Ky. Neogen Corp., an animal and food safety product manufacturer, opened its new facility in Montgomery County, a $9.8 million investment creating 79 full-time jobs and furthering the Governors initiative to grow Kentuckys agritech sector.

Neogen has operated in Kentucky since located in Lexington in 1992 with the acquisition of ELISA Technologies. ELISA was formed in 1990 through a license agreement with the University of Kentucky to develop diagnostic test kits to detect abused and therapeutic drugs in racehorses and greyhounds. Lexington serves as Neogens Animal Safety headquarters, which has grown to employ 170 residents across two Lexington facilities.

In 2021, an affiliate of Phoenix Investors purchased a 267,000-square-foot facility on Owingsville Road, formerly home to Regal Beloit. Shortly after acquiring the property, Phoenix entered into a long-term lease with Neogen for the facility. The companys investment includes building improvements and new equipment. Work on the project was completed in recent weeks.

In 2020, Neogens Lexington operations stepped up in the face of the COVID-19 pandemic. Neogen increased manufacturing and distribution of critically needed biosecurity products, including disinfectants, cleaners and hand sanitizers, while working closely with government agencies worldwide to approve products for use quickly.

As Neogen continues to grow domestically and internationally, it is extremely important that we have facilities that can quickly ship products to our customers worldwide, said Doug Jones, Neogens chief operating officer. This expansion of our Kentucky distribution centers will significantly support our domestic and global growth plans. Neogen is excited to work with the Mt. Sterling community to continue improving the lives of people and animals around the world, providing solutions promptly.

Neogens commitment to the facility represents a tremendous outcome for Phoenix and the Mt. Sterling community, said Phoenix Managing Director Anthony Crivello. We are thrilled to be part of bringing such a high-quality company to Mt. Sterling.

Neogen, founded in 1982, is headquartered in Lansing, Michigan. Its animal safety division manufactures and markets various animal health products, including diagnostics, pharmaceuticals, supplements, biologics, wound care, veterinary instruments, rodenticides, disinfectants and insecticides. The company employs approximately 1,700 people worldwide, with nine locations in the U.S. and 15 international facilities.

Phoenix Investors is a leading expert in the acquisition, renovation and release of former manufacturing facilities in the United States. The revitalization of facilities throughout the continental United States leads to positively transforming communities and restarting the economic engine in those communities. Phoenixs affiliate companies hold equity interests in a portfolio of industrial properties totaling approximately 61 million square feet spanning 29 states. Phoenix owns approximately 2 million square feet of industrial real estate in Kentucky.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in June 2021preliminarily approvedan incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on the companys investment and annual job and wage targets.

KEDFA approved Neogen tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and wage assessments.

In addition, Neogen can receive resources from Kentuckys workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

Click herefor more Kentucky business news.

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Neogen opens Mt. Sterling location with nearly $10 million investment - The Lane Report

COSCO is seeking to invest in one of Hamburg's container terminals (COSCO file photo)

PublishedJan 6, 2023 12:13 PM by The Maritime Executive

Officials at the port of Hamburg said that they are close to finalizing an agreement in the controversial deal for COSCO Shipping Ports (CSPL) to invest in one of Hamburgs large container terminals. The investment agreement announced in September 2021 has faced opposition from members of the German government as part of the backlash to Chinas worldwide investments.

Responding to a mandatory update filing made by COSCO to the Hong Kong Stock Exchange, Hamburger Hafen und Logistik (HHLA) said that they believed they were close to finalizing the agreement for the investment from COSCO into the Container Terminal Tollerort. HHLA has been promoting the transaction saying it would make Tollerort the preferred terminal for Asian shipments coming to the region and strengthen Hamburgs position as a logistics hub in the North Sea and Baltic Sea regions.

We can confirm constructive talks between HHLA, CSPL, and the Federal Ministry for Economic Affairs and Climate Action, the company said in a press release. It has been possible to agree on concrete conditions for CSPL's participation in HHLA Container Terminal Tollerort. HHLA and CSPL are currently in talks to clarify the final details and are aiming to finalize the transaction soon.

COSCO in its regulatory filing noted the passing of an extended long stop date on December 31, saying that the parties have been working towards the satisfaction of the non-objection condition and completion of the transaction. As at the date of this announcement, the parties are still considering, and discussing with the Ministry in relation to the conditions, the filing noted.

COSCO announced its intentions to purchase a 35 percent stake in Tollerort in September 2021. As the investment is coming from a non-EU company, it required approval by the German government under investment law, but in the fall of 2022, it emerged that members of the German government were opposing the transaction.

