👋 Hey there, welcome to the WalletBurst monthly newsletter for the month of July 2022.
Here are some of my favorite pieces of personal finance content from around the web this month:
Around the web
⚔️ In Defense of Dollar Cost Averaging by Nick Maggiulli from Of Dollars And Data
- Makes the case for dollar cost averaging (DCA-ing) by looking at the period from 1965 to 1981, where US stocks had the longest inflation-adjusted loss on record.
- If you had DCA-ed into the S&P 500 over this period, you would have slightly beat inflation.
- The takeaway is that when things go well for U.S. stocks, you build enormous amounts of wealth. And when they go very poorly, you at least preserve your purchasing power when DCA-ing.
🚗 Auto loan bubble coverage by Your Auto Advocate: Car Repos EXPLODING | The Car Price Bubble is FINALLY Bursting! and Auto Loan Apocalypse | Recession 2022 | The Latest Data
- Zach and his dad Ray from Your Auto Advocate dig into the data showing the alarming auto loan bubble that is unfolding as inflation pinches consumers.
- If you can afford to wait to buy a new or used vehicle, you will likely be able to find a much better deal later this year.
- Auto loan delinquency rates are skyrocketing around the country: in Washington DC, 50% of auto loans are 30+ days delinquint
- ???? The average monthly car payment for new cars is $648 and the average monthly car payment for used cars is $503.
🏘 Map of US housing affordability by by reddit user u/fponee.
🏠 Redfin Weekly Housing Market Data
- Redfin is now publishing a variety of weekly data metrics that allows you to keep a nearly real-time tab on your local housing market as prices appear to be coming down from their peak.
- You can view data like number of New Listings, Pending Sales, Median Sale Price and Median Days on Market.
- You can filter data by individual metro areas or counties and compare against previous years.
💸 What is the Wealth Effect? by the Intelligent Economist
- “The wealth effect is the economic phenomenon in which individuals spend more when stock prices increase and, as a result, equity portfolios are increasing in value. They do so because their sense of the reliability of their wealth is increasing. Thus, increases in consumer spending are directly correlated to increases in the value of stock portfolios.”
New on WalletBurst.com
Nothing new this month…
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Have a great day,