KRPG - Retirement Planning Group

A groundbreaking decision has been made by the Federal Trade Commission (FTC) 📜🚫. They've voted to ban noncompete agreements, impacting potentially up to 30 million Americans. This means more freedom for employees to explore new job opportunities or even start their own businesses.

But it's not all smooth sailing - the U.S. Chamber of Commerce is planning to contest this decision in court ⚖️.

Interestingly, the FTC estimates this ban could increase workers' wages by a whopping $488 billion over the next decade.

This decision could have significant implications for both workers and the broader economy. As investors, we need to stay informed and be ready to adapt our strategies accordingly.

FTC bans noncompete agreements for many Americans but legal battle looms that would delay change The FTC narrowly voted on Tuesday to ban noncompete agreements in a move that could affect up to 30 million Americans -- one out of every five workers

The Federal Reserve's decision to keep rates higher for longer might not be as alarming as it seems.

Why? There are a few reasons. Higher interest rates aren't substantially negatively impacting our economy or the stock market, and a higher-for-longer stance could help keep inflation in check.
While this might make Wall Street and Main Street a bit uneasy, it's important to remember that these decisions are made with economic stability in mind.

Weigh in below: How do you feel about the Fed's decision to keep interest rates steady but still higher than they've been?

www.cnbc.com

🦸🏻‍♀️🦸🏻‍♂️ Today is National Superhero Day. As kids, we see superheroes with fancy costumes and a cape. When we grow up, we realize that not all superheroes wear capes. 👩🏻‍🦽🙌 Today we celebrate the real-life superheroes among us and honor their incredible strength, resilience, and kindness. Whether it's a friend, family member, or a frontline worker, let's take a moment to recognize the everyday heroes! 💖👨🏻‍⚕️👷🏻‍♀️👨🏻‍🔧

President Joe Biden is calling for higher U.S. tariffs on Chinese steel and aluminum products, marking a significant shift in trade policy.

Here's what it means for your investment landscape:
• The proposed tariff increase from 7.5% to 25% targets more than $1 billion worth of products, potentially affecting the cost and supply of these materials.
• The Biden administration is also pressuring Mexico to prevent indirect sales of Chinese metal products to the U.S.
• An investigation into Chinese trade practices across various sectors could lead to additional tariffs, inviting potential retaliation from China.

These measures could impact industries reliant on steel and aluminum, potentially influencing stock prices in these sectors. As always, it's important to consider these developments when refining your investment strategy.

Biden calls for higher tariffs on Chinese steel President Joe Biden on Wednesday called for sharply higher U.S. tariffs on Chinese metal products as part of a package of policies aimed at pleasing steelworkers in the swing state of Pennsylvania, at the risk of angering Beijing.

👩‍💼 👨‍💼 Happy Administrative Professionals' Day! 🏢 You are our heroes behind the scenes. Your dedication and hard work keep our office running smoothly every day. Thank you for all you do to support and serve our clients! 🎉

Fed Chair Jerome Powell has noted a need for more progress on inflation, suggesting interest rate cuts may not be on the horizon. Here's how this could impact the investment landscape:

• Inflation hasn't returned to the central bank's goal, indicating that interest rate cuts may not be imminent.
• This observation comes amidst solid growth and a strong labor market.
• The Fed has maintained its benchmark interest rate between 5.25%-5.5% since July 2023, marking the highest in 23 years.
• Financial markets have had to adjust their expectations for rate cuts this year.

Inflation affects the buying power of money, and interest rates can influence the cost of borrowing.

www.cnbc.com

🌟 As the sun sets and Passover begins, may we all take a moment to reflect on the story of liberation and hope that this meaningful holiday represents. It's a time for us to come together with family and friends, to share traditional meals, and to remember our shared Jewish history.

May your Seder table be filled with love, laughter, and matzah. And may the tale of freedom that we recount inspire us all to seek justice, peace, and kindness in our lives.

