The show kicks off with a focus on a recent legal development in Texas, where a federal judge has partially blocked the FTC’s ban on noncompete agreements.
Shifting gears to travel, the program welcomes Brian Kelly, founder of The Points Guy. Kelly shares his expertise on choosing an airline, provides essential tips for navigating hurricane season travel, and offers advice for securing refunds in the event of flight cancellations.
The episode concludes with an in-depth analysis of Federal Reserve Chair Jerome Powell’s ongoing testimony before the US Senate. As part of his semi-annual monetary policy address, Powell’s statements on inflation and interest rates are discussed.
I’m Brad Smith and this is Yahoo Finance’s guide to building your financial footprint.
Our community of experts gonna give you the resources, the tools, the tips, the tricks that you need to grow your money.
Hey, on today’s show how to position your portfolio ahead of potential market turbulence.
We talked to a strategist about the best moves for your money.
And the T A, the TS A says a record number of people were screened at airports over the weekend.
We’ll talk to the points guy who will give you the best tips and tricks for your summer travel plans, plus trading versus investing.
We’ll discuss the differences and what’s best for you and your money with Yahoo, finance contributor, Ross Mack.
All that much more coming up on today’s show.
Let’s check in on the market as we always do to kick things off.
A record breaking rally for major indices this year.
And a lot of that is thanks to artificial intelligence, the chip stocks, accounting for 36% of S and P 500 gains so far in 2024 our next guest thinks that investors should be exposed to the A I trade ahead of potential turbulence this year to discuss.
Let’s bring in Roosevelt Bowman, who is the Bernstein Private Wealth Management, senior investment strategist here with us, live in living color and studio.
So let’s talk about some of the strategy coming off of the first half where as we mentioned, the major theme was really generative A I and now as we face the back half of this year and commence that it’s really focus around.
Ok. What’s the outsized event that could move markets, whether that’s a fed policy move that finally signals what the rate cutting cycle could look like and whether that be an election type move, how are you kind of anticipating what those factors may be and the correct portfolio position in going into these events?
Yes.
You know, I think starting with the Fed, right and kind of expectations for where rates will go.
I mean, in our eyes, we’re looking for a cut at the end of the year in December, markets are pricing about a 75% chance of a cut in September.
That’s probably too soon.
It’s possible, but really you would need weakness in inflation and the labor markets all line up.
If any of those kind of fall the wrong way, then you end up with a cut being pushed to December.
So I think the Fed is less of a story.
I do think one of the other major factors in addition to generative A I does deal with the path of FED policy, which is that they really moved to the sidelines in the fourth quarter of last year.
So that pushed down interest rate volatility that really produced a really supportive environment for risky assets stocks included.
So I think that’s the other major factor.
I think both will still be important in the second half of the year.
I think there’s two parts of that one that kind of election generated volatility.
When you look historically over the past 35 years, it’s about a six week span.
So for us, as strategist advisors to our clients, we don’t wanna emphasize six weeks when thinking about a long term plan.
The other major question that’s come up, of course, is the debt, right?
How much we’re borrowing in the US and the concerns about that potentially pushing in uh interest rates much higher?
You know, I think our view is we’re less focused on this acute event where rates explode higher, but more thinking about the potential for growth to be a little bit lower in the future because you’re taking a lot of those tax receipts in to just pay off your creditors.
If the, the US government, that’s an interesting point on growth.
And, and I’ll kind of preface my next question on growth with this according to some facts, that data for the second quarter of 2024 as we’re about to kick off that earning season here, the estimated year over year earnings growth rate for the S and P 508.8%.
And if that’s the actual growth rate for the quarter, it’s gonna mark the highest year over year earnings growth rate reported by the index since Q one of 2022.
You hear stats like that, what is that set up for the growth trajectory ahead as you were talking about where we could potentially see some pockets of slower growth?
Yeah, I think over the near term, we’re probably looking at earnings growth in our eyes a little bit slower than that, not materially but still supportive.
I think what we’re following is a couple of trends when you look at the consumer and some of the I would say down shifting of you will in the quality of goods in certain consumer sectors.
And you’re also thinking about purchasing power.
And so right now, that’s been strong for the most part of the past 18 months or so because wages have kept up.
But when you kind of look at the savings rate that’s only about 60% of the 20 year average when you look at wages still firm, but slowing a bit, it does leave that opportunity, that room for consumers to potentially pull back and that kind of leads to our forecasts of slower growth in the second part of the year.
