By coinnews 
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It’s time for Yahoo Finance’s market. Stocks are sliding as investors gauge the impact of President Trump’s tariffs on the Fed’s decision and the path for interest rates going forward. Palantir failing to impress investors in its latest earnings print, the company topping Wall Street expectations in its first quarter and hiking its full year guidance as it sees strong demand even in the face of tariff uncertainty. Pallanter shares down right now over 12%, and shares of insurance company rising after beating expectations.In its first quarter, that’s Lemonade lifting its full year revenue guidance. The company is saying current trends are propelling it toward profitability, and Celsius Holdings shares just below the flat line, actually up about 2.0% as its revenue falls short of expectations, down over 7% year over year. The company’s acquisition of the Allanni new brand closing in the quarter. The company expecting the addition to boost its retail shelf space. That’s a Yahoo Finance market minute for more on what’s trending scan the QR code.
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Welcome to Wealth everyone brought to you by Synchrony. I’m Brad Smith, and this is Yahoo Finance’s guide to building your financial footprint. Our community of experts will give you the resources, tools, tips, and the tricks that you need to grow your money. And on today’s show, portfolio checkup, we talked to one portfolio manager who talks about why market panic is creating big bargains for investors.And an analyst says toymaker Mattel is undervalued and has 50% upside, but the stock is down more than 10% over the past year. We’ll hear the bull case. Plus, are you listening to financial advice on social media? An expert breaks down 3 green and 3 red flags that can help you vet some of the influencers out there. We’ve got all that and much more coming up during today’s show, but first we take a look at some of the market action. We’re 90 minutes into the trading day stocks are sliding as investors.Await the Fed’s policy decision and consider the Trump administration’s next moves on tariffs. My next guest is utilizing an investing strategy called a quote opportunistic value approach. Joining me now we’ve got Earn Dunn, co-head of value equity and portfolio manager at Morgan Stanley Investment Management. Aaron, good to have you here with us. So let’s start off what exactly opportunistic value approaches are and how other investors can follow your lead there.Yes, we take an approach, I think, which is extremely relevant in today’s market, and that is starting with the businesses we’re looking at investing in, leaving the stock aside for a second and saying we want to own good businesses that earn good returns on capital. They allocate capital appropriately. They maintain a proper balance sheet which does not put equity holders at risk in an economic recession. And also they generate a lot of free cash flow, allowing them to compound value over time. That’s the general underlying.view of how we look at companies. And so from a value perspective and an opportunistic perspective is we look at that business, we say OK, where, where are we on a risk reward basis? Where are we on a um where we think our downside is relative to an upside, and you know what causes the dislocation in stock could be something like we saw in March and April, which is the tariff movement and the the tariff volatility in the market. And that’s, I think what really creates a lot of opportunity for us because, you know, good companies.Thrown out with bad companies in early April and throughout March and so that creates a ton of opportunities for us to to buy what we would view as really good companies. So what we’re looking for is a very strong reward or risk view relative to our downside, but we’re looking for good companies to invest in. We think that’s extremely important today. Who are some of those companies? Give us an idea, especially of the ones that you’re looking across assessing and being able to check off all of the items on the list that you just laid out.Yeah, and I think this is extremely important today, and what you’re going to find is what we’ve had so far is really more technical in nature and, you know, people selling equities because they were, they were probably overallocated. And so what you’ve seen is the entire market in an indiscriminate manner come down. Now what I think we’re about to see is what are the earnings impact from what happens in the economy. But when you have these periods of sort of uncertainty, investors tend to flock to where companies.Can still grow. And I think when we do our fundamental work at looking at companies, we want to find companies that are able to grow, not irrespective of the economy, but really with a thesis in mind that allows them to maybe grow earnings through cost cutting or or a changing of the business structure at times. So that sounds really interesting. So 2 stocks or 3 stocks I would mention, you know, one is McDonald’s. This company reported last week and they reported.It was not a great quarter. The low end consumer is down. It’s very weak, but they’re innovating in the, in the menu, and I think that’s extremely important. It’s a capital life business model. They don’t own the restaurants. They, they, they have entrepreneurs that do that. So it’s a capitalized business model and maintain a fantastic balance sheet. And with that innovation in the menu, we think they’re bringing value back to customers and we think that you’re going to start to, start to see sales really increase.Yeah, I just want to jump in because you, you say that the next leg of the market kind of overall, even as you’re assessing some of