🏅 The US is winning

America's economy sailed past expectations, Big Tech sparked a giant selloff, and some adventure reads to take to the beach | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for July 26th in 3:06 minutes.   🚀 DIY traders have grown up a lot since that first wild GameStop ride. In the latest Finimize Podcast, Robinhood's Steph Guild tells all about their coming of age, and the surprising things those investors want from their trading tools right now. Today's big stories - US economic growth cruised at a faster-than-expected pace, as consumer spending revved the country’s engine - How to invest when the US economy is facing upward and downward pressure – [Read Now]( - An AI selloff stoked wider worries about the Big Tech-driven stock market World’s Biggest Economy, But Bigger [World’s Biggest Economy, But Bigger] What’s going on here? The US economy [grew]( at a surprisingly nimble pace in the second quarter, as falling inflation and a still-strong job market had consumers spending freely. What does this mean? The heftiest of the hefty economies expanded by an annualized 2.8% – double the pace seen in the first three months of the year. And that sassy pickup was thanks in large part to the country’s dependable growth engine: the American consumer. Their spending rose by an unexpectedly peppy 2.3%, even as higher interest rates took a nibble out of their finances. The news here is good: it looks like the country is on track to achieve an uber-tricky “soft landing” – in which higher interest rates manage to cool the economy just enough to bring down inflation, without tipping the whole thing into a recession. Why should I care? For markets: Cruel summer. The economic growth data had a calming effect on an otherwise jittery market. Stocks had seen a sharp selloff on Wednesday, as fearful investors ditched their Magnificent Seven winners – anxious that Big Tech’s earnings might never match the massive figures that firms are spending on AI. That’s typical after a long rally like the one we’ve seen: a small flurry of investor exits can spark a cascade of similar moves, regardless of the bigger picture. For you personally: Remember to breathe. Everyone hates that moment when you log into your trading account and see your balance has dropped. Sometimes, honestly, it’s better not to look. But, if you do, remember to keep your long-term goals in mind – and don’t panic. Every selloff is an opportunity to become a better investor, to add to your existing stocks at better prices, and to test how diversified your overall portfolio is. You might also like: [How to build a perfectly balanced portfolio](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=World’s Biggest Economy, But Bigger&utm_campaign=daily-global-26-07-2024&utm_source=email) Analyst Take The US Economy Is Being Pulled In Two Directions Right Now [The US Economy Is Being Pulled In Two Directions Right Now]( [Photo of Stéphane Renevier, CFA] Stéphane Renevier, CFA, Analyst It’s been more than two years since the Federal Reserve started hiking [interest rates](, ending an era of super-low rates that had lasted nearly 15 years. Fast forward to today and surprisingly, the economy’s still [kicking](. But it's now being shoved in two different directions – [up and down](. That’s today’s Insight: [the things you need to know about today’s big economic tug-of-war](. [Read or listen to the Insight here]( Sponsored By Money Pickle Money management doesn’t have to put you in a pickle The average American retires at 62. The good news: you don’t have to be an average American. Get [a savvy financial advisor]( in tow, and you can put your money to work. Some planning sessions here, some small adjustments there, and you could reach your retirement goals faster. That said, calling up financial advisors to find “the one” hardly sounds like a barrel of laughs. But [take the free questionnaire on Money Pickle](, and you’ll be set up with a trustworthy and vetted advisor who’s been deemed the right fit to work on your goals and finances. You can even [jump on a free video call](, so you can get a sense for the advisor and their ideas before you bring a single dime into the equation. If you’re ready to get started, [check out the quiz](. [Find Out More]( You must be a United States citizen in order to use Money Pickles services due to SEC regulations. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( AI Of The Storm [AI Of The Storm] What’s going on here? AI jitters [sent]( markets from the US to Asia and Europe into a tailspin this week, with the S&P 500 suffering its worst fall since December 2022. What does this mean? A $1 trillion meltdown smacked the tech-heavy Nasdaq 100 on Wednesday, touched off by some less-than-spectacular quarterly results from Alphabet and Tesla. Investors have been on a hair trigger, fearing the AI-related spending spree might hit a wall – unless big fish like Alphabet and Microsoft can swiftly turn those investments into profit. The list of losers from the tech selloff reads like an AI who’s-who, with Nvidia, Broadcom, and Arm right at the top. Even chip whiz SK Hynix was swept into the downdraft, falling 9% – just after it announced an expectation-smashing quarter. And that could be a warning for US tech behemoths Microsoft, Meta, Apple, and Amazon, which all report earnings next week. Why should I care? Zooming out: Less is more. Investors were already cashing in gains and hunting for something different after a long tech boom. That pivot has lifted the small-fry Russell 2000 index by 8% this month to hit its highest level in over two years. There’s a reason folks are eyeing the little guys: since they carry lots of short-term and variable-rate debt, they tend to thrive as interest rates fall. Plus, with domestically focused business models, smaller firms offer a snug refuge away from international turmoil. The bigger picture: Rocking the boat. With half the world’s voters hitting the polls this year, that could mean only one thing: uncertainty. And there’s already plenty of that around, as major central banks ponder when to cut interest rates. So it’ll hardly be surprising if the market sees a few wild swings. That’s no reason to change what you’re doing, though: if you’ve got the patience to remain invested through the chaos, you just might snag a sweet deal or two. You might also like: [Why investors are suddenly head over heels for smaller stocks](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=AI Of The Storm&utm_campaign=daily-global-26-07-2024&utm_source=email) 💬 Quote of the day "Work hard, be kind, and amazing things will happen." – Conan O'Brien (an American television host and comedian) [Tweet this]( Take a seat on the summit’s main stage Thousands of retail investors tuned into our [Modern Investor Summit]( sessions last year. Eager to discover the smartest tools and savviest tricks, they piled into fireside sessions, Q&A panels, and keynote speaker slots with the likes of Jamie Dimon. Now’s your chance to secure a spot at the next one. Our [Summit]( is slated for December this year, and we’re on the lookout for speakers with big ideas and serious know-how. [Take a look at last year’s recording of CFA Institute’s session]( to get a feel for it: the platform detailed sustainable investing techniques, as well as explaining its own climate finance courses. If you’re ready for your turn, [talk to the team to bag your spot before they fill up](. [Drop Us A Line]( 🎯 On Our Radar 1. Pack for your pooch. The [best camping gear for dogs](. 2. New crypto projects are spawned every day. Here's your [guide to investing in bitcoin](.* 3. A real hotspot. One small area of the Pacific shapes [temperature variations]( for half the world. 4. As good as (white) gold. The global energy revolution needs lithium – and [this company]( could plug the gap.* 5. Ripping yarns. The best [adventure memoirs]( to read this summer. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... 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