"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.
Billionaire investor Stanley Druckenmiller recently sold his shares in Nvidia, a chipmaker that has soared due to its role in the AI boom. Druckenmiller believes the AI hype may be excessive in the short term, despite being bullish about AI long-term. He bought Nvidia after realizing AI's potential but sold his stake after witnessing its rapid rise. However, he remains positive about AI's long-term impact, comparing it to the transformative potential of the internet.
Berkshire Hathaway's stock rose after reporting strong earnings and record cash reserves. Operating earnings surged 39%, driven by increased insurance underwriting earnings, especially from Geico. The company now holds $189 billion in cash, as it struggles to find suitable acquisitions. Despite outperforming the S&P 500 this year, analysts remain positive on Berkshire's prospects, citing its strong earnings and potential for growth in data analytics.
Two sisters, Rebekah and Sarah, have joined their father and stepmother in leading the family-owned Alstede Farms. This makes the farm majority women-owned, showcasing the significant role women play in decision-making and leadership in farming. Despite the male-dominated nature of agriculture, data reveals that women contribute heavily in areas like daily operations, financial management, and estate planning. The younger generation faces challenges related to farm consolidation, debt, and climate change, requiring resilience and innovative solutions.
ETFs are gaining interest as they tap into a vast market of cash in CD and money market accounts. Interest rate increases have made structured and options ETFs appealing for risk management and income. These ETFs offer stability and the potential to outpace inflation, making them attractive to retirees seeking growth without excessive risk.