these opportunistic value names, you say the next leg of the market will be determined more by fundamentals and earnings and even as you were running through the McDonald’s earnings, it really kind of spells out how investors are needing to evaluate fundamentals and the signs that the fundamentals are starting to matter more. What are you seeing there?So what we’ve seen is obviously what happened in March April was there’s some, if you look at the going into March April, your earnings estimates for the market were up about let’s call them 12%. You’ve seen that pullback a couple points, but really what we saw in the drawdown was the earnings multiple really pulled back. And I think that also accounts for why we’ve seen some confidence back in the market and the multiple has gone back up, and we closed April about where we started.Uh, really, but what’s going to really matter here is the outlook. And so we get a lot of companies reporting earnings the last couple of weeks. We still have a little more left and you’re getting a broad array of how companies are approaching this. Some are pulling guidance completely. I think some are really looking at the direct impact of tariffs on their earnings, and others are saying, you know, we’re just not exposed, so we’re going to go forward as we are. What I don’t think is being contemplate.Played in guidance for companies at this current time is economic performance in the back half of the year. I think they’re looking at it and saying direct tariff impact is X amount. That’s what I’m going to give you and that’s a 2Q impact. But what I don’t think we have yet is what the back half of the year looks like from an economic performance perspective. Now, you had Chris Verone on recently and, and, and I know Chris and we were talking about how there’s really this market is very ne.But in our view, there’s a lot of things that can actually go right, you know, and it was just out just a few minutes ago that there’s a lot of negotiations going on on tariffs. We think we’re set up for probably more incrementally positive news on that front in terms of deals. I’m not saying they’re going away. I just say incrementally positive. We’re coming off the top. And then also this tax bill that’s about to start coming out this summer. We think there’s going to be some incremental incentives there for companies.We need to rebuild confidence from the executive suites of US companies. Once we do that, we think there’s a lot of opportunity here to grow earnings, but and also employment. That’s going to really be the big driver here. We need employment to stay strong. It’s weakened on the margin, but it still remains in a pretty good spot. If we can keep employment where it is, we think the economy is in a good position. Otherwise, we see aof risk to the economy from here. Yeah, we got some news on the employment front last week, of course, a barrage of information within that realm of the economic kind of mind frame here and yeah, holding up a little bit better than expected, but those expectations were already pretty low. Erin, we got to leave the conversation there. We’d love to check back in, see how some of these opportunistic value plays are working out. Thanks so much for joining us. Thanks Brian.Now time for some of today’s trending tickers. We’re watching a couple of food names McDonald’s and Sweet Green. Joining me now, we’ve got Yahoo Finance senior reporter Alexandra Canal. Ali, first up, let’s talk a little golden arches here. McDonald’s downgraded to neutral from buy at North Coast Research. The firm has had a buy rating on the stock for more than 2 years, and the analyst says they expect modest profit growth ahead as consumers grow more price sensitive and costs for the company remain a headwind. Taking a look at.Chairs of Mickey D’s, they’re flat, just barely to the upside right now. Yeah, McDonald’s has consistently been known as this consumer friendly stock. We do see that reflected in the year to date gains. We’re up about 9%. We’re outpacing the S&P 500, but we have seen a few headwinds in those Q1 results. We saw a miss on revenue and operating income, suggesting that that lower income consumer is pulling back. And we’re just hearing from Aaron Dunn on the program that the low end consumer is weak right now. That being said though, we have seen somefor McDonald’s and in this research note they talked about how traffic picked up pace on the heels of the global launch of the Minecraft movie promotion, but that traffic uptick is starting to abate a little bit so maybe something to consider moving forward when McDonald’s thinks about its marketing strategy typically when we see them partner with major celebrities or roll out some new uh brand partnership, we see that uptick in traffic, but soft traffic that’s going to influence their ability.To raise prices, which operators are going to want to do in the face of higher inflation. So it’s a tricky situation, right? I think in the QSR space in general you have a lot of competition. Value continues to outperform for a company like McDonald’s, but that also means its competitors are leaning into value as well. So how do you separate yourself? It comes down to that innovation, that marketing, that promotion. So we’ll, we’ll see where shares really go from here. They’re calling marketing.A wild card, but they, to your point, did mention that the market leader position among QSR quick service restaurant burger piers they believe will store margin improvements and be harder to generate here. Uh, that’s gonna be interesting. Demand for value though remaining to your point. Next up here, let’s talk this other major call on the street sweet green cuts to neutral from overweight at JPMorgan, and the firm has had an overweight rating on the stock since it started its coverage last year. Theciting high menu pricing, growing competition, and medium term funding needs as reasons for the downgrade. Shares moving lower off of this, they’re lower by about 6.25% right now. Yeah, let’s pull up a year to day chart here because the shares are down. I mean 43%. 