Wednesday, January 24, 2024

Netflix is preparing investors and users for more price hikes in 2024

Netflix is claiming that it is improving its content, such as adding WWE Raw for 10 years, and the added content necessitates a price increase. Despite its crackdown on password sharing back in November 2022, Netflix has more than 260 million global subscribers after adding 13.1 million in the fourth quarter. This is the company’s most significant fourth-quarter addition. Netflix’s prices have not gone up since 2022, so they feel “As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service,” the company told investors.

https://www.cnbc.com/2024/01/23/netflix-is-preparing-investors-and-its-user-base-for-more-price-hikes-in-2024.html


How sovereign wealth funds are affecting industries and macroeconomics

To first explain how sovereign wealth funds (SWF) are changing industries, we must first define what a SWF is. SWF's help during investing opportunities in financial assets like stocks, bonds, real estate, entertainment, and other resources. The key feature to this is that they are invested globally and are a fairly regular occurance (rather than a rarity). It currently stands that investors want financial managers to release capital from older investments from making any future endeavors. 

SWF's function signficantly in emerginf markets because the mass of wealth accumulated can diversify and expand upon sectors, which in turn protects the economy during its grwoth periods and strengthens their respective nations in the long term. Examples include stabilizing banks durig crisis and shaping future industries as a whole. 

One of the most well known SWF's is Saudi Arabia's Public Investment Fund (PIF). Sporting events amoungst other sectors have brought in over 800 billion of assets BUT are not even close to the 1.5 trillion SWF of Norway or the 1.2 trillion and 1 trillion coming from China and Hong Kong respectively. 

Sunday, January 21, 2024

Mortgage rates drop to lowest level since May by CNN

The housing market is something that greatly impacts the economy and so what this article talks about is how mortgage rates have been falling specifically this past week. A year ago the rates were almost 1% higher so it's great for homebuyers and people looking to invest. That being said, just because the interest rate trend is going down, it does not mean it's not a competitive market.  I found this article interesting because as someone who wants to be a future homeowner, it's important to look at the interest rates and track when the best time to invest in a home is. After reading this article I was curious to see what previous rates were so I looked up what mortgage rates were in 2018 (pre-pandemic).  To my surprise, it was around 3-4% which is a lot lower than it has been in the past few years. 

 https://www.msn.com/en-us/money/other/mortgage-rates-drop-to-lowest-level-since-may/ar-AA1nbVLD