Apr
26
2024
SoFi Blog
Tips and news—
for your financial moves.
Apr
26
2024
A Win for Workers: What’s the Deal With Noncompetes?
The Federal Trade Commission recently banned noncompete agreements in a major win for workers.
Read moreApr
26
2024
Geopolitical Risks: Price Shocks After Russia Invaded Ukraine
Not Cut From the Same Cloth
Lately, it seems every week brings a new topic of geopolitical tension or concern. Given the increasing number of risks around the globe, we took a dive into what has happened so far and what we might expect from markets in response.
To lay the groundwork, despite all of the recent headlines surrounding the Middle East, ongoing conflicts between Israel and Palestine, Russia and Ukraine, rising tension between China and Taiwan, and currency volatility in Japan, the broad Geopolitical Risk Indicator remains below prior peaks.
Let me be clear, all of these spikes were notable, and all of them deserved heightened awareness and risk management, as do the current risks that exist. What we’re finding though, is despite the panic that can ensue as headlines hit the wire, markets tend to move on quite quickly… except when certain conditions are present.
Longer Threads Make Larger Threats
The most recent “historical” shock we can look to is Russia invading Ukraine in February 2022, which wreaked havoc on global commodity markets and risk assets. The outsized moves in natural gas make the other lines on this chart below appear calm, but none of them really were. And as we know, this conflict is still not over.
We recognize that the tensions between Russia and Ukraine and Middle Eastern countries are different, but the effects on markets are what we’re focusing on.
The initial shocks were large, especially to energy and agriculture, and although some of that early spike cooled off shortly afterward, the levels remained elevated and markets never “fully” recovered.
Markets are resilient in the face of stress, which we can see over the course of history. But they are less resilient when that stress begins to have clear lasting consequences. In the case of Russia/Ukraine, the sanctions that were put on by various nations prevented markets from recovering quickly. Add to that the continuing threats and actions surrounding the natural gas supply between Russia and Europe — and markets had to get comfortable with the idea that this geopolitical shock had turned into a geopolitical phase that wasn’t showing signs of resolution.
Volatility continued in earnest for six months, and in smaller fits and starts it carried on through the rest of 2022. This instance turned out to be a geopolitical shock with lasting consequences, and ones that were clear to markets early on, which created the conditions for lasting volatility and “shock factor”.
Pins or Needles
Fast forward to the present, and global markets are once again facing heightened geopolitical risk, this time in the Middle East. But this has been different, at least as far as the market is concerned.
We’ve had a number of mini spikes in oil since the initial attack in Israel, only to see prices right back where they started before the conflict began. Not to mention, Iran got involved in the last few weeks and still… oil prices and equities have shrugged it off.
Does that mean it’s over? No. Does that mean markets are insulated from it? No. What it means is that markets cannot identify what the clear and lasting consequences may be, partly because there haven’t been any changes in trade relations so far, and no other regions have become materially involved. Expectation seems to be that if it doesn’t escalate further, commodity prices are not at longer-term risk of spiking.
The conundrum that still exists is the strength of gold, which has most certainly not returned to previous levels and continues to warn of some type of global event risk.
Fabrics and Foundries
In addition to the here and now, there are always risks visible on the horizon. Perhaps the biggest and most obvious is a potential conflict between China and Taiwan. China ranks as the second-largest economy in the world and the top exporter of a wide range of goods. Taiwan is smaller, but boasts greater than a 60% share of the global semiconductor market, and over 90% of the advanced chip market.
It’s impossible to predict if or when tensions could turn into something more serious. And even harder to predict the level of severity or spread, even if things heated up. Either way, history can serve as a guidepost in mapping out the possible impacts of a conflict.
There’s no way to sugarcoat it: A conflict could have extreme consequences — for people, for economies, and for markets. There are always risks out there, and while it’s important to be aware of them, it would be overly conservative to try to protect a portfolio against all of them. A conflict between China and Taiwan would be a big deal, but it’s not yet a big deal. We can be smart about limiting the concentration in portfolios to ensure there isn’t any outsized exposure to a potential shock, but geopolitical events have a way of turning out differently than we expect… sometimes for the better, and sometimes for the worse.
Responsible risk management includes an awareness of the possible big shocks, a general reduction in portfolio risk as external threats increase, and a more active eye on events and market moves. An approach that reminds me of something my Dad used to say on the basketball court or the baseball diamond, “look alive!” and always keep playing the game.
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Want more insights from SoFi’s Investment Strategy team? The Important Part: Investing With Liz Young Thomas, a new podcast from SoFi, takes listeners through today’s top-of-mind themes in investing and breaks them down into digestible and actionable pieces.
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. Liz Young Thomas is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Her ADV 2B is available at www.sofi.com/legal/adv.
Read moreApr
26
2024
Canada’s Drag Race Judge’s Tips on Embracing Opportunities to Succeed
Brad Goreski of Canada’s Drag Race appeared on SoFi’s Richer Lives YouTube series to share career, money, and fashion advice.
Read moreApr
26
2024
Send and receive money with Zelle®
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{/* https://www.sofi.com/banking/online-banking/zelle/ */}
{/* HERO MODULE */}
Send and receive money with Zelle®.1
How do you make better banking even better? Zelle® is a fast, safe, and easy way to send and receive money with trusted contacts, even if they don’t bank with SoFi.2 Now you’ve got even more ways to manage
your money.
Open an account
{/* Why Zelle? */}
Why Zelle®? It’s a fast, easy, and safe way
to send money to people you know.
