Stock Market Frenzy
The stock market is hitting records and investors are buying, however, there’s still $6.1 trillion in money market funds earning 5% waiting for a correction or “the best time” to get in. But what if the correction doesn’t happen? Meanwhile, the Fed is very likely to cut rates in September sending a tsunami of cash into the stock market. So where do you invest during this market frenzy?
$6.1 trillion in money market funds – when the levee breaks: 06
Banks are making money to hold your cash :35
Is the labor market about to fall off the cliff? 2:07
The economy’s been doing fine with rates the way they are 3:00
It’s a difficult environment to invest 4:10
Investors sitting in cash are wondering when to get in 5:50
Plenty of opportunities to diversify in areas that aren’t overvalued 6:45
Great yields in Bonds, REITs, and foreign markets.. 7:40
The Tipping Point
Keeping Your Emotions in Check
This week we discuss how tricky investing can be when your emotions drive your decision-making. People tend to be swayed by extremes such as “I should invest in the hottest thing like Nvidia” or “I should just stay out altogether and keep my money safe in cash.” In reality, somewhere in the middle is the rational way to go.
Hidden Facts of Finance
The Gen Z cohort, those born between 1997 and 2012, was almost 60% more likely to have some financial instruction in school compared to millennials and 150% more likely than Gen Xers. More than half of young investors in America own some form of crypto, making it the most popular asset in the Gen Z portfolio. Indeed, an alarming 19% of Gen Z investors are only in crypto.
According to a new report by Joint Venture Silicon Valley, the Bay Area’s 50 billionaires hold 70% of all liquid wealth in that area, while the bottom 50% of the population holds just 1%.
An investor who put $10,000 in the S&P 500 in 1961 and held only when Republicans were president would have $102,000 at the end of last year versus $500,000 for Democrats. Had you just stayed invested, no matter if it was a Republican or a Democrat, that $10,000 would be worth $5.1 million today.