0, it’s just been a brutal time for this company, and look, I love my sweet green. I appreciate it. However, it is expensive. If you want a bowl or a salad with some significant protein, you’re paying.At least 20 bucks. So it’s a little treat and at this time again that we’ve been talking about the consumer pullback, a lot of this soft survey sentiment data that we have out there, you have to really look at your pricing strategy. So you know it’s going to be a difficult position I think for Sweetreen to move forward because they are leaning into this higher end experience and I think if you’re going to Sweetreen you want that, right? You want the nonseed oils you want.The farm to table lettuce and I wanted it to feel fresh. She wanted it to feel fresh, but that comes at a cost. Now this is interesting from this note. Restarting student loan repayments could add additional stress on the wallet. That’s not something I initially thought of, but maybe since Sweetreen is typically in college towns and that younger consumer is going, that could be something to potentially look out for. It’s also interesting that they’re citing some of the.Potential upcoming funding needs here in the context of ambitious development goals for the fiscal year 2026 and they’re saying that that should de-risk the trajectory in the near term, medium growth medium term growth I should say here and that that is not something that you hear all the time when you’re thinking about a business like Sweet green looking to continue to scale and that really being factored into how analysts are looking through that.Opportunity as well as the mix of one of the headwinds that you were mentioning and students saying all right well we’re paying back these loans we can’t buy, you know, a $20 salad at the same clip we used to and their loyalty program too. I feel like they rushed that and maybe they’re pulling back a bit. I, I went to Georgetown where these founders are from. I went to the original Sweetgreen and back in the day it actually was so much salad, way more than you get today, and they used to have Froo and you had the option of making a wrap. None of that exists.Now the salads are literally probably half of what we used to get back in the day and, you know, it, it’s one of those things where I start to think about the franchising of it all and how they’ve been having to pull back on costs maybe a little bit. Yeah, you gotta lean into the experience, I guess when you’re scaling like that, that it is easier to replicate across so many other franchises harder when you want to grow. Absolutely, Ally, that’s good to hear that you were around for the heyday. Listen, the inside scoop.Everyone, you could scan the QR code below to track the best and worst performing stocks of the session with Yahoo Finance’s trending ticker page.We’re coming up on the other side of this short break. Stocks and translation host Jared Blicky breaks down Berkshire Hathaway’s performance against the broader indices. Plus we’re the bull case for toy maker Mattel. Stay tuned.
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Over the past 60 years, Warren Buffett’s Berkshire Hathaway has significantly outperformed the S&P 500. So let’s take a closer look at some of the sector breakdowns between the two. I’m Jared Blickery, host of Stocks in Translation.Buffett took control of Berkshire Hathaway 60 years ago in 65, and in that time, the conglomerate is up nearly 700 times more than the S&P 500. That’s some 4 million% compounded. Yesterday we looked at Berkshire’s top five holdings and we’re looking at some of the biggest sector holdings today.So here’s how Buffett’s portfolio stacks up sector by sector against the S&P 500 as of the end of last year 2024. You can immediately see how financials dominate at 39%, almost triple the index weight. Tech, once his largest possession, is now a bit underweight after trimming Apple and checking out consumer staples and energy. Guess what? Those two have significantly higher and outperformed the broader market.Now Buffett is a fan of concentrated portfolios with those with stocktaking skills, so it’s no surprise to see that Berkshire’s Holdings, they trail in sectors that he doesn’t favor right now. So let’s explore some of those top sectors. And first up, financials. We’re going to go back to that. That is the white line here and it is Buffett’s largest sector at 39%. Not a surprise since Berkshire itself is classified in the S&P 50.As a financial company that has a lot to do with Berkshire’s Geico insurance company ownership, which I should note is not included since it is owned outright. Today we’re only looking at portfolio holdings here. Buffett made an iconic bet on Bank of America coming out of the global financial crisis in 202011, and he’s also held American Express since the 1960s. He also likes financial data firms like Moody’s.Now let’s shift over to tech because this is interesting. Back to our chart in green, we have Buffett’s tech holdings there are topping out at over $170 billion in 2023. That’s a peak there and that’s thanks to his huge position in Apple. Now Buffett shocked many in 2016 by investing in Apple, calling it the ultimate consumer brand powerhouse, but he substantially trimmed that stake.year and the year before to about $75 billion. Buffett has also been pretty honest about some of his tech missteps as well. If you remember Big Blue beginning in 2011, Berkshire acquired