Splitting the cost of a bill, pitching in on a family gift, paying the sitter—
you name it, Zelle® has got you covered.
Easy
Send or receive money with trusted contacts right from the SoFi app.
Safe
Send money to people you know—account to account, with no stops.
{/* How to enroll with zelle */}
-
Step 1
Tap on the Zelle® card in your Banking account overview screen
in the SoFi app. -
Step 2
In the main menu, select “Transfer and Pay,” then “Send money with Zelle®.”
-
Step 3
Enter your email address or U.S. mobile number.
How to enroll with Zelle®:
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FAQs
Zelle® is a fast, safe and easy way to send and receive money with friends, family and others you trust, even if they bank somewhere different than you.1 All you need is your recipient’s email address or U.S. mobile number and money will be sent directly from your account to theirs in minutes.2 No account numbers are shared.
You can send, request, or receive money with Zelle®. To get started, log into the SoFi app or on the SoFi website, select Zelle® on the Banking tab, enter your email address or U.S. mobile number to receive a one-time verification code to enter, and you’re ready to start sending and receiving with Zelle®.
Eligibility is determined based on a range of factors related to current account standing. Ensuring you have direct deposit set up with SoFi is the best way to secure access to Zelle®. To set up direct deposit, follow the steps here: sofi.com/direct-deposit/.
To send money using Zelle®, simply select someone from your mobile device’s contacts (or add a trusted recipient’s email address or U.S. mobile number), add the amount you’d like to send and an optional note, review, then hit “Send.” The recipient will receive an email or text message notification via the method they used to enroll with Zelle®. Money is available to your recipient in minutes if they are already enrolled with Zelle®.
To request money using Zelle®, choose “Request,” select the individual from whom you’d like to request money, enter the amount you’d like, include an optional note, review and hit “Request”. If the person you are requesting money from is not yet enrolled with Zelle®, you must use their email address to request money. If the person has enrolled their U.S. mobile number, then you can send the request using their mobile number.
To receive money, just share your enrolled email address or U.S. mobile number with a friend and ask them to send you money with Zelle®. If you have already enrolled with Zelle®, you do not need to take any further action. The money will be sent directly into your SoFi account, typically within minutes.
If someone sent you money with Zelle® and you have not yet enrolled with Zelle®, follow these steps:
1. Click on the link provided in the payment notification you received via email or text message.
2. Select SoFi.
3. Follow the instructions provided on the page to enroll and receive your payment. Pay attention to the email address or U.S. mobile number where you received the payment notification – you should enroll with Zelle® using that email address or U.S. mobile number to ensure you receive your money.
When you use Zelle® within the SoFi mobile app or on the SoFi website, your information is protected by SoFi with the same technology we use to keep your SoFi account safe.
Zelle® is a great way to send money to family, friends, and people you are familiar with such as your personal trainer, babysitter or neighbor. 1
Since money is sent directly from your SoFi account to another person’s bank account within minutes2, Zelle® should only be used to send money to friends, family and others you trust.
If you don’t know the person or aren’t sure you will get what you paid for (for example, items bought from an online bidding or sales site), you should not use Zelle®. These transactions are potentially high risk (just like sending cash to a person you don’t know is high risk).
Neither SoFi nor Zelle® offers purchase protection for payments made with Zelle® – for example, if you do not receive the item you paid for or the item is not as described or as you expected.
Some small businesses are able to receive payments with Zelle®.1 Ask your favorite small business if they accept payments with Zelle®. If they do, you can pay them directly from the SoFi app or SoFi website using just their email address or U.S. mobile number.
Neither SoFi nor Zelle® offers purchase protection for payments made with Zelle®, so you should only send money to people (and small businesses) you trust. Also, always ensure you’ve used the correct email address or U.S. mobile number when sending money.
In order to use Zelle®, the sender and recipient’s bank or credit union accounts must be based in the U.S.
You can only cancel a payment if the person you sent money to hasn’t yet enrolled with Zelle®. To check whether the payment is still pending because
the recipient hasn’t yet enrolled, you can go to your activity page, choose the payment you want to cancel, and then select “Cancel This Payment.” If you do not see this option available, please contact our customer support team at 1(855)-456-7634 for assistance with canceling the pending payment.
If the person you sent money to has already enrolled with Zelle®, the money is sent directly to their bank account and cannot be canceled. This is why it’s important to only send money to people you trust, and always ensure you’ve used the correct email address or U.S. mobile number when sending money.
If you sent money to the wrong person, please immediately call our customer support team at 1(855)-456-7634. Neither SoFi nor Zelle® offers purchase protection for payments made with Zelle®.
No, SoFi does not charge any fees to use Zelle® in the SoFi app or on the SoFi website. Your mobile carrier’s messaging and data rates may apply.
The amount of money you can send, as well as the frequency, is set by each participating financial institution. The SoFi send limits are detailed in the Zelle® Network Standard Terms.
At SoFi, there are no limits to the amount of money you can receive with Zelle®. However, remember that the person sending you money will most likely have limits set by their own financial institution on the amount of money they can send you.
You can find a full list of participating banks and credit unions live with Zelle® here.
If your recipient’s bank or credit union isn’t on the list, don’t worry! The list of participating financial institutions is always growing, and your recipient can still use Zelle® by downloading the Zelle® app for Android and iOS.
To enroll with the Zelle® app, your recipient will enter their basic contact information, an email address or U.S. mobile number, and a Visa® or Mastercard® debit card with a U.S. based account (does not include U.S. territories). Zelle® does not accept debit cards associated with international deposit accounts or any credit cards.
See more FAQs
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