Table of Contents:
Weekly Market Recap
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Don’t look now, but gold is absolutely on fire this year, gaining almost 35% in value year-to-date. Early this week, gold futures crossed $2,000 (as an adjusted figure for inflation, etc.) for the first time. And according to Michael Hsueh, a commodities and foreign exchange strategist at Deutsche Bank, gold could hit $2,100 before we know it.
Hsueh also thinks silver (up about 30% this year) is due for a surge as the global economy begins to come back and the need for such metals will be high. While gold is a risky investment, it does tend to have an inverse relationship with cash and other equities–meaning it can help balance risk in your portfolio. Make sure to read our guide on investing in gold and silver for more information.
Other Hot Starts to the Week
Stock-index futures creeped up late Tuesday and early Wednesday, indicating a run for Wednesday’s overall market. Disney, for instance, saw a surge on Tuesday after announcing its earnings (which were dismal but better than analysts expected), and the market is hoping for more good news with the release of job reports on Wednesday.
Other news driving the market includes hope for progress on a second stimulus package to help bolster the economy. The White House and congressional Democratic leaders are planning to reach a deal by the end of the week and vote next week on the package.
Job Report Expectations Missed the Mark
The ADP private-sector jobs report for July shows the addition of just 167,000 jobs in the private sector. This is way below the 1.9 million jobs analysts expected to see added in the private sector last month (the private sector added about 2.4 million jobs in June, for context).
What to Look for This Week
Yet another busy week, here’s what you should be on the lookout for:
- Wednesday, 8/5: The U.S. Census Bureau is set to release a report on trade balance.
- Thursday, 8/6: As with every Thursday, we’ll see the U.S. Department of Labor’s weekly unemployment claims report; the Institute for Supply Management is also set to release their non manufacturing index.
- Friday, 8/7: The U.S. Federal Reserve is going to report out on consumer credit, which will provide a great indicator of the economy; the U.S. Census Bureau reports out on wholesale inventories; and we’ll see the jobs and unemployment report from the U.S. Bureau of Labor Statistics.
Invest Your Money
Tired of trying to time the market? Let a robo advisor do the work for you. Below is a list of the best robo advisors and a brief description on which type of investor each one is best for.
|Ally Invest||Portfolio diversification|
|Wealthfront||First time investors|
|Personal Capital||Large investors|
|Acorns||Students and young investors|
|M1 Finance||Customizing your portfolio|
|Wealthsimple||Unique investment options like SRI|
|Vanguard Personal Advisor Services||High net worth, buy and hold investors|