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About 1 in 7 people have unclaimed property being held by a state.
The average value of each asset that ends up being claimed is $2,080, although that ranges from a couple of pennies to more than $1 million.
Here’s how to check if a state is holding an asset that belongs to you.

Simpleimages | Moment | Getty Images

How to check if you have unclaimed property

Each year on Feb. 1, the group holds “Unclaimed Property Day,” when it encourages people to check missingmoney.com — a national clearinghouse for unclaimed assets that most states participate in — or an individual state’s unclaimed property website. It’s worth doing a national search as well as conducting individual state searches based on where you have lived, even briefly.

The association, which is an affiliate of the National Association of State Treasurers, also offers links to state programs. States do not charge a fee to search their database nor to claim your property.
So how does property end up with the government? If a company, bank or other entity can’t find you after a certain amount of time — generally three to five years, Murante said — the asset is turned over to the state.

While each state has its own rules that govern the process of claiming the property, you can count on being required to prove that you are the rightful owner by, for example, providing documents confirming your identity. States often try to locate people as well by, for instance, matching the owner’s information to a tax return.
Even if you search and discover you aren’t due anything, that shouldn’t dissuade you from regularly checking to see if that changes, Murante said.
“State treasurers get new unclaimed property turned over to them every single day,” he said.

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Home equity lines of credit, or HELOCs, may be more appealing than a cash-out mortgage refinance or other sources of borrowed money.
Last year, HELOC use ticked up as refinancing lost its luster due to quickly rising mortgage rates.
However, there are aspects of HELOCs that borrowers should consider before tapping their home equity.

HELOC use rose as cash-out refis dropped

Last year, as mortgage rates climbed higher, accessing home equity by taking cash against it during refinancing — a so-called cash-out refi — became less appealing.
Rates on mortgages went from close to 3% at the beginning of 2022 to a peak of above 7% in the fall. Right now, the average on a 30-year fixed-rate mortgage is 6.21%, according to Mortgage News Daily.

As cash-out refis fell, HELOC use began to climb. Last year through September, lenders originated HELOCs totaling $214 billion, up from $159.5 billion during the same period in 2021, according to CoreLogic.

“In a low-rate environment, people were looking at cash-out refis,” Bellas said. “Now … a lot of people have a mortgage with a very low rate, so to do a cash-out refi, they’d be paying [a higher rate] on their full mortgage.”
“We’ve had quite a few people over the past 12 months … elect to go with the HELOC because of that,” Bellas said.

How HELOCs compare with other borrowing options

Generally, HELOCs come with low closing costs compared with mortgages or home equity loans, which operate like other fixed-rate loans, with a set length of time to pay back. And if you have good credit, the rate you can get may be lower than what you’d pay for a personal loan or credit card balance.
Right now, rates on HELOCs are 7.75%, according to Bankrate. That compares with personal loan rates of above 10%, for consumers with high credit scores, and about 20% for credit cards, according to CreditCards.com.

I would not use a HELOC to buy frivolous things or things you can’t afford.

David Demming
President of Demming Financial Services

However, like your mortgage, a HELOC is a lien against your house — meaning that if you don’t repay as promised, the lender would have the right to foreclose on your house.
“I would not use a HELOC to buy frivolous things or things you can’t afford,” said certified financial planner David Demming, president of Demming Financial Services in Aurora, Ohio.
“It should be a short-term bill that you’re going to pay off within a finite period of time,” Demming said.
Here are three key things to consider before signing on the dotted line.

1. Variable interest rates make it tricky to budget

The interest rate on HELOCs is typically variable, meaning it moves up and down based on the so-called prime rate, which banks use as a basis to set rates on a variety of loans. While the Federal Reserve doesn’t control the prime rate, the one it does influence — the overnight lending rate among banks — ends up following suit. 
“Because it’s variable, it can be tough to budget from month to month,” Bellas said.
Right now, the U.S. is in a rising rate environment, although that is expected to shift as time passes. The Fed’s rate-setting committee is meeting this week and is expected to raise that overnight lending rate by a quarter percentage point, which means the prime rate will generally tick higher — and so will HELOC rates.

