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Why home builders may need to cut prices to sell homes
In America’s red-hot housing market, where high prices and high interest rates have weighed on prospective buyers, home builders have had to get creative to sell their assets.
US stocks finished lower on Tuesday
• Earnings are driving the market. For example, the Dow Jones Industrial Average fell 0.8%, after UnitedHealth, its heaviest-weighted stock fell more than 8%.
• Consumer inflation expectations held steady in September, per the New York Fed, but worries about delinquencies climbed to their highest level since April 2020.
Here’s what to be on the lookout for today
• The weekly update to the 30-year fixed mortgage rate.
• In earnings, Discover Financial Services, Morgan Stanley, and U.S. Bancorp will keep the banking reports coming in.
Why should you know about alternative investing
Alternative investments can expand your portfolio beyond Wall Street.
What are alternatives? Think investments outside of stocks, bonds, and cash, such as real estate, private equity, art or collectibles.
The thing these different types of investments have in common is that their correlation to stock market moves tends to be low. That makes them potentially attractive for investors looking to diversify their portfolio.
Why diversify?
As the saying goes, it’s good not to put all your eggs in one basket. That goes for investing too: Having different types of investments may mitigate the effect you feel during times of volatility.
Look before you leap
You shouldn’t invest before informing yourself first. Also, you should have a clear idea of your financial goals (short-term or long-term investing), as well as your risk tolerance.
Alternatives can be complementary to a portfolio, but they also come with their own set of risks. Make sure you understand the product, potential risks, fees, and tax implications before you invest.
Check out SoFi’s Guide to Alternative Investments to learn more.
Today’s top stories
Gen Z shoppers are treating themselves — literallyAmid soaring sticker prices, younger consumers show an outsized willingness to splurge on premium groceries.
Read more >> How to roll over your 401(k)A 401(k) rollover is the process of transferring funds from one retirement account to another. Here are a few options to consider.
Learn more >>Other news that caught our eye
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Walgreens announced it will close 1,200 locations by 2027, or roughly one in seven of its current stores, as it looks to further cut costs despite topping fourth-quarter earnings estimates.
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Google inked a deal to use nuclear energy for its AI projects, following a similar move from Microsoft.
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The IRS expanded its free online filing program Direct File to 24 states for next year’s tax season, twice as many as its pilot this year.
Financial planner tip of the day
“The sooner you can start investing, the quicker you can start taking advantage of compounding interest, which can accelerate your ability to save. Compound interest is the return you earn on your returns, which can help your earnings grow exponentially over time.”
Brian Walsh, CFP® at SoFi