Don’t Say The Juice Didn’t Warn You

Mainstream media finally caught on [View in browser]( Proprietary Data Insights Top Tech Stock Searches This Month Rank Name Searches #1 Tesla 12,633 #2 Apple 9,200 #3 Amazon.com 8,811 #4 Meta Platforms 7,040 #5 Nvidia 5,084 #ad [Top 10 Surging Stocks]( Suddenly, everybody from CNN to The Today Show is sounding the alarm on the divergence between personal savings and consumer debt, particularly credit card balances. Where were they last spring? At The Juice, we rarely congratulate ourselves. But if we may bask in our prescience for a second, we’ll follow the self-congratulations with good news amid the little-too-late hysteria, plus how to handle scary macroeconomic headlines in your personal finance and as an investor. The comparison between last spring and today is stark. On April 19, 2022, we [said](: - According to the Fed, overall consumer credit increased 11.3% in February. Revolving credit, which includes credit cards, drove that number, popping 20.7% annually. - For context, revolving credit decreased 11.2% on an annual basis in 2020. On May 9, 2022, we [followed up](: - Revolving debt (that’s credit cards) surged by $35.3 billion in March. That’s a 21.4% annual increase and blows away the $16.2 billion monthly increase we saw in February. Here’s the government’s latest on Americans’ credit card debt: - Credit card balances rose $61 billion in Q4 2022 to $986 billion, topping the pre-pandemic high of $927 billion. That’s up $130 billion year over year. Amid this bad news on debt, there might be some good news on savings. Scroll with us for that good news and how to consider your specific situation. Brought to you by [The Spill]( [Stock Picks to Save You Time and Money]( We make it clear where we stand. Get a 1-10 rating and in-depth analysis of one stock daily. Plus, get our exclusive report on the top search trends of financial professionals and retail investors quarterly. [Subscribe now]( Debt Versus Savings Don’t Say The Juice Didn’t Warn You Key Takeaways: - As credit card debt continues to climb, personal savings appear to be rebounding. - Personal finance is personal, so the macro data might not apply to you. - If you’re sitting pretty, it might be time to seize stock market opportunities. One reason we called out the mainstream media on their crisis call is they’re late to the party. Then, when they finally show up (without a bottle of wine!), they rarely, if ever, report the glimmer of hope alongside the hysteria. But here’s that good news: As credit card debt climbs, personal savings has actually improved in recent months. Personal savings refers to how much people save as a percentage of their disposable income. Here’s the U.S.’ trend on that figure since summer: - June 2022: 2.7% - July 2022: 3.5% - August 2022: 3.2% - September 2022: 3.0% - October 2022: 3.4% - November 2022: 4.0% - December 2022: 4.5% - January 2023: 4.7% While still below the pandemic highs by a relative mile, this is encouraging. The overall amount of money people have saved has also increased, from $506.3 billion in June 2022 to $918.8 billion in January 2023. For the record, The Juice has been using [data]( from the Bureau of Economic Analysis all along. What does this all mean for you? The continued upsurge in debt coupled with an apparent rebound in savings could mean some households are tightening things up. Stockpiling cash to keep credit card balances in check. Maybe more likely, it means some households are hurting as others thrive. A thesis we’ve floated regularly over the past year. The thriving households have relatively high earnings, with cash to save and spend. They help drive consumer spending, not to mention inflation. If you’re among those struggling, the remedy to your situation is equally as obvious as it is painful. Cut out unnecessary spending, work to pay down high-interest credit card debt first, and keep enough savings on hand to cover an emergency and/or loss of income. If you’re among those crushing it, continue to pad your savings and seek opportunities in the stock market. Speaking of… Remember how down everybody was last year as Elon Musk was losing money? While Tesla (TSLA) is down roughly 31% over the last year, it’s up more than 87% in 2023. That opportunity might be ongoing. Rest assured, Musk is – once again – the richest person in the world. If you’re not into TSLA, consider poor Google (GOOG, GOOGL) as it stagnates relative to TSLA and Apple (AAPL). [NASDAQ] Source: Google Finance But before you dive into Google, consider a blue-chip alternative our sister newsletter, The Spill, [recently wrote about](. It could also be the case that you’re doing super well financially but still internalize the broad headlines. You worry the bottom might fall out on your situation. So you hunker down. There’s probably never anything wrong with this, whether you’re building a nest egg to eventually spend or send into the stock market. The Bottom Line: To each their own. Nobody can or should judge you for how you manage your money, particularly during especially uncertain times with seemingly contradictory information. However it goes down, The Juice is here with nuggets of personal finance advice and investing ideas you can adapt to your circumstances. mailto:?body=Article URL: https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D574451?utm_medium=ic-nl&utm_source=103639 News & Insights Freshly Squeezed - [22 Most Profitable Stocks of the Last 20 Years]( - [Crypto ATMs Are Popping Up Worldwide]( - [These Analysts Revise Price Targets on Trex Following Upbeat Q4 Results]( - From The Spill: [What Can Brown (Stock) Do for You?]( [We want to hear from you! Let us know your thoughts by clicking here]( [Link]( # Follow us on: [submit to reddit]( [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [allow us on your list]( Juice&email=TheJuice@news.investingchannel.com). Update your email preferences or unsubscribe [here](. Manage your subscriptions with our [preference center](. View our privacy policy [here](. Copyright ©2023 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc., newsletter is for information purposes only and is based on opinion. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or eliminate losses. InvestingChannel, Inc., makes no representation or implication that using any of the methodologies or systems in this newsletter will generate returns or insure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.