Where are the opportunities right now?
Specifically, as you think about some of the other asset classes, whether that be global private credit or real estate debt or real estate equity.
Where are those kind of pickable pieces of other asset classes that investors can chart some type of entry point at this juncture?
I think those are three that we’ve been really focused on with our clients.
I mean, pri primarily because of the fact that interest rates went up so much over a short period of time in 2022 you ended up with this dislocation if you think about private markets and kind of limited partners and essentially their asset allocations being tilted the wrong way.
All of a sudden, their private assets are much bigger portion of their portfolio than their public assets because the stocks and bonds came under massive pressure in 2022.
So that’s forcing some of them to kind of have to divest faster than they want.
If you’re looking at, if you’re a bank and maybe you have some loans that aren’t performing well and you have to get them off your balance sheet.
That’s an opportunity for us to buy some assets cheaply.
Whether you’re talking about global private credit or, or commerce to, uh, real estate as well.
Which Olympic event you’re gonna be watching in the next couple of weeks here.
Got a few of them out there competing here, Roosevelt Bowman, who is the Bernstein Private Wealth Management, senior investment strategist joining us here in the studio.
A federal judge in Texas blocking a part of the Federal trade Commission’s ban on non compete agreements for employment set to take effect in the fall.
Now, the judge saying the FTC lacks authority to make the sweeping rule, but the injunction is limited.
It only bars the commission from enforcing the ban and to refresh your memory on these rules.
It essentially says that non competes are an unfair method of competition but existing non competes for senior executives can remain enforced.
But for non senior executives, those non competes not enforceable, unenforceable and a lot of workers are impacted here, an estimated 30 million workers are subject to non compete agreements according to the F C and for workers getting out of them could be tricky and expensive if a contract is challenged, for instance, employees will have to pay all legal fees.
So how can you protect yourself when you’re asked to sign a non compete first read the contract?
If you can have an attorney review it even and don’t take it at face value, You can try to negotiate some of the terms as well.
The Texas judge says that she intends to rule on the merits by the end of August, which might affect the rules nationwide until then non compete.
Employees are still bound by the rules of their contract.
We’ll have continued updates on this here on Yahoo Finance for you.
We’ve also got much more of your markets and wealth building action ahead.
If you go traveling around the world, you are sure to run into fellow Americans wherever you are.
According to the Association of American residents abroad, anywhere from 5.4 to 9 million.
Us citizens are currently living outside of the United States but where are the expats thriving the most our own.
I mean, you, you’ve gotta keep your options open and of course, summer travel has us all comparing the cost of living as we see an increasingly strong us dollar year to date, stretching further overseas than it does at home due to inflation plus and what’s shaping up to be a tumultuous election year.
This is typically when people claim that they’re going to relocate, Fy I, if you think Canada is your next best, best option, you might want to sit tight.
Now, Indonesians an expat inside are ranked the best and worst countries for expats.
So for the best you have Panama sitting at number one, followed by Mexico, Indonesia, Spain and Colombia.
Interestingly from the bottom five, Canada, Germany, Finland, Turkey and Kuwait.
Now, when you think of the factors, this study looks at all sorts of things, including your personal finances, your quality of life, your career prospects, your ease of settling in and of course, your general happiness.
So, so when you’re doing some of those comparisons, just keep in mind the countries where you’ll actually thrive the we the best.
What about the financial realities of relocating overseas?
And that’s something that people do tend to underplay.
But I’ve broken down the top five financial considerations that people should keep in mind foreign earned income exclusion.
That’s feie and foreign tax credit, income reporting requirements, social security and Medicare benefits, retirement accounts and of course currency fluctuations.
So I’m gonna walk you through some of these according to the IRS Feie and the foreign tax credit, that means that us citizens can exclude up to a certain amount of foreign earned income and avoid that double taxation, avoid being taxed in both countries.
And this is by allowing a tax credit for taxes paid to foreign governments.
Next, you have income reporting requirements just because you live overseas, you are not exempt.
Us citizens must still report their worldwide income to the IRS and file their annual tax returns no matter where they live.
And there are also some additional forms required depending on whether your income passes a certain threshold.
Next, your Social Security and Medicare benefits that you work so hard for.
Well, the Social Security administration says you can receive at least your social security benefits abroad.
But when it comes to Medicare, that typically does not cover healthcare services outside of the US.
Now, of course, your retirement accounts, that’s a lot of retirees.
