Celebrating Financial Wellness Month can be an empowering and enjoyable journey toward greater financial stability. So pick a few items from the list below and kick off your new year with a party where the guest of honor is your financial freedom. 

9 ways to celebrate Financial Wellness Month:

1. Take stock of your emergency fund
2. Check your credit report
3. Review your retirement plans
4. Tackle your credit card debt
5. Evaluate your student loan options
6. Set saving and investing goals 
7. Review and rebalance your investment portfolio
8. Build your 2024 budget
9. Increase your financial literacy

1. Take stock of your emergency fund

Your emergency fund acts as your lifeline when unexpected events inevitably happen, so its health is critical to your financial wellness. Give it a check-up with these steps:

• Assess your current balance: Your fund should have enough for at least six months of living expenses in case you lose your income or have a major unexpected expense. 
• Adjust goals: Tweak your target savings goal to reflect your current needs if your lifestyle or expenses have evolved in the last year. 
• Replenish savings: If you spent money from your emergency fund last year, plan to build it back up in the coming months.
• Seek better rates: Keeping your money in a high-yield savings account or money market account helps your emergency savings grow faster with interest; shop around to see if you could get a better rate at a different bank or credit union. 

2. Check on your credit 

Your credit influences multiple aspects of your life, including loan rates, rental opportunities, insurance premiums, and even employment. So what better time to look into your credit report and score than Financial Wellness Month? 

Your credit report is a detailed record of your credit history, while your credit score is a numerical reflection of your creditworthiness. Monitoring both can help you keep track of your financial standing, recognize signs of identity theft, and find opportunities to improve your credit. You’re entitled to one free credit report per year from each of the three reporting agencies, and you can usually get your credit score from your bank or credit card issuer. 

3. Review your retirement plans

You’re likely hoping to enjoy your retirement party some point in the future. Make sure you’ll have the money you need by throwing yourself a retirement planning party for Financial Wellness Month. Include these activities in your financial festivities:

• Account overview: Start by examining all your retirement accounts, including 401(k)s, 403(b)s, and IRAs. Be sure you know about all the accounts you have, what institution manages them, and the balances in each. You might also want to estimate your future social security benefits, which play a crucial role in budgeting during retirement.
• Retirement calculator: Whether retirement is four years away or forty, you need to know how much money you’ll need when the time comes. Use a retirement calculator to find out how much you need to be investing every month in order to leave the workforce with enough to live on. 
• Up your retirement contributions: If your employer matches a portion of your 401(k) contributions, don’t leave that money on the table. Bump up your contributions to at least the full amount that your company matches. And if you have an IRA, you have until April 15, 2024 to make contributions for the 2023 tax year; consider adding to your account if you haven’t yet met the contribution limits. 

4. Tackle your credit card debt

The sooner you get out of debt, the sooner you can start earning interest instead of paying it. High-interest debt can quickly mount to daunting proportions, adding stress and pinching your budget. So it’s particularly important to pay this type of balance off as soon as possible. 

For Financial Wellness Month, take yourself on a metaphorical trip to the mountains by choosing one of these popular debt-payoff strategies:

• The avalanche method: This approach involves paying off the debt with the highest interest rate first while making minimum payments on other debts. Once the highest interest debt is paid off, you move on to the next highest, and so on. This can reduce the total amount of interest you pay over the long haul.
• The snowball method: Instead of prioritizing by interest rate, the snowball method focuses on paying off the smallest balance first while making minimum payments on the rest. After the smallest debt is cleared, you move on to the next smallest. This approach provides a sense of accomplishment with each debt you eliminate, giving you motivation to stick with your debt-payoff plans.

5. Evaluate your student loan options

If student loan debt is weighing you down, making a bigger dent in it can increase your sense of financial freedom. This Financial Wellness Month, take a look at ways to pay off your student loans faster:

• Extra payments: One straightforward approach is to make extra payments on your principal balance. This reduces the overall amount owed and shortens the loan term. Even small additional amounts can make a big difference over time.
• Refinancing: Refinancing your student loans may lead to lower interest rates and potentially lower monthly payments. But be aware of the downsides: you might give up some debt-relief options, and there may be fees involved.
• Loan forgiveness programs: If you work in certain sectors, you might qualify for federal student loan forgiveness programs. Some teachers, medical professionals, government workers, and nonprofit employees can have some or all of their student loan debt forgiven after meeting certain criteria. If your career ambitions are leading you toward those fields, take a look at whether you might qualify for forgiveness. 
• Consolidation: Consolidating multiple student loans into one can simplify your payments and sometimes lower your interest rate, which can make it easier to manage your debt and repay it faster. Just like refinancing, though, there’s a chance you’ll have to pay fees and might disqualify yourself from forbearance, deferment, and forgiveness programs. 

6. Set saving and investing goals 

What’s the real meaning of Financial Wellness Month? It’s more than just crunching numbers; financial health is all about helping you attain the things you really want in life. And to do that, you’ll need to set clear financial goals. This is your chance to envision what you want to achieve in the near and far term, then make a plan to turn those dreams into reality. 

Settle in for a goal-setting sesh; grab some colorful paper and pens for extra merriment. Jot down your goals and group them into three categories:

• Short-term goals (within one year): Saving for a big trip, building a solid emergency fund, planning a wedding without going into debt… your short-term goals can be practical, fun, or both. Once you decide what you’re saving for, set up sinking funds and store your money in an interest-bearing account to help it grow. 
• Mid-term goals (within five years): Common mid-term savings goals include a down payment on a house, buying a new car, or starting a small business. Consider using high-yield savings or money market accounts, which tend to offer higher interest rates than regular savings accounts while keeping your money easily accessible.
• Long-term goals (more than five years): These are typically retirement or long-term wealth accumulation goals, and they’re often for things decades into the future. Investing, whether through a brokerage account or retirement accounts, can help you work toward these bigger objectives. The longer time horizon lets you take advantage of compound returns and helps balance out the risk of stock market volatility. 

