Tuesday's Scoop: Fatigue☀️

Hey friends - as another reminder: 

There will be no scoops on Wednesday. I’ll be demonstrating the power of our new Pro Content Suite to financial planners at the XYPN Live conference in Minneapolis. If you’ll be there, let me know!

Here’s what you need to know today to inform your work, spending, and investments:

1. Americans worry more about paying their bills as costs keep rising.

2. Electric vehicles are gaining traction.

3. China is trying to reignite its slow economy.

Global Energy Emissions: 37.4 billion tonnes of CO₂
^{An all-time high, up 1.1% from 2022. (IEA)}

Electric vehicles are gaining traction. Global electric vehicle sales surged over 30% in September, led by record numbers in China and a rebound in Europe. According to market research firm Rho Motion, 1.69 million electric and plug-in hybrid cars were sold worldwide last month, with China's sales jumping nearly 48% to 1.12 million vehicles. EV sales in the US, Canada, and Europe grew by over 4%, boosted by significant gains in the UK and Germany. This boom suggests electric cars are becoming more mainstream, potentially affecting everything from gas prices to the types of vehicles you see on the road. So, if you're considering switching to an electric car, you're joining a rapidly growing global trend reshaping the auto industry.

Inflation Rate: +2.4% (YoY), +0.2% (MoM)
^{Policymakers aim for 2% YoY inflation (September CPI)}

Americans worry more about paying their bills as costs keep rising. According to the Federal Reserve Bank of New York's latest Survey of Consumer Expectations, people now expect the cost of living to rise by 2.7% annually over the next three years, up from 2.5% in August. Five-year expectations increased to 2.9%, slightly higher than last month's 2.8%. At the same time, the expected chance of missing a debt payment in the next three months rose to 14.2%, the highest in over four years, suggesting more folks are feeling financial strain. Inflation expectations matter because they can become self-fulfilling—if businesses think costs will rise, they might raise prices, affecting what you pay for everyday items. The cost of living isn’t rising as quickly as it has over the past few years, but things aren’t getting cheaper.

The Market:⬇️ -0.8%
S&P 500: 5,815.26
1Mo: +3% | 1Yr: +33% | 5Yr: +95%

The market fell from its all-time high on Tuesday as investors lost some positive momentum. America's biggest banks are all painting an optimistic view of the economy. Oil prices fell as Israel calmed fears that it would attack Iran's energy infrastructure.

China’s trying to stimulate its slumping economy. According to a report by Caixin Global, the Chinese government plans to raise a whopping $850 billion in new debt over the next three years to help local governments manage their growing financial strain from a real estate market in crisis. To put that into perspective, that funding would be nearly 5% of China's annual economic output. The world’s second-largest economy has struggled to rebound from the pandemic, with low wages, high youth unemployment, and low personal spending. Much of its economy relied on its growing real estate market, but property investment has plunged. While this massive stimulus could boost spending and support measures that might benefit businesses and households, it also raises concerns about the country's growing debt. If China can turn things around, it would majorly stimulate the global economy.