Morning Market Preview for September 25th, 2024

Navigating the complexities of personal finance can often seem daunting, especially when it involves understanding concepts like "Debt Rate." This term essentially refers to the percentage of your income that you dedicate to paying off debts. It's a crucial metric for effective financial planning, budget management, and long-term financial health. Here’s how understanding your Debt Rate can be transformative and how an Arena Investor Advisor can play a crucial role in helping people with this process.

What is Debt Rate?

Debt Rate is calculated by dividing your total monthly debt payments by your total monthly income, then multiplying by 100 to get a percentage. This figure illustrates how much of your income is consumed by debt repayments, offering insight into your financial health and flexibility.

Importance of Understanding Your Debt Rate

1. Budget Management: Knowing your Debt Rate helps in crafting a budget that accommodates debt repayment while still allowing for savings and other expenses.

2. Financial Planning: A manageable Debt Rate opens up more of your income for investments and savings, crucial for achieving financial goals like retirement or home ownership.

3. Debt Reduction Strategies: A clear understanding of your Debt Rate can inspire strategies to reduce debt, such as additional payments on principal or debt restructuring.

How an Arena Investor Advisor Can Help

- Personalized Financial Assessment: An Arena Investor Advisor begins by assessing your overall financial situation, including calculating your Debt Rate. This personalized analysis forms the basis for all subsequent advice and strategies tailored to your unique financial circumstances. Debt free? Great! We will assess other key financial health elements and help you with those – and ensure your investments are suitable and performing great!

- Strategic Financial Planning: Utilizing their expertise, your Arena Investor Advisor can help you understand how your Debt Rate impacts your financial goals and advise on ways to optimize it. They might suggest refinancing options to lower interest rates or debt consolidation to simplify your payments.

- Budgeting and Debt Management: We can assist in creating a budget that prioritizes debt reduction without compromising on living standards. They can introduce you to methods like the debt snowball or avalanche techniques, which focus on efficiently clearing debts. Debt snowball is a strategy that has you pay off your debts in order from smallest to largest, so you build momentum. Avalanche techniques have you pay off debts in order from largest to smallest interest rate.

- Regular Monitoring and Adjustments: Financial situations can evolve, and so can debt strategies. Your Arena Investor Advisor will monitor your financial progress and suggest adjustments to your plan as needed, ensuring that your Debt Rate is always aligned with your financial goals.

- Education and Empowerment: Understanding financial concepts can be challenging. Arena Investor Advisors ensure you’re not just following recommendations blindly but are fully informed about the strategies you're implementing. They educate you on financial principles so you can make empowered decisions. Ensuring you’re on a financial journey you can actually enjoy!

All In All

Your Debt Rate is a vital indicator of your financial health. Managing it effectively ensures that you keep your finances in check today while securing your financial future. Working with an Arena Investor Advisor provides you with expert guidance tailored to your unique financial needs. They not only help you manage and optimize your Debt Rate but also equip you with tools and knowledge for enduring financial stability.

For those new to managing finances, or anyone looking to refine their financial strategy, partnering with a financial advisor from Arena Investor can provide clarity, direction, and confidence. The combined expertise and personalized service can make a significant difference in transforming your financial outlook and achieving your personal and financial aspirations.

Built for The One in the Arena

Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.

You’re the Hero.
    We’re the Guide.

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Arena Investor is modern planning and investing built for the busy, hardworking professionals who know their money needs more attention but don't have the time, or simply want better work-life balance

Good morning, Heroes!

Here’s your Morning Market Preview for September 24th, 2024
Read, or listen relaxingly for a few minutes – whichever you prefer!

Key Economic Reports

• At 9:00 am S&P Case-Shiller Home Price Index reports for 20 cities, giving insight into housing markets in those areas.
  
  
• At 10:00 am the Consumer Confidence report drops, which gives insights into consumer sentiment and concerns. The Consumer Confidence report is anticipated with an expected index of 103.8, reflecting slight optimism in consumer spending intentions. This data, crucial for market sentiment, comes amidst a backdrop of economic recovery signals, influencing sectors like retail and consumer goods.

Key  Earnings Reports & Events Today

• KB Home, Progress Software Corp, Stitch Fix, and Worthington Industries all report today.
  
  
• Boeing’s strike continues, and the company has furloughed thousands of workers. Mechanics are saying they are ready for a long strike. The strike began on September 13th. More details from the last 24 hours:
  
  
• New Offer Details: Boeing has proposed a 30% wage increase over four years, which includes an immediate 12% raise, up from a previously rejected offer of 25% overall raises. This new proposal also includes doubling the signing bonus to $6,000 and enhancing contributions to employees' 401(k) plans.
  
  
• Strike Duration: The strike, which involves about 33,000 union members, has entered its second week, significantly impacting Boeing's commercial aircraft production, particularly in the Seattle area.
  
  
• Company's Stance: Boeing labeled this new offer as its "best and final," indicating urgency to resume production. The company has also introduced rolling furloughs for non-union staff to manage costs during the strike.
  
