Invest

Apache is functioning normally

In a world that constantly pushes us toward more — more things, more choices, more consumption — the concept of minimalism has emerged as a breath of fresh air. However, as we delve deeper into the philosophy of living with less, a new movement is gaining traction: underconsumption core. Whether you’re renting an apartment in Des Moines, IA, settling into a rental home in Boston, or buying a home in Savannah, GA, this way of life offers a more sustainable, mindful way to live.

Understanding underconsumption core

Underconsumption core takes minimalism a step further by emphasizing the value of what we don’t consume rather than just focusing on what we own. “Underconsumption core is the latest social media movement that takes a spin on the minimalist and simplicity trends of recent years, highlighting the ‘use it up, wear it out, make do or do without’ teachings from older generations,” explains Amanda with Useful Roots.

“It’s all about finding joy in owning, maintaining, and buying fewer things or even acquiring material items via thrifting and repurposed goods. Instead of purchasing multiples of the latest item, you’re pairing down, making do with just one, using what you have, and perhaps not purchasing at all. It’s an approach to engaging in the economy that can be better for the wallet and more environmentally friendly.”

The benefits of underconsumption core

Adopting the underconsumption core philosophy can lead to numerous benefits:

  • Less clutter, more comfort: When you intentionally reduce unnecessary consumption, your living space becomes more comfortable and serene. Renters, especially, benefit from this as it makes small spaces feel larger and more functional.
  • Financial savings: Consuming less can lead to significant savings. Instead of spending money on trendy decor or impulsive buys, you can invest in quality pieces that last or save up for bigger goals — like homeownership or investment property.
  • Eco-friendly living: Consuming less means generating less waste, which benefits the environment. “At Composty, we believe that living minimally begins with making intentional choices about what we bring into our homes. By embracing compostable, reusable cleaning tools, you can significantly reduce waste while still maintaining a clean environment. We encourage making the most of what you already own, avoiding impulse purchases, and focusing on products that are not only functional but also sustainable, helping to reduce consumption in the long term. Composty’s CEO Matt Guest says, “Our sponges borrow natural materials from the planet and, after use, give them back to nature to help it flourish and grow.”

Ways to embrace ‘underconsumption core’

Underconsumption core can significantly improve your living experience, and it’s surprisingly easy to implement small, intentional changes that create lasting positive impacts.

Shift your mindset

Shifting your mindset is key to embracing underconsumption core. It’s about moving away from the constant pursuit of more and reframing how you view consumption.

“At fulFILLed Lifestyle Co., we believe that sustainable living starts with a shift in mindset. In today’s world, it’s easy to feel overwhelmed by the pressure to buy more, especially as we’re constantly influenced to consume more than we truly need,” explains Paige Garrity, co-founder of fulFILLed Lifestyle Co. She continues: “But what if less is actually more; underconsumption, the idea of being intentional with what we bring into our lives, allows us to focus on quality over quantity.

By reducing the excess, we make room for what truly matters — whether it’s the products we choose or the relationships we nurture. Sustainability, after all, is a way of life, and at fulFILLed Lifestyle Co., we’re here to support consumers in making choices that help them create a toxin-free, sustainable, and fulFILLing life.”

Prioritize essentials

Whether you’re furnishing an apartment or conducting your weekly grocery shop, start by focusing on the essentials. What do you really need? Avoid the temptation to buy and fill every corner with “stuff”.

“By embracing underconsumption core, we inherently buy less and utilize what we have more efficiently.  Furthermore, replacing disposable everyday items with reusable alternatives, like shopping bags, water bottles, and sustainable kitchen essentials, significantly reduces waste and conserves resources,” explains Amanda Runkle, founder of Me Mother Earth.

“These small changes not only support a greener lifestyle but also save money in the long run, as reusable products are designed to last for years. By making these conscious choices, we all have the ability to contribute to a more sustainable future and reduce our environmental impact.”

Embrace sustainability

Elizabeth Casas with Simple Living on Repeat, echoes this sentiment, emphasizing the importance of intentionality and sustainability. “With the cost of living and food prices increasing, underconsumption is a new trend that people must try to save money. Avoid buying products until you finish the ones you already have and use, such as skincare or cleaning products. Shop secondhand first. Before a new purchase, try to see if you can buy gently used items like clothing, furniture, books, and toys. Buying second-hand first not only helps you save money but also positively impacts the environment, giving items a second chance and reducing waste.”

