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." (www.schwab.com/learn/story/deficits-debt-and-marke…)

WashingtonWise is an original podcast for investors from Charles Schwab (www.schwab.com/) . For more on the series, visit schwab.com/WashingtonWise (www.schwab.com/washingtonwise) .

If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts (getpodcast.reviews/id/1478013779)

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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.

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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...