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The Week in Review
• Part of the Treasury curve inverted before trading began on Monday, which can sometimes signal a downturn is imminent. The curve normalized during trading, allowing investors to focus on other important factors including inflation and volatile commodity prices.
• The Russian-Ukrainian conflict continues to weigh on investor sentiment, with peace talks in Turkey failing to result in a cease-fire. Meanwhile, Russian President Vladimir Putin is demanding that foreign nations pay for the nationās natural gas exports in rubles, or face having their supplies cut. The price of natural gas moved higher.
• The US Census Bureau and Bureau of Economic Analysis reported that the nationās trade deficit fell in February from January. Exports came in $1.9 billion higher month-over-month, while imports were up $900 million. Some analysts argue the trade deficit, which is near a record amount, will weigh on growth in the first quarter of 2022.
For more economic news and how it affects your money, visit the SoFi app.
Crypto Is Too Big To Ignore
Within a decade, crypto adoption has accelerated from attracting young investors to now government bodies, and sparking debates about its future and environmental footprint.
In this new episode of āThe Important Part: Investing with Liz Young,ā Liz sits down with Meltem Demirors, Chief Strategy Officer of CoinShares, to talk about Bitcoinās cyclicality, how current geopolitical events have been pivotal moments for the asset class, and what Meltem sees in terms of regulation.
Liz also offers her take on the current state of inflation, why the Fedās decision is a smart move, and what investors can do for the remainder of 2022 and beyond.
Listen and subscribe on Spotify, Apple, or wherever you get your podcasts.
This Weekās Top Stories
One of the reasons we look to the housing market as investors is to gauge where we might be in the economic cycle and what that could mean for stocks. This week, SoFiās Head of Investment Strategy looks at housing data to help us figure out where in the economic cycle to stick our āyou are hereā star.
Most of us can agree that weāre past the āearly cycle,ā which means the big rebound and head snapping rallies in risky assets are probably behind us. But since we canāt know for sure, this doesnāt mean pile all of your stocks into defensive sectors.
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How do you define financial misery? The misery index is calculated by economists using the rate of inflation and unemployment. While the labor market is tight, inflation is running up near 40-year highs, and there are other things that could be making people financially miserable.
Broadly speaking, prices are on the rise, and that includes things we need to survive such as fuel and food. The Fed is now enacting rate hikes to try and slow inflation, but will that be enough? Some economists think a recession would actually be an okay thing, in order to contain runaway price increases.
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Clean energy has gained momentum in recent years as its competitive cost structure provided a tailwind to its support. Skyrocketing costs of key inputs and transportation could cause its progress to stall despite government mandates.
The Russian invasion of Ukraine has put significant pressure on commodities, including oil which makes the cost of transporting goods more onerous. Clean energy companies are scrambling to mitigate the damage of inflation they see everywhere, from inputs to shipping.
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Deep Dives from SoFi Learn
Historically, when the yield curve inverts and short-term bond rates are higher than long-term rates, that can signal a recession might be down the road.
The yield curve may be just a basic graph of the interest rates paid by bonds of different maturities, but historical data shows that the yield curve can also be a useful economic indicator for investors.
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If youāre wondering how to afford a down payment, or how much the average down payment on a house is, our guide can answer your questions.
Saving for a down payment when you have a boatload of bills is no easy task, but first-time homebuyers with good credit have an edge: They often can put just 3% down, and they have access to a host of down payment assistance programs.
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Itās surprisingly easy to lose track of a 401(k) account when you change jobs or careers. The good news: The money isnāt gone, and there are ways to reclaim your missing account.
Itās your money, so itās worth the effort to find that lost 401(k) ASAP. If you need to rescue an unclaimed 401(k), hereās what you need to know.
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