Morning Market Preview for September 11th, 2024

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 17th, 2024
Read, or listen relaxingly for a few minutes – whichever you prefer!

Key Economic Reports

• US Retail Sales are reported today, giving insight into consumer behavior. Expect a slight uptick, reflecting consumer confidence despite inflation pressures.
  
  
• Industrial Production is also reported today. Anticipated to show minimal growth, signaling a steady but not robust manufacturing sector.

Key Events & Earnings Reports Today

• Another quiet day for earnings reports, with none to mention today.
  
  
• Boeing is in the middle of a strike, and the company has frozen hiring and is discussing furloughs as well. The strike is in its fifth day now.

The Fed

• The Fed’s 2 days of meetings begin today. They will be weighing economic factors such as inflation and unemployment, as the members decide on a rate cut – and what size of a rate cut. A lot of momentum has built for a 50 point cut, but 25 points still seems possible too.

Stocks

Year-to-Date Performance:

• Up Most: Tech leads the pack, up 26.21% this year. Utilities has had the second-best year, up 23.18%.
  
  
• Down Most: No sectors are negative on the year. The smallest gain has been in Energy, up 1.83% this year. Second-to-last is Materials, up 7.95% this year.

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

• Up Most: Utilities and Consumer Discretionary are now up a whopping to 97% and 96% of their Large Cap above their 5 day average, respectively. Tech and Materials are tied for second best over the last 5 days with 93% of their Large Caps above their 5 day averages.
  

• Down Most: Energy is down most with 59% of its Large Cap stocks above its 5 day average. And Consumer Staples was second to last, although it had 68% of its Large Cap stocks above their 5 day averages.
  
  
• Overall, it was a great week for these sectors, as we get a new week started.

Crypto

• Bitcoin: Down a bit over the last day, now about $58,298. Bitcoin is still up an enormous 40% this year though.
  
  
• Ethereum: Also down over the last day to about $2,298, making Ethereum about flat on the year so far.
  

Bonds

• 2-Year Treasury Yield:  At 3.557%, it has continued its yield decline this year.
  
  
• 10-Year Treasury Yield: At 3.618%, it also continues its yield decline this year.

Gold

• Price: Gold has had an amazing year, up more than 25%, now at about $2,584.

Real Estate

• 30-Year Fixed Mortgage Rate: Down just a bit, now to 6.12%. The mortgage rate has dropped about 8% this year.

Geopolitical Aspects

• Global Trade Tensions: Watchful eye on US-China relations which could impact global trade and thus, market stability.
  
  
• European Markets: Mixed sentiment due to varied economic recoveries across the continent.
  
  
• Asia: Strong performance in tech sectors, but concerns over real estate in China persist.‍

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. 

Some Simple Explanations of Key Concepts to Level Up Your Financial Education

• Economic Reports: These are snapshots of the economy's health. For instance, Retail Sales show consumer spending, crucial for economic growth. Industrial Production indicates manufacturing strength.
• Federal Reserve (The Fed): This is like the economy's central bank in the U.S. They control interest rates, influencing borrowing costs, which can affect everything from your mortgage to stock prices. A rate cut typically means they want to stimulate economic activity.
• Stocks: Think of sectors as different industries within the stock market. Tech stocks might rise if there's innovation or demand for tech, while energy stocks could fall if oil prices drop.
• Bonds: These are like IOUs from governments or companies. The yield (interest rate) you get from bonds like the 2-year or 10-year Treasuries can predict economic expectations. Higher yields might mean more risk or inflation expected.
• Cryptocurrencies: Like Bitcoin (BTC) and Ethereum (ETH), these are digital currencies. Their prices can soar or plummet due to speculation, adoption rates, or regulatory news.
• Gold: Often seen as a safe investment. When economic stability is in doubt, gold's value tends to rise as investors seek safety.
• Real Estate: Mortgage rates affect housing affordability. Lower rates mean cheaper loans, often boosting home sales.
• Geopolitical Events: Events like trade wars or policy changes can disrupt global markets. Investors look for stability or opportunities in these shifts.

