Quote of the Day

"In the short run, the market is a voting machine, but in the long run, it is a weighing machine."

Benjamin Graham

What Really Matters

🚨 Fed’s Bullard Echo’s Inflation Concerns

St. Louis Fed President James Bullard said on Friday that a planned pause in interest rate hikes later this year doesn't mean the central bank is finished tightening monetary policy.

• Bullard said inflation is "severe" and could last longer than expected, and he reiterated his call for a 75 bps rate hike at the Fed's next meeting

🎢 Job Openings Poses Concerns for Stocks

By the numbers: The number of job openings in the U.S. rose to a record 11.3 million in April, according to a report from the Labor Department. This suggests that demand for labor remains strong, which could lead to higher wages and inflation.

• As a result, some investors are worried that the strong job market could lead to a slowdown in economic growth and a decline in stock prices

🧭 Where is the U.S. Economy Going?

Divided views: The U.S. economy is facing a number of challenges with some experts believing the economy is headed for a recession, while others saying that it will continue to grow, albeit at a slower pace.

• Investors are encouraged to pay attention to rates of inflation, which has been rising at its fastest pace in 40 years, rising rates, which has been done to cool inflation and a volatile stock market

🐻 The Bear Cave

Fidelity claims Twitter is now worth a third of what Elon Musk paid for it, as the firm lowers its valuation of Twitter for a third time to ~$15B

🐂 The Bull Pen

Intel CEO Pat Gelsinger says the company is on track to turn around its business and regain market share from rivals like Nvidia

Personal Finance Quick FAQs

Q: What Are Some Key Differences Between a Traditional IRA and a Roth IRA?

Tax Treatment:

• Traditional IRA: Contributions are tax-deductible, but withdrawals are subject to income tax

• Roth IRA: Contributions are made with after-tax dollars, and qualified withdrawals in retirement are tax-free

Income Restrictions:

• Traditional IRA: No income restrictions for contributing, but deductibility may be limited based on income and participation in a workplace retirement plan

• Roth IRA: Income limits apply for eligibility to contribute directly

Required Minimum Distributions (RMDs):

• Traditional IRA: RMDs must begin at age 72 (or 70½ for those born before July 1, 1949)

• Roth IRA: No RMD requirements during the account owner's lifetime

Early Withdrawal Penalties:

• Traditional IRA: Withdrawals before age 59½ may incur a 10% early withdrawal penalty, in addition to income taxes

• Roth IRA: Contributions can be withdrawn penalty-free at any time, but early withdrawals of investment earnings may be subject to taxes and penalties

Disclaimer: This newsletter provides general information and is not financial advice. It discusses current events and personal finance topics for educational purposes only. Consult a qualified financial advisor before making any financial decisions. The accuracy and timeliness of information cannot be guaranteed. Use this newsletter as a starting point for research, but conduct due diligence and seek professional guidance for your specific financial needs