about a 5.5% stake in IBM, but by 2018, Buffett threw in the towel, saying, I was wrong about IBM. He also recently sold out of another tech bet, Snowflake.Now let’s shift over to Staples because that is Buffett’s comfort zone and that’s in blue here. You can see his dedication as he sips his can of Coke on stage and his iconic Coca-Cola holdings that goes all the way back to 1988 and he’s never sold a single share. C candy that is.Another favorite of his wholly owned by Berkshire, and it’s given him steady profits since the 1970s. But Buffett admits that even he can miss price a seeming bargain like with Kraft Heinz. After a painful $15 billion write down in 2019, he famously said, I overpaid.Finally we have energy, and this is in orange. Buffett has been building a huge position in Occidental Petroleum since 2019, but here’s why most of us cannot copy Buffett. He got a sweetheart deal with Preferred shares paying an 8% dividend, and that is an example of Buffett level leverage. Chevron is also a big holding picked up in 2020 for the dividends and simple economics. And yes, Buffett has made mistakes in energy too, like ConocoPhillips in 2008.And this reminds everybody that commodities can burn even the best investors. So after 60 years, Buffett’s magic is simple Buy great brands, be patient, admit your mistakes, and let time do the rest.Check out more episodes of Stocks in Translation for more market decoding deep dives, new episodes on Tuesdays and Thursdays on Yahoo Finance’s website or wherever you find your podcast.
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Jared, thank you. Shares of Mattel trading higher after reporting quarterly results that beat analysts’ expectations. The toy maker did pause its full year guidance, citing the volatile macroeconomic environment and evolving tariff landscape. Yahoo Finance executive editor Brian Sai spoke to Mattel, CEO Inanrais earlier this morning, who said the company is taking action to fully offset tariff costs.When it comes to tariffs, uh, the mitigating actions that we’re taking are designed to fully offset the cost impact, and this includes accelerating diversification of our supply chain and further reducing reliance on China’s source product, optimizing for optimizing product sourcing and product mix, and where necessary, taking pricing actions.Mattel is trading in the red over the past year, pressured by weakening demand from high interest rates inflation.Inventory levels and now tariff risks, but our next guest says even with tariff concerns shares are undervalued and attractive. Jamie Katz, who is the Morning Star senior equity analyst, joins me now. OK, so take us into your thesis around how Mattel can best position itself despite some of the tariff risks that manufacturers and the retail industry are certainly certainly keeping close tabs on.Yeah, I, I thought last night’s report was really interesting because it was one of the first companies that we heard where, where we heard the management say we are going to fully mitigate, uh, these incremental costs and that was quantified to the tune of $270 million right? So it’s not like a, a small degree. Part of that I think is that a lot of investors don’t understand that only 20% or so, um, of the inventory coming to the US.Is coming from China and as the clip that you had showed um prior to our discussion um indicated they are uh diversifying away from that. So you know by 2027, they’re only gonna have less than 10% uh of the product coming to the US from China. Um, they are, you know, willing to pull that forward if things stay, you know, the way that they are, um, but I think there is some flexibility in the supply chain that has been, um.Maybe uh overreacted to. The other piece, uh, I think is that there is a little bit of a makeshift going on in the product portfolio where they’re trying to really um wean off products that aren’t generating the ROIs that they want. So as you have just a, a basket of more um better performing assets, of course, you know, that’s going to help defend, uh, your profit margin. So which productsWould you like to see in lines of business would you like to see Mattel lean further into versus those that they should start to make some strategic decisions to either sunset or roll back knowing that consumers haven’t been gravitating towards them the same way that they would have now that there’s even more digitization, there’s even more IP that they would like to leverage in order to create that next either game or toy that’s being played with across all generations perhaps.Yeah, I mean, I think, I think Hot Wheels has been a terrific evergreen brand for them, and they’re coming out with these, um, block sets of, you know, classic iconic cars to, to sort of expand that product line. Uh, I think that continues to resonate with consumers really well. You continue to see, um.Some issues within that, uh, infant and toddler uh portfolio, and they are continuing to downsize that. Um, and, and quite frankly, the, the infant toddler preschool category has been, you know, a problem for them over the last decade. So I think they’re trying to remedy it. It’s just a very umDifficult age group to tap into successfully for a number of companies, so they’re not alone there. Um, and, and I think for more of the digital part, you know, we’ve heard them discuss putting out um self-published video games, they have a relationship with Netties, um, so they are uh accelerating those avenues for growth. It’s just maybe taking a little bit longer um than investors might like.Jamie, I’m gonna try and hustle to my finish and squeeze two questions in here. First, what does this all mean for pricing? The CEO told our own Brian Sai when it comes to pricing, they work very closely with