  
• Union's Response: While the union has not immediately commented on the new offer, there's an indication that they are reviewing it. The previous offer was overwhelmingly rejected by union members, reflecting deep-seated issues beyond just wages, including job security and past concessions.
  
  
• Implications: If the strike continues, it could lead to further financial strain for Boeing, already dealing with multiple crises. However, ending the strike with this offer could potentially restore some stability, though at a higher cost for labor.

The Fed

• The Fed Reserve Governor Michelle Bowman speaks at 9:00 am, and can give insight into The Fed’s pivot from fighting inflation to fighting an economic slowdown.

Stocks

Year-to-Date Performance:

• Up Most: Tech is now up 27.44% this year. Utilities is second-best on the year, up 25.61%.
  
  
• Down Most: Important to know, no sectors are negative on the year. The smallest gain has been in Energy, up 5.69% this year. Second-to-last is Materials, up 9.59%.

5 Day Moving Average: 

• Up Most: Now 91% of Energy Large Cap stocks are now above their 5 day average. Utilities is second now with 87% of its Large Caps above their 5 day average.
  
  

• Down Most: Health Care is down, and only 37% of Large Caps are above their 5 day average. Consumer Staples are also down, and only 37% of Large Caps are above their 5 day average. 

Crypto

• Bitcoin: Bitcoin continues to cook,  now over $63,360, which puts it at a staggering 51% gain on the year.
  
  
• Ethereum: Ethereum’s nice run continues,, and is over $2,660 now, which means a 15.8% gain on the year.
  
  
• Top Gainers Recently: BNB and BAT have performed well recently, up about 4.4% to 4.2% in the last 24 hours.
  
  
• Important to note: Crypto markets are always open and prices change constantly.

Bonds

• 2-Year Treasury:  Yields continue to come down, now at 3.601%.
  
  
• 10-Year Treasury: Up a tick again to 3.756%, but overall it’s had a decline this year too.
  
  
• The yield curve is no longer inverted, having un-inverted in late August, 2024.

Gold

• Price: Gold reaches a new all time high mid-day yesterday, now up to $2628, and is up 27.43% on the year.

Real Estate

• 30-Year Fixed Mortgage Rate: Up just a bit again, now to 6.2%. The mortgage rate has dropped about 7.05% this year.

Geopolitical Aspects

• Asia: Tensions in the South China Sea affecting trade routes, potentially impacting oil prices and global trade.
  
  
• Europe: Energy prices in Europe remain elevated, contributing to inflationary pressures and concerns over winter supply.
  
  
• Global Tensions: Ongoing trade negotiations and regional conflicts could sway investor sentiment, particularly affecting oil prices and defense stocks.

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Built for The One in the Arena

Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.

You’re the Hero.
    We’re the Guide.

P.S.

Continue reading, if you would enjoy some simple explanations of key concepts to level up your financial education

Each of these elements interacts, creating the dynamic we call 'the market'.

Understanding these aspects of the investing arena can help investors in making informed investment decisions.

You’re the Hero.
    We’re the Guide.

• Consumer Confidence: The Consumer Confidence report measures how optimistic consumers are about the economy's short-term future, influencing spending and investment decisions. It's based on surveys about income, business, and employment conditions.
• PMI (Purchasing Managers' Index): This is like a health check for businesses. A number above 50 means more growth, below 50 indicates contraction. It's crucial because it shows if companies are buying more stuff, which suggests they're confident about future sales.
• Economic Reports: Data like jobless claims help predict economic health. For instance, rising claims might suggest economic slowdown.
• Jobless Claims: These are weekly reports that show the number of people filing for unemployment benefits. Higher numbers can indicate a weakening labor market.
• Housing Starts: This measures the number of new residential construction projects and is a key indicator of real estate market health.
• The University of Michigan's Consumer Sentiment Index measures consumer confidence through surveys, reflecting optimism or pessimism about personal finances and business conditions.
• Federal Reserve Rate Decisions: The Fed adjusts interest rates to either stimulate the economy (by lowering rates) or control inflation (by raising rates). Rate cuts can make borrowing cheaper, while rate hikes aim to curb inflation.
• Treasury Yields: The return on U.S. government bonds, often used as a measure of investor sentiment about future inflation and economic growth.
• Stock Sectors: Different sectors thrive in different economic conditions. Tech might boom during innovation, while energy could struggle with green shifts.
• Bonds and Yields: Bonds are safer than stocks but yield reflects risk or inflation expectations. Higher yields could mean investors demand more return.
• Cryptocurrency: Digital currencies like Bitcoin and Ethereum have been volatile but offer significant returns in 2024.
• Gold: A traditional safe-haven investment that often rises during times of uncertainty or when inflation is high.
• Real Estate: Influenced by rates, economic health, and demographic trends. Lower rates can inflate home prices due to increased buying power.
• Mortgage Rates: Higher rates make borrowing more expensive, which can cool down housing demand and affect real estate prices.‍
• 1 Basis Point (BPS) equals 0.01%. It’s easier to say “5 bips” than it is to say “zero point zero five percent.”