HHLA emphasized that under the terms of the agreement, COSCO was only becoming an investor and that control of the terminal would not be transferred. They highlighted that HHLA would retain sole control over all major decisions and that COSCO would not receive any exclusive rights to Tollerort.

The cooperation between HHLA and COSCO creates no one-sided dependencies, the company asserted last fall. Quite the opposite, it strengthens supply chains, secures jobs, and promotes value creation in Germany.

The government set initial conditions lowering the shareholding COSCO would acquire to less than 25 percent. It is believed that there were some further conditions but the companies agreed not to disclose the full terms of the agreement.

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Hamburg is Close to Finalizing Terms for COSCO's Terminal ... - The Maritime Executive

Valuations for IT sector have turned fairer post the correction. However, earnings downgrade risk remains high given the challenging global backdrop, feels Vinay Joseph, Head, Investment Products and Strategy at Standard Chartered Wealth India.

His investment tips for 2023 - (i) Secure your yield via relative yield opportunities in bonds and large-cap equities (ii) Allocate to long-term value to structural themes in financials, domestic cyclicals and the investment-led themes (iii) Fortify portfolios against surprises via defensive assets and (iv) Expand beyond the traditional via alternative strategies

Edited excerpts:

Q. Given the predictions of a mild recession, what is your outlook for the market? Any levels you are looking at for Nifty, Sensex?

Given the challenging macro backdrop, we have a neutral stance on Indian equities as stretched valuation premium, both absolute and relative to major peers, is counterbalanced by robust domestic growth and resilient earnings growth expectations. Within equities, we are overweight on large-cap equities given relatively better macro fundamentals and a greater margin of safety in terms of earnings and valuation compared to mid-cap and small-cap equities. We are overweight domestic sectors given a weak global macroeconomic backdrop and greater earnings resilience.

Q. Is IT sector an opportunity now or is there more pain expected?.

We are neutral on the IT sector as valuations have turned fairer post the correction. However, earnings downgrade risk remains high given the challenging global backdrop.

Q. It is advisable to have a diversified stock portfolio. What are the defensive sector(s) where one can look at in 2023?

We believe investors should be prepared for downside surprises given the challenging global macro backdrop. Further, Indian markets have significantly outperformed its peers, indicating a very low margin of safety. Thus, in our view maintaining a defensive portfolio allocation through cash, gold and adding a defensive tilt among equity sector positioning is a prudent approach to ride out any unexpected jump in volatility.

Q. Bank Nifty has delivered over 21% return in 2022. What levels you believe Bank Nifty may hit by end of the current fiscal.

Financials is a key overweight sector. Economic growth recovery has driven a broad-based uptick in credit growth. In addition, healthy corporate balance sheets, improvement in net interest margins and higher loan disbursal volumes are likely to support the sectors profitability in 2023. Higher interest rates are an additional tailwind for the sector supporting yields and spreads. The sector trades cheaper than the market with superior growth compared to other major sectors.

Q. What are the themes expected to work on Dalal Street ahead of Budget 2023?.

We believe it will be prudent to follow a SAFE investment strategy for 2023 : (i) Secure your yield via relative yield opportunities in bonds and large-cap equities (ii) Allocate to long-term value to structural themes in financials, domestic cyclicals and the investment-led themes (iii) Fortify portfolios against surprises via defensive assets and (iv) Expand beyond the traditional via alternative strategies.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Four investment strategies that may work in 2023 amid uncertainties | Mint - Mint

Technology accelerates the growth of many industries, and financial services is no exception. In the past few decades, retail investors have gained incredible access to low-cost, high-quality financial services via a multitude of platforms.

Check Out:Why Buying Property in These Vacation Destinations Could Be a Great InvestmentSee:5 Things You Must Do When Your Savings Reach $50,000

The fastest growth in recent years has been in the development of money-oriented apps, which allow customers to create and manage budgets, buy and sell investments, track their financial status and even file their taxes all from the screen on a smartphone. For 2023, heres a variety of money apps that can best help you manage your investments, depending on your specific needs.

Acorns was one of the first investment-oriented apps, and it pioneered the idea of rounding up everyday purchases and using that money to buy investments. It has since progressed to offering more advanced features.

For $3 per month, you can get an all-in-one account package that includes investment, retirement and checking accounts, a metal debit card and various educational tools. An upgrade to $5 per month allows for family accounts that can also include your kids.

Personal Capital is a digital financial management app that offers two types of comprehensive services. The free version allows users to input all of their account information from various institutions so its all visible at one time on the apps dashboard.