But think about your IRA account on your 401k s check with your brokerage account and your brokerage firm because typically some asset management services become limited to a administrative or ministerial use.
So for an example, representatives at Fidelity, if you look in the small print there, they don’t engage in discussions about asset allocation, income planning or portfolio composition or let you open or contribute to new 521 savings plan accounts or health savings accounts once you relocate.
And of course, the all important currency fluctuation is also a key consideration.
I mean, imagine you’re purchasing power fluctuating if you’re in a country that does have a volatile currency that makes it harder to plan financially.
So, put all the pieces together before you decide to, you know, pick up sticks and move to Spain Brad.
Thank you so much.
Certainly will do and I got a lot of research to do before that happens.
Michelle Cooper, thanks so much.
Oh, well, high airfare costs and the threat of a hurricane didn’t stop Americans from flying last weekend.
In fact, air travel broke records over the fourth of July weekend.
The Transportation Security Administration, TS A as you know said, it screened over 3 million passengers on Sunday alone marking an historic peak in travel for more on this.
I’m joined by Brian Kelly, the points guy founder, Brian.
What does the travel demand profile more largely look like here?
And how are we seeing people kind of navigate through some of the travel options that remain at this juncture?
Well, you know, it’s actually pretty positive for consumers uh capacity is up and what trends I’m seeing is, you know, there’s a lot more flights to Europe and internationally and there were some amazing domestic deals.
So travelers definitely still have that appetite for Europe.
Most airlines have boosted their, their flights to Europe.
I was checking for a friend yesterday who wanted to come home early before the storm and everything was sold out.
So I’m not shocked.
Even with over 600 canceled flights on Sunday, we still cleared that 3 million passenger mark for TS A which was the historic record.
But guess what the, the, the fare prices are not that crazy.
I I’m booking in August business class round trip fares to Europe nonstop on big carriers 2500 to $3000 last summer, those were double.
So it’s interesting to see capacities up but airfares are not quite where uh I think they should be and I think we’re gonna see that in the corporate results as they start coming in later this week.
Uh You know, I think uh there are a lot of new low cost carriers.
I think consumers are now splurging um for premium economy, business class, you know, and, and of course, those traditional business travelers have not come back like they used to those, those pass, you know, the business class passengers paying $9000 last minute.
Uh It’s shocking because even this week you can fly Air France flying blue uh multiple dates from major us cities for 50,000 miles in business class.
I’ve never seen so many good deals in both cash and points.
Um, and I, I guess consumers are, are traveling, they’re, they’re going on the deals but they’re not paying the top dollar.
Ok. That’s really interesting.
Especially as it’s a consistent thread that we’ve heard from airline operators at least on the topic.
Quarter over quarter.
And we’re set to kick off some of those earnings this week here as well with Delta being in focus, you know, a lot of people out there as we were talking about and, and really looking at what could come forward for airline earnings here, who are you anticipating will continue to be perhaps the best positioned at this juncture?
You know, I think Delta is going to consistently perform well as they pretty much always do.
Although they did revise their estimates down a little bit.
I think United, you know, United is the most global US airlines.
So I think they have the most upside to be had here, you know, last year they had some pretty tough uh cancellations with the 737 max nine.
I think it’s been a much smoother summer for them.
So, you know, I would say the underdog here would be United to kind of pull ahead a little bit in terms of profit.
I would look out the US carriers, you know, us, uh domestic airfare is really low.
And uh you know, with the weather and the storm, I would put my bets on the United and Delta to really keep leading the pack in terms of profits for shareholders.
And you mentioned United’s annexation and of course exposure to Boeing as many of the other airline operators do as well, especially here in the US is that deterring travelers at all?
I don’t think so.
You know, it certainly creates new cycles just like, you know, these extreme turbulence incidents, they go viral, but people are still traveling and the fact of the matter is you don’t really have any other options besides Boeing and Airbus and most consumers are going on price and that’s what works the airlines know that that’s why they dropped prices.
They’re filling planes.
They may not make as high of a margin, but they’d still rather have full planes than, uh, than empty ones for sure.
All right, let’s get to some tips here, some actionable tips for those who over this hurricane season have plans to travel, have plans to fly, fly.
What are some tips for those who do have those existing travel plans or itineraries already marked knowing it’s hurricane season and knowing that they might need to be malleable.
Yeah.
So number one, and you, if you’re gonna go somewhere during the hurricane season, buy travel insurance and don’t buy it through the uh, the airline go to like insure my trip.com is one of those independent places where you can buy insurance.