“Well-storied homes often belong to well-storied discount shoppers, dumpster divers, thrift store thrifters, and roadside wranglers with well-storied lives,” shares Paige Grose with Paige Grose Design. 

She adds, “I love expensive furniture, luxurious linens, fine china, and hand-woven rugs, but many of my most treasured and unique pieces that give our house style were found, thrifted, or haggled for and not purchased from a design center showroom. Thrift stores, flea markets, yard sales in upscale and retirement communities, trolling the streets on trash night (some neighborhoods encourage this and post items in real-time on social media), vintage and antique shops, as well as your family’s basements and attics are perfect places to start an underconsumption journey to create a well-storied home.”

Create and embrace multi-functional spaces

For renters in apartments, especially those with limited square footage, multi-functional spaces are key. Consider furniture that serves dual purposes — like a sofa that doubles as a guest bed or storage solutions that blend into your decor. “If I were going to say one thing a renter could do to create a more functional space, I would say not to underestimate the value of leg risers,” shares Mary Colmar with Salad Bowl Dress.

“You can make a kitchen island with two or more risers under a kitchen table. They’re helpful in a bedroom for your dresser or a bed to add storage space underneath. I have even used them in the living room under a couch to add the illusion of space.” Hacks like these can create a more functional and stylish space, without breaking the budget or spending impulsively.

Value quality over quantity

Quality pieces stand the test of time, saving you from frequent replacements and contributing to a more sustainable lifestyle. “I quit Amazon Prime to minimize unnecessary impulse buys. Instead, I put items in my shopping cart and wait till I hit the $35 minimum spend for free shipping without Prime,” shares Julie George with The Brown Girl Podcast.

“Sometimes during this “waiting time,” I find I actually didn’t need or want this or that, and then remove it from my cart. I also started investing in higher quality items that I can keep for a lifetime instead of low-quality/fast fashion junk that ends up needing constant replacement.”

Create a consumption budget

Just as you would budget your finances, consider creating a consumption budget. “Adopt a more mindful approach to spending and prioritize experiences over possessions, this will help you to focus on what truly brings value to your life,” recommends Emma with Bee Money Savvy. “Being more mindful when it comes to money can also help to reduce your living costs, allowing you to save towards long-term goals such as a first home or retirement.”

Reflect, remember, and adjust

“People have this strong belief that somehow happiness comes through spending on things and experiences. That if we only owned a nicer item, and splurged on a vacation, that we would be happier,” explains CEO and content creator, Save My Cents, Inc.

“Research has proved this to be the opposite. After meeting a certain minimum level of lifestyle, then additional levels of happiness gained from spending on nice-to-have items are diminishing — meaning the more money you spend, you don’t necessarily become equally happier. Knowing this is powerful because it means that you have to learn to derive joy from your current life. Lean into the strength of the good relationships and friendships you have. Take comfort and have gratitude for when you do have abundance — such as a decently paying job, payable skills, and good mental and physical health.”

Less, truly is more

Underconsumption core is more than just a trend; it’s a transformative lifestyle choice that encourages us to prioritize what truly matters. “When I coach Americans to spend less, I coach them to have gratitude. When you see everything that you “get to” enjoy, then you don’t feel the need to buy more to be happy,” Save My Cents continues.

“By embracing this philosophy, we can redefine minimalism and cultivate a life filled with purpose, sustainability, and fulfillment.” Underconsumption core offers a refreshing perspective that invites us to slow down, evaluate our choices, and make room for what genuinely enriches our lives.

Source: rent.com

Apache is functioning normally

Do you want to learn how to become a photographer? Many photographers are making $50,000 and over each year. Today, I have a great interview to share with you. I interviewed my friend Sydney Hampton on how to become a photographer. I actually met her when I hired her to take my maternity photos, and…

Do you want to learn how to become a photographer?

Many photographers are making $50,000 and over each year.