those retail partners, um, but it’s clear that it’s going to have to do some type of moderation on pricing. They assume or they expect to see between 40 to 50% of their product in the US will be priced at $20 or less. What are your anticipations there?Well, I think they’ll probably take pricing in some of the higher priced objects where maybe you’re going towards collectors or people with more discretionary income, and then they’ll be very tactical in keeping those lower price objects um under that $20 price point so it’s accessible for people that are maybe a little bit more stretched right now. Certainly. And just lastly here, is now the time to consider adding Mattel to the portfolio if an investor doesn’t already have it, or is there another more attractive name in the toy space?Uh, look, I think Mattel and Asper are both undervalued. Mattel is trading at about $16 a share. Our fair value estimates $25 so we think there’s a margin of safety. Uh, clearly if you are very tariff averse, this is gonna be a difficult name to get behind.Uh, maybe until we get more clarity in July, but the demand is there. It seems like, uh, the sales have been coming in. The POS numbers look OK, so, um, we aren’t concerned about entry level price where we’re at today. Jamie, thanks so much for taking the time here with us.Thanks. Coming up, it’s Small Business Weekend. We’re breaking down some of the biggest challenges facing small business owners. That’s next.We are excited to partner with Synchrony Bank, our premier sponsor for Wealth. Synchrony Bank is working with Yahoo Finance and Wealth to bring you the insights for your personal finance playbook and help you make your money work for you. Let’s get a check of the markets here as we are 2 hours into today’s trading activity. The major averages are down.Across the board right now, the Dow lowered by about 0.1%. Additionally, the same case on a percentage basis for the S&P 500 and the Nasdaq technology is leading the thing, leading the broader market activity lower here on the day. It’s down by about 0.1%.Well, every year, the Small Business Administration takes 1 week to celebrate independent businesses with fewer than 500 employees, better known as small businesses. According to the SBA, over 99% of companies in the US are small businesses representing 46% of all jobs, and this year’s theme empowering business owners for the future.Aims to recognize the hard work, resilience, entrepreneurial spirit but small business owners also face challenges. Holly Wade NFIB executive director, joins me now to break down some of the hurdles that small businesses are currently facing here. According to the NFIB’s latest jobs report, uh, labor continues to be a challenge here. Why is that?
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So the labor shortage for a number of industries is still historically very high, and that includes construction, transportation, manufacturing.They’ve been having a hard time finding and attracting qualified applicants for historically high levels of job openings over the last number of years, but it has continued into 2025, and there doesn’t seem to be much sight at the end of the road for them. Unfortunately, they have a lot of demand, um, they have a lot of work on the books. Um, it’s just filling those positions is becoming very difficult for them.
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How is lack of clarity around trade policy weighing on small businesses from what you’re hearing and getting a pulse check on?
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So tariffs are adding a lot of uncertainty to small business owners, whether they anticipate being directly impacted, if not already, or indirectly impacted, whether that’s because they’re in the supply chain of the um uh in the supply chain, or whether they are just anticipating a slowdown in economic activity that might impact them.So the level of uncertainty again is historically very high. It’s been high for a while, but it continues to be so just with kind of different issues that are facing them that they don’t quite know yet how or to the degree of which some of those policy shifts will impact impacting them.
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While we’re talking about policy, oneThe other major policy implications for small businesses could be what comes forward in the negotiations and hopefully ultimate netting out of a return to the tax cuts and Jobs Act 2.0 we should say, and you know as we’re thinking about that, that has yet to really have a course charted for it yet. What are small business owners looking for there?
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Sure, so they’re looking for permanency for those tax cut and Jobs Act provisions that are set to expire at the end of 2025, uh, especially the 20% small business deduction that’s been so helpful for them to retain more profits, reinvest those profits into their business, especially over the last number of years where economic conditions have beenA roller coaster for a lot of them, including trying to absorb high inflation, um, that are impacting their business. We still hear from a good number of small business owners saying inflation is a driving factor, big problem for them in operating their business. So retaining those savings through the TCJA, um, from 2017.will go a long way in helping them and avoid a tax increase in 2026.
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To what extent are you hearing from small businesses that they’re still concerned about that concerned about inflation to the extent that they have to pass it on to consumers and consumers push back on price to the extent that they even have to take that on for their own expenses as well.
