Together With

Happy Monday Future Funders Family!

Not going to sugar coat it today, our family was visited by a stomach bug that pretty much dominated our entire weekend. But hey, its Amazon Prime day this week, so at least I can burn everything in my house and start over.

Okay, let’s get to it!

💬 Quote Of The Week

🍽️ The Main Course

Headlines That Matter

Economy

Maybe The Economy Is Alright After All

🚀 The quick version: Recent data paints a picture of an economy that is stronger than traditional media would have you believe.

While we aren’t in a true ‘goldilocks’ economy yet according to the experts (fancy term for the economy being just right), we might be getting closer.

The deeper explanation:

• Jobs data is encouraging. The US added 209K jobs in June. Experts pointed to this number being below expectations of 230K, but it’s not far off. Plus, wage growth was better coming in at +4.4% vs. expectations of +4.3% (nice to see as wage growth has not kept pace with inflation) and the unemployment rate ticked down to 3.6% from 3.7%.  

• US service sector is expanding. The service sector makes up about 80% of the US economy; the service ISM (a monthly survey Wall Street looks at to get a pulse on the service sector) number for June just came in at 53.9 vs. 50.3 in May, and above forecasts of 51.2 (a reading over 50 means economic expansion and below means economic contraction). Perhaps most notably, Prices Paid (= cost of services) came in at 54.1 from 56.2, meaning they are still rising but at a slower pace.

• U.S. manufacturing is slowing. The manufacturing ISM for June (same survey just on the manufacturing sector) was soft with a headline number of 46, down from 46.9 in May and below forecasts of 47.1 (same above and below 50 meaning as above). Prices Paid also came down to 41.2 in June vs. 44.2 in May. Prices Paid moving lower in manufacturing typically is a positive indicator that prices for the consumer will move down in the near future (if the companies making your stuff are paying less to do it those savings typically trickle down).  

Collectively, these results show continued job growth, wage growth, and prices that are coming down. If this trend continues, we may get our ‘goldilocks’ economy after all.

The next data point everyone will be watching is the June inflation number when the Consumer Price Index is released this Wednesday.

👪 How it affects your family: We have two observations that matter…

• Interest rates will likely move slightly higher. While the FED is seeing positive signs in price metrics coming down (i.e. inflation is getting better), the strong job growth and low unemployment likely gives them cover to hike interest rates a bit more to fight inflation. With interest rates still moving a bit higher, we would be watching sentiment indicators (these are some sentiment indicators we watch) to wait for a better time to invest in stocks (here we go deeper into interest rates and the stock market).

• CDs, Bonds, and Money Market Funds still look attractive. Especially if you plan to retire in the next several years, these types of investments are worth a look offering a +5% return right now with less risk than stocks (read about short term treasury ladders here).  

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Medical Finance

Wait…Did We Just Find An Obesity Cure?

🚀 The quick version: The drug maker Novo Nordisk is waiting for the results of a first of its kind weight loss study that could change obesity as we know it.

Novo is testing Wegovy, a weekly injection also sold under the brand name Ozempic, in a five year study with results to be released likely in July or August.

The study enrolled 17,500 patients diagnosed overweight or obese with established cardiovascular disease (patients with diabetes were excluded).

The goal is for the study to show a significant reduction in rates of heart attack, stroke, and cardiovascular health, a group of outcomes abbreviated as MACE. Experts say that if the study shows about a 15% reduction or higher then it would be deemed a success.  

If the study is a success it will likely open the flood gates for more drugs that target the same hormone with obesity sales potentially reaching more than $50 billion by the end of the decade.

👪 How it affects your family: Up until now, insurers have not been willing to cover these drugs in large part because they say there are no large studies linking them to health benefits.

This study would change that potentially allowing you to get coverage on your plan. Even Medicare, which is legally prohibited from covering obesity medications, would come under pressure to reverse course.

Watch the headlines in the next month or two for results.

🥘 The Side Dishes

A few things to know…

😺 Changing definitions of success. A new interesting survey this past week ranked the “freedom to follow your dreams and passions” higher than traditional wealth accumulation.

⛽ Gas prices showing light at end of the tunnel. For more signs of price deflation, US gas prices hit their lowest level since late April ahead of Independence Day, with the national average standing at $3.52 a gallon. Gas Buddy thinks they will get to under $3 by the fall.

🏅 Sports, sans mansplaining. The GIST is a free sports newsletter led + written by women that covers the biggest headlines, including the social and cultural impact of sports. Subscribe here!*

🐕 Don’t multitask while walking the dog (apparently). We do this all the time with our dogs, but some animal experts recently weighed with potentially dangerous pitfalls of not paying attention.

🤖 Make money with AI. Want to get smarter and learn to make money with AI? The AI Tool Report offers over 100,000 readers free daily tips and tricks in 5 minutes a day. One click opt in here!*  

📦 Send packages sooner vs. later. Over 300,000 UPS employees may strike at the end of the month and if a deal is not made by around the 21st, UPS may stop accepting some packages. Talks broke off earlier this week and don’t appear to be going well.   

💻 ChatGPT losing its luster? Worldwide traffic to the chatbot’s website, which had been spiking since inception, declined 9.7% from May to June. Funny how that timing lines up with the end of the school year…

🪙 Learn more about digital assets. Richard Patey breaks down the top news and opportunities in online business, domains & NFTs, to help you become a better digital asset investor. Sign up here!*   

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🗓️ The Week Ahead

July 11th

Today marks the start of Amazon Prime Day. This year the event will take place over a 48 hour period starting at 3am EST. We created a quick guide for parents on everything you need to know to save you money.

July 12th

The Consumer Price Index (CPI) for June will be released today. Based on the recent data we are seeing (above), we would continue to expect inflation numbers to come down. Forecasts predict we get a number at +3% vs. the +4% we saw in May.

July 13th

A day after we get the CPI for June, we will get the Producer Price Index (PPI) for the same month. The PPI is a great way to think about where prices are going for your family as it measures how much the companies making your stuff are paying for inputs. Similar to the CPI based on data we have seen we would also expect this measure to move lower (i.e. better for you).

🍨 Dessert

This Week’s Deals For Families

Here are this week’s recs to help your family save and spend smarter*

🖼️ Looking to frame something important? Frameist is offering 50% off all custom picture frames for a limited time.

🔥 Need a fire pit for the backyard or just something small in the house? Colson Fire Pit is offering 50-60% off select purchases for Amazon Prime Members for a limited time  

💻 Looking for a new laptop? Microsoft is offering Dinner Table Discussion subscribers up to $400 off on select Surface Laptops through July 16th.

📦 Not sure where to start for Amazon Prime Day savings? We made a quick guide for parents to help you with the basics.   

*we aim to always keep this newsletter free. If you buy something through our deals we may earn a small commission, at no added charge to you, in order to help us keep the lights on

Dinner Discussion ❓