Along with this organization, Personal Capital also offers planning and analytics tools. For those willing to pay a tiered, annual fee ranging from 0.49% to 0.89% of assets and with at least $100,000 to invest Personal Capital kicks into high gear, offering everything from professionally managed portfolios to teams of dedicated financial advisors, and even access to private equity.

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If youre looking for robo-advisory services, Betterment, as one of the very first providers, is one of the top options in the space. It also still charges just 0.25% for its basic robo-advisory package, with no minimum.

However, the Betterment app now provides a wider range of financial options, from a high-yield savings account to crypto trading and a checking account. For an additional 0.15% per year, you can also gain access to CFP professionals for one-on-one advice.

Marcus is a relatively new entrant in the app-based consumer financial space, but its backed by investment banking giant Goldman Sachs and already a major player. In addition to its easy, online access to high-yielding savings accounts and CDs, the firm offers Marcus Invest, providing customers with portfolios chosen by Goldman Sachs experts for 0.25% per year, with a $5 minimum.

There has been talk of Marcus expanding its product line to include checking accounts and other offerings, but even until then, the app is noteworthy for its low-cost, high-yield products.

Mint has become synonymous with budgeting apps, as it was one of the first in the space. And, according to no less than the Wall Street Journal, it remains the best.

Mint has earned that endorsement through its free suite of user-friendly budgeting tools. Mint keeps all your accounts in one place for easy access and understanding of your cash flow. The app provides trackers for budgets, bill payments and investments, and it offers free access to your credit score.

The premium service, which costs $4.99/month and is only currently available for iOS users, offers a host of additional features. One of the most notable is its subscription management service that lets you see all that youre paying for monthly and helps make it easier for you to cancel. Premium services also include advanced graphing and visualization services and an ad-free experience.

M1 Finance represents the next evolution in financial services apps, offering both traditional robo-advisory accounts and the ability for investors to pick and choose their own individual investments. Investors can construct entire portfolios of fractional shares while paying no commission, rebalancing at will.

Basic accounts only have access to one trading window per day, but this restriction may actually help customers become long-term investors rather than short-term traders. In addition to its investment options, M1 Finance also offers a high-yield checking account, a credit card, and loans through its M1 Plus service, which costs $125 per year.

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6 Best Money Apps To Help You Manage Your Investments in 2023 - GOBankingRates

Most investors would be happy to more than double their money in an investment in less than three years' time. If it were easy to do this, however, everyone would be. That said, those that bought ExxonMobil (XOM 1.21%) in April 2020 have seen a massive stock gain. Here's why so many people overlooked the opportunity.

A $10,000 investment in energy giant Exxon's stock at the start of April 2020 would be worth around $28,000 today. In percentage terms, the shares have risen more than 180%. It's just the start of 2023, so the holding period here is a few months shy of three years. If you look past the meteoric meme stock price rises of recent years (which have largely proven to be unsustainable), that kind of gain in just three years is simply incredible!

Image source: Getty Images.

Stepping in to buy in April 2020, however, would have required almost Herculean strength, and certainly an emotional fortitude that most investors lack. That's because April was just about the worst point of the coronavirus pandemic-driven bear market. It seems like a lifetime ago now, but countries around the world were effectively shutting down their economies in an effort to slow the spread of what was, at the time, a novel illness with no effective treatments.

Demand for oil and natural gas fell dramatically and pushed energy prices sharply lower. At one point West Texas Intermediate (WTI) crude, a key U.S. energy benchmark, fell below zero. This was a brief moment in time, but think about what a negative price means in the energy sector -- oil drillers were basically paying customers to take oil off their hands. Investing in an energy company, even one as well known as Exxon, when the energy market was facing such a serious headwind would not have been easy.

Here's the thing, though, oil and natural gas are notoriously cyclical commodities. The 2020 price plunge was, perhaps, shocking for unique reasons, but it wasn't actually far off cyclical trends. Simply put, swift and dramatic price moves are the norm, not the exception, in the energy sector. With an investment-grade-rated balance sheet, Exxon was probably one of the energy industry companies best positioned to withstand the blow.

That's not an accident. Exxon, which has been around in some form for more than 100 years, has seen tough cycles before. And it is ready, which it again proved in 2020. One key indication of this is the fact that Exxon has increased its dividend for 40 consecutive years despite the inherent industry ups and downs it has to deal with. The story, again, goes back to the company's balance sheet.