Wishing everyone a peaceful and joyous Passover. Chag Pesach Sameach! 🌟

💡🔌 U.S. electric utilities are preparing for a surge in power demand driven by the growth of data centers used for technologies like AI.

This growing demand leads to revisions in capital expenditure plans and demand forecasts. In fact, nine of the top 10 U.S. electric utilities have identified data centers as a primary source of customer growth.

Power usage from data centers is expected to triple globally from less than 15 terawatt-hours in 2023 to 46 TWh this year. By 2030, the power demand from IT equipment in U.S. data centers is projected to reach more than 50 gigawatts, up from 21 GW in 2023.

But here's the catch: the rapid growth raises concerns about whether the electric utility industry, known for its slow and steady returns, can keep up with the rising power demand due to a backlog of power generation and transmission projects.

As investors, it's essential to stay informed about these trends as they can influence the performance of utility stocks and the broader energy sector.

💡🔌

US electric utilities brace for surge in power demand from data centers U.S. electric utilities predict a tidal wave of new demand from data centers powering technology like generative AI, with some power companies projecting electricity sales growth several times higher than estimates just months earlier.

💡The Consumer Price Index rose 3.5% in March, surpassing expectations and signaling an acceleration for inflation. Here's what you need to know:

▪️ This unexpected rise is largely due to increases in shelter and energy costs. 🏠⚡
▪️ The Federal Reserve may delay interest rate cuts as a result.
▪️ This impacts you as an investor by potentially affecting market trends and the timing of your investments.
▪️ Stay informed and adjust your investing strategy accordingly. Remember, knowledge is power when it comes to managing your finances.

www.cnbc.com

Wall Street is buckling up for a potential liquidity stress test as U.S. tax day on April 15 approaches.

During the tax season, people often pull this year's cash from bank deposits and money market funds to pay their taxes, causing a drop in financial sector liquidity. This year, the outflows might be even larger due to last year's booming stock markets, leading to a potential surge in short-term interest rates.

Fund managers are playing it safe by having more cash available before tax day. This approach could help them leverage any potential market volatility to their advantage.

Investors and the Federal Reserve are keeping a close eye on this period. It's going to give them a sense of cash availability in the financial sector after nearly two years of quantitative tightening.

Wall Street gears up for US tax season liquidity test Wall Street is bracing for a potential bout of stress in money markets by putting some cash on the side ahead of U.S. tax day, when high tax-related outflows could hurt market liquidity.

Public service announcement to my Maryland tax payer friends. I made a quarterly estimated tax payment on the Maryland Comptroller website on Tuesday, January 16th. Today, I saw that they debited the amount that I authorized from my checking account not once, but twice!!! I called the Maryland taxpayer line and and the customer service representative tells me that an internal email was distributed this morning about the issue, but nothing has been communicated to the public yet. I asked when my account would be credited and she told me it make take up to 3 weeks! Unbelievable....

Did you know that vanilla is the most popular ice cream flavor in the world? It's National Ice Cream Day! Help us celebrate it by sharing your favorite flavor with us!

Mortgage demands are dropping as interest rates rise!

Here are the key takeaways:

Rising interest rates have impacted mortgage demand, which had been on the rise.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.85%.
Mortgage demand to purchase a home dropped 5% for the week and was 22% lower compared to the same time last year.
The average loan size for a purchase application declined to $423,500, the lowest since January 2023.
Applications to refinance a home loan fell 4% during the week of July 4th and were 30% lower compared to last year.
While rates remain high, upcoming employment data could influence the Federal Reserve's decisions on further rate hikes.

Mortgage demand drops to lowest level in a month, as interest rates rise Rising interest rates had a direct impact on mortgage demand, which had been rising for weeks.