In today’s rapidly changing financial landscape, keeping a close eye on your finances is more important than ever. Managing your financial health starts by knowing your financial health. A doctor takes a patient’s vital signs, no? It’s time people had an affordable way to know their financial vital signs.

This is where Financial Health Monitoring & Alerts come into play, and Arena Investor, in partnership with the innovative Elements app, is here to provide a comprehensive solution, so you can learn, understand, and improve your financial health – along a journey you can actually enjoy!

‍What is Financial Health Monitoring & Alerts?

Financial Health Monitoring & Alerts is a service provided by Arena Investor that tracks various aspects of your financial life, from spending and savings to investment and debt levels. It gives you accurate insights into the most important financial ratios and key factors that make up one’s financial health. 

With the integration of the Elements app into Arena Investor’s platform, we’re taking this service to the next level. The Elements app is designed to give you a structured, visual approach to understanding your financial picture. It breaks down your financial data into key components—such as income, assets, liabilities, and cash flow—providing you with a clear and comprehensive view of your financial health.

‍So what is Alerts?

With Alerts you get notifications each month when one or more of your financial health vital signs become excellent or concerning. No more guessing how you’re doing. No more wishing you had a teammate monitoring your progress and alerting you to something that needs your attention. Now, you have a vigilant teammate ensuring you stay the course on a healthy financial journey.

Why Financial Health Monitoring is Essential

In the modern financial environment, it’s easy to lose track of where your money is going. Financial Health Monitoring & Alerts is crucial because it allows you to stay on top of your finances in a proactive manner. Instead of reacting to financial issues after they arise, you can address them before they become significant problems.

‍The Role of Alerts in Financial Health Management

Alerts are the cornerstone of effective Financial Health Monitoring. They act as a financial guardian, constantly scanning your accounts and transactions to identify any issues that may require your attention. 

The Elements app enhances this by categorizing your financial life into easily understandable “elements” and providing alerts when certain thresholds are crossed. Whether it’s a budget overspend, a savings shortfall, under-investing in tax-advantaged accounts (and therefore not reducing your tax bill or optimizing your retirement) an Arena Investor representative  will notify you, so you aren't the last one to know your financial health is off-track.

Elements helps you stay on top of your financial game.

Some common types of alerts include:

- Budget Alerts: Notifications when your spending exceeds set limits.
- Savings Alerts: Reminders when you’re behind on savings rates or celebrations when you hit a milestone.
- Investment Alerts: Warnings when your equity rate is too low.
- Debt Alerts: Notifications when debt rate becomes too high or you pay-off debt and can celebrate the accomplishment.
- Insurance Alerts: Get alerted if your insurance rate is too low and you may be vulnerable, or if it is too high and you’re overspending for the coverage.
- Liquidity Alerts: Notifications if you have too little cash, or cash-equivalent assets
- Total Term Alerts: Know how many years you can live in retirement based on your current financial situation!

Benefits of Integrating with the Elements App

1. Proactive Financial Management: By continuously monitoring your finances and alerting you to potential issues, Arena Investor allows you to manage your money proactively. You’re empowered to make adjustments before small issues become major setbacks.

2. Visual Financial Planning: Elements breaks down complex financial information into visually engaging and easy-to-understand components, making it simpler to see where you stand financially and what steps you need to take to improve your situation.

3. Personalized Insights: With the combined power of Arena Investor’s Financial Health Monitoring & Alerts and the Elements app, you receive insights tailored to your specific financial situation. Whether you’re saving for a home, planning for retirement, or managing a complex investment portfolio, the platform provides guidance that aligns with your goals.

4. Stress Reduction: Finances can be a major source of stress, especially when surprises arise. With Financial Health Monitoring & Alerts, supported by Elements, you gain peace of mind knowing you’re always informed and prepared.

5. Improved Financial Discipline: Alerts from Arena Investor help you stay disciplined in your financial habits, whether it’s sticking to a budget, contributing to savings, or managing debt.

Who Should Use Financial Health Monitoring & Alerts?

Financial Health Monitoring & Alerts, especially when enhanced by the Elements app, is beneficial for anyone looking to take control of their financial future. It’s particularly valuable for those busy individuals who know they should be doing better with their money but don’t have the time, or simply want better work-life balance. 

Finding Better Balance

In today’s dynamic financial environment, staying informed and proactive about your finances is crucial. Arena Investor’s integration with the Elements app for Financial Health Monitoring & Alerts offers a powerful way to stay on top of your financial health. By providing insights and alerts, this service helps you manage your money more effectively, avoid potential pitfalls, and achieve your financial goals with confidence.

At Arena Investor, we are committed to providing our clients with the best tools and resources to secure their financial futures. With the integration of the Elements app into our tech stack, we’re offering a modern, comprehensive approach to Financial Health Monitoring & Alerts. Whether you’re looking to save for a major life event, optimize your investment strategy, or simply gain a clearer understanding of your financial situation, Arena Investor, with Elements, is here to help you every step of the way.

Built for The One in the Arena

Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.

You’re the Hero.
    We’re the Guide.