THE AI MARKET. In the cap-weighted S&P 500, AI stocks now make up 35% of the index and contribute to 58% of its volatility. Investors looking to reduce AI exposure while remaining invested can consider the S&P 500 Equal Weight Index, where the weight of AI stocks drops to 5% and contributes to just 7% of its volatility. (Source: Bloomberg Intelligence)
MILLION-DOLLAR HOMES. 8.3% of existing US homes sold in July were over $1 million compared to just 2.65% for sub-$100k home sales. Just over 10 years ago, in July 2016, 13% of homes sold were below $100k, while million-dollar homes were just 2.2% of the total. (Source: National Association of Realtors)
SANDWICHED SUPPORT. 80% of Americans have provided financial support to a loved one in the past year, and 38% are financially supporting both a child and a parent. As a result, 44% of these Americans haven’t been able to adequately save for retirement, and three out of four feel stressed about their own personal finances. (Source: My Guide to Retirement)
PLANNERS POSITIVE. Financial planners report that 50% of their clients have a positive financial outlook, up sharply from 36% this spring. Planners themselves are even more optimistic than their clients, with 61% having a positive outlook compared to 54% in the spring. (Source: CFP)
LABOR MARKET MOMO. According to the Kansas City Fed’s Labor Market Conditions Indicators Index, labor force activity remains positive and above its historical average, while labor force momentum in the index, which tracks 24 different labor market indicators, was the strongest since April 2022. (Source: KC Fed)
Stupid Sayings:
Elizabeth Dole, talking about her boss, Ronald Reagan – “The President doesn’t want any yes-men and yes-women around him. When he says no, we all say no.”
John Lowenstein, Baltimore Orioles Outfielder – “The secret to keep winning streaks going is to maximize the victories while at the same time minimizing the defeats.”
Yogi Berra – “You can observe a lot by watching.”
