Here’s how some risky bets could destabilize the stock market

Day traders are always looking for new ways to book instant gains. One trend that has caught on is trading options that expire the same day. Joseph Adinolfi explains how options with zero days until expiration, or 0DTEs, work, why they have pros on edge and how they can crush individual investors.

A remarkable change for crypto


Terrence Horan, Dow Jones

In this week’s Distributed Ledger column, Frances Yue reports on the Securities and Exchange Commission’s push to clamp down on operators of virtual currency exchanges and stablecoins, even as Bitcoin
BTCUSD,
-1.62%

has rallied.

More crypto coverage:

Love and money


MarketWatch illustration

In The Moneyist column, Quentin Fottrell provides advice to readers seeking help with difficult family-related money problems. This week he helps a woman who is saving for retirement and wants to marry a man who has made some bad financial choices.

Also read: I’ll inherit $40,000 from my grandmother. Should my husband and I boost our kids’ college savings accounts, or pay off credit cards and student loans?

Retirement planning and advice


istock

One way to show love for your family is to make sure they’ll be protected financially if something should happen to you. Alessandra Malito has tips on how to get started with an estate plan.

And read the Help Me Retire column for advice on how to work through various difficult retirement-planning scenarios.

With a traditional IRA, 401(k) or other employer-sponsored retirement account, your contributions and investment earnings aren’t subject to income taxes until you begin withdrawing money during the year in which you turn 59½. With a Roth account, contributions go in after tax, but then you never pay taxes again on any investment earnings or withdrawals from that account. And there are other advantages. Beth Pinsker explains how Roth account conversions work and how to minimize the tax burden.

Brett Arends: Here’s where the 60/40 could really fail you. A better option may be under your nose.

More retirement advice: ‘Working longer is not a realistic cure for retirement insecurity.’ Time to get real about how long you’ll really work.

What’s next for the Federal Reserve and the U.S. economy?

Bond-market investors had been signaling that they expected the Federal Reserve to reverse course and stop increasing interest rates — until this week. William Watts looks at the economic and policy signs for clues about what’s next for the U.S. economy and financial markets.

Related: Why traders suddenly see significant chance of a June interest-rate increase by the Fed

FA Center: Buying bonds now is a smart money move even if the Fed keeps hiking rates. Here’s why.

Dividend stocks

Stephen Curry and LeBron James have scored many double-doubles during their stellar careers. For dividend stocks, double-doubles can make you a lot of money as you build an income stream.


Getty Images

Looking ahead: John Buckingham, editor of The Prudent Speculator, selected 10 stocks he believes are value-priced right now, with dividend yields of up to 6.5%.

Looking back: These companies have scored double-doubles over the past five years for dividend payout growth and stock price increases.

ChatGPT and investing


MarketWatch photo illustration/iStockphoto

Following the initial euphoria over ChatGPT’s ease of use and capabilities, it was probably inevitable that different approaches to using the chatbot would lead to some bizarre output. But might this new AI technology help you with your money? Michael Brush considers how useful ChatGPT might be for investors.

Read: The AI chatbot phenomenon is now making waves in China, too

The ratings game

Following a train derailment and chemical spill in East Palestine, Ohio, Cowen analyst Jason Seidl was quick to assess possible implications for shares of rail operator Norfolk Southern Corp.


AP

When a stock is rated by a brokerage firm, the rating is usually neutral or a buy recommendation. On the S&P 500
SPX,
-0.76%
,
there is only one stock that has a sell or equivalent rating from the majority of analysts polled by FactSet: Principal Financial Group Inc.
PFG,
-0.49%
,
which has 53% negative ratings.

But an upgrade or a downgrade of a rating can drive a company’s share price after it is announced. So can significant changes to analysts’ earnings estimates or price targets. These changes are tracked daily in The Ratings Game column. Here are some recent examples:

Sound investing advice from a basketball pro who learned his lesson

Chris Paul of the Phoenix Suns has some advice for investors.


Getty Images

Phoenix Suns guard Chris Paul is a future NBA hall-of-famer. In an interview with Weston Blasi, he discusses a new book he has written for children and shares sound investment advice that can help anyone.

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