Announcement: Arena Investor Partners with Altruist

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Arena Investor is modern planning and investing built for the busy, hardworking professionals who know their money needs more attention but don't have the time, or simply want better work-life balance

Good morning, Heroes!

Here’s your Morning Market Preview for September 23th, 2024
Read, or listen relaxingly for a few minutes – whichever you prefer!

Key Economic Reports

• At 9:45 am US Services PMI and US Manufacturing PMI report, monthly reports that give insight into service and manufacturing activity.

Key  Earnings Reports & Events Today

• AAR Corp, Red Cat Holdings, and Phoenix Motors have their earnings calls today.
  
  
• Boeing’s strike continues, and the company has furloughed thousands of workers. Mechanics are saying they are ready for a long strike. The strike began on September 13th.

The Fed

• The Atlanta, Chicago, and Minneapolis Fed Presidents speak today, giving insight into the last Fed rate cut and possible insight moving forward for Mr Market.

Stocks

Year-to-Date Performance:

• Up Most: Tech is now up 27.44% this year. Utilities is second-best on the year, up 25.61%.
  
  
• Down Most: Important to know, no sectors are negative on the year. The smallest gain has been in Energy, up 5.69% this year. Second-to-last is Materials, up 9.59%.

5 Day Moving Average: 

• Up Most: 86% of Energy Large Cap stocks are now above their 5 day average. Tech is second now with 76% of its Large Caps above their 5 day average.
  
  

• Down Most: Real Estate is down, and only 26% of Large Caps are above their 5 day average. Next closest is Health Care with 32% of Large Caps above their 5 day average. 

Crypto

• Bitcoin: Up big recently, now over $63,000, which puts it at a staggering 52% gain on the year.
  
  
• Ethereum: It’s been a good couple of days for Ethereum again, and is nearly $2,600 now, which means a 12.5% gain on the year.
  
  
• Top Gainers Recently: Bitcoin and Litecoin have performed well recently, up about 2.2 to 3.3% in the last day.
  
  
• Important to note: Crypto markets are always open and prices change constantly.

Bonds

• 2-Year Treasury:  Yields continue to come down, now at 3.597%.
  
  
• 10-Year Treasury: Up a tick to 3.741%, but overall it’s had a decline this year too.
  
  
• The yield curve is no longer inverted, having un-inverted in late August, 2024.

Gold

• Price: Gold has had a great year, now over $2,600 per ounce, and up 27% on the year.

Real Estate

• 30-Year Fixed Mortgage Rate: Up just a bit, now to 6.15%. The mortgage rate has dropped about 7.8% this year.

Geopolitical Aspects

• Europe: Continued recovery with a focus on green energy, impacting commodity markets.
  
  
• Asia: Economic rebound in China post-COVID, influencing global manufacturing and tech sectors.
  
  
• Global Tensions: Ongoing trade negotiations and regional conflicts could sway investor sentiment, particularly affecting oil prices and defense stocks.

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Built for The One in the Arena

Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.

You’re the Hero.
    We’re the Guide.

P.S.

Continue reading, if you would enjoy some simple explanations of key concepts to level up your financial education

Each of these elements interacts, creating the dynamic we call 'the market'.

Understanding these aspects of the investing arena can help investors in making informed investment decisions.

You’re the Hero.
    We’re the Guide.

• PMI (Purchasing Managers' Index): This is like a health check for businesses. A number above 50 means more growth, below 50 indicates contraction. It's crucial because it shows if companies are buying more stuff, which suggests they're confident about future sales.
• Economic Reports: Data like jobless claims help predict economic health. For instance, rising claims might suggest economic slowdown.
• Jobless Claims: These are weekly reports that show the number of people filing for unemployment benefits. Higher numbers can indicate a weakening labor market.
• Housing Starts: This measures the number of new residential construction projects and is a key indicator of real estate market health.
• The University of Michigan's Consumer Sentiment Index measures consumer confidence through surveys, reflecting optimism or pessimism about personal finances and business conditions.
• Federal Reserve Rate Decisions: The Fed adjusts interest rates to either stimulate the economy (by lowering rates) or control inflation (by raising rates). Rate cuts can make borrowing cheaper, while rate hikes aim to curb inflation.
• Treasury Yields: The return on U.S. government bonds, often used as a measure of investor sentiment about future inflation and economic growth.
• Stock Sectors: Different sectors thrive in different economic conditions. Tech might boom during innovation, while energy could struggle with green shifts.
• Bonds and Yields: Bonds are safer than stocks but yield reflects risk or inflation expectations. Higher yields could mean investors demand more return.
• Cryptocurrency: Digital currencies like Bitcoin and Ethereum have been volatile but offer significant returns in 2024.
• Gold: A traditional safe-haven investment that often rises during times of uncertainty or when inflation is high.
• Real Estate: Influenced by rates, economic health, and demographic trends. Lower rates can inflate home prices due to increased buying power.
• Mortgage Rates: Higher rates make borrowing more expensive, which can cool down housing demand and affect real estate prices.‍
• 1 Basis Point (BPS) equals 0.01%. It’s easier to say “5 bips” than it is to say “zero point zero five percent.”

