Finance

investing, personal finance | Fox Business

Published

1 year ago

April 10, 2024

Rosecliff founder and managing partner Mike Murphy says recessions will come and go, but investors need to keep their eyes on market ‘opportunities.’

If your thinking about investing there is no time like the present, advises Rosecliff founder and managing partner Mike Murphy. “Recessions come and recessions go, people need to look for opportunities to invest and not try to time the next recession” he told FOX Business’ Stuart Varney.

Here’s his five steps to getting started in FOX Business’ Financial 101 Planning series.

START NOW!

Get at it. There is no need to monitor the markets, just decide you’re ready and set aside some funds. “They should start investing today, not wait for maybe the market’s down tomorrow, or maybe they’ll be a better time in six months”, Murphy advised.

DO NOT ACTIVELY TRADE

Anticipating market moves is challenging for even the most seasoned traders, says Murphy. It’s unwise to try and time the market. “For most people, professionals even, it’s tough to trade successfully”, he warned. Instead, let your money sit and grow.

CREATE A LONG-TERM PLAN

Decide what your goals are; long-term, short-term or retirement. Then decide how much you can allocate each month or quarter and start investing.

INFLATION RISES FOR A THIRD STRAIGHT MONTH

Close-up view a person's hands going over stocks on a smartphone.

Affluent individuals can protect their money if they place it into money-generating assets, including stocks, personal finance experts say. (iStock / iStock)

THE MAGIC NUMBER TO RETIRE

BUY LOW COSTS ETFS

Murphy recommends low-cost exchange-traded funds (ETFS) that hold a basket of stocks for broader exposure.

A good option, he noted, is the SPDR S&P 500 ETF trust, which mirrors the S&P 500, the broadest measure of the U.S. stock market. So far this year the fund has returned over 10%.

The fund’s heavily weighted in large cap tech, according to filings. Those stocks include Microsoft, Apple, Nvidia and drugmaker Eli Lilly to name a few.

Ticker	Security	Last	Change	Change %
MSFT	MICROSOFT CORP.	423.26	-3.02	-0.71%
AAPL	APPLE INC.	167.78	-1.89	-1.11%
NVDA	NVIDIA CORP.	870.39	+16.85	+1.97%
LLY	ELI LILLY & CO.	761.98	+4.71	+0.62%

MONITOR YOUR MONEY

It’s a good idea to keep track of your returns every month, quarter and year, according to Murphy. “History has proven 100% of the time, its proven, if they leave that money there over time it’s going to compound and increase in value,” he said.

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Finance

Stocks making the biggest moves midday: WOOF, TSLA, CRCL, LULU

Published

22 hours ago

June 6, 2025

Business Finance News

Finance

Swiss government proposes tough new capital rules in major blow to UBS

Published

1 day ago

June 6, 2025

Business Finance News

A sign in German that reads “part of the UBS group” in Basel on May 5, 2025.

Fabrice Coffrini | AFP | Getty Images

The Swiss government on Friday proposed strict new capital rules that would require banking giant UBS to hold an additional $26 billion in core capital, following its 2023 takeover of stricken rival Credit Suisse.

The measures would also mean that UBS will need to fully capitalize its foreign units and carry out fewer share buybacks.

“The rise in the going-concern requirement needs to be met with up to USD 26 billion of CET1 capital, to allow the AT1 bond holdings to be reduced by around USD 8 billion,” the government said in a Friday statement, referring to UBS’ holding of Additional Tier 1 (AT1) bonds.

The Swiss National Bank said it supported the measures from the government as they will “significantly strengthen” UBS’ resilience.

“As well as reducing the likelihood of a large systemically important bank such as UBS getting into financial distress, this measure also increases a bank’s room for manoeuvre to stabilise itself in a crisis through its own efforts. This makes it less likely that UBS has to be bailed out by the government in the event of a crisis,” SNB said in a Friday statement.

‘Too big to fail’

UBS has been battling the specter of tighter capital rules since acquiring the country’s second-largest bank at a cut-price following years of strategic errors, mismanagement and scandals at Credit Suisse.

The shock demise of the banking giant also brought Swiss financial regulator FINMA under fire for its perceived scarce supervision of the bank and the ultimate timing of its intervention.

Swiss regulators argue that UBS must have stronger capital requirements to safeguard the national economy and financial system, given the bank’s balance topped $1.7 trillion in 2023, roughly double the projected Swiss economic output of last year. UBS insists it is not “too big to fail” and that the additional capital requirements — set to drain its cash liquidity — will impact the bank’s competitiveness.

At the heart of the standoff are pressing concerns over UBS’ ability to buffer any prospective losses at its foreign units, where it has, until now, had the duty to back 60% of capital with capital at the parent bank.

Higher capital requirements can whittle down a bank’s balance sheet and credit supply by bolstering a lender’s funding costs and choking off their willingness to lend — as well as waning their appetite for risk. For shareholders, of note will be the potential impact on discretionary funds available for distribution, including dividends, share buybacks and bonus payments.

“While winding down Credit Suisse’s legacy businesses should free up capital and reduce costs for UBS, much of these gains could be absorbed by stricter regulatory demands,” Johann Scholtz, senior equity analyst at Morningstar, said in a note preceding the FINMA announcement.

“Such measures may place UBS’s capital requirements well above those faced by rivals in the United States, putting pressure on returns and reducing prospects for narrowing its long-term valuation gap. Even its long-standing premium rating relative to the European banking sector has recently evaporated.”