Inflation has permeated its way through many sectors of the economy causing consumer sentiment to dip, but US equities (^GSPC, ^DJI, ^IXIC) are trading at...
) are trading at record levels. Edelman Financial Engines Director of Financial Planning Kelli Smith joins to break down some of the Social Security remains a top concern for retirees as latest reports detail it could dry up by 2035. Memorial Day weekend is right around the corner and with it comes great discounts across amny retailers,I'm Brad Smith and this is Yahoo Finance's guide to building your financial footprint.
We've got your rule of thumb for how you can go on a budget and spend in a sea of sales and what you can hold off on on the other side of that.We're 90 minutes into today's trading activity and we're taking a look at the Dow Jones industrial average right now.And the NASDAQ composite, you're seeing that higher by 6/10 of a percent.And that is Wall Street feeling pretty giddy, but main street isn't necessary feeling.
Joining me now, we've got Eric Friedman who is the US Bank Asset Management Group, chief Investment Officer.Great to have both of you here with us today. It's, it's the same thesis going throughout in here that prices are high inflation is helping to keep those prices remaining high. If you don't own a house, you want one, it's of course, very difficult to get one both with respect to housing prices, then also the cost of financing.If you, if you have a house, you feel pretty good about it.
So in general, consumers are doing well, but you're starting to see some level of disparities across a different income cohorts which you and corporate earnings can provide some more insights into Steve, you know, just one more question on the economy here. And, and we have similar conclusions about just the the importance of of interest rates when we're looking at things like this kind of cash flow models, the way that we try to look at stocks or bonds or other instruments.And, and there's been a little more of a reconciliation between the fed and the market in, in 20 to 24 but 2025 and 2026 there's a bit of a disparity there.
So I think there will probably be some level of rate cuts but not as many as the market may anticipate for this year and perhaps uh the balance of next year. I also think there's an area that is probably a little less uh uh you know, appreciated as equal weighted S and P. You talk about the dow reaching its all time, high equaled S and P has lagged for the last couple of years and for good reason because because of course, we've had more of a tech driven backdrop.
Yeah, I think as long as the fed is telling you, they wanna cut rates even though they're not necessarily ready to pull the trigger.And I think that's gonna create an opportunity for people to originate uh not only uh debt but also a new equity origination going forward in here. Now there's two common measures of pe and that's both forward pe and trailing pe trailing price to earnings that relies on past performance and uses the total EPS for the prior year.
I think that there was a lot of optimism and exuberance really heading into the Navidi report just just three months ago, but it really became a no style type of event.I mean, we've been so accustomed with NVIDIA, having some type of beaten raise and an unbelievable revenue beat on the top line mechanism.
But I think the commentary that we're gonna see from Jensen itself, especially on the transition from uh the Hopper to Blackwell is really what's gonna be the investor focus uh on Wednesday night.Ultimately, you know, one of the huge things that investors have to consider is where NVIDIA sits in terms of its value for any investors that are considering kicking the tires on buying in versus some of the rest of the A I annex names within the market right now.
So that makes me believe that this stock right now trading at 37 times for earnings, it's gonna be a little bit more fairly valued. Whether that is the chips, whether that is the language learning models that are gonna be set to come forward, whether that's just the utility companies that are set to make bank because of all the different data centers that they're gonna have to operate as well.So that still will be in, you know, the intangible aspect of the chips themselves.
But I think it's very much warranted for the amount of work that's gonna be really coming due, not just in a year or two for now, but 10 years down the road because these are projects that just can't be planned one year out.And I think that's another great way to play this A A I narrative outside of, you know, your, your A nd your N NVIDIA.
I mean, obviously the, the absolute number was supposed to be very high, but I think a lot of people are really taken back by the actually uh Capex revisions from this past quarter.And that's basically through A I so my big takeaway here is, you know, I think over the last year, the market has focused on the magnificent seven and their profitability.But the market is gonna have to really start to f and recognize how it's going to warrant the valuation of these magnificent seven names.
Um But it's really important when you are preparing for inflation, inflationary environments that you are saving.Um depending on where you are in your up toward retirement, you want to make sure that you've done retirement planning, retirement savings maximizing those and minimizing debt where possible.
What would you need in order to maintain your cost of living your standard of living uh during those uh those months, what about those who are already either marching towards retirement have said, you know, this is my date. We're at college graduation season here, you know, as they're setting themselves up and, and preparing a financial mindset for, for planning for the future, what is the number one thing that they can implore and as they're starting to hop into the workforce?Uh having a plan means that you're going to be able to calculate how much you need to save for the long term, how much emergency savings you have.
And the third thing is if you're nearing retirement and close to that time where you can tap into it, you know, try to delay a lot of people. But we've also got an expert that's gonna break down what you should buy or could buy for the big sales events that are gonna be taking place and all throughout your feed, unlimited shrimp deals for $20.This weekend, the Orlando based chain filed for chapter 11 bankruptcy, citing high labor costs, rising rents and yes, unlimited shrimp.
Well, in honor of Memorial Day and one of the biggest shopping weekends of the year, we know it is consumers hunting for a deal out there.Our very own Brooke De Palma is here with the latest Brooke.Consumers are expected to spend less as you know, to this Memorial Day weekend than they did a year ago.
Joining me now we've got Adam Davis, who's the Wells Fargo retail finance managing director here to break down just that.So what are the deals that are perhaps worth kicking the tires on or buying into over Memorial Day weekend, Adam?So typically, I mean, we're seeing some of the bigger ticket items, um, you know, appliances, furniture, outdoor, indoor, as well as mattresses.But you know what we'll see is retailers will start to sell through, uh, spring merchandise.
And so we were just taking a look on screen at what not to buy perhaps in this wave of sales that are gonna be taking place in the next few days here.Yeah, so the in season goods, they're just, they're going to be promoted this weekend but not as heavily as potentially those big ticket items, which historically, this is a big weekend for that.
Now, I think it would be, you know, if you have a specific item that you absolutely have to have, then, you know, kind of shop around kind of hunt, um, do some price comparisons. So I think loyalty programs are big price comparison between the different retailers is big and you could probably pull up kind of where certain products were on sale last year.
Target wants to get in on that and they're doing that by cutting prices on a lot of what we call the consumer staples, the things that you can't really go without your Clorox wipes, your Thomas bagels. I've only tried the e the, the, the muffin, the English muffin, but I mean, it's coming at a time too where they're using this to promote ahead of Memorial Day weekend, summer sales saying, hey, some of these everyday low items, whether it's red cups for those of you who are probably tossing some ping pong balls into it or those of you who just need, you know, an extra grill at home.
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