Good morning, Heroes!

Here’s your Morning Market Preview for September 9th, 2024
Read, or listen relaxingly for a few minutes – whichever you prefer!

Key Economic Reports

• Wholesale Inventories and Consumer Credit for July are due today, offering insights into business stockpiling and consumer borrowing trends, respectively.

Key Events & Earnings Reports Today

• Mondays are similar to Fridays, and are typically light on earnings reports. Today is no different.

Limoneira Co

• Importance: Represents agricultural and food sectors, less volatile but indicative of consumer goods trends.
  
  
• Expectations: Steady growth expected due to consistent demand for agricultural products.

The Apple Event

• Importance: While not an earnings report, Apple's product announcements can significantly impact tech stocks.
• Expectations: Focus on AI, new hardware, and software could boost market sentiment.

The Goldman Sachs Communacopia & Tech Conference

• Importance: Insights from this conference often guide investor sentiment in the tech and finance sectors.
  
  
• Expectations: High anticipation for strategic announcements and partnerships.

The Fed

• Next Meeting: The Federal Reserve's next meeting is scheduled for later this month, September 17th and 18th. Markets are already pricing in a potential rate cut, influenced by recent economic data suggesting a slowdown.

Stocks

Year-to-Date Performance:

• Up Most: Utilities & Information Technology, driven by a cautious market looking for safe plays in Utilities and Tech Giants.
  
  
• Down Most: Energy and Consumer Discretionary, affected by global supply chain issues, geopolitical tensions, and a cautious collection of consumers.

5 Day Moving Average: This is the percent of Large Cap stocks above their 5 day average

• Up Most: Consumer Staples, as sentiment expects an economic slowdown
  
  

• Down Most: Energy, which has been a laggard all year, followed closely by Materials and Information Technology, suggesting the IT tides are turning in investor minds due to a large run up of Tech Giants.

Bonds

• 2-Year Treasury Yield: Open at 3.654%, down 55.03% this year.
  
  
• 10-Year Treasury Yield: Open at 3.713%, down 13.29% this year.

Crypto

• Bitcoin: $54,339, up 31.22% this year.
  
  
• Ethereum: $2,272, up 0.28% this year.
  
  
• Top Gainers Last Week: Solana (SOL) and Cardano (ADA), showing strong recovery and adoption in DeFi and smart contracts.

Gold

• Open Price: $2,490 per ounce, up 21.16% this year, driven by safe-haven buying amid economic uncertainties.

Real Estate

• 30-Year Fixed Mortgage Rate: Around 6.27%, down 6% this year.
  
  
• Trends: A cooling market with a shift towards more affordable housing options.

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Geopolitical Aspects

• Worldwide News: Tensions in the Middle East and trade talks between the US and China are key focuses, potentially affecting oil prices and global trade.

Built for The One in the Arena

Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.

You’re the Hero.
    We’re the Guide.

‍

P.S. Simple Explanations of Key Concepts to Level Up Your Financial Education

- Economic Reports: These are government-released data points like job growth, inflation rates, or consumer spending. They help investors understand the economy's health, influencing market movements.

- Earnings Reports: Companies announce their financial performance quarterly. Investors look at earnings per share and revenue growth to gauge company health and future potential.

- The Federal Reserve: Often called "The Fed," it's the U.S. central bank. It sets interest rates, which affect borrowing costs for everyone from consumers to big businesses, impacting economic activity.

