Investors Shift, Anticipating Lower Interest Rates

Edwin A. McKnight, LUTCF, ChFC®

July 23, 2024

Scammed! Millions Lose Their Life Savings In Digital Deception

In today's digital age, millions fall victim to scams that rob them of their hard-earned money and peace of mind, preying on their trust and vulnerability. Imagine losing your life savings in an instant or having your identity stolen without even realizing it—this is a terrifying reality for many. Understanding how to recognize and handle these common scams is crucial for protecting yourself and your loved ones.

Phishing scams involve fraudsters posing as trustworthy entities to steal sensitive information like usernames and passwords. Signs include suspicious senders, urgent messages, and unfamiliar links or attachments. To handle these, verify the source directly, avoid clicking suspicious links, and report the scam.

Tech support scams feature unsolicited contacts claiming your computer has issues, requesting remote access, and demanding payment. Hang up on such calls, never grant remote access from unknown sources, and seek help from reputable providers.

Online shopping scams involve fraudulent websites or sellers offering goods at too-good-to-be-true prices, poor website quality, and unsecure payment requests. Research sellers, use secure payment methods, and report any fraud.

Stay vigilant by recognizing scam signs, verifying sources, and reporting suspicious activity to protect yourself. Remember, if something seems too good to be true, it probably is.

^{To learn more, click on this article from Capital One: Common Scams}

Stocks were under pressure last week as investors appeared to rotate out of mega-cap tech stocks and into areas that may benefit from lower interest rates.

The Standard & Poor’s 500 Index fell 1.97 percent, while Nasdaq Composite Index declined 3.65 percent. The Dow Jones Industrial Average bucked the downward trend, up 0.72 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.48 percent for the week through Thursday’s close.¹

Dow Leads Again

The week began very differently than it ended.

All three averages rallied over the first couple of days this week, with the Dow leading on both days. Fed Chair Powell indicated the Fed may not wait for inflation to reach its 2 percent target before considering a rate move, buoying the markets.^2,3

Then, markets hit a speed bump as investors appeared to take profits and rotated away from mega-cap tech names. The selling broadened beyond tech-related names on Thursday as all but one of the S&P 500's 11 sectors fell.

Early Friday morning, a global tech outage caused disruptions for businesses, governments, and financial institutions, contributing to the weekly decline. Despite its losses in the second part of the week, the Dow finished in the green.^4,5,6

Small Caps, Big Gains

As markets price a near 100% probability that the first Fed rate cut will take place in September, rotations into the Russell 2000 over the past month have supported a 9% rally. This likely reflects investor enthusiasm for a potential broadening of market returns to take place outside of US large-cap equities. Though economic uncertainty remains, small caps may continue to benefit from monetary easing in addition to firm economic growth and low starting valuations.

^{Article from GSAM.com : Small Caps, Big Gains}

^{Source: YCharts.com, July 20, 2024. Weekly performance is measured from Monday, July 15, to Friday, July 19.}
^{TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.}
^{Treasury note yield is expressed in basis points.}

Stay Cool And Hydrated: The Secret To A Happy Summer

Ever feel like a wilted plant in the summer heat? You might need what your leafy friends crave—water!

As temperatures rise, staying hydrated becomes crucial. Here’s why it’s important and how to make it fun:

Why Hydration Matters

Boosts Energy:Water transports nutrients and oxygen to your cells, keeping you energized.
Supports Physical Performance:Hydration prevents cramps, dizziness, and fatigue.
Regulates Temperature:Staying hydrated helps you sweat effectively, cooling your body.

Fun Ways to Stay Hydrated

Infused Water:Add fruit, veggies, and herbs for a refreshing twist.
Hydrating Foods:Snack on watermelon, cucumbers, oranges, and strawberries.
DIY Popsicles:Use natural fruit juices and fresh fruit for a hydrating treat.

Hydration Reminders

Set a Schedule:Drink a glass of water first thing in the morning and before meals.
Use an App:Hydration reminder apps can help you stay on track.
Carry a Water Bottle:Keep it handy to encourage regular sipping.

By incorporating these simple and fun hydration tips, you’ll stay refreshed and energized all summer long. So, next time you feel the heat, reach for that glass of water and enjoy every sunny moment!

Stay hydrated, stay happy, and make this summer the best one yet!

Quick And Healthy Summer Meal: Grilled Chicken Skewers With Salad And Watermelon

Ingredients:

Skewers:

2 chicken breasts, cubed
2 bell peppers, chunked
1 red onion, chunked
1 zucchini, sliced
2 tbsp olive oil
1 tbsp lemon juice
1 tsp garlic powder
1 tsp paprika
Salt and pepper
Skewers

Salad:

4 cups mixed greens
1 cup cherry tomatoes, halved
1 cucumber, sliced
1 carrot, shredded
1/4 cup olive oil
2 tbsp balsamic vinegar
Salt and pepper

Watermelon:

1 small watermelon, sliced

Infused Water:

1 lemon, sliced
Fresh mint
Water and ice

Instructions:

Grill Skewers:
- Marinate chicken in oil, lemon juice, garlic powder, paprika, salt, and pepper.
- Thread chicken, peppers, onion, and zucchini onto skewers.
- Grill on medium-high for 10-12 minutes.
Prepare Salad:
- Mix greens, tomatoes, cucumber, and carrot.
- Toss with olive oil, balsamic vinegar, salt, and pepper.
Slice Watermelon:
Make Infused Water:
- Combine lemon, mint, water, and ice in a pitcher.
Serve:
- Arrange skewers, salad, and watermelon on a table. Serve with infused water.

Enjoy this easy and healthy summer meal with your family!

"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

– Aristotle

Protect Your Tax Data

The Internal Revenue Service (IRS) shared guidelines that tax pros should follow to protect taxpayer data, but these principles are sound for everyone to practice.

Anti-virus software:This software scans computer files for malicious software or malware on the device. Anti-virus vendors find new issues and update malware daily. Always install the latest software updates on your computer.

Two-factor authentication:Two-factor authentication adds an extra layer of protection beyond just a password. Not only do you enter your username and password, but you also enter a security code that the service provider can send to another device for extra protection.

Drive encryption:Drive encryption transforms sensitive data into unreadable code that unauthorized people cannot decipher easily, so only the authorized person can access the data.

*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov⁹

Tips For Eating Less Salt

Sodium isn't entirely bad for our bodies, but too much can increase blood pressure and cause stress on the heart and blood vessels. Because of this, monitor your sodium intake and be aware of how much sodium is in your diet.

If you want to reduce your sodium intake, choose unprocessed or minimally processed foods. Prepared foods are generally high in added sodium compared to fresh options. Cut back on sources of high sodium, such as pepperoni pizza, white bread, processed cheese, deli meat and hot dogs, and other red meat and processed foods. Instead, eat more fruits, veggies, and whole grains, which are all lower in sodium.

Tip adapted from heart.org¹⁰