Investment and Personal Finance Updates for July and August 2023: What Investors and Personal Finance Readers Need to Know
Here are some important investment and personal finance updates for readers from the month of July and August 2023:
- The stock market had a volatile month in July, with the S&P 500 index falling by 2.2%. The market continued to be weighed down by concerns about inflation and rising interest rates.
- In August, the stock market rebounded somewhat, with the S&P 500 index rising by 1.9%. However, investors remain cautious about the outlook for the market, given the ongoing economic uncertainty.
- The Federal Reserve raised interest rates by 0.75 percentage points in July, the largest increase since 1994. The Fed is expected to continue raising rates in an effort to combat inflation.
- Inflation remained high in July, rising to 9.1% year-over-year. This is the highest level of inflation since 1981.
- The housing market continued to cool in July, with home prices falling for the first time in two years. This is due to rising interest rates and affordability concerns.
- The job market remained strong in July, with the unemployment rate holding steady at 3.6%. However, wage growth slowed, which could contribute to inflationary pressures.
Here are some tips for investors and personal finance readers in the coming months:
- Stay invested, but be prepared for more volatility in the market.
- Rebalance your portfolio to make sure it is still aligned with your risk tolerance and investment goals.
- Consider adding some inflation-protected assets to your portfolio, such as TIPS or real estate.
- Keep an eye on your spending and make sure you are not overextending yourself financially.
- Build up your emergency fund in case of an unexpected expense.
It is important to remember that the investment and personal finance markets are constantly changing, so it is important to stay informed and make adjustments to your portfolio as needed.