Market MakeHer Podcast 32. Q&A: Answering All YOUR Questions (keep 'em coming)
Apr 12, 2024
This episode dives into key market updates, unpacking CPI and PPI impacts. Listeners get clear explanations on Dow and S&P 500 points, and important insights on CD ladders. The hosts enlighten on gifting stocks to kids and why diversification is crucial. They address concerns about major asset managers' market dominance and tackle whether AI investors are worth it. Plus, a fun moment occurs as one host reveals her favorite Taylor Swift song, blending finance with pop culture!
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Why Inflation Prints And Markets Diverge
- CPI and PPI can move differently because CPI measures consumer prices while PPI measures producer prices and components like energy can diverge.
- Multiple economic releases and big-tech earnings can create volatile market weeks, so expect roller-coaster moves.
Index Points Are Weighted Aggregates
- Market indices are weighted lists of stocks where each company contributes a percentage of the index.
- Different indices use different weighting methods, so index 'points' reflect collective movement, not single-share counts.
Prorate Annual Rates For Short-Term CDs
- Treat advertised CD or savings rates as annual rates and prorate for shorter terms like three months.
- Divide the annual rate by 4 for a 3-month CD to estimate the actual payout for that term.