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Tips and news—
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Home Equity VYR Offer


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HOME EQUITY LOANS

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See APR disclosure

✓ Access up to 85% or $350K of your home’s equity.
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Checking your rate will not affect your credit score.

See APR disclosure

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View your home equity rate,

earn $102.


View your rate

Checking your rate will not affect your credit score.

✓ Access up to 85% or $350K of your home’s equity.
✓ Enjoy lower rates for consolidating debt or
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Checking your rate will not affect your credit score.

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How to get a
home equity loan.

Help us understand your needs.

Answer a few questions online to help us
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You’ll be connected with an experienced SoFi
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Online Insurance – Term Life Coverage

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SOFI PROTECT

Help protect what matters most—this month and always.

Did you know June 28 is National Insurance Awareness Day? Yep, it’s a real thing. Celebrate by finding the right insurance policy for your needs, from auto to life. We make it quick and easy.


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Why get term
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Coverage and pricing is subject to eligibility and underwriting criteria.

It’s affordable.

Coverage starts as low as
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Policies range from $100K to
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Why get term life insurance through Ladder?

Competitive rates.

Ethos offers competitive insurance rates starting at $20/month.

Will and estate planning.

Eligible policies include a free will and more, valued at $898.3

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Coverage and pricing is subject to eligibility and underwriting criteria.

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Why get term life insurance through Ladder?


Get my quote

Coverage and pricing is subject to eligibility and underwriting criteria.

It’s affordable.

Coverage starts as low as $24/month (and there are no hidden fees).1

It’s fast.

Answer a few questions to apply online and get your approval status in minutes, with no doctor’s visits required for coverage up to $3M.2

It’s flexible.

Policies range from $100K to $8M and 10 to 30 years—and you can adjust coverage at any time.

It’s personalized.

Find coverage to match your needs and get help from Ladder’s licensed agents.


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When’s the last time you looked for a policy? Let’s see if you could save.


Flexible term life insurance through Ladder could help protect your family’s financial future, starting at $19/month.1


Get my quote

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Compare quotes from top providers in one place through Experian®, so you don’t overpay.


Learn more

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Experian® helps you compare your current coverage with quotes from different insurers to find the best policy for you.


Learn more

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Help protect yourself—and your stuff—with personalized, competitive quotes in one place
through Experian®.


Learn more

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Articles and resources






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Articles and resources






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Why get term life insurance through Ladder?


Get a free quote

It’s affordable.

Coverage starts as low as $5/month (and there are no hidden fees).1

It’s fast.

Answer a few questions to apply online and get your approval status in minutes, with no doctor’s visits required for coverage up to $3M.2

It’s flexible.

Policies range from $100K to $8M and 10 to 30 years—and you may adjust coverage at any time.

It’s personalized.

Find coverage to match your needs and get help from Ladder’s licensed agents.

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Insurance made
easy.

Apply for a policy and get a free quote in minutes.


Get my quote

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Week Ahead on Wall Street: Fed Watch

April Showers. May Flowers?

Investors will navigate a busy week ahead, with a schedule that includes an always-important Federal Reserve meeting, a bevvy of corporate earnings reports, and economic data releases.

Collectively, these elements will help provide context on the post-Liberation Day economic landscape and potential market direction.

The main event is the Federal Reserve’s May 7 meeting. While market pricing suggests only an 8% chance that the Fed lowers its benchmark interest rate from the current 4.25%-4.50% range, there could still be some market-moving fireworks in the post-meeting statement or press conference.

Any commentary regarding tariffs will be a major focus point for investors, especially in light of last week’s negative GDP report that was distorted by a surge in imports and inventories.

The ongoing corporate earnings season adds another wrinkle. Though most of the mega-cap tech companies have already reported their earnings, reports from companies across various sectors will provide valuable ground-level perspectives on business health and outlooks amidst current economic conditions.

Finally, key economic data will offer fresh readings on the economy’s momentum. Following last Friday’s jobs report, this week we’ll see the ISM Services Purchasing Managers’ Index (PMI). Despite the survey being so-called soft data (qualitative information collected through surveys), it remains valuable because the service sector constitutes a large portion of the U.S. economy. In the current environment, the survey could signal brighter days ahead or an early warning of intensifying storm clouds.

Economic and Earnings Calendar

Monday

•   April S&P Global US PMIs: These indexes track how purchasing managers across different industries feel about the business environment.