Update on the jobs report: Private sector companies added a whopping 497,000 jobs in June, surpassing expectations. ADP's latest report shows the strength of the U.S. labor market. Here are the key points:

⏺️ Private sector jobs surged by 497,000, the largest monthly rise since July 2022.
Leisure and hospitality took the lead with 232,000 new hires.
⏺️ Construction followed closely with 97,000 jobs, while trade, transportation, and utilities added 90,000.
⏺️ Annual pay rose at a 6.4% rate, reflecting ongoing inflationary pressures.
⏺️ The unexpected jump in payrolls defies previous interest rate increases by the Federal Reserve.
⏺️ Manufacturing lost 42,000 jobs, while information and financial activities saw declines.
⏺️ Service providers accounted for 373,000 of the total job gains, with goods producers adding 124,000.

This positive momentum in job creation indicates a strong recovery in the private sector! Stay tuned for the nonfarm payroll report from the Department of Labor, which is expected to show further growth. ADP's numbers suggest a potential upside risk for Friday's report.

Private sector companies added 497,000 jobs in June, more than double expectations, ADP says The U.S. labor market showed no signs of letting up in June, as companies created far more jobs than expected.

Fed Chair Jerome Powell highlights the resilience of the US economy, downplays recession threat, and emphasizes modest growth and a strong labor market. Stay informed with these key points:

🌟 US economy "quite resilient," says Powell at ECB conference in Portugal.
🌟 Recession is possible but not the most likely outcome.
🌟 Economy continues to grow at a modest pace.
🌟 Inflation remains above the Federal Reserve's target.
🌟 Recent data shows successful slowing of economic activity without a downturn.
🌟 Consumer spending and hiring remain solid.
🌟 Labor market adds 339k jobs in May, indicating strong growth.
🌟 Slower wage increases offer hope for inflation control.
🌟 Powell is optimistic about finding a balance without a severe downturn.

Stay updated on the US economy with

US economy 'quite resilient,' Fed Chair Jerome Powell says The remarks come two weeks after the Federal Reserve left interest rates unchanged.

Get out your red, white, and blue! It's time to celebrate the land of the free,
home of the brave. Happy Independence Day!

Overstock.com is making a big change and rebranding as Bed Bath & Beyond online! 🏠💼 Get ready for a revamped website, mobile app, and loyalty program in the coming weeks, aimed at boosting sales.

⭐ Overstock.com completed the $21.5 million acquisition of Bed Bath's intellectual property and digital assets, signaling a new chapter for the company.

💥 Stay tuned for the relaunch of the Bed Bath & Beyond website in Canada, followed by a rollout in the U.S. shortly after.

Despite declining sales, Overstock's stock has surged 32% this year, showing optimism for its future with this strategic move.

Overstock.com will change website name to Bed Bath & Beyond as deal closes Overstock.com has completed its acquisition of Bed Bath & Beyond's intellectual property and plans to move its website under Bed Bath's domain.

🛢️ Oil prices slide as concerns over demand and China's slow recovery persist.

China's economy shows signs of weak recovery post-Covid lockdowns.
The lack of growth in China caused deflation, impacting the crude oil market.
Eurozone is officially in recession, with Germany and Ireland leading contraction.
West Texas Intermediate (WTI) settled over 1% at $70.50 per barrel.
Brent futures close at $75.90.
🌍 Efforts by major oil producers to stabilize prices appear short-lived.

Saudi Arabia plans additional 1 million barrels per day output cut in July.
Recession fears and Russian crude outflows continue to affect prices.
⬇️ Oil-related stocks decline as commodity pressure persists.

Energy Select Sector SPDR Fund (XLE) down over 2%.
XLE approximately 10% lower year-to-date.

Oil prices fall amid concerns over demand, China's slow recovery Oil prices continue to face pressure amid concerns over slowing economies and a recovery in China that hasn't panned out the way investors had expected.

📰 New US home construction surges by most in 3 decades in May! 🏡💥
🔺 Groundbreaking on single-family homebuilding projects rose by the largest percentage gain since October 2016 and the highest rate since April 2022.
🔺 Multifamily construction projects that secured financing last year contributed to the gains, which may level off as new financing becomes harder to obtain.
🔺 Economists are optimistic about builders expanding operations this summer, but sustainability is questioned due to the significant deviation from the trend.
🔺 Recent data suggest that the housing market is recovering from the impact of the Federal Reserve's tightening campaign.
🔺 Access to loans for builders and developers has become more challenging, potentially affecting lot supplies and expansion efforts.
🔺 Permits for future construction also rose, indicating positive momentum in the housing sector.
🔺 Home construction is expected to contribute to US economic growth in the second half of the year.