7. Review and rebalance your investment portfolio

Investing for the long term doesn’t mean you shouldn’t keep tabs on your portfolio’s performance. Over time, changes in the market can shift how different assets weigh in your investment portfolio. Periodically checking your investments allows you to assess whether they still match your needs and goals. Consider the following factors:

• Asset allocation: Balance your investments across different asset classes like stocks, bonds, and funds, based on your goals, risk tolerance, and investment horizon.
• Portfolio rebalancing: Adjust your portfolio’s asset proportions to maintain your original allocation or adjust it if your risk profile has changed. If one type of asset has grown proportionately too large, you might sell some of that asset and buy more of another.
• Diversification: Diversifying your assets, or spreading investments across various classes, sectors, and industries, reduces the risk that a downturn in a single stock, sector, or market will significantly impact your overall portfolio.

8. Build your 2024 budget

Whether you’re an old hand at financial planning or are just getting started, creating a budget is a classic Financial Wellness Month activity. Take time to reflect on last year’s spending while it’s still fresh in your memory, making it easier to plan accurately for 2024. 

• Analyze past spending: Review your 2023 expenses to identify spending patterns. This analysis will help you forecast your regular monthly expenses for the new year, plus alert you to expenses that caught you by surprise last year so you can plan for them this time around.
• Categorize expenses: Divide your expenses into categories that make sense to you, such as housing, utilities, groceries, transportation, entertainment, etc. Don’t forget to include infrequent expenses like annual subscriptions or insurance premiums, as well as consider things with variable costs like gas and dining out.
• Plan for savings and investments: Based on your financial goals, allocate a portion of your monthly budget to savings and investments. Whether it’s for an emergency fund, a down payment on a house, or retirement, regular contributions to these goals are crucial for achieving your bigger ambitions.
• Test drive some budgeting strategies: At its core, a budget is a plan for how you’ll spend your income each month. But putting that into practice is easier if you have a solid strategy. Try one or more of these popular budget approaches to see which makes the most sense for you: the 50/30/20 rule, envelope budgeting, or a zero-based budget.
  

9. Increase your financial literacy

They say knowledge is power, and Financial Wellness Month is a perfect time to power up your financial literacy. Dive into the world of finance by reading books or articles on financial topics, attending workshops or webinars, following reputable financial bloggers or podcasters, or even taking a financial literacy course. By embracing your financial education, you can increase your confidence and knock out financial stress.

Pave a prosperous future during Financial Wellness Month

However you celebrate, this month can be a catalyst for continued growth and achievement in your financial journey. Each step you take is a stride toward a more secure and prosperous financial future. And don’t forget, you’re celebrating Financial Wellness Month; give yourself a high-five for the progress you’ve already made and put a line item in your budget to treat yourself a bit for taking steps toward greater financial health. 

And remember to keep the party going all year long by keeping up with your monthly budgeting, debt management, saving, and investing plans. After all, National Financial Awareness Day is on August 14, 2024, so you’ll want to be prepared for your next financial wellness celebration.  

Investing made easy.

Start today with any dollar amount.

Get Started

The post 9 Ways to Celebrate Financial Wellness Month appeared first on Stash Learn.

While the exact parameters that distinguish an economic downturn from a true recession are debatable, the National Bureau of Economic Research (NBER) defines a recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.” The typical rule of thumb for determining whether a period constitutes a recession is whether it includes two or more consecutive quarters of decline in a country’s gross domestic product (GDP). Often, these periods aren’t officially labeled as recessions by economists until they are already well underway or have ended entirely. It’s important to remember that recessions are natural and temporary phases in the business cycle, and though they may come with hardships, they are typically succeeded by periods of economic growth.

In this article, we’ll cover:

• What happens in a recession
• Downturns vs. recessions vs. depressions
• What causes recessions
• Recessions and the business cycle
• Signs of a recession
• How a recession may affect you
• How to invest in the face of a recession

What happens in a recession

Recessions are complex events that can be triggered by various factors, from financial crises to external shocks. While each recession has distinct characteristics and causes, varying in length and severity, a few trends are common across all of them.

• GDP falls: GDP, which measures the total value of goods and services produced in a country, typically drops during a recession, indicating a weakening of the nation’s overall economic health.
• Economic activity declines: Businesses might reduce production due to decreased demand, leading to a slowdown in various sectors of the economy.
• Unemployment rate rises: As companies cut back on production or even shut down, job losses become more prevalent, leaving a higher percentage of the population without employment.
• Interest rates may decrease: The Federal Reserve might choose to lower interest rates in an effort to boost economic activity.
• Consumer spending shrinks: Uncertainty and financial concerns during a recession often lead consumers to cut back on their expenditures, further slowing down the economy.

Economic downturns vs. recessions vs. depressions 

Economic downturns, recessions, and depressions are all periods of economic contraction. Ultimately, their differences lie in their duration, intensity, and impact on the broader economy.

• Economic downturns: These are short-term declines in economic activity, often accompanied by bear markets. While they can lead to recessions, it’s possible for the economy to recover before that happens. The U.S. has experienced a number of downturns throughout history, with bear markets lasting an average of about 9.5 months, though many are much shorter. 
• Recessions: Going into a recession means that an economic downturn extends into a more prolonged and pronounced drop in economic activity. Since 1980, the U.S. has faced five recessions of varying durations, with the shortest lasting just six months and the longest extending to 18 months. On average, U.S. recessions have lasted about 11 months.
• Depressions: Depressions are the most extended and severe economic contractions. The U.S. has experienced only one depression, known as The Great Depression, which began with a profound stock market crash in 1929 and lasted for about a decade. This period was marked by extreme unemployment, a significant drop in consumer spending, and widespread bank failures.