•   April ISM Services PMI: This index from the Institute for Supply Management tracks how purchasing managers across different services industries feel about the business environment.

•   Earnings: Clorox (CLX), Cummins (CMI), Coterra Energy Inc (CTRA), Ford (F), Diamondback Energy (FANG), Henry Schein (HSIC), Loews (L), Realty Income (O), ON Semiconductor (ON), Palantir Technologies (PLTR), Tyson Foods (TSN), Vertex Pharmaceuticals (VRTX), Williams Companies (WMB), Zimmer Biomet Holdings (ZBH), Archer-Daniels-Midland (ADM), American Electric Power (AEP), Assurant (AIZ)

Tuesday

•   March Trade Balance: Trade, made up of exports and imports, is an important driver of economic activity.

•   Earnings: Archer-Daniels-Midland (ADM), American Electric Power (AEP), Assurant (AIZ), Advanced Micro Devices (AMD), Arista Networks (ANET), Ball (BALL), Constellation Energy Co (CEG), Corpay (CPAY), Duke Energy (DUK), Devon Energy (DVN), Electronic Arts (EA), Expeditors International of Washington (EXPD), Fidelity National Information Services (FIS), NortonLifeLock (GEN), Global Payments (GPN), International Flavors & Fragrances (IFF), IQVIA Holdings (IQV), Gartner (IT), Jacobs Engineering Group (J), Jack Henry & Associates (JKHY), Leidos Holdings (LDOS), Marriott International (MAR), Mosaic (MOS), Marathon Petroleum (MPC), Super Micro Computer (SMCI), TransDigm Group (TDG), Waters (WAT), WEC Energy Group (WEC), Wynn Resorts (WYNN), Zoetis (ZTS), APA Corp (APA), Atmos Energy (ATO), Axon Enterprise (AXON), Bunge Global S.A. (BG), CDW (CDW), CF Industries Holdings (CF), AmerisourceBergen (COR), Charles River Laboratories International (CRL)

Wednesday

•   FOMC Interest Rate Decision: The Federal Reserve will announce any changes to monetary policy after the conclusion of its two-day FOMC meeting, in addition to providing commentary on the economy. It’s one of eight regularly scheduled meetings per year.

•   March Consumer Credit: Borrowing activity gives insight into broader economic activity.

•   Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.

•   Earnings: APA Corp (APA), Atmos Energy (ATO), Axon Enterprise (AXON), Bunge Global S.A. (BG), CDW (CDW), CF Industries Holdings (CF), AmerisourceBergen (COR), Charles River Laboratories International (CRL), Corteva (CTVA), DoorDash (DASH), Dayforce Inc (DAY), Disney (DIS), Emerson Electric Co (EMR), Fortinet (FTNT), Johnson Controls International (JCI), MarketAxess Holdings (MKTX), NiSource (NI), NRG Energy (NRG), Occidental Petroleum (OXY), Paycom Software (PAYC), Rockwell Automation (ROK), Skyworks Solutions (SWKS), Bio-Techne (TECH), Texas Pacific Land Corp (TPL), Trimble (TRMB), Uber (UBER), Verisk Analytics (VRSK), Vistra Energy (VST), Akamai Technologies (AKAM), ConocoPhillips (COP), EPAM Systems (EPAM), Evergy (EVRG), Expedia Group (EXPE), Federal Realty Investment Trust (FRT), Kenvue Inc. (KVUE), Alliant Energy (LNT), Microchip Technology (MCHP), McKesson (MCK), Match Group (MTCH)

Thursday

•   1Q Productivity and Unit Labor Costs: These measures provide a breakdown of how productive workers were per hour of work and at what cost.

•   March Wholesale Inventories and Sales: Wholesalers often operate as an intermediary between manufacturers and retailers, serving as a key part of the goods supply chain.

•   April New York Fed Survey of Consumer Expectations: This is a measure of peoples’ expectations for inflation, jobs prospects, earnings growth, and more.

•   Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Jobless claims have continued to show a labor market that remains strong despite having cooled.