Today, I have a great interview to share with you. I interviewed my friend Sydney Hampton on how to become a photographer. I actually met her when I hired her to take my maternity photos, and later on my newborn photos. We stayed in touch, and I recently asked her if I could interview her for this article.

Sydney is a photographer who focuses on family, couples, maternity, branding, and newborn photography.

The demand for this kind of photography is high, and many people are looking for quality photographers for these types of photos.

Are you wondering questions such as:

  • How much money can a professional photographer earn?
  • Is there room for new photographers?
  • What equipment does someone need to become a photographer?
  • How many hours does it take each week to run a photography business?

If so, these questions, plus more, will be answered in today’s interview about how to become a photographer.

Today’s interview will help you get started and perhaps even introduce you to a new way to work at home.

Recommended reading:

Tell me your story. Who are you and what do you do?

My name is Sydney Hampton and I am a wife, mom, and photographer. I am the face behind Sydney Hampton Photography. I love being a photographer and helping others figure out their path in the world of photography.

I am also the creator of The Mom Photographers, a group that helps moms who are photographers get more organized, manage their time better, and grow their businesses so that they can grow their business while balancing life as a Mom. The Mom Photographers is a community, educational hub, blog site, and we have a podcast on Spotify that features moms who are photographers and business owners.

What kind of photography do you do?

I do several types of photography, but currently I focus on family, couples, maternity, and newborn. Maternity and newborn have my heart, but I have also done many other types of photography including weddings, senior portraits, and business and branding photography.

This year, I am really focusing on family, maternity, couples beach photography and in-studio sessions such as newborn and business branding. As a photographer in a prime vacation destination, I tend to do a lot of beach mini sessions and have found that men and children are usually not up for full sessions. This has helped to truly launch my business to another level where I am able to do mini sessions weekly.

Here’s a picture of me photographing on the beach.

Why did you decide to become a photographer? How did you get started?

I have always loved photography and really started getting into it in about 2006 when I was in high school. I grew up with photography all around me; my Dad was a professional sports photographer. So from a young age, I learned how to shoot in manual and learned important key things like composition.

Like many though, I really thought of myself as an amateur, especially being around family members like my dad and his brother, my uncle, who also is a photographer but an amazing wildlife photographer. After the first 2 years of college, I put my camera down for a few years. When my father passed, I inherited his camera and really picked it back up as a way to connect with him. 

To be honest, it was my husband who gave me the confidence to become a professional photographer. After watching me for 2 years continuously take photos of landscapes, our van, and dog on road trips and seeing the passion I had for it, he convinced me to take a leap and go for it.

I truly decided to become a photographer as a way to do what I love, and maybe make some money. With my husband’s support, we were prepared for it to make nothing, so the risks were low. 

In the beginning, I attribute all of my success to the military community! As a military spouse, I was able to reach out to the military spouse community and have clients that I still service 5-plus years later and in different states! The support from that community has been ongoing. I was able to grow a following on Instagram and Facebook, which really helped create my business as a Florida Keys vacation photographer. Having followers and clients who shared my work regularly, allowed me to establish credibility and book new clients.

What do you like about having a photography business?

My favorite part about having a photography business is that I get to be with home with my kids all day every day. Having the freedom to create my schedule, be with my family, and to be creative is beyond any financial benefit. While this year has been my busiest and most financially beneficial year thus far, I have made sure to dedicate time to doing things with my kids where I can set my phone aside. I have found that the biggest blessing has been to step away from work and not be worried.

I love how diverse photography as a career is. For example, it can be very simple like just stock photography on the side, or just weddings or you can open a studio and become a portrait and newborn photographer… Or you can do it all! You can photograph events such as weddings for thousands per wedding, do family sessions, maternity, business advertising, even sell products like landscapes, start blogs and podcasts, create courses, write books, and more. Just like with many other opportunities, the sky is the limit – it’s a perfect career for someone creative and driven, yet also great as a side gig.

I have been fortunate to see many sides of photography from just word of mouth within a small community with a few clients to over 400 clients so far this year alone. I have loved that I get to meet new people with each shoot and that I am able to connect with people from all walks of life.

