Caesars Cutting Back Ad Spending, To Benefit All Online Gambling Companies by James R. Wigen, Sr. Portfolio Manager at Independent Financial Management

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Market Expectations in 2024?
My expectations for this year will be markets full of volatility, however, by the end of 2024, the markets will be higher from where they ended in 2023.

This growth will continue as long as the Technology Sector leads the way, and all signs are showing it will.

Part of the reason I think the markets will be higher, is due to 2024 being a Presidential Election year, which historically shows positive returns for the markets.

The sitting President will do everything they can to not allow a recession to form in 2024 ahead of his re-Election.

How can they do that you ask, one way could be to put a little pressure on the Federal Reserve to Add Liquidity to the markets, Aggressively cut Federal Funds Rate, which will keep investors excited for the future, and markets in rally mode.

In 2024, the volatility will come from Mediocre Economic Data causing markets to rise with anticipation Fed Funds Rate will be cut, followed by Mediocre Earnings Announcements with Lowered Forward Guidance by companies, causing the markets to decline.

Lowered Future Expectations by companies will worry investors that current stock prices can't justify Lowered Future Expectations, causing a market sell-off.

So, WHAT DO I DO YOU ASK, keep investing in Pre-Tax accounts, especially if you are in a 30%-40% Tax Bracket, like 401Ks, Solo 401Ks, SEP & Simple IRAs, sit in Cash / Money Market Funds & collect your 4.75%+ yield, and Very Slowly Buy Stocks Fitting Within Your Risk Profile on market declines.

Negative Markets create Opportunity, although at the time, it seems very uncomfortable to Buy!

If you are looking to Earn Additional Income from your portfolio this year, look into a strategy called "Selling Covered Call Options".

This strategy can be a great source used to create Income from Stocks you already own.

For Stock ideas, Contact Me and I Will Evaluate Your Risk Profile.
401K & Solo 401K / IRA / Roth IRA Contribution Limits for 2024
If you are under the age of 50, max contribution is $7,000 & if over 50 it's $8,000 for your IRA & Roth IRA.

Your 401K limit is $23,000 if under 50, $30,500 if over 50 years old.

For individual business owners, Solo 401K contributions in 2024 increased to $69,000 or $76,500 if age 50 or over.

Solo 401K contributions are based net- income from Self-Employment (i.e. you can't contribute more than you make).
How Much Should I Pay my Financial Advisor or Portfolio Manager?
The fees you will pay a Financial Advisor generally depend on how much money you are asking the Advisor to manage & whether part of those investment dollars include your 401K.

Try to avoid dealing with Financial Sales People who only want to charge you Commissions or try and Sell you A-share Mutual Funds.

During their recent earnings announcement, Caesars CEO indicated they will no longer spend so much to attract new customers, this will help all online gambling companies that are sure to adopt the same policy.

Caesars indicated launching in so many new states so quickly hasn’t come cheap in the market’s increasingly competitive field, as DraftKings earnings illustrated last week.

CEO Reeg said Caesars had exceeded its own expectations going from “an afterthought in the market” to grabbing 21% of the U.S. sports betting market through the past month, adding that Caesars was “moving toward profitability” in its sports betting and online gaming segment.

“You are going to see us dramatically curtail our traditional media spend effective immediately. We have accomplished what we set out to do. We set out to become a significant player, and it’s happened significantly quicker than we thought,” he said on an earnings call. Traditional media spend will be reserved primarily for new launch states.

DraftKings highlighted just how expensive launching in new states and attracting customers can be, when it reported earnings on Friday. During 2021, sales and marketing expenses totaled nearly $1 billion, about double the 2020 total.

In fact, the company said that if it had not planned to expand in any new states after Dec. 31, it would have expected positive adjusted Ebitda in the fourth quarter of 2022.

Some information courtesy of Barrons.com

James CPM® designation was earned through Academy of Finance and Management or GAFM®

Investing involves serious risks and past performance is no guarantee of future performance or success. This is not an offer to buy or sell securities and nothing contained herein should be interpreted as a recommendation regarding any investment or investment strategy. Before making any decision to invest, first read the relevant disclosures and important information provided to you.

Please take the proper risk for your current situation and get the advice from a financial professional who clearly understands your current & future goals and objectives.

Investments are NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

All opinions expressed by James R. Wigen on this website are solely his opinions and do not reflect the opinions of IFP Advisors, LLC, dba Independent Financial Partners, (IFP). Investment Advice offered through IFP Advisors, LLC, dba Independent Financial Partners (IFP), a Registered Investment Adviser. IFP and Independent Financial Management, LLC (IFM), are separate entities.

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Caesars Cutting Back Ad Spending, To Benefit All Online Gambling Companies by James R. Wigen, Sr. Portfolio Manager at Independent Financial Management

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