•   Earnings: Akamai Technologies (AKAM), ConocoPhillips (COP), EPAM Systems (EPAM), Evergy (EVRG), Expedia Group (EXPE), Federal Realty Investment Trust (FRT), Kenvue Inc. (KVUE), Alliant Energy (LNT), Microchip Technology (MCHP), McKesson (MCK), Match Group (MTCH), News (NWS), News (NWSA), ViacomCBS (PARA), Insulet (PODD), Solventum (SOLV), Sempra Energy (SRE), Molson Coors Brewing (TAP), TKO Group Holdings Inc (TKO), Tapestry (TPR), Viatris (VTRS), Warner Bros. Discovery, Inc (WBD), Fox Class B (FOX), Twenty-First Century Fox Class A (FOXA), Simon Property Group (SPG), STERIS (STE), Applied Materials (AMAT), Cisco (CSCO), Deere & Company (DE), Take-Two Interactive Software (TTWO), Walmart (WMT), Copart (CPRT), Home Depot (HD), Keysight Technologies (KEYS), Nordson (NDSN), Palo Alto Networks (PANW), Lowe’s Companies (LOW), Medtronic (MDT), Target (TGT), TJX Companies (TJX), Analog Devices (ADI), Intuit (INTU), Ralph Lauren (RL), Synopsys (SNPS), Williams-Sonoma (WSM), Deckers Outdoor (DECK), Ross Stores (ROST), Workday (WDAY), AutoZone (AZO), Agilent Technologies (A)

Friday

•   Fedspeak: New York Fed President John Williams will deliver a keynote address at the Reykjavík Economic Conference and participate in moderated Q&A. Fed Governor Adriana Kugler will deliver a keynote address at the Reykjavík Economic Conference. Chicago Fed President will give opening remarks at a Fed Listens event. Fed Governor Michael Barr will give a keynote address at the Reykjavík Economic Conference. New York Fed President Williams and Fed Governor Christopher Waller will participate in a panel discussion called John Taylor and Taylor Rules in Policy. St. Louis Fed President Alberto Musalem, Cleveland Fed President Beth Hammack, and Fed Governor Michelle Bowman will participate in a policy panel discussion at the Hoover Monetary Policy Conference.

•   Earnings: Copart (CPRT), Home Depot (HD), Keysight Technologies (KEYS), Nordson (NDSN), Palo Alto Networks (PANW), Lowe’s Companies (LOW), Medtronic (MDT), Target (TGT), TJX Companies (TJX), Analog Devices (ADI), Intuit (INTU), Ralph Lauren (RL), Synopsys (SNPS), Williams-Sonoma (WSM), Deckers Outdoor (DECK), Ross Stores (ROST), Workday (WDAY)

 

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Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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SoFi Everyday Cash Rewards Card | 12TT | SoFi

SoFi Everyday Cash Rewards Credit Card Terms & Conditions

SOFI CREDIT CARD TERMS OF OFFER INTEREST RATES AND INTEREST CHARGES

Annual Percentage Rate (APR) for Purchases

0% Introductory APR on purchases for the first 12 months from account opening. After that, your standard purchase APR will be 18.74% to 32.99% based on your creditworthiness. Your standard APR will vary with the market based on the Prime Rate.

Annual Percentage Rate (APR) for Balance Transfers

0% Introductory APR on balance transfers for the first 12 months from the date of first transfer when transfers are completed within 60 days from the date of account opening. After that, your standard purchase APR will be 18.74% to 32.99% based on your creditworthiness. The standard APR will vary with the market based on the Prime Rate. The maximum amount you may use for Balance Transfers will not exceed 75% of your total Credit Limit.

Annual Percentage Rate (APR) for Cash Advances

30.74%. This APR will vary with the market based on the Prime Rate.

How to Avoid Paying Interest on Purchases

Your due date is at least 25 days after the close of each billing cycle. We will not charge you interest on purchases made during the most recent billing cycle if you pay your entire balance (adjusted for any financing plan, if applicable) in full on or before the due date each month. We will begin charging interest on cash advances and balance transfers on the transaction date.

Minimum Interest Charge

If you are charged interest, the charge will be no less than $1.00.

For Credit Card Tips from the Consumer Financial Protection Bureau

To learn more about factors to consider when applying for or using a credit card, visit the website of the Consumer Financial Protection Bureau at https://www.consumerfinance.gov/learnmore

FEES
Annual Fee None
Transaction Fees

  • Balance Transfer Fee
  • Cash Advance Fee

  • The greater of $10 or 5% of the Balance Transfer
  • The greater of $10 or 5% of the Cash Advance
Penalty Fees

  • Late Payment Fee
  • Returned Payment Fee

  • Up to $41
  • None

How We Will Calculate Your Balance

We use the “daily balance” method, including new transactions, to calculate the daily balance on which we will charge interest.