New US home construction surges by most in 3 decades in May Groundbreaking on U.S. single-family homebuilding projects surged in May by the most in more than three decades and permits for future construction also climbed, suggesting the housing market may be turning a corner after getting clobbered by Federal Reserve interest rate hikes.

Tired of "tipflation"? It's time to talk about the tipping backlash!

According to Bankrate, 2/3 of Americans now hold a negative view of tipping, and the number of consistent tippers is declining.

💻💡 Digital payments and automatic tipping prompts are fueling the frustration.

⚖️ Eliminating tipping practices is challenging, as restaurants that replace tipping with higher menu prices often face negative online ratings, warns Professor Michael Lynn from Cornell University.

Let's look at a real-world example: Molly Moon Neitzel, the owner of Molly Moon's Ice Cream Shop, shares her annoyance with the tipping culture. It's awkward and never feels good!

🔌Technology has made it easier for non-traditional businesses to discreetly request tips through electronic bills, avoiding awkward in-person interactions.

💳 At Molly Moon's, credit card processors benefited the most from tips, but disparities in pay were revealed, with Black employees earning less.

Molly Moon's took action, offering a minimum wage of $21/hr, comprehensive benefits, and adjusted prices to ensure fair compensation.

Shifting the money flow while providing fair wages and benefits—customers didn't end up paying more overall!

"Tipflation" may be causing tipping backlash as more digital prompts ask for tips A recent survey suggests two-thirds of Americans hold a negative view of tipping.

This Father's Day, let us celebrate those who took us to baseball games, and helped us learn how to drive, those who inspire us and show us how to navigate life.
Happy Father's Day to all the dads out there!

📢 Is Wall Street Entering a New Bull Market? 🐂

The S&P 500 index has surged 20% as of June 8, 2023, from its Oct. 12 low, igniting discussions about a potential new bull market.

The Nasdaq has seen an impressive 30% increase since last December. Generally, a 20% rise from a low signifies a bull market, while a 20% decline from a high indicates a bear market.

Throughout history, there have been 15 bear markets for the S&P index, starting from September 1929.

Some experts consider a bear market if a low remains for at least 7 months, avoiding abrupt reversals, but it's important to note that sustainable bull markets require broad sector participation. Another perspective: A cyclical bull market demands a 30% rise in 50 days or a 13% rise in 155 days.

🐂 It's a bull market for big-cap technology, but insufficient breadth for long-term sustainability
Some argue that a new bull market commences only after the S&P 500 surpasses its prior high from January 2022.

Until then, we may consider it a bull run within a bear market 🐂🐻

Behold Wall Street's new bull market, maybe Part of the uncertainty is that there is no set definition of a bull or bear market.

📊 Remember that looming recession? Not happening, some economists say.

Despite expectations of a downturn, the economy is defying predictions with strong job growth and steady consumer spending, resulting in a delay or potential avoidance of a recession.

👥 Job creation has been surpassing expectations, with an average of 310,000 people added to payrolls every month. Hiring has accelerated, and the unemployment rate has ticked up as more people enter the job market.

🏠 Housing prices have remained elevated due to a severe shortage of homes, countering predictions of a nationwide downturn.

Experts believe that resilience, not recession, is the correct way to describe the economy's performance.

Steady consumer spending, fueled by excess savings accumulated during the pandemic, is another factor contributing to the economy's strength, particularly among higher-income households.

🤔 The likelihood of a recession is seen as a coin toss, with unemployment remaining low and consumer sentiment improving.

⚠️ However, there are challenges ahead, such as weakening business investment and the impact of tighter monetary policy and stricter lending standards.