I believe in growing and learning from others, which is part of why I created a community called The Mom Photographers where I host a podcast/blog and talk with other moms who are photographers about all the topics we face. Things like how do you edit with kids, what does workflow look like when you have kids, and ways to get started. Through The Mom Photographers, I will also be releasing educational videos, courses, presets, and doing hands-on/virtual workshops.

How much money can a professional photographer earn?

Again, it’s all flexible. You can do it very part-time and only make a few thousand a year or you can make a million. It truly depends on a few key principles such as the amount of time and effort you want to put in, the quality/ consistency of your work, and the type of photography you choose to do.

On average, most photographers can expect to make about $50,000 in a small town or non-tourist destination.

In a tourist destination or bigger city it is easy for a photographer to make $75,000+ with the right tools in their pocket and a quality consistent product. Now, I’m not saying anyone who just buys a camera can walk out and expect to make $75,000. It takes professionalism, some business knowledge and having a quality product that people want to buy. It also takes time, but working with a mentor or shadowing a photographer are ways to speed that up. I have also found that those who do start with a mentor or who work under an established photographer their first year tend to make more money and be more successful in the end.

I am actually mentoring 5 photographers currently and just hosted a styled shoot with 12 other photographers. To me, connecting with others is key! So to be able to host a shoot that I create and make money is a blessing.

What equipment does someone need to become a photographer? Do they need to spend a lot of money to get started? 

Someone looking to get started will need a camera, a lens, computer and a few programs to help make them successful such as Lightroom. To get started as a family, couples or wedding photographer I definitely suggest having a professional level camera/lens set up.

I always suggest shadowing and making sure it’s what you definitely want to do before you invest in equipment. Knowing that this is the right path for you is step one.

I actually have a free course called: Is Photography Right for you? My goal with this course was to lay out a realistic expectation of what all is involved to start and be successful in the photography industry.

Below is some more in-depth information on what equipment you need to become a photographer:

  • Camera – I highly suggest starting with a Professional camera. I suggest going with a mirrorless camera. I am a Nikon user, and I suggest getting the best camera you can within your budget. My top suggestion is the Nikon Z 6II which you can find lightly used for around $1300 or Nikon z6III $2500 which was just released in summer 2024. It’s good in low light, sharp, and easy to use. If it is out of your price range, then go for the Z50 would be my next suggestion (which is $1,000 brand new or used around $750). I currently have 2 cameras, a Nikon Z 6II and a Z8 which is my new camera, I went with the Z8 over the flagship Z9 for 3 reasons.
    • 1.  It’s smaller and lighter
    • 2.  It uses the same batteries as the Z 6II.  
    • 3. It was the same performance but less expensive.   
  • Lens – I definitely recommend when you buy your camera to not purchase it with a kit lens. Buy a lens appropriate for the work you would like to do. Example: family, maternity, or portraits – go for a 35mm or 50mm lens with an f-stop of 1.8 or lower, then later add lenses such as 85mm, 50mm, 35mm, and 70-200mm. I like to shoot with a lower f-stop because I like the subject isolation and blurred background. For Family, Maternity and newborn I definitely suggest having a 50mm and a 35 mm. My favorite lens is my 50mm 1.2 this lens gives dreamy background and crisp images. The kit lens often does not hold value for resale well, and it’s better to just buy the camera body without it. Nikon just released a 35mm 1.4 lens which is $599.
  • Computer – I use an Apple MacBook to do all of my editing. I edit on Lightroom primarily and also on Photoshop. I also use several other programs to assist me in saving time that I go more in-depth with in a few of my Mom Photographer blog posts (Aftershoot, Portraiture, Imagen AI, and Topaz). For newborns and Portraits, I love Portraiture!
  • Website- You can actually start your website for free through Pixieset. I have been using them for 6 years and they are amazing, I love how everything is integrated. It is not only the host site I use now but how I book clients and deliver galleries. Pixieset also has a print store, and is always looking for ways to improve. Once you do get more involved and find yourself needing to upgrade the prices are still reasonable at $19/month and up. You will still need to get your own url from a site like GoDaddy and you can connect that to your Pixieset.

With those things, anyone can start. The list grows with what type of photography, so I suggest starting simple in one type of photography, like aiming for just family or just branding.

