As we head into the holiday week, we’d like to wish everyone a safe and fun Fourth of July! We hope you are able to take some time to enjoy the holiday and recharge.
In a redux of the end of 2024, major U.S. equity markets are hitting new highs while leaving the average stock behind. Markets appear to be looking past the recent deterioration in economic data. Businesses surveyed by the Dallas Fed don’t have a particularly rosy outlook. Bank of America conducted a “Study of Wealthy Americans,” which offers interesting insight into the investments, planning, and goals of adults with over $3 million in investable assets. The study highlighted stark generational divides among wealthy Americans. Mortgage rates. A milestone for solar.
1. The Nasdaq 100 is at a new all-time high while the Russell 2000 remains in correction territory:
2. It’s possible we’re back in a “bad news is good news” environment, as marginal economic weakness could accelerate the timeline for rate cuts:
3. The Fed’s job won’t be easy if businesses start passing rising input costs along to consumers:
4. Younger investors have a strong preference for non-traditional assets:
5. Because they don’t think that traditional assets will produce the above average results they’re looking for:
6. Given the demographic in question, it’s perhaps unsurprising that younger wealthy Americans exhibit optimism about the economy but it’s notable than they’re more optimistic than their older counterparts:
7. Stocks aren’t the economy in the short term, but it’s a sign of exuberance when investors believe stocks will continuously outrun the economy:
8. There’s still many wealthy Americans who could likely benefit from working with a financial advisor:
9. Many homeowners remain locked-in to their low rate, but the average effective mortgage rate is rising and will likely continue to do so:
10. Solar power continues to grow its share of global energy production:
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The federal funds rate is the interest rate at which banks lend money to each other overnight. A treasury yield is the interest rate the U.S. government pays on its debt, and the annual return that investors can expect from holding a U.S. government security. The U.S. Dollar Index is a geometrically-averaged calculation of six currencies weighted against the U.S. dollar. The Russell 2000 Index is a benchmark for U.S. small-cap stocks, measuring the performance of the 2,000 smallest companies in the broader Russell 3000 Index. The S&P 400 Index, also known as the S&P MidCap 400, measures the performance of 400 mid-sized U.S. companies and serves as a benchmark for the mid-cap segment of the market. The S&P 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. across various industries.
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