Loss of Introductory APR

We may revoke any promotional APR if you fail to make a payment of at least the minimum payment due within 60 days of the due date. Your new APR will be the Standard Purchase APR.

Variable Rates

Your Daily Periodic Rate(s) and corresponding Annual Percentage Rate(s) will change if the Prime Rate changes. If the Daily Periodic Rate(s) and corresponding Annual Percentage Rate(s) increase, your interest charges will increase, and your minimum payment will be greater. Complete details regarding how the variable rate is determined are set forth in the Cardholder Agreement.

Payment Allocation

We decide how to apply your payment, up to the minimum payment, to the balances on your account. We may apply the minimum payment first to interest charges, then to the balances with the lowest APR, and then to the balances with higher APRs.

If you pay more than the Minimum Payment, we’ll apply the amount over the Minimum Payment, first to the Balance with the highest APR, then to the Balance with the next highest APR, and so on, except as otherwise required by applicable law.

SoFi Everyday Cash Rewards Credit Card Terms & Conditions

The SoFi Everyday Cash Rewards Credit Card is issued by SoFi Bank, N.A. (“SoFi”, “we”, “us”, or “our”). By submitting this application, you request that we establish a card account (“SoFi Credit Card Account”) for you and any authorized users you have designated. You agree that all information provided in this application is verifiable and accurate. The SoFi Credit Card Account will be governed by the terms of the cardholder agreement (“Cardholder Agreement”), which will be provided when the SoFi Credit Card Account is issued.

Your eligibility for a SoFi Credit Card Account or a subsequently offered product or service is subject to the final determination by SoFi Bank, N.A., as issuer. Please allow thirty (30) days from the date of submission to process your application.

You must be at least 18 years of age (or of legal age in your state of residence). The card offer referenced in this communication is only available to individuals who reside in the United States. This communication is not and should not be construed as an offer to individuals outside of the United States.

Identity Verification

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW CARD ACCOUNT

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens a SoFi Credit Card Account. This means that we will ask for your name, address, date of birth, and other information that will allow us to identify you when you open a SoFi Credit Card Account. We may also ask to see your driver’s license or other identifying documents and obtain identification information about you or any authorized user you add to your SoFi Credit Card Account.

Credit Reports

Upon completion of your Credit Card application and submission, you authorize us to request a copy of your credit report from one or more consumer agencies. Upon receiving your completed application, we will conduct a soft credit pull, which will not impact your credit score. You hereby authorize us to conduct a soft credit pull upon receipt of your application. You understand that after evaluating your completed application and soft pull credit report, we may determine not to offer credit to you. If we approve your application, we will conduct a hard credit pull, which might impact your credit score. You hereby authorize us to conduct a hard credit pull following the approval of your application.

You authorize us to request credit reports and other information about you from consumer reporting agencies and other sources for such purposes as: (a) determining whether to issue you a SoFi Credit Card Account, (b) administering, reviewing, and renewing the SoFi Card Account, (c) credit line increases or decreases, (d) collection and other servicing of the SoFi Credit Card Account, (e) offering other products, (f) services, and (g) for any other uses permitted by law. We may report negative information about your SoFi Credit Card Account payment history, like delinquencies, to consumer reporting agencies.

Cardholder Agreement

If you are approved for a SoFi Credit Card Account, you’ll receive the Cardholder Agreement. By activating your SoFi Credit Card Account, using the SoFi Everyday Cash Rewards Credit Card or making any payment to your Account, you are agreeing to be bound by the terms of the Cardholder Agreement. We have the right to make changes to the terms of your SoFi Credit Card Account (including rates and fees) in accordance with the Cardholder Agreement.

In New York, this Agreement begins on the first date that you sign a sales slip or memorandum evidencing the purchase of goods or services.

Credit Eligibility

To receive a SoFi Credit Card Account, you must meet certain applicable criteria bearing on creditworthiness. Your revolving credit limit may be determined based on the following:

  • Your annual salary and wages
  • Any other annual income
  • A review of your debt, including the debt listed on your credit report.
  • A review of your credit history and other factors deemed relevant by the issuer

We’ll inform you of your revolving credit limit when you’re approved for your SoFi Credit Card Account. Some credit limits may be as low as $500.