Examples of past recessions

Each recession in the U.S. has been unique in its cause, duration, and impact on the global economy. Three significant recessions identified by the NBER in the recent past have left a lasting mark on the country’s economic landscape.

• Dot-Com Recession: Occurring between March and November 2001, this seven-month-long recession was a result of the bursting of the dot-com bubble of the 1990s. The overvaluation of tech companies led to a sharp stock market decline, impacting the broader economy.
• The Great Recession: Spanning from December 2007 to June 2009, the Great Recession was primarily caused by the subprime mortgage crisis, leading to significant job losses and a global banking crisis. Lasting 18 months, it’s the longest recession the U.S. has experienced since World War II.
• COVID-19 Recession: Triggered in early 2020 by the global outbreak of the COVID-19 pandemic, this recession saw a sharp decline in economic activity due to lockdowns, travel bans, and business closures. While its exact duration is still debated, the most severe stages occurred between February and April 2020.

What causes recessions

No two recessions are identical. They often arise from a unique combination of factors that work together to turn a mild economic downturn into a pronounced economic contraction. A few factors often contribute to the onset of a recession. 

• Sudden economic shocks: Unexpected events that disrupt the normal flow of the economic cycle,  like natural disasters, terrorist attacks, or health crises, can shake consumer and business confidence, triggering a reduction in spending and investment.
• Excessive, widespread debt: When households, businesses, or governments take on too much debt, they may need to cut back on spending in order to pay it off, leading to a significant dip in overall economic activity.
• Asset bubbles: Bubbles occur when the prices of assets, like real estate or stocks, soar far above their fundamental value. Asset bubbles often arise in a specific industry or sector. When these bubbles inevitably burst, those who invested heavily can face significant losses, companies go out of business, and a ripple effect may impact other sectors of the economy as well, leading to an overall economic slowdown.
• Excessive inflation: During periods of high inflation, prices of goods and services rise too quickly, eroding consumer purchasing power. The Federal Reserve may then choose to raise interest rates in an effort to curb inflation, which can result in reduced borrowing and spending.
• Runaway deflation: The opposite of inflation, deflation is a prolonged drop in prices. While it might seem like a good thing, deflation can lead to reduced consumer spending as people wait for prices to fall further, causing a vicious cycle of economic contraction.

How recessions fit into the business cycle

The business cycle is a natural ebb and flow of economic activity, characterized by periods of growth and decline. Recessions are a pronounced form of natural contractions, representing a significant dip in the cycle. The NBER plays a pivotal role in determining the start and end dates of U.S. recessions by breaking the business cycle into four primary phases:

• Expansion: Marked by increasing economic activity, the expansion phase is a period of economic growth and prosperity. This is an ideal economic stage for business growth, often featuring rising employment rates and bolstered consumer confidence. As demand increases, businesses raise prices, causing inflation.
• Peak: The peak of the business cycle is the zenith of the expansion phase, where economic activity reaches its maximum, right before starting to fall off. This phase is characterized by high levels of production, employment, and the highest prices, with no room for further expansion.
• Contraction: Following a peak, the economy starts to slow down. This period sees a decline in GDP, employment, and other economic indicators. If this contraction is prolonged and severe, it can lead to a recession.
• Trough: The trough is the lowest point of the contraction phase, when economic activity bottoms out before starting to rise again. From here, the business cycle moves back into the expansion phase, marking the beginning of economic recovery.

Signs of an impending recession

While it’s impossible to predict recessions with absolute certainty, economists and financial experts often turn to specific indicators that hint at economic turbulence ahead. 

• Inverted yield curve: Typically, long-term bonds have a higher yield compared to short-term bonds. But when short-term bonds yield more than long-term ones, it’s called an inverted yield curve. Historically, this inversion has preceded recessions, as it indicates a lack of economic confidence.
• Declining consumer confidence: When consumers are pessimistic about the future of the economy, they tend to spend less and save more. A sustained drop in consumer confidence can lead to an economic contraction.
• Increasing unemployment: A rising unemployment rate can be a sign that businesses are cutting back on staff due to decreased demand or revenue. Persistent high unemployment can contribute to reduced consumer spending, which may exacerbate an economic slowdown.
• Stock market drops: While stock markets can be volatile regardless of the larger economic landscape, a prolonged and significant drop in stock prices overall can sometimes precede a recession and might be a sign of continued decline.

How a recession may affect you (and how you can prepare)

A recession affects the average person in a variety of ways. You might feel a financial pinch, as job security becomes uncertain and daily expenses seem to loom larger. While it’s natural to be concerned, there are proactive steps you can take to navigate challenging times and prepare for an impending recession.

• Build an emergency fund: An emergency fund acts as your financial safety net, ensuring you have funds to cover unexpected expenses or income loss. Especially during uncertain times, having three to six months’ worth of expenses can provide peace of mind and financial stability. 
• Pay off debts: Reducing debt, especially high-interest credit card debt, can free up income and reduce stress on your personal finances. By tackling your debt, you’re not only improving your financial health, but also making yourself less vulnerable during an economic downturn. 
• Start saving money: Plan for what a recession would do to your current budget and savings goals and take action ahead of time. By cutting down on expenses and setting aside a portion of your income regularly, you’re building a buffer that can be invaluable during tough times.

