Morning Download from Invincible Money 

Personal finance + economics + markets

Good morning investors! It’s Friday so I hope everyone has a great weekend!

Today we cover:

1. GDP grew. What does it mean?

2. The Fed may be done raising. What’s next?

3. U.S. House approves 3 crypto bills

4. More ways to save money

📊 Economy 

U.S. GDP grew 2.4%

The Gross Domestic Product (GDP) of the U.S. grew at an annualized rate of 2.4% for Q2, beating the 2% expected growth rate.

Here’s went up & what went down:

📈 What increased: consumer spending (services and goods), nonresidential fixed investment, government spending and private inventory spending.

People are spending more on housing, health care, financial services and transportation, recreational vehicles.

📉 What decreased: exports, residential fixed investment and imports.
(press release)

Personal income

Disposable income grew by 5.2%, compared to 12.9% in Q1 (i.e. people are spending more, but not as much as the first of the year).

Real disposable income (after inflation) was up 2.5%, compared to 8.5% in Q1.
(i.e. income is growing, but at a slower rate)

Personal savings was up in Q2 to 4.4%.

What does it mean for you?

The economy and job market are fairly strong and prices are starting to come down and the Fed is near the end of its tightening, so the worst is likely behind us. (see below for some cool stats 🤓)

📈 Stocks

S&P 500 4,537.41 (-0.64%)
DJIA 35,282.72 (-0.67%)
NASDAQ 14,05011 (-0.55%)
VIX 14.41 (+9.25%)

Fed may be done. Now what?

On average the S&P has gained 7.6% in the 12 months after the end of a Fed rate hike cycle.

The S&P has also gained 46.2% and 70.6% in the 3- and 5-year periods after the last hike.

Why? Rate hikes by a central bank are intended to slow the economy (which this has done). When the hikes stop or even reverse, it’s seen as bullish as it becomes less expensive for businesses and households to spend and borrow, which stimulates the economy.

LISTEN UP: This is important. In the press conference by Fed Chairman Powell, he said TWICE that the Fed would even be open to cutting rates when inflation is under control (instead of leaving them high for awhile).

Also, the Fed is no longer forecasting a recession, which is a change from what they’ve been saying.

Does this mean to go all in? Not necessarily, but it does mean that things are looking better. It’s always a good time to dollar cost average.

🔐 Crypto

Bitcoin $29,213.66 (-0.8%)
Ethereum $1,859.48 (-0.5%)
Total market cap $1.22 T (-0.6%)
* Prices as of July 27th, 10:45 PM UTC

U.S House approves 3 crypto bills

The House Financial Services Committee voted in favor of three bills on crypto issues.

• The Financial Innovation and Technology for the 21st Century Act would create a new regulatory framework for crypto and blockchain technology.

• The Blockchain Regulatory Certainty Act would provide clarity for businesses that use blockchain technology.

• The Stablecoin Innovation and Consumer Protection Act would create a new regulatory framework for stablecoins. (Reuters)

🏠 The House Financial Services Committee is the first committee in Congress to vote on crypto legislation. The bills are still subject to further debate and votes in the House and Senate.

However, the committee's vote is a positive sign for the crypto industry. It shows that Congress is taking crypto seriously and is willing to provide regulatory clarity for the industry.

Also,

• Bitcoin’s volatility hit its lowest point since January.

• Crypto startups raised $200 million last week.

• VC funds raised $37 billion in 2021 and 2022. So far this year just $1.8 billion, but last month Polychain Capital raised $200 million and CoinFund raised $158 million so maybe things are picking up. Too soon to tell, but there’s definitely still interest.

💵 Personal Finance

Struggling to save money?

Here’s a list of ways to make it easier:

• Set savings goals. What are you saving for? A down payment on a house? A new car? Retirement? Having a specific goal in mind will help you stay motivated to save.

• Create a budget. Track your income and expenses so you can see where your money is going. This will help you identify areas where you can cut back.

• Automate your savings. Set up a direct deposit from your paycheck into your savings account. This way, you won't even see the money and you'll be less likely to spend it.

• Cut back on unnecessary expenses. Do you really need that expensive cable package? Could you cook more meals at home instead of eating out? There are probably a few things you can cut back on without sacrificing your quality of life.

• Look for discounts and coupons. There are many ways to save money on everyday purchases. Check for coupons online or in the Sunday paper. You can also sign up for loyalty programs to earn rewards.

• Shop around for the best deals. Don't just assume that the first place you see something is the cheapest. Do some research to find the best price.

• Buy used items. There are many great deals to be found on used items. You can find used clothes, furniture, appliances, and more.

• Get creative with gifts. Instead of buying expensive gifts, give homemade gifts or experiences. This could be anything from a batch of cookies to tickets to a concert.

• Pay off debt. If you have high-interest debt, focus on paying it off as quickly as possible. This will free up more money in your budget so you can save more.

• Use a budgeting app. There are many great budgeting apps available that can help you track your income and expenses. This can be a helpful way to stay on track with your savings goals.

• Find a savings buddy. Having someone to work with on your savings goals can be helpful. You can motivate each other and stay on track.

Need more? Watch my video “20 ways to save $20,000.”

Which of these are you doing? Reply to this email and let me know.

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.