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Good morning, Heroes!
Here’s your Morning Market Preview for September 20th, 2024
Read, or listen relaxingly for a few minutes – whichever you prefer!
Key Economic Reports
- None scheduled for Friday.
Key Earnings Reports & Events Today
- No earnings reports scheduled for Friday either.
- Boeing’s strike continues, and the company has furloughed thousands of workers. The strike began after union members overwhelmingly rejected a proposed contract, leading to a work stoppage that is now becoming prolonged. The strike began on September 13th.
The Fed
- After the recent 50 basis points cut to 4.75-5.00%, the next meeting's outcomes will hinge on new data, potentially setting further rate adjustments.
Stocks
Year-to-Date Performance:
- Up Most: Tech was up 3.08% yesterday, now up 24.26% this year. Utilities is second-best on the year, up 23.03%.
- Down Most: Important to know, no sectors are negative on the year. The smallest gain has been in Energy, up 4.77% this year. Second-to-last is Materials, up 8.68%.
5 Day Moving Average:
- Up Most: 95% of Energy Large Cap stocks are now above their 5 day average. Tech is second now with 88% of its Large Caps above their 5 day average.
- Down Most: Utilities are down, and only 16% of Large Caps are above their 5 day average. Next closest is Real Estate and Consumer Staples at 29%.
Crypto
- Bitcoin: Up big recently, now about $62,992, which puts it at a staggering 49.89% gain on the year.
- Ethereum: It’s been a good couple of days for Ethereum again, and is up to about $2,465, which means a 7% gain on the year.
- Top Gainers Recently: Solana is up big again, about 9.82% in the last day. Ox and Bitcoin Cash are close on Solana’s heels though, both up about 9.25%.
- Important to note: Crypto markets are always open and prices change constantly.
Bonds
- 2-Year Treasury: Yields continue to come down, now at 3.629%.
- 10-Year Treasury: Up a tick to 3.715%, 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 is flat in the last day, now about $2,587 per ounce, and up 25.4% on the year.
Real Estate
- 30-Year Fixed Mortgage Rate: Up just a bit, now to 6.17%. The mortgage rate has dropped about 7.5% this year.
Geopolitical Aspects
- Global markets are watching closely for economic data from China, which continues to show slower-than-expected growth.
- Meanwhile, European markets are grappling with high energy prices as winter approaches, which could lead to higher costs and increased inflation risks across the continent.
- Concerns include Middle East tensions affecting oil prices and global investment flows.
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.
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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.
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- 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.”
Understanding Burn Rate
In personal finance, the term "Burn Rate" may not be as commonly discussed as budgets or savings, but it’s equally crucial. Especially suited for individuals looking to get a grasp on their financial health and spending efficiency, understanding your Burn Rate provides essential insights. This guide, designed for beginners and enhanced with expertise from Arena Investor Advisors, simplifies the concept of Burn Rate and illustrates how it can be a pivotal tool in managing your finances.
What is Burn Rate?
Burn Rate in personal finance measures the ratio of your estimated annual spending (excluding debt payments) to your total annual income. This metric helps you understand what percentage of your income is consumed by regular expenses, helping gauge how efficiently you are using your financial resources. Essentially, it's an indicator of how quickly you’re "burning through" your income on non-debt expenses each year.
Importance of Understanding Your Burn Rate
1. Efficiency in Spending: Knowing your Burn Rate helps identify how much of your income is going towards everyday expenses. A lower Burn Rate means more of your income is either being saved or invested, which is crucial for financial growth and stability.
2. Financial Planning and Budgeting: By understanding your Burn Rate, you can make informed decisions about where adjustments may be needed in your spending habits or income streams to improve financial health.
3 Preparing for the Future: Managing your Burn Rate effectively ensures that you are saving enough to meet future financial goals, whether it's buying a home, investing in education, or planning for retirement.
How to Calculate Burn Rate
To calculate your Burn Rate, subtract any debt payments from your total estimated annual spending, then divide this number by your total annual income. Multiply the result by 100 to get a percentage. For example, if your annual spending (minus debt payments) is $40,000 and your total annual income is $100,000, your Burn Rate is 40%. This means 40% of your income is used for regular expenses, excluding debt repayment.