How to invest if you’re worried about a recession

When economic clouds gather, it’s natural to feel uneasy about your investments. Remember that market fluctuations are a part of the investment journey, and before making any hasty decisions, you might want to consult with a financial advisor who can provide tailored advice for your situation. Instead of panicking when the stock market dips, consider these strategies to safeguard, and possibly even grow, your portfolio during a recession.

• Ride out the downturn with long-term investing: Historically, markets have shown resilience over extended periods. Focusing on long-term investing may allow you to weather short-term volatility and potentially benefit from the average stock market return over time.
• Seek out “recession-proof” stocks and funds: Some sectors tend to be more resilient during economic downturns. Identifying and investing in stocks that tend to hold value in a recession might help shield your portfolio against market turbulence. 
• Consider defensive stocks for your portfolio: Defensive stocks are shares in companies that provide essential goods and services, like utilities or consumer staples. Because of their relatively stable demand, adding them to your portfolio may reduce your vulnerability in the face of economic flux.
• Capitalize on inflation before it drops: Some securities can actually benefit from inflation. Investing in things like Treasury Inflation-Protected Securities (TIPS), I-bonds, and value stocks when inflation is rising before a recession might offer a hedge against decreasing inflation rates later. 
• Evaluate short-term investment options: If you’re apprehensive about locking your money into long-term investments during uncertain times, consider short-term, lower-risk options. Instruments with fixed interest rates, such as CDs and T-bills, can be a way to secure higher interest rates before they potentially drop in a recession. 
• Diversify your portfolio: Spreading your investments across various asset classes and economic sectors can reduce risk. Especially during a recession, a diversified portfolio can help mitigate losses and position you for growth when the economy recovers.

Holding steady in the face of a recession

Economic downturns and recessions are inherent phases of the business cycle. Though they present challenges, remember that they’re followed by seasons of growth and rejuvenation. When you understand what a recession is, you’ll be more prepared to anticipate downturns and prepare.

As an investor, maintaining a clear strategy, staying informed, and resisting the urge to make impulsive decisions can help you pave the way for long-term success. With a good grasp of the cyclical nature of the economy, you can navigate the turbulence of recessions with more confidence.

Investing made easy.

Start today with any dollar amount.

Get Started

The post What is a Recession? appeared first on Stash Learn.

Apple is beating Epic Games. The U.S. Ninth Court of Appeals sided with Apple in Epic Games’ lawsuit against the tech company, which claimed that Apple was being monopolistic. Epic filed the lawsuit after Apple kicked the gaming company from the app store in 2021. Epic has complained about Apple taking a 15% to 30% commission on subscriptions and transactions made through the app store. 

AP News

Subway increases sales while looking to sell. Subway saw same-store sales increase 12.1% during the first quarter of 2023, as the sandwich chain looks to sell. The restaurant chain is working with JPMorgan to explore potential acquisitions and is looking for a $10 billion valuation. Now in a second round of its auction, Subway could reportedly be purchased by the end of May or early June. 

CNBC

Investing made easy

Start today with any dollar amount

Get Started

Manufacturing layoffs. 3M said that it will lay off 6,000 workers, in an effort to reduce layers of management and streamline its supply chain. The manufacturing company, which makes Scotch Tape, Command Strips, Post-it Notes, and more, expects to save $900 million annually by laying off workers. This layoff will be 3M’s second of the year. 3M laid off 2,500 people earlier this year. The company still expects sales to fall as much as 6% during 2023. 

CNN

Bolt gets the boot. GM is removing the Chevrolet Bolt, its first mainstream electric vehicle, from production due to issues with the battery. Still, the carmaker also increased its full-year profit predictions since demand and car prices remain high. GM revised its 2023 profit guidance from an $11 billion to $13 billion range, up from $10.5 billion to $12.5 billion. On average, cars are going for $50,263 as of Q1, up 1% year-over-year. 

Wall Street Journal

The post The Weekly Scan April 27, 2023 appeared first on Stash Learn.

Cutting carbon and prices. For the sixth time this year, Tesla is cutting prices for Model Y and Model 3 cars in the U.S. The electric car maker announced the decision ahead of its Q1 earnings report. The price cut is reportedly an attempt to compete with legacy car companies—such as Ford—that are now getting into the electric vehicle market.

Reuters

You can keep sharing passwords, for now. Netflix announced on Tuesday that it will delay the password crackdown it had planned for the first quarter of 2023. The streaming service now plans to limit password sharing during Q2. Netflix also released its Q1 earnings, reporting $1.31 billion in earnings, versus $1.6 billion the year prior. Netflix’s revenue also increased to $8.16 billion, from $7.87 billion the year before.

CNBC

Invest made easy

Start today with any dollar amount

Get Started

That’s settled. The parent company of Fox News—Fox Corp.—is settling with Dominion Voting Systems to the tune of $787.5 million—which means they’ll avoid going to trial. In the lawsuit, Dominion claimed that Fox spread misinformation that its voting machines had allowed President Biden to rig his win against President Trump in the 2020 election. Fox defended themselves, saying that it should be covered by the First Amendment right to free speech.

Wall Street Journal

We’re not homeward bound yet. In response to increasing mortgage rates, demand for mortgages has fallen 8.8% for the week ending April 14, 2023. For homes priced at $726,000 or less, the average contract rate for 30-year mortgages was 6.28%, compared to 6.26% the week before. Fifteen-year mortgage rates went up to 5.89% from 5.78%. 

MarketWatch

The post The Weekly Scan April 20, 2023 appeared first on Stash Learn.

Apples to apples. Apple launched its savings account with a 4.15% annual percentage yield. The account has no minimum balance or deposit and is connected to their credit card, Apple Card. Rewards earned from Apple Card—called Daily Cash—will be automatically added to the savings account. 