Note about the camera purchase: You can start with an older camera or with what ever camera you have. The goal with starting with an older camera would be to learn to shoot in manual, as well as to learn composition. Just definitely plan to set aside money to upgrade to a professional camera as soon as you can so that you can provide clients with a quality product. Also depending on the photography route you choose you could also start with a camera like a good drone! Think landscape, real estate, marketing, weddings or a way to earn income while saving up for your professional camera. Lots of professional photographers love to work with people who can provide drone video and photo images.

Here’s a picture of one of my recent maternity pieces (underwater).

What is your typical work schedule? How many hours does it take each week to run a photography business?

My typical work week varies depending on the time of year. I have weeks where I maybe work 5 hours and other weeks where I work 30 plus. But in general, even at my busiest, I still have freedom to do things with my family that matter, like church 2x a week, dance class 2 days, or enjoy time with my family and our little farm.

Each morning, I spend the first 15 minutes checking all emails, scheduling social media posts, and responding to DMs. I often also find that my best editing hours are between 10 p.m. and 3 a.m. because I have a two- and four-year-old! Batching content is also a great way that I save some time.

Is there room for new photographers?

Many may say no, but I say Yes!

Lots of room, and there will be room for anyone new. In any industry, there is always someone who is burned out, not driven, not open to changes in the industry. There is always a new style, but even more so, there is simply just a huge range of customers and what they are looking for.

There’s someone who wants a $100 shoot or a $10,000 shoot. So it’s important to know where you want to fall in there and to aim for how to build your business and create the quality product worth what you want your target market to be.

For new photographers, you can be a second shooter or an associate shooter for a well established photographer. This is a great way to start while still working a regular job and never have to edit anything except what you want for your own personal use. This is something most photographers, including myself, don’t know before taking the plunge to be professional.

Looking back, this is the perfect approach for someone with a job or a busy life not wanting to ruin their name doing free shoots and never gaining repeat clients. It’s also a great way to learn and cash flow everything while not taking huge risks.

Also, I am a strong believer in being a business with insurance and everything you need to be legit. You can start as a luxury photographer without having to spend 10 years to get there, but you need to be able to create a luxury product consistently, and that does take some time and guidance from others such as mentors. You will need honest feedback from someone who knows photography well.

Can you list the steps to get started with a photography business?

First make sure its something you want to do, my suggestion is shadow someone, watch Youtube videos or take a course like my free course: Is Photography right for you?

Next is get a camera, or even rent one, to learn how to shoot in manual and to build a portfolio for Instagram and your website. You should have 50-200 unique edited images that you feel, and others honestly feel, show the quality of what you would like to charge for your website. 

I have found that honest criticism is key to success, so being able to hear someone say, “No, I would not pay $350 for your work,” and why is important. All friends and family will always sing your praises, but you need to know what clients or potential clients think when they look at your website. Be open to criticism, and allow it to help you grow, don’t ever let it set you back!

What are your best tips for someone who wants to become a photographer?

Find a prominent photographer in your area to shadow, or mentor under. You can even shadow or mentor under me from anywhere in the world. I also can help you find a reputable photographer in your area. Shadowing is really a great way to start.

My biggest tip, keep learning. The industry is constantly changing, growing with it is key!

Always accept criticism and be open to seeing your work through the eyes of others even if its discouraging at first it will help you to grow in the long run and eventually you will become your harshest critic.

Figure out the style you want to portray and use a preset to create consistency in your work.

Build a website and social media following.

Shoot as much as you can, even if it’s your neighbor or kids.

I do offer a mentorship program with an in-person and a virtual mentorship option. You can find the mentorship program information by clicking here.

What are your goals for your photography business for the future?

My goals for this year, now that I have hit a 6-figure-income photography business, is to create passive income. I would also like to grow and spend more time with my family.

Knowing that our family would like to possibly add another little one in the future and that I tend to take off up to 6 months postpartum, having passive income or finding ways to keep my photography business moving while I am out has been my goal.

With this in mind I created a team this past year, started another blog and a podcast. I also created The Mom Photographers to not only achieve my goals but also to help other moms have a one-stop shop to learn, grow, vent, and connect with other moms who are photographers. The Mom Photographers is a Facebook group as well as a website, blog, podcast, community, and educational hub.

