What's Next for Your Investments? | Weekly Business Briefs w/ Martin Perdomo

Is the tech boom showing cracks? We're diving deep into the recent wave of hedge funds ditching tech and moving into healthcare and finance. We'll uncover why these big players are making this shift, and what it means for your own investments, whether you're using Robinhood, a traditional brokerage, or even your retirement accounts. By understanding these trends, you can make smarter choices and potentially shield your hard-earned cash from a tech tumble.

But wait, there's more! We're also tackling the confusing world of US government bond yields and how they're making the dollar stronger. This might sound boring, but it can actually impact your wallet in surprising ways – think cheaper vacations abroad or pricier imported goods. We'll break down the ripple effect on your purchasing power in plain English.

Plus, in our FedWatch corner, we'll dissect what the Federal Reserve is planning with interest rates. Any changes here can affect your borrowing costs, savings accounts, and overall investment strategy. We'll translate the Fed's jargon so you can make informed decisions about your financial future.

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Transcript

Speaker 1: 0:29

Today is July 3rd 2024, and here are the top 3 headlines in this week's weekly business brief. Is your tech stock investment in danger? Recently, hedge funds, which are large groups of investment money, have recently been selling off a lot of technology company stocks. They are concerned about the future growth of these stocks, which have been performing well for a long time. Instead of tech stocks, hedge funds are now putting their money into different areas like healthcare or financial companies, which they believe might be safer or more profitable investments. This shift is significant because hedge funds manage a lot of money and when they start selling off tech stock, it can affect the stock market overall. For some people who might be invested in tech stocks through retirement funds or apps like Robinhood, it's important to pay attention to these trends because they could impact the performance of their investments in the months ahead.

Speaker 1: 1:30

Next up bond yields boosting your dollar. Here's what you need to know. Changes in the US government bond yields are influencing the value of the US dollar. When bond yields increase, indicating higher returns on investments in US bonds, the demand for dollar rises as investors seek these profitable opportunities. This strengthens the dollars against other global currencies. Conversely, when bond yields decrease, investors may seek better returns elsewhere. Weakening the dollar in comparison.

Speaker 1: 2:06

For millennials, these fluctuations affect various aspects of daily life. A stronger dollar can mean cheaper international travel because foreign currencies become less expensive to buy. However, it could also lead to higher prices for imported goods. Understanding these currency movements is crucial for making informed decisions about spending and investing, particularly concerning travel plans or purchases of important products. And this week, on FedWatch, find out how current interest rates could shape your financial future.

Speaker 1: 2:40

The Federal Reserve is currently debating whether to lower interest rates to boost the economy. Lower rates typically mean cheaper borrowing costs, which can encourage spending and economic growth. However, due to signs of economic strength, such as low unemployment rates and steady growth, the Fed might postpone a rate cut. This hesitation suggests confidence in the economy's stability without additional stimulus. For millennials, this decision directly impacts their financial decisions. If rates remain unchanged or rise, it could mean higher costs for mortgages and loans. Conversely, a delayed rate cut could maintain or increase borrowing costs. Keeping abreast of these developments is crucial for millennials as they plan their financial strategies, including savings, investing and major purchases. Understanding these economic indicators helps millennials navigate their financial future. And this has been your weekly business brief. I'll see you guys next week.