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Certainly, so it’s impacting them in all sorts of ways, including increasing compensation for their employees and increasing those salaries for entry level positions. So a lot of increases in pricing and cost inputs kind of across the board in their various.Business operations and we’re still seeing elevated levels of small business owners saying that they have increased prices, planning to increase prices to absorb those higher costs. So about between quarter and um.Uh, but, well, actually about 17% of them are saying that inflation is still their single most important problem. That’s off where it used to be, um, a couple of years ago, thankfully, where we saw upwards of a third of our members saying that inflation was their biggest problem, but still very elevated levels. And so there.Having to absorb those prices, pass along those costs, but it’s becoming more difficult as everybody is experiencing a lot of price fatigueout there.
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And just lastly while we have your consumer sentiment sliding, how are small business owners preparing for what their businesses need to do in order to circumvent a major impact?
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So again, that is one of the contributing factors to the level of uncertainty that they’re having to deal with. And because of that, they are reining in spending, so they’re retaining more profits, uh, not investing as much in their business, and so we’re seeing lower capital spending plans, um, lower hiring.Plans for small business owners as they brace themselves in anticipation of what might come next and you know, to the degree to which some of these, especially trade policy shifts will impact them. So they are reining in spending and being a little more cautious with their wallet.
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Holly,good to grab some time with you. Thanks so much for joining us here on Yahoo Finance.Thank you. Coming up, a new survey shows Gen Z stressed about money. We have some extra tips though on how to stop the cycle of overspending and start saving. That’s next.According to a new survey from Ally, 83% of Americans say financial worries are impacting their mental health, and the impacts are being felt particularly hard by Gen Z. Nearly half say they’re stressed about money at least once a week, and only a third feel like they’re in control.of their finances here to break down the survey and how Gen Z can start building a strong financial foundation we’ve got Jack Howard, Ally Bank, head of money wellness. Jack, great to have you on with us. So what are some of Gen Z’s financial priorities from what we’re assessing and hearing?
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Yeah, we’re finding that their financial priorities, they’re not in alignment with what we want to see. There’s a lot of impulse spending that’s taking place primarily stemming from social media. We’re finding that nearly 50% of Gen Z are spending impulsively really with the goal of buying things to post on social media, which is leading to not mindful spending.Not really aligning with goals and values and not really creating that experience that we want to have with money. So there’s definitely an opportunity.
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Nearly half of Gen Z said that they’ve made those impulse purchases based on social media as you were mentioning, looking at some of the stats here. So what’s the best way to kind of catch yourself, address it, and then perhaps kind of course correct or turn the ship around.
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Yeah, the opposite of being impulsive is mindfulness. So we want you to just pause when you see that item on social media, pause for 48 hours, give it some time to reflect. I want you to think about your goals and values. What are the things that you have planned for your life when you think of your finances? We want you to think about the why behind the purchase, why are you buying it? And more importantly, a year from now, what willThat purchase do for you? What is the return on joy? Because at the end of the day, we want money to be used as a tool to create experiences and if we’re spending impulsively, that can’t happen.
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All right, return on joy. Forget and move over, return on investments, uh, well, maybe it’s one and the same. Return on joy. I like that one. How is financial stress negatively impacting Americans’ personal relationships and, and even mental health?
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Yeah, so we’re finding that um when we look at the idea of your emotions, there’s a class that we teach called Money Plus you, and we’re finding that people are saying they’re stressed, they’re anxious, and it’s creating them to have this place of feeling paralyzed. When you feel stressed, you don’t have action.So what we suggest in that class is to reset how you’re thinking about money, shift your thoughts to get to better actions to where we’re not paralyzed. Then you can actually move to saving, you can move to investing when you have a better relationship with money and your mindset shifts.
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How immediately after beginning to get into better saving and and money management habits do you see that Gen Z and other generations as well are able to kind of build up their financial confidence?
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We found that there’s a direct link to saving and your confidence. So we want you to think about automation when you think about your savings, start with just a little bit. You can do $20 100 dollars, start saving that immediately will impact your confidence with money, but I realized that not everybody has that confidence in that muscle memory to save, which is why we created money roots. We want to also understand that some people.Have behaviors, they have past memories with money, uh, messages that they may have about money that stop them from actually implementing those skills, which is why in some of our classes we help people to address that so that they can get to a place of actually having a savings account.
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We understand that only a third of Gen Z may be able to handle an unexpected $1000 expense. How can they start building their savings in the emergency fund just in case it needs to be tapped?
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Yeah, again, that automation, we have to make saving a priority. It really increases your confidence with money and once we get past that automation, really looking at the why behind your savings, setting those long term goals, looking at the future, understanding those values. So when you are faced with those decisions of should I spend or should I save, you are grounded in those values and it helps you to make the right decision.