I will be releasing a few courses in the next 6 months: 

  • Is Photography Right for You?
  • How To Get Started as a Professional Photographer While Being a Mom
  • The Mom Photographers Course for Established Professionals Looking To Grow and Dedicate More Time With Their Family
  • Kids- College guide to photography as a Job: with a focus on growing wealth at a young age and avoiding debt.

I will also be going more in-depth with the podcast and YouTube, adding free educational information, weekly tips, advice from experiences myself and others have learned, business trends, and ways to grow.

My financial expectation this year is to hit $175,000 and 3-5year goal is $1 million/year. I always aim to set realistic expectations and my goals are higher. Over the last few years my income has grown each year by 50-100 percent, so for me a competitive goal keeps me motivated.

I am fortunate to have my husband, a retired military warrant officer, to be my support system and help me in all aspects. My husband is my rock who not only homeschools our kids while I do shoots but also drives me to each shoot and helps me stay on task. Without him, I would be nowhere near as successful. It is imperative for anyone’s success that they have a good support system if they have kids or a family.

We are also fortunate to have zero debt including our home – our mini modern farm, as we call it! Complete with our 4 dogs, 2 cats, 10 ducks, and 13 chickens.

Photography has very much been a financially freeing stream of income that has allowed us to live in a million-dollar paid-for home on top of my husband’s retirement from the military. It also allows our children to grow up with the unique opportunity of having both parents with them every day. I am 34 and my husband is 45, we believe in being debt free and cash flowing everything. Making Sense of Cents often talks about the many benefits of financial freedom, and how to grow wealth. When I mentor photographers I also make sure to include how important it is to not build a business on debt, and that saving for three categories is imperative- taxes, emergency fund, and equipment upgrades.

Helpful links:

Do you want to become a photographer?

Recommended reading:

Source: makingsenseofcents.com

Apache is functioning normally

Categories

Real Estate

October 3, 2024
by Mark Ferguson

The Federal Reserve recently cut interest rates more than expected. This is the first rate cut in four years, and it could significantly impact the housing market, inflation, and the broader economy. Let’s dive into what this means for real estate, inflation, and more.

Table of Contents

Video: Will the Fed Interest Rate Cut Increase Housing Prices?

[embedded content][embedded content]

High Interest Rates and Inflation: A Misconception?

For years, I’ve advocated for cutting interest rates and argued against raising them. While many believe high interest rates help control inflation, I think they might do the opposite—and definitely don’t help with housing affordability. Studies suggest that high rates raise mortgage payments, making housing more expensive, not less.

A common belief is that high rates will force housing prices down, but I argue that high rates might actually make the situation worse by reducing supply. Fewer homes are built when borrowing costs are high, and existing homeowners are reluctant to sell, waiting for lower rates. This supply shortage pushes prices up, not down.

What is the Best Investment in a High Inflation Environment?

What the Fed Rate Cut Means for Mortgage Rates

The Fed’s interest rate decisions don’t directly affect mortgage rates, but they are closely related. The Fed sets the federal funds rate, which is what banks pay to borrow from each other. Mortgage rates, on the other hand, are determined by the bond market and overall economic conditions.

Typically, when the Fed cuts rates, mortgage rates also drop. But the relationship isn’t always linear. As we’ve seen recently, mortgage rates have been all over the place. Earlier this year, they were above 7%, but now they’ve dropped to around 5.7% for a 30-year mortgage, according to NerdWallet. That’s a significant drop, which makes homes more affordable by lowering borrowing costs.

Rental Property Cash Flow Calculator

Could Lower Rates Boost Housing Demand?

Lower rates could trigger a surge in homebuying. Many renters and homeowners have been sitting on the sidelines, waiting for rates to drop. When they do, these buyers may jump back into the market, driving prices up. We could see a short-term price increase due to a spike in demand.

However, lower rates also make it easier to build new homes. Increased construction would boost supply, potentially stabilizing prices over time. Currently, there’s a significant housing shortage, and more building is necessary to meet demand. So while prices may rise in the short term, more construction will help create a more balanced housing market in the long run.