🔮 While some still predict a mild recession later this year, the economy's momentum has slowed, making it vulnerable to potential obstacles.

Remember that looming recession? Not happening, some economists say "People have been using the wrong R-word to describe the economy," one economist said. "It's resilience — not recession."

🌍 New Study Reveals Insights About the World's Billionaires! 💼

The median age of the world's billionaires is 67, with 42% over the age of 70 and less than 10% under the age of 50.

Despite the attention on young tech billionaires, most billionaires are aging entrepreneurs who have spent a lifetime accumulating wealth.

Wealth creation in tech and banking/finance is prominent among billionaires under 50, while banking/finance and industrial conglomerates dominate the 50-70 age group.

The decline in the population of billionaires in 2022 marked the first slide since 2018, but the rising tech sector may stabilize the numbers.

Women account for 12.5% of billionaires, and 18% of them are under the age of 50, indicating a rise in younger female billionaires.

New York remains the top city for billionaires, followed by Hong Kong, San Francisco, Moscow, and London. 🗽💼🌆

New study pegs the median age of the world's billionaires at 67 While tech wunderkinds and music and sports celebrities may get the most attention, the world's billionaires are largely aging entrepreneurs.

Let us remember the brave men and women who made the ultimate sacrifice.

🚗 Americans are holding on to their vehicles longer than ever due to high car prices and shortages of new vehicles, driving the average U.S. vehicle age to a record 12.5 years.

Prices of new and used cars have soared, with the average new vehicle cost reaching nearly $48,000 and the typical loan rate on new-car purchases ballooning to 7%.

🔧 Auto mechanics are witnessing an influx of older vehicles in need of routine service and repairs, as owners opt to stick with their current cars rather than face the high costs of buying a new one.

The average vehicle age has accelerated by three months this year, with more vehicles staying on the road for 20 years or more, contributing to the boom time for auto repair shops.

⚙️ Despite rising repair costs, it remains more cost-effective for many people to fix their older vehicles rather than purchase a new one.

Repelled by high car prices, Americans are holding on to their vehicles longer than ever The average age of a passenger vehicle on U.S. roads hit a record 12.5 years this year, according to data gathered by S&P Global Mobility. Blame it mainly on the pandemic.

The average college senior graduates with credit card debt. How will your kids manage money?

Do Your Kids Know The Value of a Silver Spoon? You taught them how to read and how to ride a bike, but have you taught your children how to manage money?

⬆️ Private payrolls surged by 296,000 in April, beating expectations!

🎉 The highest monthly increase since July 2022, with the leisure and hospitality sector leading the way with a gain of 154,000 jobs.

💼 Other sectors posting solid increases included education and health services, construction, natural resources and mining, and trade, transportation, and utilities.

❌ However, the financial sector lost 28,000 jobs, and manufacturing also took a hit, losing 38,000 jobs.

🏦 Annual pay rose 6.7% over the past year, which is a deceleration from gains that had been consistently coming in above 7%.

👀 ADP’s report serves as a precursor to the Labor Department’s nonfarm payrolls count, which is due out on Friday.

Private payrolls surged by 296,000 in April, much higher than expected, ADP says Private payrolls growth was above the downwardly revised 142,000 the previous month and well ahead of the Dow Jones estimate for 133,000.

Attention Estate Executors: Do you know about the Alternate Valuation Date?

Understanding the Alternate Valuation Date Executors can value the estate on the date of death, or on its six-month anniversary —the “Alternate Valuation Date.

Market Update! April saw a tech stock rally despite recession fears and mixed earnings reports. Dow Industrials led with a 2.5% gain, while S&P 500 gained nearly 1.5%, and Nasdaq was flat. In May, the focus is on the Fed's next move, economic data, and bank lending activity. Stay up-to-date with our monthly market report.

Monthly Market Insights | May 2023 The Dow Jones Industrial Average led, picking up 2.48 percent. The Standard & Poor’s 500 Index rose 1.46 percent, while the Nasdaq Composite was flat (+0.04 percent).1