It’s like 5 to 7% of your trip, especially for hotels that they will not refund you.
In most cases, if there’s a hurricane that’s on you to ensure your uh trip, you know, the airlines generally will let you change your flights free of charge.
However, if you book through uh online travel agencies or some random ones, I was talking with one of our followers today.
They’re having a terrible time trying to get a flight changed uh due to the hurricane through uh an online travel agent.
So book direct with the air lines as much as possible.
And also know when the airlines fall short, go to your credit card.
So many credit cards have built in free protections uh in the event of named hurricanes and storms.
So if the airline doesn’t give you what you want, always pick up the phone call, the credit card that you used to buy the ticket uh because they can come through and help you with delays and cancellations and getting you rebooked.
So the Department of Transportation mandates it.
So it may take a while but you are owed a refund and do not take a voucher or anything less.
You can always um file a dot complaint that forces the airline to respond and in most cases, you will eventually get your refund.
Now, if you’re stranded, the airline should rebook you but often that they’re not going to rebook you on partners.
So this is where people get stuck for days in airports, you don’t have to just fly with that airline.
You’re gonna get your refund if you have the funds or your frequent flyer miles rebook yourself on a different carrier and then place a claim with your credit card company for the difference.
Uh due to the disruption, most of those travel credit cards have the, the travel cancellation coverage built in.
You just need to know about it.
But do you know you are owed a full cash refund if your flight is canceled for any reason?
By the airline?
Just lastly while we’ve got you, Brian, I mean, shoe be uh as they’ve colloquially been called and summer go hand in hand.
You’ve got tourists, you’ve got visitors in different parts of the world, Barcelona.
They’re taking a little bit of issue with this.
It seems though what exactly is happening there and I mean, does it seem like they’re cozy up to the idea of tourists continuing to flock to the destination?
You know what?
I, I wish that they were in New York City right now because I need someone spraying me with a water gun to cool me down wherever I go.
But you know, the, the protesters there are uh against anti, they’re basically over against, over tourism and what locals in a lot of countries.
And I was in Portugal earlier this year.
A similar sentiment is ok. Tourism is great but when it’s too much when it’s pricing out residents when people can’t afford to get apartments because they’re all on airbnb for tourists.
That’s when local communities get upset.
That’s what we’re seeing in Barcelona where protesters are squirting people down on Las Ramblas, which is their popular tourist thoroughfare trying to prove a point.
They do have a very leftist government who has promised to crack down on home rentals and return more affordable housing to the people.
But it is a message to tourists don’t always just go to the most populated places, for example, outside of Barcelona, there’s so many beautiful little sea towns cara cases.
C so don’t just go to the tourist hubs branch out a little bit and spread your tourist dollars outside of just those mega city centers.
All right, I uh went to Barcelona last year before the super soakers arrived and the shipment was able to make it to port uh Brian Kelly, the points guy founder.
Small businesses are feeling uncertainty about the eco the economy.
Small business owners felt a bit more optimistic in June compared to the month prior but are still pessimistic.
According to the National Federation of Independent Business, this pessimism is coming as owners contend with industry price hikes and endless hiring struggles to give some much needed advice for small business owners on how to navigate.
The current economy is Executive Director of research at NFIB Holly Wade Holly, great to see you and thanks for taking the time here with us.
Let’s first, just start with the general read in on small businesses right now.
What are they continuing to combat and what are some effective tools that they have still to be able to deploy even despite some of the pessimism?
Sure, it’s great to be with you.
And we did see a bit of an improvement in our headline measure of the small business sector, our optimism index and that was a great sign.
We saw one point increase from last month and it’s the highest reading all the year.
And however, you know, as you mentioned, they’re still pessimistic.
Generally speaking, we haven’t seen the index rise up to the 50 year average, which is 98.
So we’re a long ways from that about eight points away from where we would typically be in a good economy for small business owners.
And right now, inflation and labor quality are still the two main problems that they’re facing.
And it’s putting a lot of pressure on small business owners to try and retain those current employees, attract applicants for those open positions and figure out how to absorb price increases that they continue to face.
You know, it’s interesting, especially as we think about hiring and, and compensation struggles for those small business owners.
I I wonder where and in which industries, this is impacting the most.
So right now, for those looking to hire those that have unfilled job openings, we’re seeing a lot of those in construction, uh transportation, manufacturing kind of all in the service sector.
