Just like you can't predict which baseball card will make it big, you can't know which stock will perform well. To reduce risk, invest in many stocks or the entire stock market, like buying multiple baseball cards to ensure you get the next All-Star. This diversification helps you tap into potential growth and spread your risk across different areas of the market.
Social Security's finances have slightly improved due to a stronger economy, extending the depletion date of its funds to 2035. However, experts warn that without reforms, the program will still face severe challenges. Lawmakers need to act to prevent cuts or tax increases, and possible solutions include gradually raising the retirement age or allowing for more immigration to bolster the workforce paying into the system.
HD Hyundai Marine Solution, a ship-repair company, recently had a successful IPO in South Korea, making it the biggest in the country since early 2022. The stock soared on its first day of trading, almost doubling in value. This IPO raised a significant amount of money, valuing the company at over $3.7 billion. The offering included newly issued shares, as well as shares sold by existing investors, such as HD Hyundai Group and investment firm KKR.
British digital bank Monzo has raised $610 million this year, boosting its valuation to $5.2 billion. It plans to use the funds to develop new products and expand internationally, including launching a pensions product and focusing on its U.S. operations. Monzo's goal is to become the one-stop shop for all financial needs, diversifying its revenue streams through services like lending, savings, and investments.
"Spaving," or spending more to save, is a common trap. It can lead to overspending and credit card debt if you're not careful. To avoid this, try:
* Avoiding impulse purchases by ignoring sales and using cash instead.
* Comparing prices and discounts carefully before making decisions.
* Avoiding stores that tempt you with special offers.
* Creating obstacles to purchases, like deleting stored payment details.
* Giving yourself time to reconsider purchases before buying them.
Despite positive economic indicators that have extended the estimated depletion date for Social Security's trust fund to 2035, experts warn that the looming shortfall has not been addressed by Congress. The projected depletion of Medicare's Hospital Insurance trust fund has been pushed to 2036, but both programs face challenges that require prompt action. Possible solutions include tax increases, benefit adjustments, or a combination of both.
Entry-level jobs often require more experience and skills than they used to. Many companies ask for advanced degrees, multiple years of experience, and specialized skills, even for positions that are typically considered entry-level. This has made it harder for job seekers to find entry-level work because they don't have the necessary qualifications. Employers are focusing more on hiring people with the specific skills they need right away, rather than hiring and training people within their own companies.
Many adult children expect to inherit a significant amount of money from their parents, but studies show that parents plan to leave them less than they think. This is due to factors like rising costs, longer life expectancies, and changing views on inheritance. Additionally, communication between parents and adult children about finances is often lacking. As a result, many millennials and Generation Z may not receive as much inheritance as they anticipate.
The dream of homeownership is slipping away for renters. A record low 13.4% believe they can afford a home, and rental costs are expected to rise 9.7% this year. Higher housing costs and interest rates are making it difficult for renters to transition to home ownership. Renters also expect mortgage rates to continue rising in the next few years.
Economist Stanley Druckenmiller criticizes the actions of the Treasury and Federal Reserve, claiming they have caused inflation to rise. He believes this mismanagement is harming Americans financially and could hurt President Biden's re-election chances. Druckenmiller also faults Biden for excessive spending and tariffs under former President Trump. While he sees inflation risks with both Trump and Biden, he aligns with free-market principles and opposes government interference in the economy.
Berkshire Hathaway and Micron Technology gained after strong earnings reports. Spirit Airlines dropped due to losses, while Paramount rose amid acquisition talks. U.S. Steel, EHang Holdings, Bausch + Lomb, and Coinbase saw gains based on analyst upgrades. Tyson Foods fell despite beating earnings estimates, and Medical Properties Trust lost ground due to a major tenant's bankruptcy. Li Auto and Victoria's Secret reported positive news, moving their stocks up and down, respectively.
Inflation is hurting lower-income Americans. They're being more cautious with their spending due to higher expenses and debt servicing. On the other hand, affluent consumers continue to spend, leading to a "K-shaped consumer" pattern. Despite high employment, the pressure of rising living costs is taking its toll on lower-income Americans.