2. It may be difficult to pay off the principal

HELOCs typically only come with monthly interest payments — meaning none of your minimum payment goes toward the principal.
“If you don’t have a lot of excess funds and are making interest-only payments, it can be difficult to find the cash and discipline to pay down that balance,” Bellas said.
“I’ve seen people with a $50,000 balance and five years later it’s still close to that [amount],” he said.

HELOCs generally have a “draw” period when you can take money out that often lasts 10 years and then a repayment period of, say, 10 or 20 years, when you start paying both interest and principal. And because of that, your payments will jump if you have only been paying interest.
For instance, a $50,000 balance would yield interest-only payments of $312.50 and then jump to $593.51 during a repayment period of 10 years, according to InvestorsBank.com’s HELOC calculator.
If your HELOC has a balance when you sell the home, it must be paid off along with the primary mortgage on the house.

3. Beware of transferring debt to a HELOC

Sometimes, homeowners turn to a HELOC to pay off higher-interest debt, such as credit card balances.
On the face of it, shifting high-rate balances to a HELOC could make sense. However, if you don’t have a plan to pay off the HELOC, you’re just delaying the inevitable, Bellas said.
“The danger is really that you’re recategorizing the debt and kicking it down the road,” Bellas said. “There’s probably a bigger thing that needs to be addressed.”

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BlackRock raised its holding in Silvergate Capital, a crypto-focused bank, according to a Jan. 31 filing with the Securities and Exchange Commission.
Silvergate shares jumped on Tuesday afternoon.
Crypto has enjoyed a solid rebound in January, but shares of Silvergate have had a rocky start to the year.

Cryptocurrencies have been under immense pressure after the collapse of a so-called stablecoin called terraUSD.
Umit Turhan Coskun | Nurphoto via Getty Images

Silvergate Capital jumped on Tuesday afternoon after BlackRock reported a 7% stake in the crypto bank. 
Shares of Silvergate rose 9.96% after a Jan. 31 filing with the Securities and Exchange Commission became public. BlackRock increased its holding in Silvergate to 7.2%, an increase from the 5.9% it previously reported, according to the filing. 

More than 70% of Silvergate Capital shares that are freely available to trade are sold short, according to FactSet data.
While cryptocurrencies and related stocks have enjoyed a strong January rally this year, Silvergate has been struggling in the aftermath of the FTX blowup. Shares of the bank slid sharply November, when the crypto exchange FTX, a Silvergate customer, collapsed in scandal.
Silvergate shares are now down about 20% in 2023. They are off by about 87% over the past year.
Earlier this month, shares of Silvergate tanked more than 40% after the bank reported massive withdrawals in the fourth quarter in light of the FTX collapse. Despite the rise in cryptocurrencies and stocks this month, investor confidence is still shaken.
BlackRock, the largest asset manager in the world, has maintained a positive stance toward crypto and blockchain technology. In addition to being an investor in FTX, late last summer the firm launched a private trust to give clients exposure to spot bitcoin.

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As the cost of living surged in 2022, the number of Americans living paycheck to paycheck jumped to 64% as of December, according to a recent report.
Compared to 2021, 9.3 million more Americans said they are stretched too thin.
A few key money moves can keep your budget in check going forward.

Shoppers in San Francisco on Dec. 21, 2022.
David Paul Morris | Bloomberg | Getty Images

Months of high inflation have weighed heavily on households.
As of December, 64% of Americans were living paycheck to paycheck, according to a recent LendingClub report — up from 61% a year earlier and in line with the historic high first hit in March 2020.

For the first time, more than half of all six-figure earners also said they were stretched too thin, a jump from 42% a year ago. 
“The effects of inflation are eating into every American’s wallet and as the Fed’s efforts to curb inflation drive up the cost of debt, we are seeing near record numbers of Americans living paycheck to paycheck,” said Anuj Nayar, LendingClub’s financial health officer.
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For its part, the Federal Reserve is widely expected to announce its eighth consecutive rate hike at this week’s policy meeting. 
Even though wage growth is high by historical standards, it isn’t keeping up with the increased cost of living, which in December was up 6.5% from the prior year.

