Happy Monday! It’s Aug 26, 2024. We have three great stories to wrap up the past few weeks in markets, business, and the economy for you and your family.

Here are the highlights:

• All-time highs for gold: What does it mean?
• Big revisions in the job market: Less jobs were added to start the year than expected.
• Cheaper goods boost Walmart, Target: The latest on big retail

---------

All-Time Highs for Gold: What’s the Deal?

Decades ago, governments and people helped make gold the “safe-haven” investment of choice — the kind of asset that keeps its value whether there’s rain or shine in the world. Somehow, even in 2024, it has maintained that reputation — maybe through a mix of good PR, people’s love of shiny things, or its limited supply. This year, the world’s most-traded metal has soared to record highs, including a new record set last week.

• What’s going on with gold? Since there’s only so much gold, it has often been seen as a “safe haven” asset, which is supposed to maintain its value. That doesn’t mean that gold is risk free, but it means that people can expect the precious metal to maintain its value. This perception has helped its value grow in recent years, fueled by the pandemic, high inflation, and investment by governments and people.
• Gold’s new record: Last Tuesday, the price of gold hit a record $2,514 per ounce. That marks a 20% increase from the start of the year, compared with the S&P 500’s 19% return year-to-date. As a result, the price of a gold bar — that’s 400 troy ounces or about 27.5 pounds of gold — hit $1 million. (For an idea of how light that is, consider: the iPhone 15 weighs just over 6 ounces.)

Why does it matter for EarlyBird families?

You’ve might have read an article recently about how wholesale giant Costco is now selling gold and silver bars and thought, “Should I buy gold or silver?” For most Americans, precious metals and commodities are not common in financial plans — often because they are more volatile and have underperformed stocks. Still, gold remains a valuable asset that some Americans value, either as a physical store of value or a portfolio investment. In any case, before investing into gold or other risky commodities, consider consulting a financial planner.

---------

Big Revisions for Job Report: Why It Matters

The U.S. economy has been running red hot since the waning days of the COVID-19 pandemic, but new data suggests that America’s economic steam train might be running low on fuel. According to a new report, the Labor Department says that the U.S. added significantly less jobs in the first quarter of the year — a sign that the country’s robust labor market might finally be slowing down after nearly two years of interest rate hikes.

• What’s the new report say? Every quarter, the Labor Department looks back at its initial job numbers and issues an updated report with revisions. For the first quarter of the year — which includes January, February, and March — the Labor Department originally reported that the U.S. economy added 242,000 new jobs per month. However, the new report has revised monthly growth down to 174,000 — a decrease of 68,000. In other words, 29% less jobs were actually generated in the first quarter.
• What does that mean? The job strides made in the first quarter remain impressive, but call into question whether the Federal Reserve’s high interest rate policy is overstaying its welcome — and potentially dragging the U.S. economy through muddy waters. This much we know: the second quarter was significantly worse than the first quarter. From April to July, U.S. unemployment rose from 3.9% to 4.3%. As a result, the Federal Reserve is now widely expected to begin cutting interest rates next month, which could hopefully put the economy back on a great path.

Why does it matter for EarlyBird families?

At the rate that unemployment rose over the last three reports, recession talks have rekindled among economists, businesses, and the media. At this point, there’s no reason to worry, but a rising number of Americans are worried about their job stability and career prospects. Given the uncertainty in the market, it’s a good time to revisit your financial plan. Have you saved enough? Are you happy with the amount you’re investing in yourself and your family? In times of uncertainty, the best response is to become more educated — not react to something that hasn’t happened.

---------

Cheaper Goods Lift Target, Walmart In Latest Quarter — A Positive Sign for Retail

In a positive signal for the economy, retail giants Target and Walmart pulled out positive results in their respective quarterly reports — bucking a broader industry slowdown. It turns out, if you want to make more money, you might just have to make less first.

• What’s happened? During the pandemic, the price of groceries and household goods ballooned. That was all fine when Americans had thousands of dollars in disposable income, but as Americans have spent town their surpluses, they have begun reining in their budgets. As a result, retailers have warned investors that cost-conscious consumers might end up spending less. And some retailers have warned that Americans are shopping somewhere cheaper.
• More for less: Wholesale giants like Costco and Walmart have remained net beneficiaries of Americans’ budgeting wakeup call, even as Americans spend less. On the other hand, Target was one of the biggest losers from this pullback in spending, but the company still had horse in the race. Earlier this year, it cut the price of over 5,000 items in its catalog — a strategy which has paid off for the retailer and been copied by brands in different industries.
• Hitting the mark: In the end, Target reported that average consumer spending was down, but its traffic looked up — and so did its same-store sales. For the first time in over a year, the company reported growth, showing American corporates that raising prices is not always the best way to drive results.

Why does it matter for EarlyBird families?

Right now, many American companies are embracing discount deals to drive traffic and bring back customers. This has generated positive results for brands so far on the balance sheet, but staying abreast of these trends with consumer brands could also benefit your financial well-being as well — staying current on discount deals, couponing, and price cuts might help you shave much-needed cash off your monthly budget.

---------

What else is up?

• Starbucks launches Pumpkin Spice Latte: We might still be seeing highs of 70 and 80 throughout the country, but Fall is coming earlier than ever — at least if you go to Starbucks. The coffee giant is launching its famous Pumpkin Spice Latte earlier than ever, officially marking the start of its Fall menu. Read more in Axios.
• Independent candidate Robert F. Kennedy suspends campaign: The nephew of former President John F. Kennedy said he would suspend his campaign and remove his name from ballots in key swing states in an effort to support Donald Trump’s Republican candidacy for the White House. Read more in AP.
• U.S. will offer free at-home COVID tests: Amid a surge in COVID-19 infection rates, the U.S. government will begin offering Americans the ability to request four free at-home COVID tests at COVIDtests.gov. Read more in CNBC.