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.

In your 20s, 30s, and 40s, the concept of financial planning might seem overwhelming, but it’s one of the most important steps you can take to secure your future. Whether you’re just starting out in your career, building a family, or planning for significant life milestones, having a solid financial plan is essential. Arena Investor is here to help you navigate the complexities of financial planning, guiding you toward a future of financial stability, wealth creation, and the ability to leave a lasting legacy.

What Is Financial Planning?

Financial planning is a comprehensive process that involves setting financial goals, developing strategies to achieve them, and continuously monitoring your progress. It’s more than just budgeting or saving; it’s about understanding how every aspect of your financial life—income, expenses, investments, and more—works together to create a secure future.

For those in their 20s, 30s, and 40s, this process is especially critical. The financial decisions you make now will have long-lasting effects on your wealth and quality of life in the future. Arena Investor provides personalized financial planning services designed to meet the unique needs of young professionals, helping you navigate each step of your financial journey.

The Arena Investor Roadmap to Financial Success

Arena Investor’s approach to financial planning is structured around three key phases that are particularly relevant to people in their 20s, 30s, and 40s: paying off debt, saving for life events, and focusing on wealth creation and legacy building. Here’s how we can guide you through each step.

1. Paying Off Debt

Debt can be a significant obstacle to financial freedom, especially for young adults who may be carrying student loans, credit card balances, or car payments. Arena Investor understands that paying off debt is the first critical step toward achieving financial stability and setting the stage for future wealth creation.

Our financial planning process begins with a thorough assessment of your current debt situation. We work with you to develop a debt repayment strategy that fits your budget and lifestyle. This might include prioritizing high-interest debt, consolidating loans, or setting up automatic payments to ensure you stay on track. By helping you manage, reduce, and ultimately pay off your debt, Arena Investor positions you for success as you move forward in your financial journey – a journey you can actually enjoy.

2. Saving for Life Events

As you progress through your 20s, 30s, and 40s, you’ll likely encounter several significant life events—buying a home, getting married, or starting a family. Each of these milestones requires careful financial planning and saving. Arena Investor helps you prepare for these events, ensuring that you have the financial resources needed to achieve your goals without derailing your long-term financial plan.

We start by identifying your short- and medium-term financial goals and determining how much you need to save to meet them. For example, if you’re planning to buy a home in the next few years, we’ll work with you to create a savings plan that covers your down payment, closing costs, and other expenses. Similarly, if you’re planning for marriage or expecting a child, Arena Investor will help you budget for those life changes while ensuring that you continue to build wealth for the future.

3. Investing for Wealth Creation and Legacy Building

Once your debt is under control and you’ve started saving for life events, it’s time to emphasize wealth creation and legacy building. This is where the guidance of Arena Investor truly shines. We help you develop and implement investment strategies that align with your long-term goals, whether that’s growing your wealth for retirement, funding your children’s education, or leaving a lasting legacy for your loved ones or favorite causes.

Arena Investor offers personalized investment management services designed to help you build and preserve wealth over time. We take into account your risk tolerance, time horizon, and financial goals to create a diversified portfolio that balances growth with stability. For example, if you’re in your 30s, we might recommend a mix of stocks, ETFs, and perhaps crypto if it’s suitable that provides both growth potential and protection against market volatility. As you approach retirement, we’ll adjust your portfolio to reduce risk and focus on generating income.

In addition to investment management, Arena Investor helps you plan for your legacy. Whether you want to leave an inheritance for your children or grandchildren, make charitable donations, or establish a trust, we will work with you to create a legacy plan that reflects your values and wishes. We also consider the tax implications of your investments and legacy plan, helping you maximize the benefits for yourself and your heirs.