That leaves many Americans in a bind as inflation and higher prices force more people to dip into their cash reserves or lean on credit just when interest rates rise at the fastest pace in decades.
Other reports also show financial well-being is deteriorating overall.

How to get your budget back on track

Certified financial planner Ted Jenkin, CEO and founder of oXYGen Financial in Atlanta and a member of CNBC’s Financial Advisor Council, offers his best advice for spending less and finding a better return on your savings.

1. Cut spending

Jenkin said some simple financial hacks can help, such as going to the grocery store less and cutting back on online shopping.
“Grocery stores are just like Las Vegas; they are there to separate you from your wallet.” Meal planning is one way to edit down your shopping list to weekly essentials and save money.

Disabling one-click ordering or deleting stored credit card information can also help. “Anyone that shops on Amazon and has a stored credit card, you are basically pouring lighter fluid on your budget,” Jenkin said.
Jenkin recommends waiting 24 hours before making an online purchase and then using a price-tracking browser extension such as CamelCamelCamel or Keepa to find the best price.
Finally, tap a savings tool like Cently, which automatically applies a coupon code to your online order, and pay with a cash-back card such as the Citi Double Cash Card, which will earn you 2%.
“You really have to get disciplined or you’re going to outspend your income,” he said.

2. Boost savings

The money you put away should also work to your advantage, he said.
Although deposit rates are climbing, even a high-yield savings account won’t pay enough to keep up with the rising cost of living.
Jenkin recommends buying short-term, relatively risk-free Treasury bonds and laddering them to ensure you earn the best rates, a strategy that entails holding bonds to the end of their term.
“It’s not a huge return but you are not going to lose your money,” he said.

Another option is to purchase federal I bonds, which are inflation-protected and nearly risk-free assets.
I bonds are currently paying 6.89% annual interest on new purchases through April, down from the 9.62% yearly rate offered from May through October 2022.
Still, this will work well as a hedge against inflation for long-term savers. The downside is that you can’t redeem I bonds for one year, and you’ll pay the last three months of interest if cashed in before five years.
LendingClub’s paycheck-to-paycheck report is based on a survey of nearly 4,000 U.S. adults in December.
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Now that the U.S. has hit the debt ceiling, Republicans and Democrats must negotiate to find a solution.
Those talks should not include Social Security and Medicare, House Speaker Kevin McCarthy said in an interview on Sunday.
Here’s why Democrats and advocates for the programs are still worried.

Speaker of the House Kevin McCarthy, R-Calif., conducts a news conference in the U.S. Capitol’s Statuary Hall on Thursday, January 12, 2023.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

What to watch in debt ceiling negotiations

Earlier this month, the U.S. reached the debt ceiling, which represents the total amount of money the U.S. can borrow to fund its legal obligations, including Social Security and Medicare.
If left unaddressed, experts say that may prompt a delay in benefits as the government scrambles to prioritize payments.
The government will likely be able to continue to pay its obligations through “extraordinary measures” through early June, Treasury Secretary Janet Yellen has said.
As lawmakers negotiate an agreement to raise or eliminate the debt ceiling, some worry that may include compromises on Social Security and Medicare.

That may include setting up a budget process or commissions as part of a compromise that could pave the way for changes later, including cuts, according to Dan Adcock, government relations and policy director at the National Committee to Preserve Social Security and Medicare.
Sen. Joe Manchin, D-W. Va., said in an interview earlier this month that cuts to Social Security and Medicare should not be included in debt ceiling negotiations. However, he has expressed interest in including legislation to create commissions in the debt-limit increase, Adcock noted.
Manchin also called for raising the cap on payroll taxes that are used to fund Social Security. In 2023, those taxes are applied on up to $160,200 in earnings.
Republicans have generally opposed tax hikes. However, the House Republican Study Committee budget calls for changes interpreted as benefit cuts, such as raising the retirement age for both Social Security and Medicare, among other changes.