CNBC

When reality TV is too real. Netflix’s attempt to move into live streaming was met with interruptions on Sunday when the platform tried to live stream the Love is Blind reunion show. Netflix initially said the episode might be delayed by 15 minutes; however, the platform later canceled the live stream and apologized, saying the show would be filmed and made available to stream later.

Wall Street Journal

Investing made easy

Start today with any dollar amount

Get Started

Game not over. Sega is reportedly purchasing Rovio Entertainment, the owner of the game Angry Birds in a $774 million deal. The board of Rovio, which is based in Finland, has backed the deal. Sega proposed acquiring the company for $10.15 per share, which is 19% higher than Rovio’s Friday closing price.

CNN

A ban in Montana. Montana’s House of Representatives passed a bill banning TikTok in the state due to concerns over privacy. If the law goes into effect, it would be illegal to download the video creation app and could end in $10,000 daily fines for companies like Apple and Google (that allow you to download the app). The bill is expected to face opposition from federal courts. 

NPR 

The post The Weekly Scan April 18, 2023 appeared first on Stash Learn.

The dust may be settling. Johnson & Johnson proposed an $8.9 billion settlement over claims that its baby powder and talc products cause cancer. The settlement received support from more than 60,000 claimants, but it would still need to be approved by bankruptcy court. Shares in the pharmaceutical company rose 4.5% last Wednesday. A subsidiary of Johnson & Johnson, LTL Management, has also refiled for Chapter 11 bankruptcy after facing legal challenges. LTL is expected to shoulder some of the losses from the settlement.

CNBC

Soup’s out. Campbell’s, which is known mostly for its soups, is seeing its snack sales grow at a faster rate than meals and beverages. Snack sales increased 15% year-over-year compared to 11% growth in meals and beverages, according to the company’s March earnings report. And the increase in snack sales can reportedly be connected to a jump in sales volumes, as opposed to just higher prices.  In 2018, Campbell’s acquired Snyder’s-Lance, which brought Kettle and Cape Cod potato chips, Late July corn chips, and Snyder’s pretzels into the fold. Campbell’s also owns Pepperidge Farms.

Wall Street Journal

Investing made easy

Start today with any dollar amount

Get Started

The March jobs report. For the first time in 12 months, the U.S. jobs report came in below expectations, with the U.S. adding 236,000 jobs in March, below the predicted 239,000 new jobs. This is the smallest monthly gain in jobs since March 2020. Leisure, hospitality, health care, and government are still seeing the highest increase in jobs.  Meanwhile, the unemployment rate is 3.5%, which is lower than the projected 3.6% unemployment rate. This latest jobs report could mean that the labor market is cooling as the Federal Reserve (the Fed) continues to increase interest rates as a way to combat inflation.   

CNN

Tupperware getting shelved? Shares in Tupperware fell in response to news that the storage company is struggling to stay in business. Tupperware is reportedly looking for additional sources of cash and is exploring potential layoffs in an effort to keep its doors open. Last year, Tupperware reached a deal with Target to sell Tupperware products at their locations. However, Tupperware has still struggled to keep up with its competitors and get business from younger consumers. Over the last year, shares in Tupperware have fallen 90%. 

CBS News

The post The Weekly Scan April 11, 2023 appeared first on Stash Learn.

WWE enters the ring. Endeavour Group, the owner of Ultimate Fighting Championship (UFC), will reportedly purchase World Wrestling Entertainment (WWE). Following the merger, UFC and WWE will become one publicly traded entity. People who own shares in Endeavor will hold a 51% stake in the new company, and those who own WWE shares will hold 49%. This new company will be helmed by Endeavour Group’s CEO Ari Emanuel. Vince McMahon, the former CEO of WWE, will be executive chairman of the company. zEarlier, this year, McMahon returned to WWE after retiring in 2022 due to sexual misconduct and rape allegations. 

Wall Street Journal

Armored up. The U.S. Army reached a $4.5 billion deal with Lockheed Martin, which will provide the U.S. with Joint Air-to-Ground missiles (JAGM) and Hellfire missiles over the coming years. The deal is an attempt to build up resources against China. The Biden administration has requested $842 billion for the Pentagon and $44 billion for other defense programs, increasing the defense budget $28 billion year-over-year.

Reuters

Investing made easy

Get started with any dollar amount

Get Started

Barreling forward. Due to a decision made by the Organization of Petroleum Exporting Countries (OPEC+), oil prices have surged. Oil production will be cut again by 1.6 million barrels, after reducing output by 2 million barrels in October 2022. Brent crude increased 5.31% to $84.13 per barrel and West Texas Intermediate (WTI) increased 5.48% to $79.83 per barrel. As a result, analysts from Goldman Sachs said they expect the price to reach $95 per barrel. Increasing oil prices are expected to add to concerns over inflation, which central banks have been attempting to curb. 

CNN

In hot water. Starbucks fired Alexis Rizzo, the worker who spearheaded the Starbucks Workers United union movement. The termination came after Starbucks’ CEO Howard Schultz testified in front of Congress about alleged union-busting at the coffee chain. Rizzo had been a shift supervisor at a Starbucks location on Genesee Street in Buffalo, New York—which was one of the first in the country to unionize. Rizzo was fired after being late four times. The Starbucks Workers Union has called the decision “retaliation at its worst.”

CNBC

The post The Weekly Scan April 4, 2023 appeared first on Stash Learn.

