This week was lighter on economic news and reporting—certainly when compared to the previous two action-packed weeks—so we’re shaking things up for this episode. Each expert brings to the table a news item that caught his eye this week, and one topic that might not be receiving enough attention. Topics include skyrocketing investment into artificial intelligence, the fractures at the Federal Reserve (see Additional Resources below for a link to past guest Cynthia Honcharenko’s take on the interesting dynamics taking place at the Fed), turmoil in the gold market, the changing demographics of the labor market amid evolving ways and means of working, and more. Wishing a happy International Beer Day and National Pickleball Day to those who celebrate; maybe not at the same time.

Speakers:

Brian Pietrangelo, Managing Director of Investment Strategy

George Mateyo, Chief Investment Officer

Stephen Hoedt, Head of Equities

02:23 – The ISM Services Purchasing Managers’ Index—a measure of the health of the U.S. services sector—dipped to 50.1 in July, down from June’s 50.8. 

02:42 – Initial unemployment claims for the week ending August 2 were up 7,000 claims from the previous week, for a total of 226,000 initial claims.

03:32 – Investment in AI technologies exceeded $150 billion in the first half of the year, which may contribute to the increasing productivity in the workforce as measured by recent average revenue per employee figures.

05:52 – The Fed continues to fracture amid a surprise appointment of a temporary Fed governor to fill a recently-vacated seat. 

07:28 – The ups and downs of Trump’s order to allow private equity investment in 401 (k) retirement plans.

08:40 – China is mentioned less in the news these days, but that doesn’t mean nothing newsworthy is happening there. Portfolio diversification through international markets is a good idea, and there’s some potential in the Chinese markets.

10:17 – A discussion on the turmoil in the gold markets on news of a 39% import tax on some gold coming into the U.S.

13:45 – With an outsized population of retirees on the horizon, and a new generation coming into the workforce with a very different jobs landscape, what’s the future of productivity?

15:02 – Diversification is the sound investment strategy for the day. We’re seeing some softness in the labor market, but most economic indicators are favorable. Still, things can be unpredictable, and a diversified portfolio can shield you from some targeted disruptions. 

Additional Resources

Read: Key Questions: Cracks in the Foundation: Symbolic or Systemic? Fed Unity Frays as Policy Dissonance Grows.

Attend: August 19: Key Wealth's National Call: Planning Implications of the One Big Beautiful Bill (OBBB) Act

Key Questions | Key Private Bank

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