So all of those industries that we have talked about over the last number of years that are really crunched in trying to find uh applicants and workers to help them fill orders and, and generate sales at their business.
And that’s very frustrating.
One of the areas that is causing most of the inflation pressures right now though are in compensation.
So they’re still planning to increase compensation.
We saw that tick up this last month and so they’re trying to still figure out how to absorb those prices first, it hits their earnings.
So it’s absorbed by the owner’s take home pay until they can figure out how to manage increasing prices at their business, which is certainly a tricky business when they’re competing with other businesses, large and small.
You know, that’s really interesting because it, it tells us a lot about the consumer dynamic for a lot of these small businesses and, and how effective their strategies are being able to sell to their customers of products or services, knowing that those customers are probably coming back and saying, hey, did you raise the prices on this?
So what what is that pricing kind of mechanism or pricing elasticity looking like for small businesses?
Well, it’s certainly getting more difficult because, you know, consumers are fatigued with price increases.
They’re, you know, hesitant to go out and, um, kind of absorb those costs.
They’re looking to be more strategic about their purchases, um, which makes a whole lot of sense.
And so the small business owners, especially when it’s the owner, many of the customers know the owner personally.
And so making those tough choices of which products or services to increase their prices that will um keep them competitive and keep those customers going in or coming into their business is it’s tricky business for many business owners.
And it takes a lot of thought and time and consideration on the part of the owner or an employee having to figure out, you know, that kind of that composition.
But those price pressures are still there.
Um Certainly for those in the service industry that are having to pay higher compensation to retain talent, it will continue to be a problem likely for the remainder of the year.
One last thing that we gotta talk about here, some tips, some actionable insights here for small business owners that are navigating the current economy.
How can they find some relief in certain parts of executing the business strategy despite the dynamic that they’re seeing on pressure side with labor force and, and compensation and then additionally on the consumer side where they’re trying to sell into some of those, either larger com tracks or even one time customers.
Sure.
So a lot of tips that they’ve incorporated into their business operations over the last number of years, this isn’t a new environment.
It’s just continuing and it’s, you know, kind of becoming a bit more difficult, but some of the tips that they’ve incorporated and tips going forward are to look at those products and services that make most in increasing prices that hopefully you won’t lose customers.
It takes a bit of thought and time.
Unfortunately, that’s one of the most valuable resources of a business owner is their time and they’re stretched pretty thin.
But every so often kind of re evaluating which product and services might be most appropriate in increasing those prices.
And then also looking around to see what their competitors, what other small, medium large size businesses are handling their price increases so that they can, you know, try and be in line and continue to be competitive in their industry.
Holly Wade and Fib research director.
Thanks so much for taking the time here with us today.
Holly, thank you.
Certainly, a new study from the Michigan Economic Development Corporation shows that Americans are ready to commit to a green economy and ready to sacrifice their money to buy products made in the US here with more on this.
We’ve got Hillary Doe who is the Chief Growth Officer for the State of Michigan Hillary, great to see you.
And thanks for joining us program here on us today, uh uh here with us today.
So, ultimately, what are you seeing in Michigan that could apply even more so nationally when it comes to this mindset around ESG investments and particularly making sure that there is the the purchase consciousness that also uh ruminates on the other side.
Uh So as you named Michigan is, you know, a clean energy leader, we’re number one in clean energy investment.
And it’s really important when we think about our economic growth strategy across the state.
And so, in part, because of that, we did lead a nationwide survey of 1000 us adults again across the country.
And what we found was that people um you know, really overwhelmingly want to see additional investment in things like sustainable technologies, clean energy and electric vehicle infrastructure.
And again, overwhelmingly, 71% of those folks really believe that even, you know, sizable investments in those sustainable technologies will ultimately pay off.
Um folks names that they want to see training and pathways necessary to ensure that those kinds of technologies can also be developed right in their communities.
What what types of jobs can we anticipate might change or be altered as we’re looking at a green economy and, and where there are industries that are perhaps most prone to immediately make those changes.
Yeah.
Well, you know, I let’s start first by just naming the amount of, you know, economic expansion and innovation we can expect when we look at to industry growth here.
Um You know, we’ve already seen with the Chips Act and with Ira, um some of that federal um you know, opportunity that’s caused industry expansion in areas like semiconductors and electric vehicles and also all the start ups.
And you were just talking about small business, small business growth that’s cropped up around those industries.
And we’ll continue to see it both on the design side.