The Fed stays aggressive. The Federal Reserve (the Fed) raised its benchmark interest rate by another quarter of a percentage point, bringing the rate to a little below 5%, in a continued effort to combat inflation. This latest hike marks the 9th consecutive update to the benchmark rate.  So what does this mean in simpler terms? Every time the rate moves up, it’s more expensive for people to borrow money. The consumer price index (CPI), which is a measure of inflation, is currently at 6%, which is higher than the 2% the Fed is targeting. The bank is also expected to raise the benchmark rate by another quarter of a percentage point before the end of the year. 

NPR

Testify to Congress challenge. TikTok’s CEO Shou Chew testified in front of Congress last week as legislatures explore whether or not to ban TikTok in the U.S. Members of Congress questioned Chew on multiple concerns regarding the social media platform, including privacy and the safety of children who use TikTok. Chew attempted to assure lawmakers that TikTok’s data collection practices are similar to that of other social media platforms. He also emphasized that TikTok is headquartered in Los Angeles and Singapore, rather than in China. Members of Congress have criticized Chew for dodging some questions and answering in a purposefully vague manner. 

CNN

Investing made easy

Start today with any dollar amount

Get Started

Where dreams come true. The Service Trades Council Union coalition, which includes six unions of Disney World workers, came to a tentative agreement with the park to increase workers’ pay last week. If it goes into effect, the minimum hourly wage for Disney workers will increase from $15 to $18 by the end of the year. The change could have a ripple effect onother hourly employees of the tourism industry in Florida. The union members will vote on whether or not to enact the deal this week. 

NBC News

Check you later. Starting on April 1, 2023, Twitter will begin taking down legacy blue check marks for verified accounts on the platform. It will be the latest change at Twitter since Elon Musk purchased the social media network in October 2022. In the past, Twitter has verified the accounts of politicians, journalists, entertainers, and other notable people. In November, Twitter introduced Twitter Blue, a subscription service which individuals can use to purchase a check mark for $7 per month. People and organizations will now be able to keep their verified status on Twitter for a price. 

Wall Street Journal

The post The Weekly Scan March 28, 2023 appeared first on Stash Learn.

Retirement woes in France. Protesters took to the streets in France after the government forced through pension reforms that will raise the retirement age to 64 from 62. President Emmanuel Macron sidestepped a vote in France’s lower house, where his party does not have a majority. That decision to work around the system is unpopular with young adults in France, according to a poll from Institut Français D’opinion Publique (IFOP). Macron is pushing the reforms in order to combat the pensions deficit, which is currently projected to reach $13 billion annually by 2027. 

CNN

Investing made easy.

Start today with any dollar amount

Get Started

TikTok dances with a ban, again. The U.S. government is once again exploring whether or not to ban TikTok. Currently, the Committee on Foreign Investments in the U.S. (CFIUS) is looking into the security concerns around the social media platform. Depending on the results of the investigation, CFIUS may suggest that the Biden administration undo the 2017 acquisition of Musical.ly by ByteDance, which would require ByteDance to sell its stake in order for TikTok to continue operating in the U.S. ByteDance has expressed resistance to a forced sale. While a ban remains to be decided, users may still be able to access the app with a virtual private network (VPN). 

CNBC.

Disney+++. A vast majority—94%—of users continued to subscribe to Disney+ after the streaming service increased the monthly price by $3, according to a subscription analytics company Antenna. While CEO Bob Iger didn’t speak to that data, he did reportedly suggest that the streamer may increase monthly prices further. Disney will also increase its focus on children’s programming since half of the platform’s customers are families. 

Wall Street Journal

The first cut is the deepest. CEO of General Electric (GE) Larry Culp will take a compensation cut this year in response to feedback from shareholders. Culp’s compensation will drop from $15 million to $5 million. His salary will remain at $2.5 million and he is still expected to receive a bonus worth 150% of his salary. Culp is the latest CEO to take a pay cut. The CEOs of Apple, Goldman Sachs, JPMorgan, and manyothers, have seen their compensation cut recently. 

MarketWatch

The post The Weekly Scan March 21, 2023 appeared first on Stash Learn.

Trouble at SVB. You may have heard that over the weekend, two banks, Silicon Valley Bank (SVB) and Signature Bank, were closed and taken over by the federal government when it became clear that the banks were not able to support those who banked there. The market responded to the news with volatility, which is likely to continue for some time. 

Rest assured: the FDIC works. You’ve probably seen the Federal Deposit Insurance Corporation (FDIC) logo in banks, but you may not realize how important it is. In the case of SVB, after it collapsed, the government—via the FDIC—guaranteed up to $250,000 of deposits per customer. This should be reassuring because it proves that banking regulation works for the systems it is set up to protect. 

Our takeaway here is to make sure your bank or financial company keeps your cash in an FDIC-insured account. Note: Funds in your Stash banking account are FDIC-insured through Stride Bank N.A., member FDIC.¹ The funds in your portfolios have different protections. You can learn more here.

The banking sector in particular has seen a lot of movement in response to this news as well as the fact that the government stepped in and secured all assets beyond $250,000. Many are wondering if the sector, and in particular, regional banks, are vulnerable. We can’t know the future, but as always, our advice remains the same: the best thing for you to do as a long-term investor is to continue to follow The Stash Way.

• Buy and hold
• Diversify
• Invest on a regular basis (dollar cost average)

As part of a long term, diversified investing strategy, consider taking advantage of investments like TFLO ETF which now offers a 4.7% interest rate.² It’s a great place to park your cash in this rising interest rate environment by buying U.S. government securities.  

CNBC and New York Times

Here’s the drill. The Biden administration gave its approval for ConocoPhillips to kick off its Willow oil-drilling project in Alaska’s National Petroleum Reserve. The initiative is expected to result in up to 180,000 barrels of oil per day, or 40% of Alaska’s current crude production. ConocoPhillips will be permitted to drill in three out of five of the proposed drilling sites. While representatives from Alaska, such as Senator Lisa Murkowski, praised the decision, environmentalists argued that the move will set back Biden’s other plans to fight climate change. The drilling is expected to produce 270 million tons of CO2. 

