Saturday,
February 3, 2024
Top Story
• The Fed left rates unchanged for the fourth time in a row, emphasizing that it is not yet ready to start cutting rates. Chairman Powell added that it’s unlikely to reach the required level of confidence to cut rates in March.
• Americans’ personal incomes rose 0.3% in December, but personal spending rose more at a 0.7% month-over-month bump, outpacing estimates.
• The number of Americans filing for unemployment increased for the second week in a row to its highest level since mid-November. Continuing claims, which measure jobless aid applications for at least two consecutive weeks, also rose to their highest level since November.
For more economic news, visit On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Investing is about much more than just stocks and bonds. Alternative investments, for example, are different from these traditional investment types.
Some of the biggest alternatives out there are real estate, private investments (such as private equity or private credit), and commodities. Want to invest in some farmland? That’s alternative investing. Planning to buy gold bars? Same story.
One key characteristic of alts? They tend to be less correlated with the stock market. That means they can help diversify an investment portfolio, potentially helping to hedge against inflation or interest rate fluctuations.
However, most alternative investments are also illiquid, meaning you likely can’t pull your money out of them as quickly. This is especially true in comparison to more conventional securities like stocks and bonds. Like with all investments, it’s important to keep in mind your own risk tolerance before making your investing decision.
Check out SoFi’s Guide to Alternative Investments to learn more