R and D that goes into inventing and researching these solutions but also in manufacturing them.
And what we saw in the study was a real commitment from Americans across the US to ensuring that we’re both designing and manufacturing these sustainable technologies right here in the US.
In fact, 87% of folks in the survey named that they would be willing to pay even more for those technologies if they were made right here in the US.
You know, it’s interesting and as we think about the state of Michigan, um a lot of people out there think about Detroit Motor City, the transition to electric vehicles that have really been a larger ambition for not just some customers out there but for the industry as well and its own transition to more environmental sustainability as well.
What is the next major sector that you envision could be disrupted by positively uh or changed fundamentally by some of these enver environmental investments as well.
Um, sitting in what I think is one of the, you know, capitals of innovation.
Um because we really are, um, again, in addition to leading clean energy, really leading the electric vehicle transition, you know, we know that it’s critical, um transportation accounts for nearly 30% of uh you know, our, our emissions across the US.
And so electric vehicles are gonna be critical to decarbonization strategies.
So Michigan has set a really ambitious goal um for 100% you know, renewables by 2050.
And we’re doing what it takes to make sure that businesses can make that transition.
Um And that we have the workforce necessary uh michiganders across our state can participate um through training programs and the like um in both, you know, designing and manufacturing those things.
So we’re absolutely seeing um the future mobility space um jump in to electric vehicles, seeing a lot of innovation in that space also in automation and automated vehicles.
But also, well beyond that, we’re seeing a lot of semiconductor growth and clean energy growth more broadly.
Um Again, both in R and D with the University of Michigan, leading research and development around semiconductors, but also places like calumet electronics in the Q and A peninsula um that is leading, you know, manufacturing um organic substrate manufacturing um around semiconductors.
So it’s very exciting here in Michigan, Hillary, we only got about 30 seconds left here.
But how would it change in the balance of power in Washington DC?
And elected officials potentially impact the type of energy or environmental sustainability investments that we could see made?
Well, you know, I would say that these overwhelming majorities in this survey should tell us all that Americans know that, you know, we need to lean into these technologies long term, sort of irrespective of who’s in power and that this is the future.
You know, it’s so rare to see 70 87% of folks all agreeing on something.
And so certainly in Mi and we’re making this commitment long term, irrespective of who’s in the White House.
And I think Americans are saying that they see economic opportunity here and they want the US to lead here.
So I think we should, we should follow their lead.
All right, some really solid readings from the population there in Michigan.
Thanks so much Hillary Doe, who is the Chief Growth Officer for the State of Michigan.
We’ve got some tips on how to use A I to help score you, your dream job.
That’s next.
Are you doing everything you can to find the best job that sets you up for the future?
Our next guest is showing job seekers how to utilize A I both in their job training and in choosing the right career path for more.
Let’s welcome in Chandler Malone, who is the path Ceo Chandler.
Let’s discuss this a little bit more because a lot of people are hearing a I, they hear a, a I might be coming from my job, but there’s actually an effective way to use A I perhaps to best fine tune your career path.
How are you seeing this effectively be deployed for potential job seekers out there?
Yeah, definitely.
Um You know, I think this age of A I is very scary for a lot of people.
Um you know, you hear things about automation, you hear things about job displacement.
Um but if you really like to look at a lot of the research and a lot of the numbers A I is actually predicted to create more jobs and it’s predicted uh to eliminate.
And so, you know, for individuals who are looking to basically be able to adapt to this new age, to this new era, right?
I have a couple pieces of advice, first pieces find that they, that you’re really passionate about and that you really care about, right?
That passion is, is going to allow you to become a subject matter expert in today’s world, right?
We’re not going to be able to complete more tasks more quickly or with a higher level of fidelity than A I.
But we will be able to have a level of nuance, right?
We will be able to interact with other humans well.
And so being able to have that level of subject matter expertise and then those people skills will allow you to stand out no matter what new technologies.
Certainly.
So say you’re on the job and you’re trying to figure out, OK, what feels right in terms of eliminating some of those mundane tasks and allowing to me to be more profe uh more uh product productive, excuse me, while leveraging some of the new technology, where where are you seeing people who are currently on a job effectively leveraging A I to kind of remove some of those tasks that take away time that they could reposition elsewhere.
Oh yeah, I mean, there are a ton of tools um you think in any industry, um there are already tools that have been developed, one tool that I like for Microsoft Excel functions and a lot of folks who are in like finance related roles um is called ROS, right?