Wall Street Journal

Investing made easy.

Start today with any dollar amount.

Get Started

Pfizer’s post-Covid plans. In preparation for an expected fall in sales from Covid-19 products, Pfizer announced that it had reached a deal to acquire Seagen, which has developed targeted cancer therapies, in a $43 billion deal. The deal will add 4 approved cancer treatments to Pfizer’s product lineup. Those treatments generated $2 billion in sales during 2022. Pfizer has used its earnings from its Covid-19 vaccine and treatment to make a series of acquisitions. Seagen is the largest addition in that series of purchases. Pfizer is buying Seagen at $229 per share, 16% higher than Seagen’s Monday trading price of $200.93.

Reuters

Boxed out. The box office bump, or the increase in sales at movie theaters for Oscar-nominated movies, is reportedly shrinking. The 10 movies that were nominated for Best Picture at the Academy Awards generated $82 million since they were announced at the end of January. In contrast, the 2020 Oscar nominees brought in $201 million during the period between the nominations and the awards. Demand for those movies may have moved to streaming, especially since some of the Best Picture nominees were released earlier in the year than they usually are. 

CNBC

The post The Weekly Scan March 15, 2023 appeared first on Stash Learn.

Investing made easy

Start today with any dollar amount

Get Started

Laying down the hammer. Amazon announced that it will suspend its second phase of construction on its headquarters in Arlington, Virginia. The first phase is on track to be completed in June 2023—which is when more than 8,000 employees are expected to start working at the headquarters. The ecommerce company’s real estate chief John Schoettler maintained that Amazon is still committed to “Arlington, Virginia, and the greater capital region.” The announcement comes months after Amazon’s CEO Andy Jassy said that the company intends to lay off 18,000 workers. 

CNN

Getting schooled? The Supreme Court began its debate over President Biden’s student loan forgiveness executive order last week. President Biden’s plan, which could forgive up to $20,000 in student loans per eligible borrower, has been challenged by Republican-appointed federal judges, which is how the case landed in the Supreme Court. Chief Justice Roberts’ questioned the administration’s lawyer and suggested that the president acted outside of his authority. The Supreme Court, with a Republican majority, reportedly seems to be leaning towards ruling against the forgiveness plan. 

AP News

Latest in the opioid epidemic. A jury in Georgia found that two of the largest medical distributors in the country—McKesson and Cardinal Health—plus a regional company, were not liable in a suit brought by families affected by the opioid crisis. While pharmaceutical companies now have to pay more than $50 million in the settlement of various lawsuits related to the crisis, individuals have not seen any of it. Despite vivid stories from multiple family members, the lawyers for the plaintiffs struggled to prove a connection between large distributors and individual victims of opioid addiction. 

New York Times

Egg on my face. Egg prices have been hit notoriously hard by inflation, with prices rising by 70.1% year-over-year, according to data from the Bureau of Labor Statistics. In California, the price of a carton of eggs is now $7.37, compared to $2.35 last year. Food prices overall have gone up by 10.1% in the last year. Like other products, eggs have been affected by supply chain issues. Another factor has been an avian flu outbreak, which killed 50.54 million birds during 2022. However, the outbreak has slowed down this year, which has been reflected in egg prices. Between December and February 2023, egg prices declined by 50%. 

CNBC

The post The Weekly Scan March 6, 2023 appeared first on Stash Learn.

Investing made easy

Start today with any dollar amount

Get Started

ChatGPT snapped. Snapchat is launching a new tool called My AI, a chatbot using OpenAI ChatGPT technology, to its Snapchat+ subscribers. Those with access to the feature will reportedly be able to chat with AI to get recipes, gift ideas, or weekend plan suggestions. Subscribers will also be able to personalize the bot by giving it a name and changing the chat background. Snapchat announced its $3.99 monthly Snapchat+ subscription in June 2022. Snapchat is the latest tech company to embrace the potential of AI. Microsoft and Google both recently announced their own AI tools. 

CNBC

Twitter layoffs continue. Elon Musk oversaw another layoff at Twitter, reducing the workforce at the 2,000-person tech company by 10%. The layoff began Saturday night, when some employees lost access to their corporate emails and laptops. Those affected include data scientists, engineers, product managers, and members of the monetization infrastructure operations team. Earlier last week, Twitter took its employee messaging platform, Slack, offline, making it hard for workers to communicate with each other. When Musk took over Twitter, there were 7,500 people employed by the company. Musk has slashed that number over the last few months in an effort to reduce Twitter’s costs. 

New York Times

Weekend (extended version). Most companies in the United Kingdom that tested out a four-day work week are planning on sticking to it. Sixty-one British companies, including fast food chains, banks, and marketing agencies, participated in the study. Of those that joined the study, 91% said that they plan on continuing to test out the new work week structure. Those who conducted the study in the U.K. also organized a smaller one in the U.S. and Canada, and additional trials are kicking off in Australia, New Zealand, and Brazil. On a scale of zero to 10, employees in the U.K. study rated their performance and productivity a 7.5 out of 10. 

Wall Street Journal

Shipping up and shipping out. Target is investing an extra $100 million in next-day delivery in order to expand that offering to more markets over the next three years. Historically, Target has handled these fast-turnaround orders in-store, with employees packing up the order and handing it off to its mail carrier. But this process has put a great deal of pressure on stores. Target will use its $100 million investment to expand its solution, “sortation centers”, separate from stores where packages will be created and given to carriers for shipment. 