About Adding An Authorized User

Before adding an authorized user to your SoFi Credit Card Account you should know that:

  • You’re responsible for all charges made to your SoFi Credit Card Account by the authorized user
  • Authorized users have access to your SoFi Credit Card Account information
  • Before adding an authorized user, you must first let them know that we may report SoFi Credit Card Account performance to the credit reporting agencies in the authorized user’s name
  • A review of your credit history and other factors deemed relevant by the issuer

If we ask for information about the authorized user, you must obtain their permission to share their information with us and for us to share it as allowed by applicable law.

Additional Information

Any benefit, reward, service, or feature offered in connection with your Card Account may change or be discontinued at any time for any reason except as otherwise expressly indicated. SoFi Bank isn’t responsible for products and services offered by other companies.

SoFi Everyday Cash Rewards Credit Card Rewards Program

With the SoFi Everyday Cash Rewards Credit Card, you can earn rewards points for purchases made using your card, rewards offered through the SoFi Member Rewards Program, or other rewards offered from time to time, and you can redeem those rewards points for statement credits and other redemption methods offered through the SoFi Member Rewards Program. More details on SoFi Everyday Cash Rewards Credit Card Rewards can be foundhere.

SoFi Member Rewards Program

As a SoFi Member, you can earn points by using features across SoFi products that are designed to help you Get Your Money Right. When you elect to redeem Rewards Points toward active SoFi accounts, including but not limited to your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Automated Invest account, SoFi Credit Card account, SoFi Personal Loan, Private Student Loan, Student Loan Refinance, or toward SoFi Travel purchases, your Rewards Points will redeem at a rate of 1 cent per every point.

Mastercard World Benefits

You are also eligible for more rewards through the World Mastercard Benefits program when shopping with eligible merchants. More details on the World Mastercard Benefits program can be found here.

Fraud, Misuse, Abuse, or Suspicious Activity

If we see evidence of fraud, misuse, abuse, or suspicious activity, we’ll investigate and, if we determine that fraud, misuse or abuse has occurred, we may take action against you. This action may include, without limitation and without prior notice:

  • Taking away the rewards points you earned because of fraud, misuse, or abuse
  • Suspending or closing your SoFi Credit Card Account
  • Taking legal action to recover our monetary losses, including litigation costs and damages

Some examples of fraud, misuse, abuse and suspicious activity include:

  • Using your SoFi Credit Card Account in an abusive manner for the primary purpose of acquiring rewards points
  • Using your SoFi Credit Card Account other than primarily for personal, consumer, or household purposes

SoFi Bank reserves the right to take action, including but not limited to those actions enumerated above, based on your activity across any SoFi product, as well as external information received from SoFi third-party vendors, external bureaus, or industry referrals.

Special Notices

California Residents:
If married, you may apply for a separate account.

Delaware Residents:
Service charges not in excess of those permitted by law will be charged on the outstanding balances from month to month.

Ohio Residents:
The Ohio laws against discrimination require that all creditors make credit equally available to all credit worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio civil rights commission administers compliance with this law.

Wisconsin Residents:
If you are applying for individual credit or joint credit with someone other than your spouse, and your spouse also lives in Wisconsin, combine your financial information with your spouse’s financial information. No provision of any marital property agreement, unilateral statement under Section 766.59 of the Wisconsin statutes or court order under section 766.70 adversely affects the interest of the lender, unless the lender, prior to the time credit is granted, is furnished a copy of the agreement, statement of decree or has actual knowledge of the adverse provision when the obligation to the lender is incurred. If married, you understand that your lender must inform your spouse if a credit account is opened for you.

Additional documents

As a reminder, the SoFi Everyday Cash Rewards Credit Card is a completely digital product. All written communications related to the card will be online or in electronic format. The following is a link to the SoFi Esign terms and conditions that you must agree to in connection with your application for the SoFi Everyday Cash Rewards Credit Card.

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Decoding Markets: Growth Scare

Will the Real Economy Please Stand Up?

Investing is never free of uncertainty, and that has felt especially true in the current macro environment. With the release of the first-quarter GDP report, however, clarity is dipping its toes back into the market ever so slightly. Let’s dive in.

Economic growth in Q1 2025 showed a much anticipated deceleration, with real GDP contracting an annualized 0.3%. This marks the first contraction since Q1 2022 and a significant slowdown from the 2.4% growth figure last quarter. While typically alarming, this headline figure warrants a closer look, as it was heavily influenced by volatile components rather than a fundamental collapse in economic activity.