I think we’re all very familiar with, you know, Chad GP T and it’s just ability to come up with, you know, high level plans, overview suggestions, you know, predictions for us.
Um But then I’m also really excited about what we’ve built a path, right?
We’re hoping people will try to understand right where the labor market is going with our career coach that is able to give them just information from, you know, thousands of career advisor, college counselors, even therapists.
Um And then we’ve also got our skills trainer that teaches people any job skill, whether that be leverage bile modeling, whether that be plumbing, uh you know, really any job skill that could help them be able to move up in their current role uh or transition to a new role.
Is there a sector that you expect could be ripe to experience the next wave of demand boom?
And we think about this because it, it all comes back to where consumers are, where the business to business, consumers are, where the business to consumer B to C consumers are as well and where they’re putting their, their money as well.
So what is that next area within the broader labor force that could experience a boom in demand as a result of that?
Like health care is always just gonna be a huge part of our economy.
Um Like it is an essential.
Um But then I think another place um is basically just in the green, clean, renewable energy space, right?
Um You know, even your last guest, you know, who came on uh you know, spoke about it, but with that being said, right, we think about where the world is going and there are just some inevitable truths and things that we need to plan for and so, you know, as more of these climate related uh you know, not just, you know, issues come up, right?
But they just become, you know, more in the forefront of our mind, right?
Governments and private institutions are gonna put more capital into those spaces, which means there’s gonna be more jobs.
And so, you know, again, right, my advice for folks is you don’t have to become, you know, a scientist that knows everything about the atmosphere and you know, CO2, you know, capture anything like that, but find what you are passionate about within climate.
And there are going to be a host of job opportunities, not just technical, not just scientific, but you know, leveraging your people skills.
And you know, some of these other soft skills that you have really smart, Chandler Malone, who is the P A Ceo Chandler.
Thanks so much for taking the time here with us today on Yahoo Finance.
Thanks so much, Brad, everyone.
If you’re looking to profit from the markets, there’s generally two paths that you can go investing in trading.
Which one is the right one for you and what are some risks that are involved to help us answer that?
So what do people need to know about the difference between investing and trading?
Well, you just got to understand that when it’s all said and done right here are the facts, right?
90 90% of people that are actually trading day trading, et cetera are probably gonna lose money.
So when it’s all said and done, probably the the best investment strategy for anyone is to be a long term investor.
And I think there are a few things to actually think about, right, what are the goals when it comes to investing with the goals is to allow your money to appreciate and just wealth accumulation over time.
However, when it comes to trading, you’re actually trying to profit off short term market fluctuations.
And though, and there are a few strategies that I would recommend if you are trying to trade, but I always give people, you know, the caveat, it’s like, listen, you could probably play basketball at your local L A fitness, right?
But when you’re actually trying to day trade, guess who you’re going up against the actual professional.
So when you’re playing at L A Fitness, oh, you’re good over there.
But you can’t just go to the NBA and play against lebron James and Steph Curry.
So that’s the exact same thing when you’re trying to day trade.
Guess who’s on the other side of those trades?
The actual lebron James is of the world because they’re on Wall Street and they’re managing billions and trillions of dollars.
What if someone wants to play it a bit safer though and invest their money more long term.
Yeah, the, the people that are trying to play it a lot safer, always recommend being a long term investor.
Because once again, by purely owning the S and P 500 you’re gonna do better than 88% of the professionals, 88% of those day traders.
And so when you’re buying and I’m sorry, when you’re thinking long term, the idea is to buy the best assets that you know, and use on a day to day basis.
And those over time will literally appreciate in value.
I look at, you know, my long term investment portfolio is almost something as saying, you know what, this is just a my savings account that is getting me roughly 10% annually.
And I think that’s how you should think about investing.
It is always a great time to start investing and actually think about it from a long term orientation.
My idea is saying, oh, I’m buying a stock.
I won’t need it and I won’t look at it again for another 5 to 10 years.
All right, Ross, just lastly, you were here with us in New York last week.
Now you’re back in the shy in Chicago, in the land of the bulls and bears.
That only means one thing you probably got something big going on this weekend.
Absolutely.
Listen, we have, we’re doing something monumental in the City of Chicago.
We’re doing the Ma Economics Wealth Summit weekend where I’m so honored where we’re literally bringing some of the greatest professionals around the world to actually share their own experiences, to help the audience have a better relationship with money.
