WashingtonWise

Election 2024 Reset: What’s Next?

When President Biden announced his decision to drop his campaign for a second term, everything we thought we knew about the 2024 election was turned on its ear. The questions, the speculation, and the theories all began to swirl. In this episode of WashingtonWise, host Mike Townsend clears up the rules surrounding a change of candidates, discusses what it means for the Democratic convention, and addresses how it impacts the ballots. He also answers investors' questions about what the upheaval in the race means for congressional elections and for the markets. Mike also checks in on other news from Washington, including congressional hearings underway to identify the breakdown in security that allowed the recent assassination attempt on Donald Trump and address ways to prevent any recurrence; a bi-partisan agreement to ban elected officials from trading stocks; and the long-delayed finalization of IRS rules pertaining to inherited IRAs. WashingtonWise is an original podcast for investors from Charles Schwab [https://www.schwab.com]. For more on the series, visit Schwab.com/WashingtonWise [https://www.schwab.com/washingtonwise]. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts [http://getpodcast.reviews/id/1478013779]. Important Disclosures Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing. The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.  All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.  Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.  Investing involves risk, including loss of principal.  The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.  Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy. Digital currencies [such as bitcoin] are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument. Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Spotify and the Spotify logo are registered trademarks of Spotify AB. (0724-FN7H)

U.S. Economy: A Glass Half Full, Half Empty, or Both?

When it comes to cutting interest rates, the Federal Reserve seems determined to stick with its plan to take it slowly and let the data guide their decisions. But what data are they looking at, and what is it telling them? And what cues does the data have for investors? On this episode, host Mike Townsend and Kevin Gordon, director and senior investment strategist with the Schwab Center for Financial Research, sort through inflation numbers, consumer confidence data, the latest jobs report, and more to explain what's important to the Fed. Kevin also looks back at the markets' strong first half of the year and what the underlying data may signal for the second half of 2024. And he provides his perspective on why investors feel anxious about the market even amidst strong performance. Mike also provides the latest from Washington, including a Supreme Court decision that could have far-reaching implications for companies and the markets and a setback for bipartisan privacy legislation. And Mike shares insights on the process should a presidential nominee choose not to run. WashingtonWise is an original podcast for investors from Charles Schwab [https://www.schwab.com]. For more on the series, visit Schwab.com/WashingtonWise [https://www.schwab.com/washingtonwise]. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts [http://getpodcast.reviews/id/1478013779] IMPORTANT DISCLOSURES The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions. Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Investing involves risk, including loss of principal. All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market. Schwab does not recommend the use of technical analysis as a sole means of investment research. Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy. Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data. Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see Schwab.com/IndexDefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc. 0724-CGWU

Adopt a Trader Mindset to Manage Your Emotions

While the stock market continues to march higher, investors still have a lot of concerns. There’s the fear of missing out as certain individual stocks like Nvidia have turned in stellar performances. And then there are concerns about rising oil prices, lingering high interest rates, and the November elections. All the uncertainty is causing investor emotions to run high and can impact investing decisions. Kevin Horner, senior manager on the Charles Schwab Trading Services Education Team and a coach on Schwab’s Trader Talk webcasts on YouTube, joins host Mike Townsend to talk through investors’ key concerns and the impact they are likely to have on the markets—and to share tips on how traders work to stay data-driven and keep emotions out of their investing. In his Washington update, Mike discusses tax proposals from the presidential candidates, the big changes in leadership coming to the FDIC, the trickle-down effect those changes could have on the CFTC, and the new format for the presidential debates. You can join upcoming Schwab Coaching Webcasts at: https://www.youtube.com/channel/UCRKoXeObvJ1BtjHFAMEaXFw [https://www.youtube.com/channel/UCRKoXeObvJ1BtjHFAMEaXFw] WashingtonWise is an original podcast for investors from Charles Schwab [https://www.schwab.com]. For more on the series, visit schwab.com/WashingtonWise [https://www.schwab.com/washingtonwise]. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts [http://getpodcast.reviews/id/1478013779]   IMPORTANT DISCLOSURES Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions. Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Investing involves risk, including loss of principal. Schwab does not recommend the use of technical analysis as a sole means of investment research. All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market. Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy. Digital currencies [such as bitcoin] are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument. Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see Schwab.com/IndexDefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.  0624-ABH6