XOM Financial Debt to Equity (Quarterly) data by YCharts

Just prior to the pandemic, Exxon's debt-to-equity ratio was well below 0.20 times. That's a very modest figure for any company. However, when the pandemic hit and energy prices plunged, management followed a tried and true playbook. It took on debt, more than doubling its debt-to-equity ratio. Even at the peak level, Exxon's leverage wasn't overbearing, but it did rise very quickly. The cash raised allowed the company to continue to pay its dividend and support its business, including the capital spending needed to support long-term production levels.

XOM Total Long Term Debt (Quarterly) data by YCharts

Fast forward to today. Exxon's debt-to-equity ratio is again well below 0.20 times. That's because oil prices have rebounded strongly from their lows. Exxon's stock price has rebounded along with energy prices, as have its profits. And it is using today's profits to pay down the debt it took on to help it muddle through the industry downturn.

If the only thing you see is the huge price gain that Exxon's stock has experienced since April 2020, you are missing the real story. Exxon did what it always does during the hard times; it used its balance sheet as a shield to protect itself and income investors. If you had known this was simply the same old successful playbook being used again, you might have had the fortitude to take a contrarian stance.

In the end, buying Exxon's stock while Wall Street was busy throwing the baby out with the bathwater (again) proved to be a huge financial win for investors who took the time to understand history.

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If You Invested $10,000 in ExxonMobil in April 2020, This Is How ... - The Motley Fool

Big pharma companies have become more measured in their risk taking, with mergers and acquisitions gradually giving way to joint ventures and partnerships.

As COVID-19 wreaked havoc on our markets, biotech appeared to be an outlier, not just weathering the storm, but emerging stronger than ever with record investments and valuations. Then reality struck and assets lingered in early stages.

Commercialized products underperformed, valuations tumbled, and a new normal arrived. This presented a paradox to small and midsize companies in how to deliver not just promising innovations, but also low-risk investment options to an increasingly wary market.

Even before the pandemic, small to midsize biotechs were gaining ground, thanks in part to their nimbler adoption of new technologies, faster paced innovation, and partnerships with larger companies hoping to overcome internal stagnation and offset impending patent expirations.

EY reports that new molecular entity (NME) approvals attributed to small biotechs with revenues less than $1 billion were approximately 10% in 2017, which reached 30% by 2021. McKinsey & Company reports the pace of innovation has also been increasing, with assets passing through early phase trials up to 50% faster than before, though the development of later stage assets has remained flat.

The eventual market downturn meant that biotechs must either travel the unfamiliar path toward commercialization or prove their worth to increasingly trepidatious investors. Today, big pharmas are more measured in their risk taking, with mergers and acquisitions gradually giving way to joint ventures and partnerships.

Investors are less willing to jump in early, often delaying their moves until after phase 2 or 3 trials, demanding data-backed validation, and setting strict milestones. Biotechs with early phase assets or platforms no longer have an easy path to IPO, and instead face growing demand to differentiate themselves in a sea of similar start-ups.

Many companies are waiting out the downturn, staying private for as long as possible while stretching budgets and streamlining operations. Some are even tempering R&D efforts or joining scores of competitors focused on indications with well-validated assays and end pointsa strategy that some fear could stifle innovation in the long-run.

For many biotechs, delivering rapid innovation with good returns seems like an insurmountable challenge when faced with myriad other challenges, such as fewer late-stage assets, heightened consumer expectations, new pricing legislation, and increased cyber threats. To deliver on the markets demands, companies must adjust their strategic priorities.

Deloitte recently reported on the key priorities for biopharmas to stay competitive. Aside from expanding global reach, the top priorities named include strengthening R&D and improving the use of digital and IT technologies.

Invest in a scalable R&D platform

As biotechs grow, the systems that sufficed for small teams typically dont scale well and instead start hindering progress. Companies face a choice of either building an end-to-end cheminformatics discovery platform themselves or finding a partner whose open platform can help them seamlessly integrate the diverse applications, workflows, and data they need.

Adopting a flexible, scalable R&D platform reduces the onus of integrating internal systems, such as those used for study capture, compound registration, inventory management, assay design, and data management. Companies can then focus their time, money, and expertise on what matters mostthe science that will help them make better therapies faster and increase their chances of success.

Support transformational change

Biotechs must analyze their R&D workflows and identify changes that will not just impact a few teams processes, but will also improve outcomes across their organizations. For many drug-discovery companies, a key priority should be investing in technology that frees decision-makers to focus on science instead of cumbersome processes.

Unfortunately, several obstacles often stand in the way of this goal, including disconnected R&D systems, workflow complexity, compromised data value, high failure rates in small molecule drug discovery, and structural complexity and diversification in biologics discovery. Companies can overcome these obstacles by investing in tools that let them streamline end-to-end workflows, accelerate research, facilitate collaboration, and improve decision-making.