The Republican plans have yet to be introduced as bills.
Adcock said he is skeptical of McCarthy’s comments calling for strengthening Social Security and Medicare.
“Having to go through 15 ballots to be elected speaker, he doesn’t exactly have great control over his caucus,” Adcock said.
“Even if you were to take him at his word, his caucus may decide to go in another direction, including cuts,” he said.
Democrats have put forward legislative proposals that call for raising payroll taxes while also making benefits more generous. President Joe Biden called for similar changes to shore up Social Security during his campaign for the White House.

U.S. President Joe Biden looks toward House Republican leader Kevin McCarthy and Senate Majority Leader Chuck Schumer, during a meeting with congressional leaders at the White House in Washington, U.S., November 29, 2022. 
Kevin Lamarque | Reuters

Biden, McCarthy set to meet this week

McCarthy on Sunday called out Biden’s reluctance to address Social Security and Medicare amid the debt ceiling talks.
“I know the president says he doesn’t want to look at it, but we’ve got to make sure we strengthen those,” McCarthy said.
The White House, in turn, took issue with the House speaker’s language.
“For years, congressional Republicans have advocated for slashing earned benefits using Washington code words like ‘strengthen,’ when their policies would privatize Medicare and Social Security, raise the retirement age or cut benefits,” White House spokesman Bates said.
Biden is scheduled to host McCarthy at the White House on Wednesday as part of a series of meetings with leaders of the new Congress, a second White House spokesperson separately said.
The meeting will include a discussion on a range of issues, including preventing a national default on the debt and House Republicans’ proposed changes to Social Security and Medicare.
“He [Biden] will underscore that the economic security of all Americans cannot be held hostage to force unpopular cuts on working families,” the White House spokesperson said.

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Roughly 29.1 million people are enrolled in Medicare Advantage Plans.
Each year from Jan. 1 through March 31, those beneficiaries can switch to another Advantage Plan or drop their current one altogether.
Here’s what to be aware of if you consider making a change.

Milan2099 | E+ | Getty Images

For Medicare beneficiaries enrolled in an Advantage Plan, now’s the time to change your 2023 coverage if it’s not a good match.
Each year between Jan. 1 and March 31, beneficiaries unhappy with the choice they made during Medicare’s annual open enrollment period — which ended Dec. 7 — can switch to a different Advantage Plan. Or, they can drop the one they have altogether in favor of basic Medicare (Part A hospital coverage and Part B outpatient care coverage).

“It’s the time of year when only beneficiaries in Advantage Plans who feel they made the wrong plan selection for 2023 can change it,” said Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare plans.
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Common reasons to do so include discovering a preferred doctor or other provider is not in network — which means you pay more to see them — or finding out your prescriptions either are uncovered or cost more than anticipated.
Of Medicare’s 64.5 million beneficiaries — the majority of whom are age 65 or older — about 29.1 million are enrolled in Advantage Plans, which deliver Parts A and B and usually Part D prescription drug coverage, along with extras such as basic dental and vision. However, they come with their own cost-sharing structures (i.e., deductibles and copays) and their lists of drugs covered (and their cost), which differ from plan to plan — and are likely to change from year to year.

You can only make one change during this window

In contrast to Medicare’s annual fall enrollment, when a variety of options were available for those who wanted to modify their coverage, this Advantage Plan-related window comes with restrictions.

For starters, you can only make one switch. This means that once you move to a different Advantage Plan or drop it for basic Medicare, the change is generally locked in for the year. 

This means it’s important to be sure your new choice will work for the rest of 2023. If you are looking for a more suitable plan, you can use Medicare’s online plan finder.
Alternatively, if you want to make sure your doctor or other key provider is in network with a plan you’re considering switching to, you can check directly with them, said certified financial planner and physician Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida.
“Call your doctor’s office and ask what their favorite Medicare Advantage Plan is,” said McClanahan, a member of CNBC’s Financial Advisor Council.

