⏰ The Time Has Come

TL;DR: The cuts are coming, gold is hot, who's buying real estate?

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Market Watch👀

This week was filled with economic news. On Friday morning, Jerome Powell (head of the Federal Reserve) sent a straightforward message to markets in a critical speech, saying, "The time has come" for the central bank to begin lowering interest rates. It’s no wonder we had to wait this long, the economy was a hot mess, but Powell confirmed the timing and pace of rate cuts will still depend on incoming data and the evolving outlook. Powell's speech comes just over three weeks from the Fed's Sept. 18 meeting, which should see the central bank announce its first interest rate cut since 2020. The market took this headline well, closing the week at: 📈 S&P +1.10%, NASDAQ +0.98%, Dow Jones +1.24%

Did you miss the Investrio Summer Series? Read it Here! 

• Summer Series #1 - Keep your portfolio cool 😎

• Summer Series #2 - No need to go to Paris for gold 🥇

• Summer Series #3 - Don't Miss These Hot Summer Stock Pick 🔥

• Summer Series #4 - 🍁 Summer or Fall?

• Summer Series #5 - 🚀 Is Your Portfolio Future Ready?

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🚨On the radar:

Gimme Gold Bars - This week, gold reached a new milestone and surged more than 20% year-to-date, outpacing our beloved tech stocks. Strategists at Bank of America suggest adding it to your portfolio, but should you? Here's something to consider: as the US grapples with social and economic changes, gold becomes more interesting due to its low correlation to traditional assets such as stocks and bonds. It's a good asset class in moderation, but since gold does not innovate or change, its value has seen its ups and downs. Like the stock market, gold has a strong track record with inflation over long periods.

 We’re Getting Richer - Americans now believe they need $2.5 million to be considered wealthy, up from $2.2 million just two years ago, according to a new Charles Schwab survey. This represents a 14% increase from last year in the perceived amount of money required to be rich. This change can be attributed to the higher prices of homes and stocks; we're now reconsidering what is "wealth." The general level of financial comfort has decreased to an average of $778,000, down from $1 million last year. There has been significant optimism about wealth growth among Gen Z and Millennials. It is also estimated that the amount needed for retirement by most Americans has risen to $1.46 million, which is a 53% increase from 2020. Investrio will soon assist you in determining this figure and help you stay on track.

 Who’s Paying the Agent? - If you're a first-time homebuyer, new rules mean you'll need to sign an agreement with your real estate agent upfront, specifying how they'll get paid. Unlike before, sellers may not cover your agent's fees, so you might have to budget for this. These changes could confuse the process, especially if you're unfamiliar with buying a home. It's important to discuss fees clearly with your agent to avoid surprises and ensure you're fully represented during the transaction.

💰 Crypto Corner

Bitcoin rose above $64,000 on Friday after Fed Chair Jerome Powell hinted at potential rate cuts at the Jackson Hole symposium. As Bitcoin and other digital assets gain momentum and the White House race heats up, cryptocurrencies become more prominent in politics as candidates signal their positions. 

Earlier this week, Brian Nelson, Kamala Harris's senior campaign adviser, shared that Harris intends to advocate for measures that will support the growth of the digital asset industry. He mentioned that her team is dedicated to establishing "stable rules" to guide the industry's expansion, signaling a departure from the current administration's cautious approach.

On the Republican side, former President Donald Trump gained attention by endorsing a new DeFi project called "The DeFiant Ones," led by his sons. Through his platform, Truth Social, Trump expressed his opposition to major banks and financial elites, stating, "The average American has been squeezed for too long. It's time we take a stand together.” Is crypto a major consideration for you as you head to the polls this fall?

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In Abundance,
Joyce and Laura