- Stock Sectors: The market is divided into sectors like tech or energy. Performance here can tell you where investors see growth or stability.

- Bonds & Yields: Bonds are loans to governments or corporations. Their yields (interest rates) move inversely to their prices. Higher yields can mean higher risk or inflation expectations.

- Cryptocurrency: Digital currencies like Bitcoin (BTC) and Ethereum (ETH). They're volatile but can offer high returns, often seen as speculative investments.

- Gold: Traditionally a safe investment during economic uncertainty. Its price often rises when markets are turbulent.

- Real Estate: Influenced by mortgage rates, economic health, and demographic trends. Lower rates typically mean easier buying, boosting the market.

- Geopolitical News: Events like trade wars or conflicts can disrupt markets by affecting oil prices, trade, or investor confidence.

Understanding these elements helps in navigating the financial markets, where each piece of information can be a puzzle piece in predicting market movements or making informed investment decisions.

You’re the Hero.
    We’re the Guide.

In today's economic landscape, finding effective ways to save for future expenses—be it for a new car, a down payment, wedding, or a new child—is more crucial than ever.

Traditionally, people have turned to savings accounts for such goals, but with interest rates often languishing below inflation rates, the real value of these savings can diminish over time. This is where the concept of "Investment-Savings" comes into play, offering a potentially more lucrative approach to managing your money with the help of financial advisors.

Understanding Investment-Savings

Investment-Savings involves using investment accounts, rather than traditional savings accounts, to accumulate funds for upcoming life expenses. The idea is to blend the growth potential of investing with the security and accessibility of savings. This strategy can be particularly advantageous because investment accounts typically offer better returns compared to traditional savings accounts, making your money work harder for you.

How Investment-Savings Works

1. Setting Clear Goals: The first step in an Investment-Savings strategy is to clearly define your financial goals. Regardless of what the goal is, understanding how much you will need, and when you will need it, will be important factors in how you should invest.

2. Choosing the Right Investments: Based on your goals and the time horizon for them (how soon you need the money), your Arena Investor Advisor can help select suitable investments. If your goal is short-term, conservative investments like bonds or certificates of deposit (CDs) might be recommended. These are lower in risk compared to stocks and can be timed to mature when you need the money.

3. Understanding Liquidity: Liquidity refers to how quickly and easily an investment can be converted into cash without significant loss of value. For Investment-Savings purposes, maintaining a certain level of liquidity is crucial, especially if you foresee needing to access your funds quickly.

4. Risk Management: While investing generally offers higher returns, it also comes with risks. Your Arena Investor Advisor will work to balance your portfolio in a way that aims to protect your principal—the initial amount invested—while still aiming for growth. This might involve diversifying your investments across different asset classes or using more sophisticated financial strategies like dollar-cost averaging. Furthermore, exiting the positions and returning to cash can be an important service your Arena Investor Advisor can provide, so you don’t have to worry about a sudden market downturn.

Advantages of Investment-Savings

- Higher Potential Returns: Unlike traditional savings accounts, which offer fixed and often lower interest rates, investment accounts have the potential to grow at a faster pace through compounded returns.

- Flexibility: Investment-Savings accounts typically offer more flexibility in terms of choosing a wide range of investment options based on your risk tolerance and time horizon.

Things to Consider

- Market Volatility: Investment values can fluctuate, meaning your account balance might go up or down based on market conditions. It’s important to be prepared for this aspect of investing. But remember you have an Arena Investor Advisor on-the-job, so you can actually enjoy the journey!

Getting Started with an Arena Investor Advisor

Navigating the array of investment options and strategies can be daunting without professional guidance. An Arena Investor Advisor not only helps you to define clear, achievable goals but also crafts a personalized investment plan tailored to your financial situation and life goals. They can educate you on the complexities of the market, help you manage risks, and adjust your strategy in response to changes in your life or the economy.

All In All

For anyone new to investing, the concept of Investment-Savings represents a proactive approach to financial planning that goes beyond traditional saving. By investing wisely, with the guidance of a skilled Arena Investor Advisor, you can potentially meet and even exceed your financial goals, or achieve them sooner, thus securing your savings for the upcoming life event.

This method blends the best of both worlds—growth potential and relative safety—making it a smart choice for anyone looking to make the most of their hard-earned money.

Built for The One in the Arena

Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.

You’re the Hero.
    We’re the Guide.