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The Week in Review
• March’s Producer Price Index or PPI increased by a record 11.2% in March, year-over-year. The key inflation gauge was published just one day after the CPI showed prices rising at 8.5% on an annual basis. Economists note the prices producers pay for wholesale translates to higher retail prices.
• Investors are trying to figure out how this data could impact the Fed’s thinking regarding inflation and coming rate hikes, as well as decisions regarding its balance sheet. Fed Governor Lael Brainaid said she feels the central bank needs to take a much more aggressive stance. Some worry this could slow economic growth.
• Broadly speaking, concern may be mounting among investors about rising inflation and potentially slowed economic growth. The market will be paying close attention to companies’ forecasts during upcoming earnings calls, in an attempt to gauge who is handling inflationary pressures well.
For more economic news and how it affects your money, visit the SoFi app.
How Does Option Math Work?
Options are financial contracts whose values are tied to another underlying asset. Options are a complex, risky market and may not be suitable for everyone.
But for investors who have experience with risk-taking, the options market may be a helpful way to take bets or hedge other positions. Financial educator Ro$$ Mac explains the math of options trading. Watch the video to understand how option math works.
This Week’s Top Stories
For the first time in history, median home sales prices passed $400k in the United States, driven largely by millennial buyers.
Last month, the share of millennial homebuyers jumped to 43%, which is up from 37% a year prior. The generation appears to be exiting city centers in favor of bigger houses in the suburbs. These buyers are facing headwinds, however, as many still have student loan debt to service and now mortgage rates are rising. Being aware of these tips can help you navigate the homebuying process.
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Shopify (SHOP) CEO Tobi LĂĽtke wants to retain control of the company he founded. He is looking to shake up the capital structure in an attempt to secure his influence over the company
Mr. Lütke is asking shareholders to approve his plan for a 10-to-1 stock split and approve special “founders shares” for himself. In part, the move is intended to go upstream and get ahead of any potential future hostile takeover bids as the stock price is currently languishing.
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As higher inflation readings rolled in this week, the temptation to call a peak in inflation is real. So what if it is the peak? Does that mean we’re out of the woods?
In this week’s column, SoFi’s Head of Investment Strategy focuses on how rising prices have affected the mood of consumers and businesses — and ultimately, how it might affect their behavior.
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Deep Dives from SoFi Learn
As the use of credit cards continues to rise, so does the array of different credit card scams used to try to steal your money. Credit card criminals continue to design scams to entice you to hand over your credit card information, from phishing scams to credit card reader scams to threats of arrest.
To avoid falling victim, it helps to understand how credit card scams work and know what some of the most common scams are. And if you do end up becoming a victim of one, we’ll also walk you through how to report credit card fraud.
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A percentage-based, easy-to-apply formula, this tried-and-true budgeting rule uses simple underlying concepts to help you keep your personal finances in good order.
Setting up a budget for your personal finances can be tough. The 70-20-10 rule for savings helps you set up your monthly budget.
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There are several retirement plans for independent contractors and freelancers, including traditional, Roth, and SEP IRA accounts. Learn how you can choose the best for you.
Fortunately, these accounts are easy to understand — and these days they’re typically straightforward to set up. Here are some retirement savings options and how they can help you, as a contractor or freelancer, plan for a well-funded future.
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