On today’s episode of Wealth!, Host Brad Smith breaks down key finance stories, from the AI race to alcohol sales ahead of 4th of July celebrations. The AI craze has dominated markets in the first half of 2024, and Envestnet co-chief investment officer Dana D’Auria joins the show to give insight into its momentum. D’Auria argues that the broadening out in artificial intelligence will materialize among companies that “support AI” needs: “Semiconductors, for example; equipment manufacturing that’s necessary for AI; energy, of course, has been a huge theme this year around AI and the expectation that we’re going to need massive amounts of energy to power this. So if you think about some of the international spaces where some of the stuff is made, and there may be not priced so stratospherically as what you’re seeing in cases here in the US, that’s one way to play it.” As interest rates remain high and Wall Street waits on the Federal Reserve to cut rates, Curinos head of wealth Korrynn Baltzersen explains how investors should navigate certificates of deposit (CDs) amid the current economic backdrop. She notes that historically when the Federal Reserve has started cutting interest rates, “that’s when the market outperformance led more investors into the market versus keeping that money in cash.” She believes there will be a “real shift” once investors can no longer get a 5% handle, as “they can just get a higher yield in the market.” Mortgage rates are beginning to ease slightly as the 30-year fixed mortgage rate hovers around 6.86%. Yahoo Finance Reporter Dani Romero breaks down why mortgage rates may be easing, but monthly mortgage payments may be rising for thousands of homeowners. Meanwhile, rental prices fluctuate across the United States. Zumper spokesperson Crystal Chen highlights that the most affordable rental markets include Wichita, Akron, and Shreveport. In contrast, the highest rents are found in major metropolitan areas such as New York City, Newark, New Jersey, and San Francisco, California. Chen notes a geographical divide in rent trends: the Sun Belt region is experiencing a decline in rental prices, while the Northeast and Midwest markets are seeing increases. Americans are just a few days out from Fourth of July festivities, and according to data from Capital One, over a third of Americans plan on buying alcohol for July 4th. Heineken (HKHHY, HEINY) USA CEO Maggie Timoney joins Wealth! to give insights into holiday alcohol sales, the growth of non-alcoholic product categories, and shifts in certain consumer demographics driving that change. Timoney elaborates on the sale of non-alcoholic beverages: “The category is up double digits and at the forefront of igniting this nascent category. When we launched in 2018, we are here to stay, and we’re looking forward to seeing more Americans choose a Heineken 0.0 over the July 4th holiday weekend, over the summer, and for the rest of the year.” This post was written by Melanie Riehl
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