Happy MLK Jr. Weekend.
If youâre doing a bit of self-improvement this weekend, check out Publicâs new High-Yield Cash Account!
5.1% APY on your idle cash â with absolutely zero fees or subscriptions.
If youâre like me, you always use high-yield savings accounts for your emergency fund. As you can see from this TikTok video, I earned more than $3,800 in interest on my savings in 2023 by using these types of accounts.
Announced a few weeks ago, Public is now offering a âhigh-yield cash accountâ that yields 5.1% APY, is FDIC insured up to $5M in deposits, and is completely free to use (no subscription required).
Just click this link â> click âSign Upâ â> and theyâll Text You a link to download their app!
Donât make the mistake of leaving potentially hundreds or even thousands of dollars on the table by keeping your emergency fund in a checking account.
Heck, even if youâre using SoFi with their 4.25% APY â by transferring your funds to Public you can expect to earn $76 more per $10K deposit per year! Free money.
Portfolio Updates:
Over the last two weeks, the portfolio has seen just north of $2,200 in net cash inflows, and experienced just north of $1,000 of market gains.
That $2,200 of net cash inflow was deployed entirely toward the âLong Riskyâ section of the portfolio as (at the time of deployment) that section was underweight.
The cryptocurrency section of my portfolio is a different story. I have deployed $8,000 of net cash inflows toward the above cryptocurrencies since the start of 2024 â 4X that of my stock portfolio.
Why? Well, itâs pretty simple.
The Nasdaq is currently sitting near all-time-highs, whereas at the start of 2023 it was trading -35% off recent highs. The market is currently pricing in 6 rate cuts in 2024, which I believe is wildly optimistic.
Investor bull / bear sentiment as tracked by Bank of America is at 7-year highs, whereas this sentiment was near multi-year lows at the start of 2023. The Nasdaq currently trades at 30X price-to-earnings, compared to 23X price-to-earnings at the start of 2023.
Iâm not bearish â let me be clear.
But from a risk / reward perspective, I think there is more upside to be had in Bitcoin and Ethereum in 2024 than the stock market â therefore Iâll continue to grow my cryptocurrency holdings.
If youâre not yet subscribed to Rate of Return â allowing you to unlock the rest of this post, obtain portfolio access, attend weekly livestreams, and more â be sure to do that by clicking the button below!
Itâs only $13 per month⌠the Standard Netflix subscription is $15.49 per month.
Week in Review â Too Long, Didnât Read:
BlackRock acquires Global Infrastructure Partners (GIP) for $12.5B, UnitedHealth Group is seeing an uptick in their medical care ratio, Delta Air Lines is slated to print billions in free cash flow, Bitcoin ETFs get the green light, the biggest tech conference in the world, warfare from the Red Sea, Hertz is dumping EVs, and inflation came in hotter-than-expected.
Key Earnings Announcements:
BlackRock acquires Global Infrastructure Partners (GIP) for $12.5B, UnitedHealth Group is seeing an uptick in their medical care ratio, and Delta Air Lines is slated to print billions in free cash flow.
BlackRock (BLK)
Key Metrics
Revenue: $4.6 billion, an increase of +7% YoY
Operating Income: $1.6 billion, an increase of +11% YoY
Profits: $1.5 billion, an increase of +14% YoY
Earnings Release Callout
âBlackRock delivered differentiated organic growth and operating margin through historically challenging market and industry conditions in 2022 and 2023. As weâve seen before, when investors were ready to put money back to work, they did it with BlackRock.
Clients entrusted us with $289 billion of net inflows in 2023, including $96 billion in the fourth quarter. We enter 2024 with strong momentum â $10 trillion in AUM, accelerating flows, and an organization positioned for the future.â
My Takeaway
The biggest callout from the earnings results is BlackRockâs announcement of their acquisition of Global Infrastructure Partners (GIP) for $12.5 billion. The company has over $100B in assets under management, and will help advance BlackRockâs position in infrastructure investing.
The deal is expected to close in Q3 of this year, allowing BlackRock to nearly double their private markets management fee to over $1.5 billion. According to the slide deck shared by BlackRock re: the acquisition, this $1.5 billion management fee should double to $3.0 billion by 2027 as more investors pile into the âinfrastructureâ investing theme (energy transition, decarbonization, etc.)
BlackRock is positioning themselves to win over the coming several years and decades as an estimated $75 trillion is expected to be deployed toward infrastructure through 2040.
Personally, Iâm not an investor â but this is really interesting.
UnitedHealth Group (UNH)