July 31st, 2026 | Chip Deals May Not Be Secure, Why Index Investing Disappoints, The Economy Is Stronger Than You Think, Leverage Risks, Here Come the Robots & More

Those Long-Term Chip Deals May Not Be as Secure as Investors Are Led to Believe
When you listen to memory chip companies like Samsung Electronics, SK Hynix, and Micron Technology discuss their businesses, they often make it sound like customer contracts—some extending as long as five years—are essentially set in stone. Unfortunately, that's not entirely true.
Yes, these companies have long-term agreements in place, but contracts in this industry are often renegotiated when market conditions change. If demand for memory chips weakens significantly, chip manufacturers have a strong incentive to work with their…

Why Index Investing Could Leave You Disappointed Long Term
I often hear people say, "Just buy the S&P 500 and forget about it. You'll be fine." While that sounds simple, investing is rarely that easy.
Many investors don't fully understand how an index works or why it has performed so well in recent years. The S&P 500 has been driven largely by a handful of technology and AI companies. By blindly investing in the index, many people are simply participating in…

The U.S. economy is still in much better shape than many people think.
This week brought three major events for investors: GDP, PCE inflation, and the Federal Reserve meeting. While the headlines may have sounded mixed, the underlying data still paints a healthy consumer.
Second-quarter GDP grew at a 1.5% annualized rate, below economists' expectations. At first glance, that may seem disappointing. But when you look under the hood, the economy continues to show resilience. Consumer spending, which accounts for nearly 70% of U.S. GDP, increased 3.2% after a weak first quarter where it only climbed 0.5%. That tells me…

Leverage Is Fuel... Until It Becomes the Fire
The last few weeks have been a reminder that leverage looks like a wonderful tool on the way up... but it’s a devastating one on the way down.
FINRA's new margin rules have effectively replaced the 25-year-old Pattern Day Trader rule, allowing traders with as little as $2,000 to make…

Here Come the Robots!
Robots have been making their way into manufacturing for decades. The first industrial robotic arm, called Unimate, was installed in 1961 on the assembly line at a General Motors plant in Trenton, New Jersey. But today's robots are very different. They're no longer just stationary robotic arms bolted to the factory floor, they're starting to look and move like humans.
That reality is beginning to make workers uneasy. At a Hyundai Motor plant in South Korea, employees have gone on a partial strike, with concerns over automation playing a role. Hyundai recently unveiled its humanoid robot, Atlas, which stands 6'2", weighs about 200 pounds, can lift up to 110 pounds, and can continuously carry nearly 70 pounds. It's easy to…

Financial Planning: Tax Relief Coming for Older Home Sellers?
The federal home sale capital gain exclusion has remained unchanged since 1997, allowing homeowners to exclude up to $250,000 of gain if single or $500,000 if married filing jointly when selling a primary residence.
With home values rising significantly over the past three decades, particularly in high-cost areas like California, many long-time homeowners now face substantial capital gains taxes when downsizing.
A new proposal, the Nest Egg Protection Act, would increase the exclusion to $1 million for homeowners age 65 and older who have owned and lived in…

Companies Discussed: International Business Machines Corporation (Ticker: IBM)