πŸ“ˆ Why Does Wall Street Care About Super Bowl LVIII?

Plus: Tesla drops out the Magnificent 7

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Good Morning!

First up, let's talk about the heart-pounding Super Bowl LVIII – the Chiefs pulled a rabbit out of their helmets with a 25-22 overtime win against the 49ers. Was this the result you were hoping for? Let us know with a reply!

Now, why on earth does Wall Street get all googly-eyed over the Super Bowl? Spoiler: It's not because of Taylor Swift's appearance. Some analysts think that the Super Bowl Indicator is a way to predict the stock market's fate for the year.

In the world of stocks, Tesla's doing a bit of an awkward tango. After slipping 22% this year, they're waltzing right out of the Mag 7. For those with a taste for international flavors, we've got the scoop on some enticing ETFs that could add some global spice to your portfolio.

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Markets

Why Does Wall Street Care About Super Bowl LVIII? (No, It's Not Taylor Swift) (5 minute read)
Oh, the Super Bowl, that magical time when NFL fanatics and channel-flippers unite for a few hours of good ol' All-American fun! Wall Street wizards have even been peeking into this sports crystal ball to predict the stock market's fate for the year. Yup, from Big Mac prices to the cover of the Sports Illustrated Swimsuit Issue, they've tried it all.

But the wackiest of these is the Super Bowl Indicator, dreamt up in 1978 by sportswriter Leonard Koppett. Here's the deal:

  • If the winner is from the old-school NFL (now NFC), stocks will soar.

  • If they're from the original AFL (now AFC), brace for a market dip.

Sounds bonkers? Absolutely, and that's the beauty of it! 🏈 

Image Credit: CNN

Investing

Tesla Drifts Away from Mag 7 After 22% Drop This Year. Here's Who Can Swoop In (2 minute read)
The electric vehicle giant, which had revved its way into the S&P 500's 'Magnificent Seven' last year, is now skidding on thin ice. This exclusive club is like the VIP lounge of stocks, home to the seven biggest players in the S&P 500. But 2024 hasn't been kind to Tesla (TSLA) – its share price took a 22% nosedive, making it the not-so-proud owner of the title 'worst-performing stock in the S&P 500'. That's right, their mega-cap valuation, the VIP pass to the club, is looking a bit worn around the edges!

Get Paid to Invest Internationally With These ETFs (5 minute read)
It seems like international stocks have been playing a bit of a hard-to-get game with investors, especially over the past few years. Take this for example: from 2018 to 2023, the MSCI ACWI ex USA IMI Index – that's a mouthful, right? – which includes stocks from both developed and emerging markets around the globe, only managed to outshine the S&P 500 once.

Many non-U.S. stocks, though, particularly from developed countries, are strutting around with dividend yields that look pretty attractive compared to the S&P 500. And hey, some even boast growth rates in payouts that can give the S&P 500 a run for its money.

Dividends are often seen as signs of stability and quality in a stock, which is like catnip for investors. So, if you're playing the market, you might want to peek at some international equity income exchange-traded funds – they could be the new cool kids on the investing block!

Money

CD Rates Are Starting to Drop. Is It Too Late to Buy? (5 minute read)
Payouts from certificates of deposit (CDs) are already beginning to fall in anticipation of benchmark interest rate cuts from the Federal Reserve later this year.

Due to their attractive APYs, CDs have become an increasingly popular, safe option for folks to park their savings. However, the days of CD rates above 5% are probably numbered. In recent weeks, several major online banks, including Ally, Barclays, Discover, Marcus, Sallie Mae and Synchrony, have started slashing their 12-month CD rates.

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