Creating a strong data foundation

Big data have become synonymous with big possibilities. Companies across industries are looking to both gain competitive advantages and generate revenues.

Theyre also pouring tens of millions of dollars into AI initiatives each year. Unfortunately, many biopharmas face a harsh realitytheir data are ill-suited for utilization in AI due to a variety of reasons, such poor access, lack of standardization, inefficient annotation, questionable integrity, and limited traceability.

In fact, a recent survey of biopharma and medtech companies conducted by Deloitte found that nearly 30% of life science leaders admit that data struggles negatively impact their AI initiatives. Biotechs must create a strong data foundation to benefit from AI and machine learning, which means capturing clean and trustworthy research data, removing data silos, and provisioning model quality data.

Tackling regulatory readiness

An increasingly common regulatory issue facing leaders is data integrity, which can greatly impact a drugs safety, efficacy, and quality. Such violations have become more common as labs shift from paper to electronic record keeping, with the FDA releasing industry guidance on the matter.

Although egregious offenses such as falsifying data make headlines, the FDAs transparent sharing of warning letters highlights many less headline-grabbing offenses, such as data loss, missing metadata, uninvestigated sample elimination or reprocessing, security issues, and inadequate audits. Luckily, labs can choose solutions that help mitigate the risk of violations, such as by automatically recording experiment details and audit trails, requiring signatures, and restricting data manipulation or deletion.

Upholding the integrity and security of data generated throughout a products entire lifecycle better ensures regulatory readiness, while also enabling that product to become more compelling to investors. Although biotechs face new challenges, history shows the industry has always bounced back.

McKinsey projects the market will rebound if companies carefully focus their talent and budgets without losing sight of the fundamentals, which increases regulatory clarity and commercial viability for innovative therapies addressing unmet needs.

About the Author

Haydn Boehm is director of Product Marketing at Dotmatics, a leader in R&D scientific software connecting science, data, and decision-making. Its enterprise R&D platform and scientists favorite applications drive efficiency and accelerate innovation.

See more here:
Overcoming the Biotech Investment Paradox - Pharmacy Times

There are a lot of reasons an investor might be interested in putting their money into agriculture. For one, it may seem like a safe bet since during a recession, people may cut back on haircuts or hold off on getting their car repaired but nobody stops purchasing food.

You may also simply be interested in the agriculture industry or perhaps youve always romanticized the idea of farming. If you want to raise money by helping farmers raise crops, then keep reading.Before you invest in anything, its always prudent to first talk to a financial advisor who can look at your portfolio and help you manage any risk.

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Any investment involves some level of jeopardy, but the agriculture industry certainly has some risks built into the system. People make profits off farming, to be sure, but everything from climate change to global markets can affect the price of crops and cattle and create a bad financial year for farmers and investors alike.

But if you want ideas on how to invest in agriculture and minimize your risk while doing it, consider looking into the following types of investments.

Investing in agriculture can be risky but it can also be rewarding for your portfolio. If youre looking to limit the amount of risk that you take while enjoying agriculture-related investments in your portfolio, consider keeping these three rules in mind:

Unless youre investing in a family member who you want to help and believe in, you probably wouldnt want to invest in one farm and farmer. Thats why Farm REITs exist, for instance. Investing in agriculture is far less risky when you invest in the agriculture industry as a whole as opposed to one individual, who could face financial ruin, such as bankruptcy.

Keep in mind that investing in agriculture is a useful hedge against inflation. Inflation can be damaging to investments, because of the dollar losing value, but food prices tend to lead the pack when it comes to expenses rising.

Real estate is often considered a good hedge against inflation and so if your investment includes a lot of successful farms, with a lot of land and success selling its crops, you may, in a sense, have two hedges against inflation.

As the population grows, so does the demand for agriculture. As noted earlier, everybody needs to eat. In other words, while there is a lot of risk to being a farmer and investing in one farmer, this is a growing industry that isnt likely to slow down anytime soon. The population continues to increase in size year over year so there is no shortage of opportunity.

If youre looking to invest in something that can bring you wealthand in an arguably good cause any industry that feeds hungry people cant be all bad agriculture is certainly something that any investor should consider.

As with any investment, agriculture has its risks. Droughts can kill crops. Natural disasters, like hurricanes, can as well. Tastes change and what may be a popular crop one year may be less in favor of the next. But eating well never goes out of style and so if you invest shrewdly, its hard to see how youll end up with a bad case of indigestion.

The post How To Invest In Agriculture appeared first on SmartAsset Blog.

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How To Invest In Agriculture - ValueWalk