Together with Public
Happy Thursday,
In case you missed it, Austin got engaged last week! Here are a few photos he shared on his Instagram. Expect a few wedding planning & marriage-focused episodes in the future!
Before you read on, you should seriously consider doing a free 7-day trial of the Rich Habits Network below. This is a place for us to interact with our biggest fans on a daily basis!
Just to give you a taste of what we’re talking about during our weekly 2-hour livestreams, here were Austin’s prepared remarks ahead of the stream.
A quick breakdown — in case you don’t have the time.
⭐ Inflation continues to come down — it’s time to cut rates.
⭐ We broke down market sentiment with incredible Investopedia data.
⭐ The stock market has shown historic levels of resilience.
⭐ Year three of bull markets can be very choppy.
⭐ Meta is nearing a $14B+ stake in Scale AI.
Market Overview
As of market open, 6/12/2025
Chart of the Week
Inflation continues to cool down — it’s time to cut rates.
Core inflation in the U.S. rose just +0.1% in May, lower than economists expected, marking the fourth consecutive month of below-average increases and signaling that companies are largely absorbing higher costs rather than passing them to consumers. The core Consumer Price Index (CPI), which excludes food and energy, rose +2.8% year-over-year, with goods prices flat and services up only +0.2%.
Declines in car prices, apparel, airfares, and hotel stays contributed to the soft inflation reading. Now the question becomes — what is holding us back from lower interest rates? President Trump is calling on Fed Chair Jerome Powell to cut rates by -100 basis points (a full percent). We doubt that will happen, but it sure does feel like it’s time for some easing!
The bottom line — this was a very important inflation reading.
Prices continue to trend down and it seems like the Fed can finally declare victory (to an extent). This should continue to dominate the news over the summer.
Remember, as the Fed cuts interest rates the companies that perform the best immediately after are unprofitable technology and small-caps. If the Fed finally starts to cut rates in a meaningful way, we’ll be looking at the Russell 2000 (IWM) as a way to take advantage of this momentum shift.
Here’s a link to Episode 75 — it’s all about how the Fed’s rate cuts impact you and your money. Give it a re-listen!
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In Case You Missed It…
In this week’s Monday-morning episode of the Rich Habits Podcast (linked here) — Austin and Robert sat down with Caleb Silver, Editor-in-Chief at Investopedia and host of the Investopedia Express podcast, to unpack the surprising reasons why many Americans are losing faith in the stock market.
Here’s what they talked about:
What Investopedia’s Data Reveals About Retail Sentiment — Caleb brought exclusive insight into how investors are feeling based on traffic and user engagement across Investopedia’s massive platform. He walked through data showing a wide split between optimism and pessimism — reflecting a confused base of retail investors responding to inflation, political uncertainty, and market volatility.
The 10-Year Hold List — When asked what stocks they’d hold for the next decade, Investopedia’s most engaged users named some fascinating companies. Caleb broke down why names like Nvidia and Apple dominate long-term trust — and how the psychology of investors changes when time horizons get extended.
Why So Much Cash on the Sidelines? — A standout stat: When asked what they’d do with an extra $10K, the majority of users said they’d put it in money market funds or high-yield savings accounts. Austin and Robert pushed back, emphasizing that idle cash isn’t a long-term strategy. Caleb explained the caution is real, but so is the opportunity cost.
Trust in the Market is Eroding — Nearly half of respondents say they trust the U.S. stock market less now that Donald Trump is back as President. Caleb provided commentary on how politics, media narratives, and recent market swings are shaping investor trust (and why that should matter to long-term holders).
Why Caleb is Investing in Water — To close out the conversation, Caleb revisited why he’s bullish on water. Not just as a basic need, but as a long-term investment thesis. He explained why water is the next frontier for smart, sustainable investing.
This episode offers a rare inside look into the minds of retail investors — and where the biggest gaps (and opportunities) are today.
Click here to listen to the full episode. It’s a must-listen if you want to understand what the average investor is really thinking in 2025.
Here’s a link to the Q&A episode that was posted this morning.
We answered questions from: Logan, Alexa, Carson, Rudy, Sadie, Justin, Melissa, and Lucas.
You can submit questions for these episodes by asking them inside of the Rich Habits Network, replying to this email, or sending us a DM on Instagram.
The Rich Habits Podcast is available on Spotify, Apple, iHeart, YouTube, and wherever else you get your content!
Robert’s Callout
The stock market has shown historic levels of resilience.
The market's recovery has been truly historic, defying expectations and surging with remarkable speed. The S&P 500 has rallied +20.4% over the last 41 trading sessions — its third-best run this century — while the Nasdaq 100 has soared +27.3% in the same stretch, marking its third-biggest rally since 2002.
Only the post-crisis rebounds of 2020 and 2008 have matched this level of momentum in recent decades. As a result of this sharp turnaround, the S&P 500 and Nasdaq 100 are now trading just -2.1% and -1.8% below their all-time highs, respectively.
This shift represents a dramatic swing from a historically weak market environment to an exceptionally strong one in just a matter of days. It’s a clear reminder that investor sentiment and positioning can shift rapidly — and that staying invested during periods of uncertainty often proves rewarding.
When in doubt, ZOOM OUT people!! I will never stop saying it. My strategy has always been:
1) Be invested.
2) Stay invested.
3) Manage risk.
4) Dollar cost average.
Austin’s Callout
Year three of bull markets can be very choppy.
Going back 50 years, the five bull markets that actually made it to year three tended to experience serious volatility and frustration at some point. Remember, this bull market started in October of 2022 — with OpenAI’s introduction of ChatGPT. Since those October lows, the S&P 500 is up over +80%, and the Nasdaq-100 is up over +110%.
This third year of the new bull market (specifically this market rebound we’re in the middle of) is most closely resembling 2018. If history repeats itself, we’ll continue to trend back to new all-time highs throughout the summer before experiencing a modest pullback — then end the year strong. With that being said, no one can predict the future.
However, using historical data to help us figure out where things might be headed is always fun! Below is a chart that illustrates what happened 1, 3, 6, and 12-months after the S&P 500 rallied +20% after a non-recessionary bear market (what we just experienced). The results are amazing!
Looking at the previous 17 bear (or near bear) markets show that once stocks are up +20% off those lows, they were higher a year later 16 out of 17 times. The only time in history they were not higher was because of a global pandemic. I like those odds!
Simply put, this data suggests there’s a 94% chance the S&P 500 will experience double-digit returns over the next 12-months.
This data is really encouraging, and gives me hope that we’re going to continue to trend higher this year. We’re not out of the woods just yet, but things have certainly turned around!
Remember, no one can predict the future. Anyone trying to tell you they can is lying to you. We’re here to share with you what we’re looking at and focused on inside our own portfolios on a weekly basis.
The Rich Habits Radar
👉 Chime priced its IPO above expectations at $27 — at $11B.
👉 Meta is nearing a $14B+ stake in Scale AI.
👉 Oklo selected by the DoD to supply clean power for US Air Force.
👉 Oracle revenue and profit topped estimates on cloud strength.
👉 Boeing stock slumped after a plane crash in India with 242 passengers.
👉 L’Oréal — a cosmetics company — is paying Nvidia for AI help.
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