You also could check with your pharmacy if you want to confirm your prescriptions are covered. “They see a lot come through so they often do know which Advantage Plans cover your drug,” McClanahan said. 
Be aware that the current three-month window also differs from fall enrollment in that you cannot switch from one standalone Part D plan to another. 
If you picked a Part D plan in the fall open enrollment period based on faulty or misleading information, you can call 1-800-Medicare to see if your situation would allow you to make a change.

Assess drug coverage if dropping an Advantage Plan

Meanwhile, dropping an Advantage Plan in favor of basic Medicare often means losing drug coverage — which means you would have to enroll in a standalone Part D plan.
This matters, because if you go 63 days without the coverage, you could face a lifelong late-enrollment penalty that gets tacked on to your monthly premiums. That charge is 1% of the national base premium ($32.74 for 2023) for each full month you go without drug coverage.

Don’t assume you’ll be able to get a Medigap policy

Also, if you want to switch to basic Medicare and pair it with a supplemental policy — so-called Medigap — be aware that you may not qualify for guaranteed coverage. These policies either fully or partially cover cost-sharing of some aspects of Parts A and B, including deductibles, copays and coinsurance.
However, they come with their own rules for enrolling. Depending on your state, you may need to pass medical underwriting to get approved for a Medigap policy. This makes it worth knowing first that you would be able to be approved, said Danielle Roberts, co-founder of insurance firm Boomer Benefits.
There is an exception to the medical underwriting requirement: If you are within the first year of trying out an Advantage Plan, you generally can return to a Medigap policy without facing underwriting.
Also from Jan. 1 through March 31, separate from the Advantage Plan window: If you missed your initial Medicare enrollment period, you can sign up during this time frame. As of this year, coverage takes effect the month after you enroll; it previously was July 1.

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The Federal Reserve is widely expected to hike rates by a smaller one-quarter of a percentage point at this week’s policy meeting as inflation starts to ease.
Still, another interest rate increase will make borrowing more expensive.
Here’s what that means for your wallet.

The Federal Reserve is widely expected to announce its eighth consecutive rate hike at this week’s policy meeting. 
This time, Fed officials likely will approve a 0.25 percentage point increase as inflation starts to ease, a more modest pace compared with earlier super-size moves in 2022.

Still, any boost in the benchmark rate means borrowers will pay even more interest on credit cards, student loans and other types of debt. On the flip side, savers could benefit from higher yields.
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“The good news is that the worst is over,” said Yiming Ma, an assistant finance professor at Columbia University Business School.
The U.S. central bank is now knee-deep in a rate hike cycle that has raised its benchmark rate by 4.25 percentage points in less than a year.
Although inflation is still above the Fed’s 2% long-term target, pricing pressures have “come down substantially and the pace of rate hikes is going to slow,” Ma said.

The good news is that the worst is over.

assistant finance professor at Columbia University Business School

The goal remains to tame runaway inflation by increasing the cost of borrowing and effectively pump the brakes on the economy.

What the Fed’s rate hike means for you

The federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. Whether directly or indirectly, higher Fed rates influence borrowing costs for consumers and, to a lesser extent, the rates they earn on savings accounts.
Here’s a breakdown of how it works:
Credit cards
Since most credit cards have a variable interest rate, there’s a direct connection to the Fed’s benchmark. As the federal funds rate rises, the prime rate does, too, and credit card rates follow suit. Cardholders usually see the impact within a billing cycle or two.
After rising at the steepest annual pace ever, the average credit card rate is now 19.9%, on average — an all-time high. Along with the Fed’s commitment to keep raising its benchmark to combat inflation, credit card annual percentage rates will keep climbing, as well. 
Households are also increasingly leaning on credit to afford basic necessities, since incomes have not kept pace with inflation. This makes it even harder for the growing number of borrowers who carry a balance from month to month.

