Monthly Financial News – April 2024

May 6, 2024

Here are a few interesting personal finance pieces from the past month:

Artificial Intelligence

  • Nvidia CEO on 60 Minutes – A good interview with Jensen Huang. It highlights how AI is being applied across a number of industries. Examples include: developing proteins to fight cancer, weather prediction, and converting text into movie backdrops.

Investing

  • Optimistic Investors – US investors expect their stock market to beat inflation by almost 16% per year!
  • That’s about triple the historical result (within the US).
  • Below is a chart showing the returns of the S&P 500 (representing large US stocks) over different time periods.
  • Over the past 1, 5, and 10 years, performance is well above average:
  • Predicting the Future – It’s impossible to predict the future, but its fun to try.
  • US stocks were positive in January, February, and March. According to Carson Research, the previous 20 times that happened since 1950, the rest of the year – meaning the final nine months – were higher 19 out of 20 times:

Inflation

  • Food Inflation – Chances are you are spending more at the grocery store and at restaurants.
  • US consumers spent an average of 11.3% of their disposable income on food in 2022. As a share of spend, this level has not been reached since the 1980s:
  • Gas – Another high-profile area of spend is gas. The national average is approximately $3.60.
  • That will feel cheap to Californians, where the average price of regular of $5.35.
  • Dimes also cost more to make than they are worth:

College Costs

  • Average College Cost – If you have kids approaching college age, you might be interested in the following data points:
      • At private, nonprofit four-year colleges about 16% of students paid full sticker price (2019-20).
      • At in-state public colleges, about 25% of students paid the posted sticker price (2019-20).
      • Net Price: The calculator from the US Department of Education is a helpful tool. It aims to show you the amount a student will pay in a single academic year after subtracting scholarships and grants the student receives.
      • To dive further into specific college costs, some colleges offer merit estimators on their websites.
      • Or if they do not, you can check the college’s “common data set,” which among other things includes information on financial aid awarded. (Search online for the college’s name and “common data set” if you don’t find it on a school’s website).

I hope you found these interesting.

As always, please reach out if you have any questions or would like to connect.

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Past performance is no guarantee of future returns.

The graphs and charts in this commentary are for illustrative purposes only and not indicative of any actual investment. Index returns do not reflect any fees, expenses, or sales charges. It is not possible to invest directly in an index. Stocks are not guaranteed and have been more volatile than other asset classes. Historical returns were the result of certain market factors and events which may not be repeated in the future. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgement in determining whether investments are appropriate for clients.

This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities.

Disclaimer: Investments are not guaranteed and are subject to investment risk, including possible loss of the principal amount invested. Past performance is no guarantee of future results. All allocations and opinions expressed are as of the date of this presentation and subject to change. The information contained herein does not constitute investment advice or a solicitation. Information obtained from 3rd parties is believed to be accurate, but has not been independently verified.

The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material is presented solely for information purposes and has been gathered from sources believed to be reliable, however Think Different Financial Planning cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Think Different Financial Planning does not provide tax or legal advice, and nothing contained in these materials should be taken as such. As always please remember investing involves risk and possible loss of principal capital. Advisory services are only offered to clients or prospective clients where Think Different Financial Planning and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Think Different Financial Planning unless a client service agreement is in place.