(Bonus) From On Investing: Mid-Year Outlook

All eyes were on the Fed in the first half of 2024, but with core PCE holding steady and no rate cuts, how did the other parts of the economy and the markets fare? In this midyear episode, Schwab experts look ahead to the second half of 2024 to consider what investors might expect from the U.S. stock market [https://www.schwab.com/learn/story/mid-year-outlook-us-stocks-and-economy], the global markets [https://www.schwab.com/learn/story/mid-year-outlook-global-stocks-and-economy], and policy and politics in Washington D.C. [https://www.schwab.com/learn/topic/government-policy] First, Liz Ann Sonders and Kevin Gordon discuss the current trends and bifurcations in the equity market. They highlight the significant spread between large-cap and small-cap performance, with the S&P 500® outperforming the Russell 2000. They also discuss the divergence within large-cap stocks, particularly in the growth trio of tech, communication services, and consumer discretionary sectors. The conversation emphasizes the concentration of performance in a small number of major drivers, such as Nvidia, Microsoft, Meta, and Amazon. They also touch on the bifurcation between index-level gains and weaker member-level performance in the NASDAQ. The conversation concludes by noting the relationship between market bifurcations and broader economic trends. Next, Liz Ann interviews Jeffrey Kleintop, Schwab's chief global strategist. Their conversation covers the global economic outlook, China's market performance, central bank policy, geopolitical risk, election risks, and asset allocation. Jeff discusses the recovery in the global manufacturing sector, China's stock market performance, central bank rate cuts, geopolitical developments, and the importance of international diversification. Finally, Kathy Jones interviews Mike Townsend, Schwab's managing director of legislative and regulatory affairs and the host of the WashingtonWise [https://www.schwab.com/learn/washingtonwise]podcast. They discuss the legislative agenda for the second half of the year, the upcoming presidential election, the regulatory agenda, and the battle for control of Congress.  On Investing is an original podcast from Charles Schwab [https://schwab.com/]. For more on the show, visit schwab.com/OnInvesting [https://schwab.com/OnInvesting]. If you enjoy the show, please leave a rating or review on Apple Podcasts [http://getpodcast.reviews/id/1711806955]. Important Disclosures The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.  All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.  Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.  Investing involves risk, including loss of principal. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. Small cap investments are subject to greater volatility than those in other asset categories.  International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market. Rebalancing does not protect against losses or guarantee that an investor’s goal will be met. Rebalancing may cause investors to incur transaction costs and, when a non-retirement account is rebalanced, taxable events may be created that may affect your tax liability. Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data. Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions. Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy. The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information. Digital currencies such as bitcoin are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument. Schwab does not recommend the use of technical analysis as a sole means of investment research. Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see schwab.com/indexdefinitions [http://www.schwab.com/indexdefinitions]. The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc. Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Spotify and the Spotify logo are registered trademarks of Spotify AB. The Global Manufacturing Purchasing Managers Index (PMI) is a survey-based indicator of the economic health of the global manufacturing sector. The PMI index includes the major indicators of: new orders, inventory levels, production, supplier deliveries and the employment environment. The MSCI EAFE Equal Weighted Index includes the same constituents as the MSCI EAFE Index (large and mid-cap securities from Developed Markets countries around the world excluding the US and Canada), with an alternative weighting scheme where at each quarterly rebalance date, all index constituents are weighted equally. London Stock Exchange Group plc (LSEG) is a United Kingdom-based stock exchange and financial information company headquartered in the City of London, England. It owns the London Stock Exchange, Refinitiv, LSEG Technology, FTSE Russell, and majority stakes in LCH and Tradeweb. (0624-8NYZ)

Economy Is Strong, but Investor Uncertainty Lingers

In the first half of 2024, though the markets are doing well, inflation is cooling, unemployment is near record lows, and the economy is strong, there continues to be an undercurrent of anxiety among investors. That's likely due to the sense that there are a lot of uncertainties out there, including the Fed's rate-cut timing, the looming election, potential tax changes, the nation's rising debt load, and more. On this episode, Daniel Stein, who manages three Charles Schwab branches, joins host Mike Townsend for a wide-ranging discussion about investor concerns and offers solid suggestions for navigating them. Dan also provides strategies for building a bond portfolio to capture today's strong rates while also planning for rate changes in the future, shares insights on where to look for potential opportunities spurred by the growing interest in artificial intelligence, and offers ideas for how investors can position themselves in anticipation of potential tax code changes in 2025. In his Washington update, Mike discusses bills moving through Congress to create a regulatory framework for cryptocurrency and to discourage the Fed from launching a central bank digital currency. He also provides an update on a setback for the SEC, which saw a new rule for hedge funds rejected by the courts. For more reading on one of the topics discussed on today's episode, see the Schwab Center for Financial Research's latest deep dive into the implications of large federal deficits and the growing national debt: "Deficits, Debt, and Markets: Myths vs. Realities." [https://www.schwab.com/learn/story/deficits-debt-and-markets-myths-vs-realities] WashingtonWise is an original podcast for investors from Charles Schwab [https://www.schwab.com]. For more on the series, visit schwab.com/WashingtonWise [https://www.schwab.com/washingtonwise]. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts [http://getpodcast.reviews/id/1478013779]   Important Disclosures The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions. Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Investing involves risk, including loss of principal. All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice.  Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information. Digital currencies [such as bitcoin] are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market. Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy. Currency trading is speculative, volatile and not suitable for all investors. Money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the fund. Roth IRA conversions require a 5-year holding period before earnings can be withdrawn tax free and subsequent conversions will require their own 5-year holding period. In addition, earnings distributions prior to age 59 1/2 are subject to an early withdrawal penalty. A bond ladder, depending on the types and amount of securities within the ladder, may not ensure adequate diversification of your investment portfolio. This potential lack of diversification may result in heightened volatility of the value of your portfolio.  As compared to other fixed income products and strategies, engaging in a bond ladder strategy may potentially result in future reinvestment at lower interest rates and may necessitate higher minimum investments to maintain cost-effectiveness. Evaluate whether a bond ladder and the securities held within it are consistent with your investment objective, risk tolerance and financial circumstances. Investors should consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available in such state's qualified tuition program Investment Research for Schwab Investing Themes™ is provided by Charles Schwab Investment Management, Inc. (“CSIM”). CSIM is an affiliate of Charles Schwab & Co., Inc. (“Schwab”). Both CSIM and Schwab are separate entities and subsidiaries of The Charles Schwab Corporation. Schwab Investing Themes is for informational purposes only; it is not intended to be investment advice (including fiduciary advice as defined under the Employee Retirement Income Security Act or the Internal Revenue Code) or a recommendation of any stock.  Neither the tax-loss harvesting strategy, nor any discussion herein, is intended as tax advice and does not represent that any particular tax consequences will be obtained. Tax-loss harvesting involves certain risks including unintended tax implications. Investors should consult with their tax advisors and refer to the Internal Revenue Service (IRS) website at www.irs.gov about the consequences of tax-loss harvesting. Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data. Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see Schwab.com/IndexDefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.  Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Spotify and the Spotify logo are registered trademarks of Spotify AB. 0624-7YJZ