Invest Wisely, Retire Comfortably: How Pensions and Advisers Work Hand-in-Hand
Michael G Donkor CFP?
The Financial Tech Planner | I help Tech professionals maximise their income so they can focus on more fulfilling life experiences. Chartered FCSI | CERTIFIED FINANCIAL PLANNER? |
Celebrating Diversity and Inclusion in Tech
I had a fascinating time attending the Uber and Friends event hosted by Andy Ayim MBE Andy Ayim MBE in London. Learning and networking with like-minded people has always been a key factor to my growth and trust me, this was one of those events that I can boldly say added to it. Big ups to Uber and the tech community for constantly pushing the envelope on diversity and inclusion.
My key takeaways from the event:
I'm excited to use these insights to make better investing decisions for myself and my clients! ?? But first, let's look at some recent developments that have affected the tech sector in June 2024.
U.S. Market Summary
U.S. equities closed the first half of the year in green as major indexes continued their positive streak in June to close out the first half of the year, representing their seventh positive month in eight. The Nasdaq led the pack with a month-to-date gain of +6%, while the broad S&P 500 and Dow Jones Industrial Average surged +3.5% and +1.1% respectively.?
However, the market closed in red across the board on June 28th, 2024 despite the release of new data that indicated decelerating prices and improved consumer sentiment figures. The S&P 500 declined -0.41%, while the Nasdaq Composite and Dow Jones Average slid -0.71% and -0.12% respectively. In the first half of the year, the U.S. equities stayed resilient with expectations of more participation in the coming months with the forthcoming elections in November, timing of the Federal Reserve rate cuts, and consumer demand trajectory.?
With the Federal Reserve keeping interest rates on hold, a higher rate regime seems to be kept in place for an extended length of time. As a result, fixed-income assets, like preferred stock, are attractive due to their tax efficiency. Additionally, stocks that are less subject to economic changes may also be useful, particularly in the face of slowing growth and prolonged inflationary pressures.
UK and Emerging Market Summary?
The FTSE 100 made steady gains in June 2024, achieving a +1.6% gain, with mid and small-caps leading the charge. Meanwhile, the FTSE 250 delivered a +4.2% return, and small-cap ex-IT outperformed, rising by +6.7%.
Emerging market equities outperformed developed market equities in June, with the MSCI Emerging Markets IMI Index returning +3.8% relative to the -1.6% for the MSCI EAFE Index of developed market stocks. Among broad equity indexes, emerging market equities led, gaining +4%, with strong contributions coming from Taiwan, India, and technology companies.?
In China, GDP expanded by 4.7% in the second quarter from the same period a year earlier, below expectations of 5.1%. Retail sales rose at the slowest pace since December 2022, showing a flurry of government efforts to juice confidence has done little to reinvigorate the Chinese consumer.
According to the National Bureau of Statistics, the second-quarter growth slowdown was caused by short-term variables like extreme weather, rain downpours, and floods. Essentially, this suggests that the second-largest economy is experiencing new difficulties and challenges, with the problems of insufficient domestic demand and blocked domestic circulation persisting.
Tech Giant Apple Launches AI at WWDC
Apple Intelligence (AI) – a suite of artificial intelligence tools – was introduced at the annual Worldwide Developers Conference (WWDC), alongside a series of updates to various Apple products. The tech giant stated that it aims to advance AI tools beyond current market offerings, personalising them for Apple users while upholding privacy standards.?
Here are some of my key takeaways from the event.
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Apple is taking the right path to implement AI across its ecosystem while laying out the foundation for the company’s multi-year AI strategy across the strongest installed base of 2.2 billion iOS devices over the coming years. The growth of iPhone revenue is expected to increase by about +20% for up to two years, with the AI-driven upgrade cycle expected to start gradually in September through Fiscal 2025 and peak in the second half of the 2026 calendar year.
Apple’s stock value jumped significantly in 24 hours following the event, increasing the company’s market capitalisation by roughly $215 Billion. As a financial adviser, I educate clients on the impact of economic events and the importance of staying invested for the long term. Before investing in equities, due diligence should be carried out. Essentially, investments should be made within industries experiencing rapid growth like technology, healthcare, or renewable energy. In addition, I advise clients to invest in companies that hold a dominant and rapidly growing market share similar to Apple’s market dominance in the global tech industry.?
Truist Bank Confirms Data Breach After Cyberattack Exposure
Truist Bank, a leading U.S. commercial bank, confirmed last month that its systems were breached in an October 2023 cyberattack after a threat actor posted some of the company's data for sale on a hacking forum. With total assets of $535 billion, Truist offers a wide range of services, including consumer and small business banking, commercial banking, corporate and investment banking, insurance, wealth management, and payments.
The firm confirmed a network breach and exposure of some customer data after a security researcher reported finding dark web advertisements for the stolen account details. The hacker, identified as Sp1d3r, has allegedly offered for sale privacy data on 65,000 employees for $1 million. The data also includes bank transactions, account information, and source code for Truist’s Interactive Voice Response? (IVR) system.
Financial advisers play a pivotal role in helping companies mitigate the risk of cyberattacks by providing expert guidance on risk assessment, strategy development, data protection, and regulatory compliance. They also coordinate with cybersecurity experts and legal counsel to ensure all aspects of the breach are addressed comprehensively. Furthermore, this collaboration includes identifying the source of the breach, assessing the extent of the damage, and implementing measures to prevent future incidents. By offering a holistic approach, financial advisers contribute significantly to restoring trust and stability in their client's financial lives.
I'm always passionate about assisting my tech-savvy clients navigate their investments in pensions, planning strategically for their retirement, and essentially how to prioritise their long-term financial plans. My mission is to ensure clients diversify their assets, manage risks wisely, and maximise their financial potential ??.
Do you have questions about tech, pensions, retirement, or how to build a killer portfolio? Slide into my DMs anytime—I'm always here for a chat! Hit that subscribe button and flick on the notification bell to stay tuned for Mike’s Moments! ??
References
2. Economic Times (2024). Available at:?
3. MarketWatch (2024). Available at:
4. Yahoo Finance (2024). Available at:
5. Bloomberg News (2024). Available at:
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