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The week in review
• According to a LendingClub report, 61% of adults say they are living paycheck-to-paycheck. The report found lower-income workers have been hit the hardest by price spikes, particularly for food and other staples. Many consumers are relying on credit cards or dipping into savings to afford their day-to-day lifestyle, making them financially vulnerable.
• The US 10-Year yield pushed above 4%, closing in on its highest level since November 2022. Nevertheless, markets are currently pricing a roughly 80% chance the Fed will hold rates where they are at its next meeting.
• Fitch Ratings downgraded the United States’ long-term foreign currency issuer default rating from AAA to AA+. The factors cited include expected fiscal deterioration over the next three years, an erosion of governance, and a growing general debt burden. The White House disagreed with Fitch’s downgrade, stating it “defies reality” to downgrade the US.
For more economic news, visit On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Even if you’re “right” in one moment, you could be wrong in the next.
Inconsistencies and imbalances in this market make it tough to predict. If you’re a bear for six months and wrong, people will call you stubborn. If you’re a bull for six months and wrong, people will call you delusional.
What’s important is a strong conviction that’s backed up by the data, says Liz Young, SoFi’s Head of Investment Strategy. Here’s her outlook on what’s ahead, and what the hard data shows.
This week's top stories
New avocado, who dis?
It’s Luna — a variety of avocado that’s been in development for over 50 years. It could solve major issues posed by the standard Hass. But will it pass the picky eater test?
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Triple-digit temperatures have taken Americans on a rollercoaster ride, and it's (quite literally) reshaping America’s theme parks.
From guest amenities to new attractions to safety precautions, here’s how your theme park visit could change due to extreme heatwaves.
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Is seller financing a viable alternative to more traditional options?
With mortgage rates on the rise, private financing is becoming more prevalent — but it doesn’t come without risks. We’ll take a look at the pros and cons.
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Deep dives from SoFi Learn
The average Airbnb host earns over $13,800 per year, or $163 per night. If the rental is in a high-demand area, it could be much more.
It’s an interesting way to make money, but how does Airbnb work for owners? Let’s take a look at Airbnbs, how they work, and what’s involved in running one.
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What happened in July? Annual inflation fell to a smidge below 3%, stocks are up 30-40% off the lows of last year, and markets expect that the Fed just hiked for the last time this cycle.
SoFi’s Head of Investment Strategy walks us through what moved the markets in July and what to look out for in August.
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In 2000, a typical middle-income family could expect to spend $165,630 to raise a child to the age of 17. In 2023, that same family would spend $310,605.
Housing, food, and child care/education are among the top three biggest expenses. The good news is, there are ways to manage expenses and still save for long-term financial goals.
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