“Credit card balances are rising at the same time credit card rates are at record highs; that’s a bad combination,” said Greg McBride, chief financial analyst at Bankrate.com.
If you currently have credit card debt, tap a lower-interest personal loan or 0% balance transfer card and refrain from putting additional purchases on credit unless you can pay the balance in full at the end of the month and even set some money aside, McBride advised.
Mortgages
Although 15-year and 30-year mortgage rates are fixed and tied to Treasury yields and the economy, anyone shopping for a new home has lost considerable purchasing power, partly because of inflation and the Fed’s policy moves.
“Despite what will likely be another rate hike from the Fed, mortgage rates could actually remain near where they are over the coming weeks, or even continue to trend down slightly,” said Jacob Channel, senior economist for LendingTree.
The average rate for a 30-year, fixed-rate mortgage currently sits at 6.4%, down from mid-November, when it peaked at 7.08%.

Still, “these relatively high rates, combined with persistently high home prices, mean that buying a home is still a challenge for many,” Channel added.
Adjustable-rate mortgages, or ARMs, and home equity lines of credit, or HELOCs, are pegged to the prime rate. As the federal funds rate rises, the prime rate does, as well, and these rates follow suit. Most ARMs adjust once a year, but a HELOC adjusts right away. Already, the average rate for a HELOC is up to 7.65% from 4.11% a year ago.
Auto loans
Even though auto loans are fixed, payments are getting bigger because the price for all cars is rising along with the interest rates on new loans. So if you are planning to buy a car, you’ll shell out more in the months ahead.
The average interest rate on a five-year new car loan is currently 6.18%, up from 3.96% at the beginning of 2022.

Boonchai Wedmakawand | Moment | Getty Images

“Elevated pricing coupled with repeated interest rate increases continue to inflate monthly loan payments,” Thomas King, president of the data and analytics division at J.D. Power, said in a statement.
Car shoppers with higher credit scores may be able to secure better loan terms or look to some used car models for better pricing.
Student loans
Federal student loan rates are also fixed, so most borrowers won’t be affected immediately by a rate hike. The interest rate on federal student loans taken out for the 2022-23 academic year already rose to 4.99%, up from 3.73% last year and 2.75% in 2020-21. Any loans disbursed after July 1 will likely be even higher.
Private student loans tend to have a variable rate tied to the Libor, prime or Treasury bill rates — and that means that, as the Fed raises rates, those borrowers will also pay more in interest. How much more, however, will vary with the benchmark.
For now, anyone with existing federal education debt will benefit from rates at 0% until the payment pause ends, which the Education Department expects to happen sometime this year.
Savings accounts
On the upside, the interest rates on some savings accounts are higher after a run of rate hikes.
While the Fed has no direct influence on deposit rates, the rates tend to be correlated to changes in the target federal funds rate. The savings account rates at some of the largest retail banks, which were near rock bottom during most of the Covid pandemic, are currently up to 0.33%, on average.

Guido Mieth | DigitalVision | Getty Images

Thanks, in part, to lower overhead expenses, top-yielding online savings account rates are as high as 4.35%, much higher than the average rate from a traditional, brick-and-mortar bank, according to Bankrate.
“If you are shopping around, you are finding the best returns since the great financial crisis. If you are not shopping around, you are still earning next to nothing,” McBride said.
Still, any money earning less than the rate of inflation loses purchasing power over time, and more households have less set aside, in general.
“The best advice is pick up a side hustle to bring in some additional income, even if it’s just temporary, and pay yourself first with a direct deposit into your savings account,” McBride advised. “That’s how you are going to create the pathway to be able to save.” 
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There is pent-up post-pandemic demand for medical technology, which bodes well for the sector’s stocks, says Andrew Graham, founder and managing partner of Jackson Square Capital.
Investors should also watch the alternative energy field, as more governments commit funds.
The usual go-to for investors seeking safety — consumer staples — may be in trouble soon, Graham notes.

Dexcom’s latest continuous glucose monitoring (CGM) system, to launch in February, will be 60% smaller and warm up 75% faster than previous versions such as this one, pictured on April 8, 2019.
Ben Birchall – Pa Images | Pa Images | Getty Images

Last year was tough for most investors. Nearly every sector suffered losses except for energy, while defense contractors and pharmaceutical companies were other examples of outliers.
Fortunately, the first few weeks of 2023 have been better, thanks partly to some encouraging data showing that inflation and wage growth are beginning to decelerate. Yet, as the earnings season continues to play out and corporate layoffs pile up, questions are mounting about the strength of the U.S. economy.

