Borrowing from 401(k): Smart Move?

Market Sizzle: Falling Dollar, Soaring Freight, Quantum Flights, Real Estate Giant Cash Crunch ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [Borrowing from 401(k): Smart Move?]( Market Sizzle: Falling Dollar, Soaring Freight, Quantum Flights, Real Estate Giant Cash Crunch [Josh Belanger]( May 21   [READ IN APP](   Happy Tuesday! Thinking about borrowing from your 401(k)? Financial advisors usually shout, “Don’t do it!” But with rising interest rates and the soaring cost of loans, some folks are rethinking their options. Turns out, the 9.5% interest rate on 401(k) loans might not be such a bad deal after all. Remember, though, borrowing from your future self has its pitfalls. But for many, it’s a tempting lifeline. Dollar Dive The dollar is losing ground. Inflation is falling, so investors think the Federal Reserve will cut interest rates. The dollar rose 5% this year, but it's now dropping for the first time. Lower inflation means the Fed might cut rates instead of raising them. Last week’s data showed inflation at 3.4%. This gave traders confidence that rate cuts are coming. The dollar had its worst day this year. It's down 1.4% this month. Lower U.S. borrowing costs are helping stock markets rise. Hedge funds are betting against the dollar, expecting it to keep dropping. Analysts say the dollar might weaken more, but the strong economy means it could take time. Soaring Freight Rates Squeeze Americans Freight rates have jumped 30% recently. Ships are avoiding the Red Sea due to attacks, adding weeks to their journeys. This hike affects importers as they prepare for the summer rush. The Suez Canal usually handles 15% of global shipping. Now, many ships go around Africa, taking longer and costing more. Importers face higher prices and delays. Shipping rates from China to California hit $4,500 per box. Costs from China to Europe are up too. Small importers feel the pinch, but big players like Amazon can wait it out. Ship lines benefit from the diversions, raising their earnings forecasts. They’ve added more capacity to handle longer routes. The Red Sea detour is expected to last, affecting freight rates and trade. Quantum Computers Optimize Flights Quantum computers might save your next flight. These advanced machines use tiny particles to solve tough problems fast. Unlike regular computers, quantum ones use qubits, which can be both zero and one. Quantum computers are still new, but they’re improving. Companies like IBM and D-Wave have shown they can beat regular computers at some tasks. One practical use is optimizing flight connections. This means less running through airports and fewer missed flights. Researchers are testing this idea now. Quantum computers could also help with other tricky problems, like planning delivery routes and making cars smarter. They still need more work, but the future looks bright for this tech. Real Estate Giant’s Cash Crunch Crisis Starwood’s $10 billion real estate fund faces a cash crisis. Many investors want their money back, but the fund can’t keep up. They had $1.3 billion in withdrawal requests but could only pay less than $500 million. Their cash is running out. It dropped from $2.2 billion at the end of 2022 to $752 million in April. The fund has three tough choices: borrow more money, sell properties, or stop more redemptions. All options are bad. Other real estate funds are also struggling. Starwood’s fund, called Sreit, might not survive if this continues. They hope property prices will go up if the Federal Reserve cuts interest rates, but it’s a risky wait. If they can’t raise new funds, their future looks grim. Quick Sizzles - Farmers Tap Sweet Solar-Subsidy Deal: Biden’s clean-energy subsidies cover entire project costs for farmers like Jerry Howle, reducing their utility bills significantly. - Hims Jumps on Ozempic Bandwagon: Hims & Hers adds GLP-1 injections to its weight-loss offering, boosting stock by 28%. The telehealth company is entering a saturated market with competitive pricing. - Tariffs Close Off Route to Affordable EVs: Biden’s new tariffs on Chinese batteries could add $1,000 to the cost of Tesla’s Model 3 and impact Ford’s Mustang Mach-E, making cheap EVs harder to produce. - Red Lobster Files for Bankruptcy: The seafood chain struggled with declining diner traffic since the pandemic and rising costs. Red Lobster plans to sell its business and reduce the number of restaurants. - Carlyle Bids for KFC Japan: Big private equity firm Carlyle plans aggressive new-store openings for KFC in Japan, where the fast-food chain is a Christmas tradition. That’s your Market Sizzle; good trading, good life! You're currently a free subscriber to [Josh Belanger](. For the full experience, [upgrade your subscription.]( [Upgrade to paid](   [Like]( [Comment]( [Restack](   © 2024 Josh Belanger 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()