Why Financial Planning with Arena Investor Is Worth It

Working with Arena Investor offers numerous advantages for young professionals. Our financial planners and investment managers provide the expertise and guidance you need to navigate the complexities of personal finance, from managing debt to creating a legacy. Here’s why partnering with Arena Investor is a smart move for your financial future:

- Personalized Guidance: Arena Investor tailors financial plans to your unique circumstances, ensuring that your financial goals are achievable and aligned with your lifestyle.

- Strategic Planning: We help you prioritize and manage your financial goals, from paying off debt to saving for life events and building wealth. Our strategic approach ensures that you’re on the right path to financial security.

- Investment Expertise: Arena Investor’s investment management services are designed to optimize your portfolio for growth, stability, and tax efficiency. We help you make informed decisions that contribute to long-term wealth creation.

- Legacy Building: We assist you in planning for the future, whether that means leaving a financial legacy for your family or supporting causes you care about. Arena Investor helps you create a lasting impact through thoughtful financial planning.

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.

Total Term is a vital metric that compares your current net worth to your estimated annual spending. This guide will explain what Total Term means, its significance, and how working with an Arena Investor Advisor can optimize your financial strategy.

What is Total Term?

Total Term is a financial ratio that measures the longevity of your current net worth if you had to live on it without any additional income. It is calculated by dividing your current net worth by your estimated annual spending. This ratio helps you understand how many years you could sustain your current lifestyle solely based on your accumulated assets, making it an essential figure for retirement planning and financial stability assessments.

Importance of Understanding Your Total Term

1. Retirement Planning: One of the most critical uses of the Total Term is in retirement planning. It provides a clear estimate of how many years your current assets can fund your retirement, helping you make informed decisions about when you might afford to retire or how much more you need to save.

2. Financial Health Assessment: Total Term gives a snapshot of your financial health and independence. A longer Total Term suggests a strong financial cushion and stability, while a shorter Total Term might indicate the need for increased savings, investments, income adjustments, or spending changes.

3. Spending and Investment Strategies: Understanding your Total Term can influence both your spending habits and investment strategies. It helps in balancing between saving enough to extend your Total Term and investing wisely to grow your net worth.

Calculating Your Total Term

To calculate your Total Term, you need to first determine your net worth, which is the sum of all your assets minus any liabilities. Then, estimate your annual spending, which includes all regular expenses for the year. Finally, divide your net worth by your estimated annual spending. For example, if your net worth is $500,000 and your annual spending is $50,000, your Total Term is 10 years.

How an Arena Investor Advisor Can Help

1. Comprehensive Financial Review: An Arena Investor Advisor starts by assessing your entire financial landscape—assets, liabilities, income, and expenses—to accurately calculate your Total Term. This initial review lays the groundwork for all further advice.

2. Tailored Financial Planning: Depending on your Total Term and financial goals, your advisor might suggest specific strategies to improve your financial longevity. This could involve increasing your savings rate, adjusting your spending habits, or optimizing your investment portfolio for better growth and sustainability.

3. Regular Monitoring and Adjustments: As your financial situation evolves—due to changes in income, expenses, or life circumstances—your Total Term will need re-evaluation. An Arena Investor Advisor ensures that your financial plan stays aligned with your current needs and future goals.

4. Risk Management: Understanding and managing risks associated with investments, market fluctuations, and personal life changes are crucial. Your advisor helps you navigate these risks, ensuring that they minimally impact your Total Term.

5. Educational Support: The concepts of net worth, annual spending, and their relation to financial independence can be complex. Arena Investor Advisors are dedicated to educating you about these principles, empowering you with the knowledge to make confident financial decisions.

All In All

Total Term is a powerful metric for assessing how well-prepared you are to maintain your current lifestyle without additional income. It is particularly useful for retirement planning but is equally important for understanding your overall financial health. With the guidance of an Arena Investor Advisor, you can optimize your Total Term, ensuring financial security and peace of mind for the future. This strategic approach not only safeguards your immediate financial needs but also sets a solid foundation for achieving long-term financial independence and success.

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.