In addition, with policymakers devoted to keeping interest rates “higher for longer,” stocks could come under more pressure in the short term. Yet, at some point, the focus will shift to the future.
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Indeed, while much of the above paints a bleak picture, the outlook is more favorable for select sectors. That includes medical technology and alternative energy, which are being propelled by some beneficial tailwinds.
By contrast, one sector that traditionally holds up during challenging economic times — consumer staples — may struggle over the next few years. Let’s take a closer look.

Pent-up demand for medical technology

During the pandemic, large swaths of technology took off.

Medical technology was not one of them, with hospitals putting many elective procedures and surgeries related to non-life-threatening conditions on hold. That has created a lot of pent-up demand today.
Additionally, many firms in this space could soon benefit from new products that help treat ailments, including diabetes, sleep apnea and arrhythmia, that plague millions of people. It’s also worth noting that higher interest rates are less impactful for medical technology. Unlike other industries that borrow large sums to chase growth, medical technology generally isn’t heavily leveraged.

Names worth considering include Insulet (PODD), whose primary offering is a wearable pod that allows diabetes patients to forgo daily insulin injections. It recently cited strong demand for its newest version of that product.
Dexcom (DXCM) is another company addressing the needs of diabetes patients through a glucose-monitoring device. Its latest model, which is set to launch in February, is 60% smaller and warms up 75% faster than previous versions.
In the meantime, a subsidiary of Inspire Medical Systems (INSP), Inspire Sleep, has what could be a game-changing sleep apnea treatment. It’s a small device that doctors place within the patient, a contrast to how medical professionals dealt with the issue until very recently: with a clunky, awkward and obtrusive CPAP apparatus.

Government support for alternative energy grows

Whether the Inflation Reduction Act will do anything to bring down costs is a matter worth debating. But less arguable is that it is the latest example of the massive amount of policy support that exists from governments around the world for green tech firms focused on producing alternative energy sources.
The U.S. Department of the Treasury is still hammering out the details about who gets what. We’ll likely learn more sometime during the first quarter. But make no mistake, several companies that have been surprisingly resilient during the most recent downturn will have an influx of new capital at their disposal to improve their fortunes even more.
Among those that could do well are Array (ARRY), a utility-scale solar panel producer. Also worth keeping an eye on is SolarEdge (SEDG), which is focused more on the residential market in Europe.

Consumer staples not a best bet anymore

Stocks of Johnson & Johnson, Kimberly-Clarke and Procter & Gamble( — which makes many consumer staple products such as Dawn dish soap — may have hit a valuation ceiling.
Joe Raedle | Getty Images News | Getty Images

Last year, many investors flocked to defensive, income-paying consumer staples. And for the most part, that strategy paid off, with the Vanguard Consumer Staples ETF easily outpacing broad market indexes over the last 12 months, all while providing a dividend of about 2.4%.
However, in recent months, valuations for many of these stocks have become far too rich. In fact, consumer staples are as expensive as they have ever been relative to the S&P 500 Index.
Therefore, anyone investing for growth (versus dividends) should reconsider their defensive holdings. Indeed, the likes of Johnson & Johnson (JNJ) — which makes many consumer staple products despite technically being a health-care stock — Proctor & Gamble (PG) and Kimberly-Clarke (KMB) have likely hit a valuation ceiling.

A Warren Buffett moment?

Expect indexes to give back some of this year’s early gains in the weeks ahead and perhaps test 2022 lows. In general, though, we won’t see a Warren Buffett-type buying moment on the horizon. That’s because sentiment is already bearish and positioning is light, which should limit the downside overall.
Still, a couple of sectors have the potential for outsize returns once the challenges associated with higher interest rates and a challenging economic landscape begin to fade. 
– By Andrew Graham, founder and managing partner of Jackson Square Capital

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