Good morning investors! The market recovered yesterday signaling it is going to be volatile ahead.
Today we cover:
MorningDownload’s retirement calculator
Stocks rise again
Investing in gold
📊 Economy and News
Americans have lofty goals for their retirement, with the typical worker believing they need $1.46 million to retire comfortably — a jump of 53% from their savings target in 2020.
You do not need this much to retire though, as the amount needed depends on a variety of factors such as your lifestyle and location.
Unfortunately, the average amount held in a retirement account today is just $88,400. That means that the typical worker has a $1.37 million gap between their actual savings and their retirement aspirations.
Due to the impact of inflation and other financial pressures, Americans today believe they need to sock away more for their golden years compared with 2020, when the typical worker pegged a comfy retirement as requiring $951,000 in savings.
Things are rapidly changing. Gen Z workers, who are currently in their early 20s, want to retire at 60, and almost 1 in 3 think they'll live to 100, meaning that they'll need to fund a 40-year retirement
Moreover, people are worried about Social Security, given that the program's trust fund reserves are set to be depleted in 2033, which will lead to a cut in benefits if the program isn't shored up before then.
Unfortunately, many Americans are heading toward retirement without really sitting down and figuring out what they need.
If you don’t know how much you need to retire, then don’t worry because we have created a Retirement Calculator that can get the job done.
Simply input details such as your age, life expectancy, dependents, household income, and other such details and it will tell you the amount you'll need to retire comfortably.
Global hits:
China launches its rival to Elon Musk’s Starlink internet satellites.
Japan’s Nikkei sees best day since October 2008; logs record single-day jump in points.
Divided survey shows Mexico central bank likely to hold interest rate at 11%.
Worth checking out: Correction in the dollar-yen was overdue and may be ‘healthy’ for markets, former ECB chief says.
Good to know: 10-year Treasury yield rebounds after hitting its lowest level in more than a year.
📈 Stocks
S&P 500 5,240.03 (+1.04%)
DJIA 38,997.66 (+0.76%)
NASDAQ 16,366.85 (+1.03%)
BRENT CRUDE 76.48 (+0.24%)
* Prices as of Aug 6th, 12:20 AM UTC
Earnings continue as the market recovers
Stocks jumped Tuesday, recovering some losses from the previous three trading days as investors took a pause from recession fears and Japanese equities rallied.
All 11 sectors of the broad market index were positive for the day. Several megacap tech stocks also rebounded after a sharp pullback on Monday. Nvidia rose 5.6%, while Meta Platforms advanced 5%.
The volatility will likely remain elevated in the near term as the carry trade continues to unwind, said Ross Mayfield, investment strategist at Baird.
Here are yesterday’s major earning reports:
Uber reported earnings and revenue that topped estimates for its second quarter. The company’s mobility unit reported a 23% increase in gross bookings to $20.6 billion. For the third quarter, Uber expects bookings of $40.25 billion to $41.75 billion, compared with the $41.18 billion average estimate, according to StreetAccount.
Oil giant Saudi Aramco’s second-quarter profit dips 3% on lower crude production volumes. Net income from the first half of the financial year was $56.3 billion, down from $62 billion during the same period last year. Aramco reaffirmed its second-quarter base dividend of $20.3 billion, and declared a performance-linked dividend of $10.8 billion to be paid in the third quarter. The kingdom’s gross domestic product growth has contracted for four consecutive quarters, which economists say is largely due to the oil production cuts.
Yum Brands reported earnings that topped estimates but revenue that fell short of expectations for the second quarter. KFC and Pizza Hut both saw their same-store sales shrink. Only Taco Bell, the jewel of the company’s portfolio, reported same-store sales growth.
Airbnb shares dropped -14% on earnings miss as company warns of slowing U.S. demand. The vacation rental company warned that it expected moderation in year-over-year growth in its key “Nights and Experiences” category, relative to the current quarter. It also cautioned that it was “seeing shorter booking lead times globally and some signs of slowing demand from U.S. guests.” Airbnb said users booked 125.1 million Nights and Experiences, its highest second-quarter result.
Surprising: CrowdStrike fires back at Delta, claiming the airline ignored offers of help during service meltdown .
💵 Personal Finance
People should buy gold, say experts
The world is changing and in such times, gold is considered a safe haven.
“The Big Short” traders Danny Moses, Vincent Daniel and Porter Collins are focused on one of their top long bets: gold.
“I just don’t think Americans have enough gold in their portfolio,” Collins said on CNBC’s “Fast Money”
the three investors are known for their successful bet against the housing market ahead of the 2008 crisis.
Collins, who is co-founder of Seawolf Capital with Daniel, referred to massive central bank buying around the world and the U.S. budget deficit as reasons to buy gold.
Gold futures are up about 15% in 2024, but they are off their all-time high of $2,488.40 hit on July 17.
Daniel and Collins’ firm highlighted gold in their annual note to shareholders this month.
Danny Moses, founder of Moses Ventures, is also bullish on gold. In a special email to “Fast Money” on Monday, Moses wrote he has a “large long” in the Sprott Physical Gold Trust.
💰 Be a Better Investor
“Your economic security does not lie in your job; it lies in your own power to produce—to think, to learn, to create, to adapt. That’s true financial independence. It’s not having wealth; it’s having the power to produce wealth.”
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.