This monthly communication, “Financial Bullet Points,” will quickly and easily cover the main financial issues we see affecting the markets without being bogged down with a lot of details.
Written by Bob Barber, Prepared on May 24th, 2024
The Bullet Points for June are:
- Artificial Intelligence. AI is being discussed almost everywhere, from social groups to the news to the local supermarket. It is being widely seen as significantly different from previous technological innovations, which could lead to above-trend growth in many areas of our economy. The global investment in Artificial Intelligence (AI) is rapidly increasing across many sectors, from manufacturing to services, leading to higher output.
- Critical Thinking Skills. Critical thinking skills are needed more than ever today, with financial products like gold and annuities being heavily promoted, given the false information being pumped into our minds by email, social media, and other forms of promotion. Critical thinking is the intellectually disciplined process of actively and skillfully analyzing and evaluating the information presented against the facts using reasoning skills to guide belief and action.
- Misconceptions of the Economy. 55% of respondents in a recent Harris poll believed the economy was shrinking, and 56% thought the US was experiencing a recession. However, the economy’s broadest measure, gross domestic product (GDP), has been growing. In this same poll, 49% believed the S&P 500 stock market index was down last year and down this year when it is up in both, and 49% felt that unemployment is at a 50-year high, although the unemployment rate has been under 4% for a while now, a near 50-year low.
- All Time Highs. The S&P 500 and many US indexes hit all-time highs in the latter part of May, piercing the 5,300 level. This occurred despite monthly unemployment, retail sales, and other economic data at muted levels. It is as vital as ever to stay disciplined, focus on the long term, and maintain a diversified portfolio.
- The Federal Reserve. The Federal Reserve will be in a unique situation in June, as one of the key inflation indicators, the Consumer Price Index, which measures the change in prices of goods and services, will be released just hours before their June 12 interest decision is published. While it is expected that the Fed will keep the rates the same this month, it leaves little time for them to adjust their formal statements and press conference comments, two items that the market has paid increased attention to recently.
- Continuing Education and Scriptures. This month’s programs for Christian Financial Perspectives are:
- Ep 201 – Breaking the Chains of Materialism – 6/4/2024
- Ep 202 – 10 Non-Cash Giving Ideas to Lower Taxes – 6/18/2024
- 1 Thessalonians 5:21 – But examine everything carefully; hold fast to that which is good.
- Proverbs 21:5 – The plans of the diligent lead to profit as surely as haste leads to poverty.
Remember, we moved to releasing episodes every other week to give people more time between episodes to listen or watch. To tune in, search “Christian Financial Perspectives” on almost any podcast platform or YouTube.
Visit our channel: www.cfa.lc/yt
Until next time, have a wonderful June and Summer!
If you would like further explanation of any of the bullet points mentioned, please call or text (830) 609-6986 during business hours or email us by clicking here.
Bob Barber, Founder & Owner
Christian Financial Advisors®