Your Money

So far, this year's market narrative revolves around a stark divide between winners and losers. The equal-weighted S&P 500 index has seen a modest 4.1% increase year-to-date, significantly lagging behind the market-weighted S&P 500 by ten percentage points—the widest gap observed in the first half of a year since 1990, according to Dow Jones Market Data.

As we enter the year's second half, investor sentiment remains cautiously optimistic. Robust corporate earnings and signs of moderating inflation have raised expectations of potential Fed rate cuts. However, there are lingering concerns that could impede further gains. Continued Fed inaction on interest rates might test market patience. Additionally, the upcoming election season, pitting President Biden against former President Donald Trump, threatens to inject volatility as traders react to evolving policy prospects. Moreover, lofty valuations leave stocks vulnerable to any adverse developments.

• Broad Market (S&P 500):  +4.3% 2Q  |  +24.5% last 12 months
• Small Companies (Russell 2000):  -3.3% 2Q  |  +10.03% last 12 months
• International Stocks (EAFE):  -0.2% 2Q  |  +12.1% last 12 months
• Emerging Markets (MSCI EM):  +5.1% 2Q  |  +13.0% last 12 months
• Bonds (Barclays Agg): +0.1% 2Q  |  +2.6% last 12 months

Personal video statements will begin going out next week.

AI Frenzy Propels Stocks to Monster First Half
by Karen Langley

Your Life

Nostalgic music—music that we strongly tie to a point in our lives—can evoke deep emotions across the age span. The root of this phenomenon has remained a mystery, but studies have shown that music can generate strong emotional responses—both to calm and invigorate.

A team of USC scientists is getting closer to understanding what happens in your brain when you hear a favorite song — and the results might have profound effects on those struggling with dementia and Alzheimer’s disease.

“Our hope is that by understanding how music evokes nostalgia and autobiographical memory in healthy younger and older adults, we’ll be able to apply these findings to older adults with neurodegenerative diseases like Alzheimer’s disease and other related dementias,” Dr. Habibi says. “Nostalgic music allows us to connect to our sense of self,” she adds. “Because this sense of self is often diminished with neurodegenerative disease, the hope is that this type of tailored music intervention might be able to help patients — even if just for the duration of the song — experience a temporary ‘return to self’ by engaging in these self-referential and autobiographical areas in the brain activated by music.”

Does music unlock memory?
by Paul McQuiston

Complexity Simplified

One of the easiest ways to exercise requires just a chair, which can target your upper and lower body and core muscles. Chair exercises allow you to work your lower body while seated or supported, making them an excellent choice for anyone with balance or mobility issues or those who are recovering from an injury. You can not only work your legs but also your upper-body muscles like your arms, shoulders, and chest while recruiting the critical core muscles to help with stabilization. Plus, a chair makes a perfect companion for doing seated stretches or Pilates chair exercises. So whether you’re sitting on a chair or simply holding onto one for support, you can definitely get a lot out of these exercises. When done correctly, chair exercises can be incredibly effective, allowing you to work all the muscles in your body. The key to an effective chair workout is simple: incorporate exercises that recruit as many muscle groups as possible while still allowing you to remain seated (if needed) or use the chair for balance or as part of the exercise. Just be sure to choose a chair that is sturdy (no wheels) and can hold your body weight. Here are 15 chair exercises to get you started.

15 Chair Exercises That Will Light Up Your Entire Body
by Sara Lindberg

Trivia