How an Arena Investor Advisor Can Help
1. Personalized Analysis: An Arena Investor Advisor starts with a detailed assessment of your income and expenditures to calculate your Burn Rate accurately. This analysis serves as the foundation for personalized financial advice.
2. Strategic Budgeting: Depending on your Burn Rate, your Arena Investor Advisor might suggest strategies to optimize it. This could involve advice on reducing unnecessary expenditures, increasing income, or reallocating funds more efficiently between saving, spending, and investing.
3. Regular Updates and Financial Adjustments: Financial situations can evolve, so regular monitoring of your Burn Rate is essential. An Arena Investor Advisor will help keep your financial strategies aligned with changes in your income or spending patterns.
4. Educational Support and Guidance: For newcomers to financial management, comprehending and applying financial metrics like Burn Rate can be daunting. Arena Investor Advisors ensure you understand each element of your financial plan, empowering you with the knowledge to make sound decisions.
5. Technology Integration: Using advanced tools, industry-leading apps and platforms, your Arena Investor Advisor can visualize your financial data for you, so it’s easier to see, understand, and act upon. These tools help clarify how changes in your Burn Rate affect your overall financial health.
All In All
Understanding and managing your Burn Rate is essential for effective financial planning and maintaining economic stability. With the guidance of an Arena Investor Advisor, you can ensure that your spending is efficient, and your savings and investment strategies are on track to meet your financial goals. By monitoring and adjusting your Burn Rate regularly, you can achieve a balanced financial lifestyle that not only meets current needs but also secures your future.
Working with Arena Investor provides you with the expertise and tools necessary to navigate your financial journey with confidence, ensuring that every decision moves you closer to your long-term financial aspirations.
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.
Understanding Financial Planning
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.
Announcement: Arena Investor Partners with Betterment
We are excited to announce a strategic partnership between Arena Investor and Betterment, a leader in smart investing and innovative financial solutions. As part of our ongoing commitment to providing cutting-edge investment management services, we are now offering clients the opportunity to invest in diversified crypto portfolios through Betterment’s robust platform.
Why Betterment?
Betterment is widely recognized for its user-friendly platform, sophisticated financial tools, and commitment to helping investors achieve their goals through diversified, low-cost portfolios. With this integration, Arena Investor is bringing you a seamless way to access the rapidly growing world of regulated cryptocurrency investments. Betterment’s intuitive platform ensures that our clients can easily manage their crypto portfolios and not just their traditional investments, all within a secure and regulated environment.
Enhanced Investment Management Experience with Crypto Portfolios
The inclusion of crypto portfolios through Betterment marks a significant enhancement to our investment management offerings. Betterment’s platform allows us to provide clients with expertly managed crypto portfolios. By leveraging Betterment’s technology, we can offer a streamlined experience that simplifies the complexities of crypto investing, ensuring you can stay informed and confident in your investment choices.
Value for Investment Management Clients
As an investment management client of Arena Investor, you now have the opportunity to diversify your portfolio with exposure to cryptocurrencies, a rapidly evolving asset class. Betterment’s crypto portfolios are designed to provide broad exposure to the most established cryptocurrencies, managed with the same care and attention to risk that characterizes all our investment strategies. Whether you’re new to crypto or looking to expand your existing holdings, this partnership offers a secure and efficient way to integrate crypto into your broader investment strategy.
Betterment looks to the future, as does Arena Investor. Leveraging technology to provide more and more value to our clients is integral to both Arena Investor and Betterment. Features such as tax-loss harvesting and rebalancing are key factors in our decision to integrate with Betterment.
Looking Ahead
Our partnership with Betterment represents just the beginning of our efforts to integrate more advanced investment solutions into Arena Investor’s services. While we are currently focused on crypto portfolios, we are excited about the potential for further collaboration with Betterment in the near future. This partnership reflects our commitment to staying at the forefront of investment management, ensuring that our clients have access to the latest tools and strategies for achieving their financial goals.
We are eager to see the benefits this partnership will bring to our clients and look forward to helping you navigate the exciting opportunities in the crypto space with confidence and clarity. If you have any questions about how Betterment will enhance your investment experience with Arena Investor, please don’t hesitate to reach out to us.
Truly,
The Arena Investor Team
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.
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