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Jack, great to catch some time with you here. Thanks so much for joining us here.
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Thank you.
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Social media has no shortage of financial influencers or influencers as they’re commonly known, promising their followers quick trades and insider tricks to triple their wealth. Sorting fact from fiction can be daunting at times, and here with some advice for how to navigate the flood of online financial advice.I’m joined by Richard Coffin, who is an investment analyst at WDS Investment Management. He’s also the host of the Plain Bagel YouTube channel with more than 1 million subscribers. Richard, good to have you here with us. So what are some red flags that folks should look out for when watching influencer content?Yeah, so even before getting into that, it’s worth highlighting there are a lot of great creators and great content in the space, uh, but there are some red flags because there’s not much moderation that happens with the type of content you come across. So, number one being if wealth is used as the primary qualification, you see people showing off their money or their fast cars.Like, uh, it’s usually being used as a substitute for more solid qualifiers that you really should be looking for. Uh, the other thing is too good to be true promises, uh, when you have a person that’s promising an easy way to financial freedom, of course that shows a secret sauce that’s going to improve trading returns and beat the market.And really the last one is when you have material conflicts of interest, uh, everyone has a conflict of interest of some sort, but, uh, when you have people who are actively trying to sell something, there’s a motivation behind that’s going to skew the information they’re providing you on the topic. That’s really something you need to look out for. OK, so what about the green flags on the other side that can really help validate a social media personalities’s credibility if you will.Yeah, so transparency is one of the biggest ones, uh, when you have someone who’s honest about their qualifications, about, uh, what their motivations are for posting content, and why you should really, uh, they’re very open with their circumstance and, and the information you need to be aware of. Someone who’s going to focus on facts versus their opinions, they’re not making wild speculations. They’re sharing the sources of their information and why.They’re making the claims they are, and it’s not, uh, wild guesses about a stock going massively higher. It’s, it’s more grounded in, in details. And then finally, when you have someone who’s more nuanced and balanced, uh, they aren’t, uh, focusing just on the positives of the stocks they like. There’s a lot of stock content you have of people trying to show you the next big stock that’s going to take off. But really the, the people who are more balanced and actively.Acknowledge not just the risks of investing, but more specifically the risks of what they’re talking about. Uh, those are great things to look for in a, in a creator who’s going to be more honest with you. I mean, this is bound to pop up in anybody’s feed. I know it’s hit mine as well. What are claims though you’ve seen recently from online influencers that you think and have to label as misleading?Well, tariffs and, and the current macroeconomic environment are really hot topics, really anything they see cycle in the news, you’re going to see a lot of influence or content on. And you see both sides of it, you see, uh, people who believe it’s the once in a lifetime opportunity to make, uh, tremendous amounts of wealth. You have others who highlight that we’re about to see a 60% crash, uh, that this is 2008 plus the dotcom crisis is one claim I’ve seen.Uh, which really doesn’t represent the situation we’re in. Of course there’s risk with everything, but again, it’s that nuance that really matters in those discussions. Uh, but really the more harmful stuff is, uh, when it comes to stock picks, you have people who show very shallow analysis at times and really don’t give the full picture. They focus on the incredible positives of, of a position without highlighting the severe risks that might exist. And you can even have things like.Potentially legal tax tips that you come across when it comes to people believing you can avoid taxes if you follow certain corporate structures and the like, and certainly there are tax strategies, but it’s the simplification of what are inherently complex and detailed subjects. What about when an influencer has a major corporate partnership or some type of collaboration.That’s going on, what’s the way to kind of read through that and assess what’s relevant for you versus what’s perhaps necessary of doing a little bit more vetting?Yes, so that’s actually a really interesting topic because there’s a good percentage, the vast majority of content that includes recommendations, doesn’t actually include any disclosure about, uh, expertise, background, qualifications, or if there’s any sort of arrangement. you commonly see affiliate links and the like, without any sort of disclosure around how those affiliate links are paying the creator, uh.So looking out for any sort of signs of that sort, why, you have to ask yourself, why is a creator highlighting a certain service or product and really be cautious of that and, and look for that, uh, transparency. If you don’t see that, if you see someone trying to sell you something, and they really aren’t qualifying it with the needed information, then really, again, you should be, uh, maybe looking elsewhere. Richard, thanks so much for taking the time here with us today. Thanks for having me on.Coming up, everyone, Mother’s Day is on Sunday, so we want to bring you some ideas for tariff proof gifts for mom. That’s next, going well.Mother’s Day is right around the corner, and most Americans are expected to spend big on mom. Total spending is set to exceed $34 billion this year, with individuals planning to spend an average of $259. That’s a slight increase from last year, according to the National Retail Federation.With tariff policies that fueling some uncertainty, should we think about our Mother’s Day gifts differently this year? That’s the question here. Joining me now to help answer this question, we’ve got John and David Oden Snyder, who are the debt free guys and hosts of the Living Not So Fabulously podcast. Alright guys, so you lay out three ways to tariff proof your Mother’s Day gifts. John, give us the first way.