Business Insider

The post The Weekly Scan February 27, 2023 appeared first on Stash Learn.

Investing made easy.

Start today with any dollar amount.

Get Started

Surprise, surprise. Netflix removed its ‘Surprise Me’ feature from the platform last month. The feature, which provided randomized recommendations to viewers, was designed to decrease the time Netflix viewers spent looking for appropriate shows. The removal comes amid pressures in the streaming industry surrounding differentiation and profitability. 

MarketWatch

Don’t call it a comeback. Bitcoin reached $25,000—an eight-month high—on February 16th.  The surge contributed to adding $84 billion to the cryptocurrency market, and signaled optimism among investors that a crypto winter might soon be over. The rally occurred even as signs of a regulatory shakeup took  shape.

New York Times, CNBC

Home is where the profit is. Airbnb posted its first-ever annual profit, driving shares of the travel company to its biggest one-day gain. The company also reported a strong outlook for 2023. Airbnb’s sunny forecast comes amid a boom for the travel industry, as people continue to embark on increased post-pandemic travel. 

CNN

A G.O.A.T makes a wish. Michael Jordan announced that he recently made a $10 million donation to Make-A-Wish Foundation. The organization said that the basketball star is one of the non-profit’s most-requested celebrities, and the amount is in fact the largest donation it’s ever received. Michael Jordan made the donation in celebration of his 60th birthday.

NPR

The post The Weekly Scan February 22, 2023 appeared first on Stash Learn.

Get Started

Welcome to the Weekly Scan. Here’s what we’re following for the week of February 15, 2023.

Bet on it. Flutter Entertainment, the parent company of sports betting platform FanDuel, announced that it will explore listing its stock on a U.S. exchange. FanDuel had a record day for sports betting during the Super Bowl on February 12, 2023. The platform averaged 2 million active users during the game, peaking at 50,000 bets per second. Flutter Entertainment is based in Ireland and currently trades in Europe. With an annual revenue of $3 billion, FanDuel is the top sports betting platform in the U.S., and the company is on track to reach profitability this year. 

CNBC

Be a good sport. Coca-Cola’s global revenue increased 7% in the last quarter, but the beverage company is struggling with sales of sports drink BodyArmor. The increase in overall revenue is reportedly a result of consumers taking on higher prices due to inflation. Coca-Cola purchased BodyArmor for $5.6 billion but has struggled to get the drink start-up off the ground. This isn’t the first time Coca-Cola has met challenges with smaller drink brands that it’s acquired. The company purchased, and later folded Odwalla and Honest Tea Co. Coca-Cola said that it has plans to turn around the situation with BodyArmor this year. 

Wall Street Journal

Boeing sale reaches cruising altitude. In a deal worth $34 billion, Air India will purchase 200 airplanes from Boeing, according to the Biden administration. The sale will be the third biggest deal for Boeing ever. Air India will receive 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 Boeing 777Xs, for a total of 220 planes. The airline will also have the customer option to buy additional aircrafts. President Biden said that the sale should “support over one million American jobs across 44 states, and many will not require a four-year college degree.”

CNN

More than just sandwiches for sale. Sandwich chain Subway said that it’s exploring a potential sale in response to increasing prices and competition. Subway is working with J.P. Morgan to look into acquisition options. The sale could be valued at $10 billion. Subway was founded by a 17-year-old and his family friend in 1965 and has since expanded to 37,000 locations in more than 100 countries. Same-store sales at Subway increased 9.2% in 2022. 

Bloomberg

Investing made easy.

Start today with any dollar amount.

Get Started

The post The Weekly Scan February 15, 2023 appeared first on Stash Learn.

Get Started

Welcome to the Weekly Scan. Here’s what we’re following for the week of February 6, 2023.

Stranger things have happened. Netflix will reportedly start cracking down on password sharing “more broadly” after testing restrictions in Chile, Costa Rica, and Peru. The new rules are designed to prevent people that don’t live in  one household from using a single Netflix account. Account holders will now have to log in to their account every 31 days to verify that they are in their primary location. Those who have standard or premium Netflix accounts will be able to add extra members for $2.99 per person. Online searches for “cancel Netflix” increased in response to the news. 

MarketWatch

Jolt in jobs. The U.S. added more jobs than expected in January, according to the Bureau of Labor Statistics. Nonfarm payrolls increased by 517,000 in January, three times the number predicted by the Dow Jones. The unemployment rate dipped to 3.4%, the lowest it’s been since May 1969. The leisure and hospitality industry added 128,000 jobs in January, led by 99,000 jobs in restaurants and bars. However, employment in that industry remained below pre-pandemic levels. The increase in jobs comes as the Federal Reserve continues to raise interest rates in order to fight inflation. 

CNBC

A little birdy told me about a deal. Twitter is trying to woo back advertisers who left the platform in the aftermath of Elon Musk’s takeover by offering a Super Bowl deal. The social media company is offering a Super Bowl Weekend ad package. Advertisers who participate in the three-day deal would get up to $250,000 in free ad space should they spend that amount  on the platform. The weekend of the Super Bowl has historically been a big revenue-generating weekend for Twitter, as people go to the platform to chat about the game. 

Wall Street Journal

I spy with my little eye a balloon. The U.S. shot down a suspected Chinese surveillance balloon that was found flying over Billings, Montana. Once the wreckage is collected, the FBI and counterintelligence agencies will investigate the balloon and its purpose. China has maintained that the object was not a surveillance balloon but rather a weather balloon that flew off course. But a spokesperson for The Pentagon maintained that the balloon was designed to spy on the U.S. 

NPR and NBC News

The post The Weekly Scan February 6, 2023 appeared first on Stash Learn.