📈 STOCKS, STOCKS, STOCKS

TL;DR: Stock market reaches record high, inflation drops & crypto election

I hope you had a fantastic week, just a reminder to try the Investrio app. It helps you get out of debt, build a budget, and speak with a financial coach. Click below to start your 7-day trial - no credit card needed. 💜🚀💰

The stock market also had an amazing week! The Dow Jones, the much broader S&P 500, and the NASDAQ all reached record highs with the Dow crossing the 40,000 threshold for the first time ever.

 📈 Below is a picture of all the stocks in the S&P500 and their returns since January 2024. 🤩 Where do you think stocks are headed this year? Imagine this: you own a hair salon, and all the costs of managing and operating it have increased - anywhere from shampoo, rent, and electricity. You are left with no option but to charge more per haircut, and that's where inflation becomes sticky. That slight $5+ increase per haircut is now the baseline. Imagine that across every small and medium-sized business across the country.

But that's not all…

Stocks rallied for a reason. This week, news broke that inflation actually slowed down a bit in April. That's a win-win for two reasons:

A lighter load on your wallet: Hopefully, you'll start noticing a slight decrease in the price of everyday essentials.

Interest rate relief on the horizon?: This slowdown might signal good news for those hoping for a break on interest rates, which could impact things like loans and mortgages.

But before we celebrate too much, here's where inflation is and isn't!

🚨On the radar:

Roaring Kitty Returns: Twitter and Reddit feel a lot like trading floors these days. Social media darling "Roaring Kitty" is back, sparking a fresh rally in meme stocks like GameStop and AMC. These companies saw a prices rise based on viral hype, not traditional metrics. While some investors profitted in 2021 (and this past week), the risk is significant. Only time will tell if history will repeat itself. 👀 We made a video about it, watch it here!

New Case for Climate Change: The United States has imposed tariffs on electric vehicles imported from Europe and China. The Biden administration is facing pressure from both domestic automakers and foreign countries to remove these tariffs, which were originally imposed by the Trump administration. Domestic automakers argue that the tariffs make competing with foreign companies more expensive, while foreign countries argue that the tariffs are unfair. Additionally, there are talks of new tariffs that could impact nearly $18 billion in current annual imports, including EVs, minerals, computer chips, and more. Higher prices from these tariffs would only slow down efforts in climate technology.🌱

💰Crypto Corner

The Crypto President As the 2024 U.S. election heats up, crypto is finding its way into the political conversation. But what does this mean for the principles that crypto was built on, and are candidates using crypto talk just to win votes?

Let's break down the top three principles of crypto and see how they stack up against the political narrative:

Decentralization: Crypto's core. It's about eliminating intermediaries. When politicians discuss crypto, consider whether they support true decentralization or more regulation.

Transparency: Blockchain's strength. It offers an open ledger. Politicians may promise transparency, but can they deliver in a traditionally opaque system?

Financial Freedom: Empowering individuals. Crypto promotes control over one's finances. Will candidates' policies protect this autonomy or impose new restrictions?

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In Abundance,
Joyce and Laura