💭 Quote of the Day

"The market can remain irrational longer than you can remain solvent."

John Maynard Keynes

What Really Matters

💸 ETF Hit Roadblock as Risk-Averse Investors Exit the Market

The new bull market is clearly not for everyone. Defensive investors have pulled $11.6 billion from equity exchange-traded funds this year, the most since the start of 2020, as concerns about rising inflation and interest rates have weighed on risk appetite.

• Meanwhile, inflows into fixed-income ETFs have reached $163.6 billion, the highest annual total since 2017

• This shift to defensive strategies suggests that investors are becoming more cautious about the outlook for the global economy

⛳ An Unexpected Combo

Money talks: After months of fighting against the Saudi-backed LIV Golf Invitational Series, the PGA Tour has announced a merger with the rival tour. The move has been met with criticism from some who say the PGA Tour has abandoned its principles for money.

• The deal, following a lengthy legal battle, which also includes the DP World Tour, is reportedly worth $2 billion

• Since inception, LIV Golf has lured away 17 PGA Tour players, including Phil Mickelson and Dustin Johnson, with guaranteed contracts worth hundreds of millions of dollars

Liv Golfers at the moment

⛈️ Calm Before the Storm

Heard on the street: JPMorgan Chase's chief investment officer, Bob Michele, sees worrying echoes of the 2008 financial crisis in the current market calm. He warns that the economy could tip into recession by the end of the year, and that pain will be greatest in several areas:

• Regional banks: Michele sees regional banks as being particularly vulnerable to a recession, as they are more likely to have exposure to commercial real estate and junk-rated corporate borrowers

• Commercial real estate: The commercial real estate market is already showing signs of stress, as rising interest rates and inflation are making it more difficult for businesses to afford office space

Market Movements

⏸️ The Fed is expected to pause its interest rate hikes this week, but some experts warn that this does not mean the end of the tightening cycle. The Fed has raised interest rates 10 times since March 2022 in an effort to combat inflation, which is running at a 40-year high.

• The market expects the Fed to pause its rate hikes this week, but some experts believe that the Fed will continue to raise rates later this year

• Inflation remains a major concern for the Fed, and the central bank is likely to continue to tighten monetary policy until inflation is brought under control

A Strong Market, Keeps Rate Hikes in Focus

U.S. Consumer Price Index

Y/Y % Change in Avg. Hourly Earnings in the U.S.

Personal Finance Quick FAQs

Q: How should I handle a financial emergency?

What are Financial Emergencies?

Financial emergencies can happen to anyone, regardless of their income or financial situation. A job loss, medical emergency, or natural disaster can all cause financial hardship. If you find yourself in a financial emergency, it's important to take steps to protect yourself and your finances.

Here are some tips on how to handle financial emergencies:

• Create a budget. A budget can help you track your income and expenses so you can see where your money is going. Once you know where your money is going, you can start to make changes to free up more money to save for an emergency fund.

• Set aside money for an emergency fund. The general rule of thumb is to have three to six months of living expenses saved. This will give you a cushion to fall back on if you lose your job or have another unexpected expense.

• Get a credit card with a low interest rate. If you have to borrow money to cover an emergency expense, get a credit card with a low interest rate. This will help you save money on interest payments.

• Contact your creditors. If you can't afford to make your monthly payments, contact your creditors and see if they will work with you. Many creditors are willing to work with customers who are struggling financially.

• Get help from a financial advisor. If you're struggling to handle a financial emergency, a financial advisor can help you create a plan to get back on track.

It's important to remember that you're not alone if you're facing a financial emergency. There are resources available to help you get through this difficult time. By taking steps to protect yourself and your finances, you can weather the storm and come out stronger on the other side.

Additional tips:

Don't panic. It's easy to feel overwhelmed when you're facing a financial emergency. But it's important to stay calm and take things one step at a time.

• Be proactive. Don't wait until the last minute to deal with a financial emergency. The sooner you take action, the better.

• Be flexible. Things may not always go according to plan. Be prepared to make adjustments to your budget or financial plan as needed.

• Don't give up. It may take time to recover from a financial emergency. But if you stay focused and persistent, you will eventually get back on your feet.

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