Happy Friday! It’s July 15, 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:

• Americans lose millions to fake job scams: What to know
• Banks are raising dividends: But buyer, beware…
• Coming to a neighborhood near you: Falling rents? More likely than you think.

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Americans Are Losing Millions to Fake Job Scams

Tech pundits say AI could be a force for good, but unfortunately, it’s bound to be a force for bad too. Thanks to new generative AI technology, scammers have been emboldened — and arguably been among the groups seeing AI’s real productivity gains.

• What’s going on? Thanks to AI, scams have become more elaborate — with genAI tools helping scammers create eloquent, conversational responses. And with job websites struggling to monitor job postings for authenticity, the problem is worsening.
• What’s the fallout? According to a new report by the FTC, Americans lost over $256 million last year on jobs and business scams in 2023 — and they’re already up to over $134 million so far in 2024.
• What are surefire signs of a scam? As a rule of thumb, the majority of jobs never ask you to do an interview via chat or ask for money upfront. Among other red flags, companies generally ask you to get on a call with them for interviews — and don’t generally ask personally identifiable questions before a job offer is extended.

Why does it matter for EarlyBird families?

Scammers make their living to part you with your money — so being in the know about new scams is important to protect your family and assets. Taking time to educate your family — especially younger and older family members — on scams could help save you thousands and avoid hours of headache.

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Banks Are Raising Dividends, But Buyers Beware

Despite commercial real estate worries, big U.S. banks have been soldiering along over the last year — and after acing their recent regulatory reviews, they’ve raising dividends and are readying up their latest earnings. The Financial Select Sector SPDR Fund ($XLF) is up 23% over the past year, narrowly below the S&P 500’s 25% 1-year return.

• What’s the big news? Among America’s 20 largest banks, 12 announced modest increases to their quarterly dividends after the annual Fed stress tests. In many cases, that meant that dividends were raised by just a few cents. However, JPMorgan and Morgan Stanley went the extra mile, authorizing billions in share buybacks.
• And earnings are on deck… On Friday, three of America’s largest banks kicked off earnings season, presenting a mix of good and bad results. JPMorgan posted record profits, but other banks showed lower interest income — as Americans drew down their deposits and didn’t originate new loans.

Why does it matter for EarlyBird families?

At EarlyBird, we don’t do stock-picking — we help families build diversified portfolios for their children’s future. However, watching the earnings from a sector can help Americans stay present on the state of the economy, businesses, and their own portfolios — and with financial firms marking the start of earnings season, we’ll be on the lookout for big trends.

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Coming Soon to a Neighborhood Near You: Falling Rents

Since the pandemic, rents across the U.S. have been rising faster than wages — with rents rising over 30% nationwide between 2019 and 2023. But some analysts say that might be about to change, with big developments afoot for the ~50% of Americans who rent.

• What’s happening to rents? Thanks to years of investment in apartment buildings and residential property, scores of new apartment openings is expected to boost inventory — and potentially bring down rents across the country.
• What does this mean for renters? This year, median rents are up just 0.77% according to rent.com. And this could continue, with weaker demand meeting the reality of housing development. As a result, rents are widely expected to gyrate after summer.

Why does it matter for EarlyBird families?

Many families can count themselves homeowners because of the era of low interest rates and luck, but many families have no choice — and future generations might choose to stick to renting, rather than buying, for lifestyle factors. Given all of this information, slower or falling rents could be a game changer for families. However, we’ll have to wait and see if America’s apartment glut translates to lower prices.

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What else is up?

• Global startup funding hits 5-year low: According to Crunchbase, 2023 marked a five-year low in funding for the startup ecosystem — which has seen a pullback in funding from venture firms and angels amid generational highs in interest rates. Read more in Crunchbase.
• EPA will require limits on forever chemicals: Chemicals originally used in the manufacture of teflon pans have leeched into the environment, cropping up in America’s water supply — but a new EPA rule will require water utilities to limit the levels of the chemicals. Read more in AP News.
• Google to add deep web tracking: Long offered as a staple of its more-expensive paid Google One subscription, the tech giant will begin offering all users access to dark web reports for free — which will show whether your personal data has been found in data breaches. Read more in 9to5Google.

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