Monday,
May 13, 2024
Market recap
Dow Jones
39,512.84
+125.08 (+0.32%)
S&P 500
5,222.68
+8.60 (+0.16%)
Nasdaq
16,340.87
-5.40 (-0.03%)
Top Story
Are “junk fees” headed to the junkyard?
Hidden fees are widely unpopular among consumers, but they still seem to be everywhere. How is the government cracking down on these fees — and is it working?
US stocks were mixed on Friday, but the Dow finished higher for the eighth consecutive day, extending its longest winning streak of the year
• Google-parent Alphabet (GOOGL) sold off on reports that OpenAI could announce a competitor to Google search. However, shares of vaccine-maker Novavax (NVAX) and salad chain Sweetgreen (SG) surged.
• In economic data, consumer sentiment in May fell 12.7% from April, according to the University of Michigan. The downward move was largely driven by inflation expectations increasing to 3.5%, the highest level since November.
What to be on the lookout for today
• April consumer inflation expectations.
• No major earnings reports are scheduled.
Why investment diversification is important
You know the saying “don’t put all your eggs in one basket.” It’s also a good rule to follow when it comes to investing.
Diversification is making sure your portfolio includes different assets, such as stocks, bonds, cash, real estate and exchange-traded funds. In balancing different types of investments, your portfolio may be less susceptible to certain risks. For example, if you only own stocks, a stock market downturn can hit your portfolio hard.
Diversification within asset classes is also important. For example, buying stock in different sectors. A diversified portfolio can make it easier to ride out market volatility.
Reviewing your portfolio
Diversification may look different depending on your financial goals, age, and risk tolerance.
Building a diversified portfolio isn’t a one-time thing. While you might want to avoid making knee-jerk investment decisions every time the market swings, rebalancing your portfolio periodically may be helpful to make sure you haven’t become over exposed to a specific market, sector or asset.
Today’s top stories
Week Ahead on Wall Street: Sticky InflationAll eyes are on inflation this week.
Read more >> Your car’s back-up camera is boosting your repair costsDriver assistance systems and other car sensors can make your vehicle safer but fixing the technology after an accident isn’t cheap.
Read more >> Do you have enough saved in your emergency fund?For some, a surprise $1,000 bill can break a budget. Use this Emergency Fund Calculator to determine how much you should have saved to secure your assets.
Read more >>Other news that caught our eye
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Tesla plans to invest $500 million to expand its Supercharger network, focusing on expanding existing locations, shortly after laying off most of its Supercharger employees.
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Huy Fong Foods has temporarily stopped producing its popular sriracha sauce, citing its supply of red jalapeño peppers, which are too green to continue production.
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401(k) plans appear to be falling out of favor with many Americans who feel this retirement system has left them unprepared to retire.
Financial planner tip of the day
"A well diversified portfolio helps maximize the expected return for a given level of risk. It also helps smooth returns over time compared to the drastic swings of investing in one or two riskier investments."
Brian Walsh, CFP® at SoFi