That’s gonna stem from money, psychology, budgeting, learning how to invest.
One, just investment, one on one.
We’re gonna have um people that will, we’re talking about real estate, estate planning, tax planning, retirement planning.
We’re also gonna have a networking session where we’ll be on an all white.
We’ll be on a yacht party, 400 young professionals and the dress code will be all white.
And then lastly, we’re gonna have our celebrity basketball game and that’s something that I’m excited about.
So all three events, Friday, Saturday and Sunday will be about networking service and obviously, most importantly, education, we are here to transform the relationship with money and we’re gonna change some lives.
Ross Mac.
Very exciting work that you’re doing up there in Chicago.
Can’t wait to hear some of the successes from it.
And I saw a lot of good friends of mine and friends of our program on that roster.
And uh uh we’re gonna look forward to seeing exactly what everybody is able to take away from Ross Mac and make sure you to check out the financial freestyle every Monday right here on Yahoo.
Got you covered much more on wealth after the break.
Everyone.
You’re watching Yahoo Finance Federal Chair Jerome Powell, Federal Reserve Chair Jerome Powell, of course is testifying in front of the Senate for his semi annual monetary policy address Powell facing questions about banking regulations, housing and of course, inflation.
Here’s what he had to say about the central bank’s thinking around rate cuts, but we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2%.
Incoming data for the first quarter of this year did not support such greater confidence.
The most recent inflation readings however, have shown some modest further progress and more good data would strengthen our confidence that inflation is moving sustainably toward 2% here to help me microscopically comb through some of his commentary.
We’ve got Yahoo Finance’s Morning Brief and catalysts co anchor Shana Smith.
Hey Sean, hey Brad.
So we just heard uh pal talking about inflation there some progress that has been made remaining optimistic about that progress that we really have seen over the last couple of prints.
But what stuck out to me in those in those comments here today and really what made me differentiates it from the tone that he has struck in the prior meetings was he did talk a little bit about the fact that inflation is not the only risk that they face right now, there’s also some weakness maybe starting to form within the housing market.
He did allay some of those fears though saying that yes, the housing market remains strong.
But when you see the numbers, when you see the fact the employment rate ticking up here over the last couple of months does point to the fact that the jobs market has been slowing.
So that’s really one thing that did stick out to me within uh his commentary here today.
And also just in terms of what this means to you guys at home, he talked about the risk of waiting too long and may maybe further weakening the economy.
So that really sets up just how difficult this job is for the Fed right now, given the dynamics at play.
And also I know a lot of you at home are closely watching what’s happening within the housing market and this is something that has really caught many forecasters, many economists uh off guard with some of the um I guess some of the patterns that we’ve seen play out within the housing market over the last several months, several quarters in Montana, Senator Jon Tester.
He actually asked Fed RJ Powell about some of those housing issues including low supply and high mortgage rates and how housing challenges really fit into the fed’s calculus surrounding the economy.
Here’s what he had to say for housing supply the best thing we can do is get inflation under control so that rates can come back down so that we can have a more normalized set of rates and a more normalized housing system.
But um I think policies to increase housing supply are really not so much in the hands of the FED.
They’re in the hands of legislatures.
I’m aware that we, that housing is a, is in short supply and that um um for many, it’s a critical need for the workforce.
And so, uh more of it is better, but as to where the fiscal policy, how you should prioritize that, that’s not up to us.
So the interest rates have remained high for longer.
We’ve seen this ongoing crunch within the housing market.
A lot of that being attributed to the fact that mortgage rates still hovering right around 7%.
Yes, off of those highs, but not enough to prompt those existing homeowners right now to put their homes on the market.
Why?
Because if they do, if they do move and buy a new home, they’re going to pay, be paying higher rates here.
Now, it’s not likely we will ever return or any time soon return to those very, very low levels that we saw the start of the pandemic.
But if we do see some improvement when it comes to rates, if we do see a drop within mortgage rates, and the theory there is that, that there’s going to unlock some of the supply issues that we have seen play out in the market and then ultimately potentially make homes more affordable than they are today and might help, I guess, relieve some of the pressure that we have seen on pricing.
Yeah, exactly.
They said that inflation has eased, it’s eased notably over the past couple of years but remains above the committee’s longer run goal of 2 2% total P ce right now.
And that made its way into the commentary here broken down by our own Shawna Smith, Shana.
Stay tuned for market domination with Julie Hyman and Josh Lipton coming up at 3 p.m. Eastern time.