⭐ Introducing the Rich Habits Network

Together with Public

Good morning,

Before we dive in — we want to say “Thank you!” to the 245+ of you who have already joined the Rich Habits Network: our new community!

This is a place for our biggest supporters and most active listeners to ask us questions, connect with each other, review our comprehensive video course, join our exclusive weekly livestreams, and much more!

Click the image below to watch a short explainer video and register. Prices will be rising after Labor Day Weekend.

It’s become impossible for us to get back to all of the emails and direct messages across socials — so the Rich Habits Network will be our new communication home base!

Thanks again to those that have joined and we’re looking forward to connecting directly with more of you!

A quick breakdown of today’s newsletter — in case you don’t have the time.

1. ⭐ The payroll revision from hell… down -818,000.

2. ⭐ How to prepare yourself for a potential recession.

3. ⭐ BlackRock owns more Bitcoin than Coinbase.

4. ⭐ September is the most bearish month of the year (-13.5%).

5. ⭐ North America saw a +70% rise in data center supply construction.

6. ⭐ Join the Rich Habits Network and get invited to our livestreams!

Market Overview

Chart of the Week

Nonfarm payroll growth was revised down by -818,000 jobs.

On Wednesday, the U.S. Bureau of Labor Statistics shared that their annual benchmark revision to nonfarm payrolls was -818,000. In other words — there are nearly 1 million less workers in the U.S. economy than we were lead on to believe over the last 12-months.

This marks the largest negative revision to payrolls since the Global Financial Crisis (GFC) of 2007-2008 — also an election year. This also marked the second largest revision on record.

Aren’t revisions normal though?

Yes, both upward and downward revisions happen each year. However, let’s hear directly from the Bureau of Labor Statistics about what to expect:

So this revision was -0.5% and the average size of a change is 0.1%. This revision was five times greater than the average. During an election year.

You absolutely hate to see it.

Together with Public

Public.com just launched a new product in its suite of yield accounts, offering easy access to high yield and corporate bonds. 

You can now open a Bond Account on Public and earn a 7.3%* yield with monthly interest payments. 

The best part is you lock in your rate at the time of purchase — meaning you can keep earning a 7.3% yield even after the Fed cuts interest rates.

In Case You Missed It…

👉 Episode 78: How to Prepare for a Recession

In this week’s episode of the Rich Habits podcast (linked here) — Robert and Austin touched on the following:

1. Lock in on Your Money — Regardless of what happens with the economy or the stock market, now is the time to “take care of things at home.” Do the stuff you’ve been pushing off for way to long — whether it’s having an honest budget, making more accurate projections for your income, or beefing up your emergency fund. All of this will help you be in a better position to weather a recession, if and when it comes.

2. Diversify Your Portfolio — There’s pretty much always opportunities for enhancing a portfolio. But are you regularly reviewing your diversification? There are recession-resistant opportunity out there —utilities, data centers, gold, and bonds are a few examples.

3. Understand How a Recession Could Impact Your Job / Biz — This point isn’t about fear-mongering, it’s about keeping your eyes open. If you work in marketing, for example, sometimes that part of a business loses budget doesn’t difficult economic times. Is your company hiring? If so, what for? Also think about the customers of your employer or even your own small business. Are those customers going to keep buying during (potential) hard times?

In summary, the purpose of this episode is for our listeners to get into the right mindset. If you think about it, everything discussed above should be done regardless of the economic climate.

But in times of unique volatility they are especially important!

👉 Q&A: Retirement Investing for High Earners, the 1% Rule, & the Dow Jones Industrial Average

Here’s a link to the Q&A episode that was posted this morning.

We answered questions from the following members of the Rich Habits Network: Bryan N, Emmanuel G, Dhanishth K, Victoria F, Priyanka K, & Jay B

The Rich Habits Podcast is available on Spotify, Apple, iHeart, YouTube, and wherever else you get your content.

Robert’s Callout

BlackRock holds more Bitcoin than Coinbase, at 305K!

Great perspective is being shared in the table above! After being in crypto for as long as I have, it’s incredible to see someone like BlackRock so high up on the list of Bitcoin holders.

I’m sharing the graphic because I hope it provides perspective. Bitcoin is extremely volatile and may not be the great “store of value” that many claim. Instead — it’s an INCREASER of value over the long-term. Even when things fluctuate in a major way like they did at the beginning of August, my adoration for Bitcoin has not changed.

Austin’s Callout

September is historically the most volatile month for the S&P 500.

Sometimes it’s fun to look back at history to try and find patterns and trends, especially when it comes to the stock market. Above is a chart that illustrates the average annualized S&P 500 price return by month since 1928.

When the calendar flips to September, we will enter the weakest seasonal period of the year (historically speaking).

The average annualized SPX return for September (since 1928) is -13.5%, by far the worst month of the year. Of course, that doesn’t mean that the market is definitely going to decline. But, the recent bounce in the stock market doesn’t necessarily mean we are “out of the woods” just yet either.

Buckle your seatbelts — September is upon us!

The Rich Habits Radar

• 👉 Nvidia has been the best performing stock of the last 20 years.

• 👉 SiriusXM inked a $125M deal w/ ‘Call Her Daddy’ host Alex Cooper.

• 👉 North America saw a +70% rise in data center supply construction.

• 👉 Lowe’s dropped full-year guidance from slow home repair demand.

• 👉 AMD agreed to buy a designer of data-center equipment for $5B.

• 👉 BurgerFi is at risk of filing Chapter 11 bankruptcy.

Check ‘Em Out

Below is a list of our featured partners that we’ve vetted — with whom we have a personal relationship. Browse these exclusive offers curated just for you:

• Budgeting — Download our FREE Budgeting Template

• High-Yield Cash Account — Earn 5.1% on your savings

• Public — Trade stocks, options, and crypto

• Frec — Use direct indexing to invest & save on taxes

• Grifin — Automatically buy stock where you shop

• Acorns — Get $35 free when you subscribe

• Suriance — Protect your family with term life insurance

• Video Course — Use code “Newsletter” for 15% off

• Seeking Alpha — Optimize your portfolio

• Credit Card Matrix — Find your next favorite card to swipe

• Roi — Use code “Habits” and start tracking your net worth

• Dynasty — Protect your home in a trust

_{Disclaimer: This is not financial advice or a recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.}

_{Public Disclosure: Paid endorsement for Public Investing, Inc. Not investment advice. All investing involves the risk of loss, including loss of principal. Brokerage services for US Listed and registered securities, options and Bonds in a self-directed brokerage account are offered by Public Investing. ETFs, options and Bonds are available to US members only.} 

_{Bond investing carries risk including the risk that you lose some or all of your investment. High Yield bonds carry greater risk of default. All yields and prices are subject to change without prior notice. Public Investing earns a fee on every bond trade.} 

_{*A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this Account are used to purchase 10 fractional investment-grade and high-yield bonds in equal par value allocations. Yield represents avg. annualized rate of return across all bonds, before fees, for 8/20/2024. Yield can change daily, and yield at time of purchase may be different from yield shown. Return may be affected if you do not hold a bond to maturity, or if the issuer defaults or calls the bond. Bonds are securities, not FDIC insured, and may lose value. Fractional bonds come with additional risks and limitations. Public earns a fee on each Bond Account transaction. Bond Accounts are not investment recommendations; do your own research. See https://public.com/disclosures/bond-account.}