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Sure thing. So we’re encouraging our audiences to think about Mother’s Day and maybe some future holidays a little bit differently this year due to looming supply chain issues, inflation, falling stock market and all. So, our first recommendation is to buy practical. Remember how Santa brought you socks every single year when you really wanted to have more Legos? Well, Santa was just being practical. So maybe that’s the case with mom here this year. So, consider buyingBathroom linens, such as, uh, fitted in flat sheets, pillowcases, maybe even a mattress protector that should be replaced every few years, bathroom sets such as towels, loofahs, shampoos and conditioners, and even some of those expensive household items such as air filters and vacuum filters that are already expensive. But you’re gonna see a 10, 25%, even 145% increase in the next couple of months if you can even access them.
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And so David, tell us about buying gifts with long term return on investment for those gifts.
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Right. So we know that typically we see a lot of folks take mom out to dinner or uh brunch or buy mom flowers. These are things that typically um uh last maybe a day, a couple of hours, or maybe a couple of days. Um, and so we’re encouraging folks to think about how canYou give something that will give long term happiness. So think about instead of flowers, maybe switch to going to your local nursery and finding a low maintenance plant that ideally something that’s a perennial that flowers every year, they can give moms some year-round happiness, especially when it blooms.Um, the other thing is, is that we’re seeing we might be heading more into a Netflix and chill economy again and so think about replacing or paying for some of mom’s, uh, subscriptions so that she can have a break from those kinds of bills, things like Netflix, HBO or Hulu might be great things to to replace. Um, we also know that, uh, that, uh, if you are able.to spend a little bit more money, it might be a good idea to actually buy Netflix stock. It has done quite well recently. And, but just make sure if you’re, uh, doing that, you’re the beneficiary on that account. And then one maybe final idea here is a digital picture frame that allows you to share new pictures of yourself and your family from your phone or computer with your mom all year round.
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And John, give us the third gift
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idea. Yeah, our third idea is terrific luxury. So,Some things that we buy on the regular basis right now are considered basic, but they’re gonna become luxuries, right? So we don’t grow coffee beans in the United States, so coffee is gonna get more expensive, maybe help offset some of those expenses for mom. You can’t buy champagne except from the champagne region of France, right? Or Manchego cheese can only come from the Manchego region of Spain. So maybe consider buying some of those sort of uh luxury items now from mom, uh, make her feel a little bit special. Maybe you could even splurge and buy her a 121.5 eggs.
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Yeah, exactly, John and David Odenschneider, great to have you here with us. Some interesting and good ideas here for some Mother’s Day spending that’s gonna be happening as well for those last minute shoppers, some of us already did ours, of course. You can catch their podcast Living not so fabulously every Wednesday 12 p.m. Eastern on Yahoo Finance or wherever you get your podcasts.Let’s do a final check of the markets here as we’re approaching the 12 noon marker of the trading session here and taking a look at the Dow Jones Industrial Average right now. We’re off of the session lows, but also off of the session highs, but one way or the other we have not made it into positive territory. We’re still flat, but to the downside by about 0.5%, so, uh, fractional decline there on the day, about the same case for.The Nasdaq composite you’re seeing that down by about 23% and the S&P 500, that’s down right now by about 0.5%. Just briefly taking a look at some of the sector activity that’s been playing out, transpiring over the course of today. It’s still really just utilities and energy that’s in positive territory. All the other 9 of the 11 S&P 500 sectors in negative.Right now right now being dragged lower by healthcare and then additionally technology and then just briefly here a quick check on technology. The Nasdaq 100 we’ll pull that up just a few scattered spots of green here on the day, but overall some of those mega cap tech stocks are leading lower right now. Palantirer big dive down by about 13% after earnings.Well, that’s it for wealth, everyone. I’m Brad Smith. Thank you for watching. You could stay tuned for market domination that comes up with Julie Hyman and Josh Lipton at 3 p.m. Eastern time. they will count you down to and through the market closed. You don’t wanna miss it.