Real Gross Domestic Product

The negative Q1 reading was primarily driven by a massive surge in imports and significant changes in business inventories. Imports spiked a dramatic 41.3%, causing the Net Exports component to drag down growth by 4.8 percentage points. Simultaneously, businesses increased their inventories, adding back about 2.3 percentage points to growth, but not enough to offset the import drag.

This unusual activity was a direct consequence of businesses responding to trade policy upheaval. Evidence suggests that companies — particularly those reliant on foreign goods like transportation equipment, pharmaceuticals, and computers — rushed orders to bring them into the country before potential tariffs made them more expensive. This led to both the recorded import surge and the related build-up in inventories as companies stockpiled goods.

To gauge underlying economic momentum, economists often look at “real final sales to private domestic purchasers,” more casually known as private domestic demand. This measure excludes government spending and volatile trade and inventory effects, which can be helpful when the broader data is being possibly distorted. In stark contrast to the headline GDP figure, this measure grew a solid 3.0% in Q1. Consumer spending did slow a bit, but private fixed investment picked up the slack.

Real Private Domestic Demand

Bond Market Puzzle

Historically, Treasury yields tend to rise when the economy is expected to grow strongly and fall when it’s expected to slow or contract. This relationship exists because strong growth can fuel higher inflation expectations and potential interest rate hikes by the Federal Reserve.

That dynamic held in recent years, but the latest GDP print brings it into question. Despite the weak -0.3% headline GDP in Q1 and recession fears, the 10-year Treasury yield is still around where it began the month at 4.15%-4.20%.

Treasury Yields and Growth Diverging

There are lots of possible reasons for this disconnect. For instance, some investors posit that inflation fears associated with tariffs could be boosting yields. After all, core PCE inflation accelerated from 2.6% to 3.5% in Q1, but this theory doesn’t seem exactly right. Looking at the difference in yields between nominal Treasurys versus Treasury Inflation-Protected Securities (TIPS), we can see that 10-year inflation expectations have actually fallen from 2.37% to 2.23% since the start of April.

Instead, an “all of the above” explanation is probably needed to explain the stickiness of higher yields. Investors could be looking past the distorted GDP figure in part, and focusing on some of the recent worrisome inflation data and the relatively resilient underlying domestic demand data. Additionally, heightened uncertainty around trade policy and the Fed’s future actions, as well as waning foreign investor appetite for investments in the U.S. may be pushing up the “term premium” – extra compensation investors demand for holding longer-term bonds amid increased risk.

Staring Into the Unknown

The combination of slowing headline growth (-0.3% Q1 GDP) and persistent inflation (+3.5% Q1 Core PCE) has revived concerns about stagflation – a period of stagnant economic activity coupled with high inflation. How this will all impact corporate earnings is unknown. S&P 500 companies have beat consensus expectations by more than 9% so far this earnings season, yet the rapidly shifting landscape means that in many ways, the results are already stale.

Companies exposed to imports have been hesitant to give much guidance on future quarters, while analysts on the whole have not revised earnings much in the grand scheme of things. Indeed, consensus currently expects solid earnings growth this year and next.

S&P 500 Consensus EPS Growth

Sectors more sensitive to trade policy uncertainty are expected to have weaker earnings than other parts of the market, but given resilient current expectations, there’s room for these numbers to change in the coming months. A recession would almost certainly weigh on earnings, but an inflation acceleration complicates the picture since price increases could boost nominal earnings even if real growth is challenged. That’s similar to what happened from 1980-1982: From the start of the 1980 recession through the end of the 1981-82 recession, trailing 12-month earnings fell just 3%. The same can’t be said for stock prices, however, as those periods saw drawdowns of 17% and 27% despite the resilient earnings.

Much will depend on how trade policy plays out and how businesses and consumers respond, but for now the market remains on a razor’s edge.

 
 
 

Want more insights from SoFi’s Investment Strategy team? The Important Part: Investing With Liz Thomas, a podcast from SoFi, takes listeners through today’s top-of-mind themes in investing and breaks them down into digestible and actionable pieces.

Listen & Subscribe

 
 
 


SoFi can’t guarantee future financial performance, and past performance is no indication of future success. This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.

Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Mario Ismailanji is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Form ADV 2A is available at www.sofi.com/legal/adv.

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