Future Value Inflation Calculator

The Argument for Lower Rates Stabilizing the Market

Some people argue that lowering rates will bring more homes onto the market, as current homeowners who have been holding off on selling will finally list their properties. This could increase supply, but those same sellers are also buyers. So, while more homes might come on the market, there will still be buyers ready to snatch them up, including renters who have been waiting for a better deal.

In fact, with more buyers than sellers, we could see even higher demand than supply, leading to an imbalance favoring buyers. Lower rates, combined with strong demand from immigrants and other demographics, could lead to a more pronounced housing boom.

What is the Best Way to Invest in Real Estate?

Job Growth, Immigration, and Housing Demand

Another factor driving housing demand is immigration. Recently, there’s been significant job growth, but most of it has been among foreign-born workers. Data from the Census and the Social Security Administration shows a substantial increase in employment for foreign-born individuals, while employment for native-born workers has decreased. With more immigrants entering the workforce, housing demand is likely to rise, adding pressure to the housing market.

Many predict that population declines will lead to a housing crash, especially as baby boomers age. However, immigration is offsetting those declines. The U.S. population is still growing, which means more demand for housing, both for homeownership and rentals. Coupled with lower interest rates, this could result in continued upward pressure on home prices.

Why High Rates Don’t Necessarily Lower Prices

There’s a misconception that raising interest rates automatically leads to lower prices, whether for housing or goods. While higher rates can reduce demand, they also reduce supply, which can keep prices elevated. Fewer homes are built, fewer people sell their homes, and businesses cut back on production. In the housing market, this stagnation leads to a supply-demand mismatch, propping up prices rather than reducing them.

Studies from the 1970s and 1980s, when interest rates were at their highest, show that housing prices still rose dramatically. In fact, during the 1970s, prices tripled, and in the 1980s, they doubled. High rates simply don’t curb housing prices as much as people think.

Do Higher Rates Actually Cause Inflation?

Another controversial idea is that high rates can lead to inflation. Many people think raising rates controls inflation by reducing demand, but it doesn’t consider the supply side. When borrowing costs are high, businesses slow down production, which reduces supply. This supply contraction can lead to higher prices for goods and services, as companies are forced to raise prices to cover their costs.

For example, I own a small business. If my costs increase due to higher interest rates, I can’t just lower my prices to compensate for reduced demand. I still need to cover my fixed costs, so I might raise prices instead. This is how high interest rates can cause prices to rise, counterintuitively contributing to inflation rather than reducing it.

Conclusion: Why Lower Rates Are Good for the Economy

In summary, I believe lower interest rates are better for the economy and the housing market. Lower rates encourage building, make borrowing cheaper, and can help stabilize housing prices in the long run. While some fear that lowering rates will cause prices to surge, the alternative—keeping rates high—only prolongs the problem by restricting supply.

Additionally, the data shows that high rates don’t automatically lead to lower prices and, in some cases, can even cause inflation. As we move forward, it will be interesting to see how the Fed’s rate cuts impact the economy and the housing market in the months to come.

What do you think? Let me know in the comments below!

Source: investfourmore.com

Apache is functioning normally

Editor’s Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.

While most investors are familiar with buying and selling shares of stock directly, investing in options is another way to put money behind stock price movements.

Options are a type of derivative contract that allows the investor to buy (or sell) a stock, or some other asset, at a certain price within a specific time period. The two basic types of options are known as “puts” and “calls.”

Options trading is a popular strategy for day traders, because it offers the potential to make profits within a shorter time frame, as opposed to owning shares of stock outright, and waiting for the price to move in the desired direction. Options trading can potentially generate returns, but it can also amplify losses, making it a risky strategy.

Key Points

•   Buying a call option gives an investor the right, but not the obligation, to buy shares of an underlying asset at a specific price and by a specific date, to potentially profit from a price increase.

•   Buying a put option gives an investor the right, but not the obligation, to sell shares of an underlying asset at a specific price and by a specific date, to potentially profit from a price decrease.

•   The buyer of a call or put option must pay the seller a premium for the options contract, assessed per share.

•   The price at which an option can be exercised, as specified in the option contract, is called the strike price.

•   Options trading involves risks, including potentially substantial losses.

[embedded content]

Overview: What Are Options?

In options trading, an option contract is a derivative instrument that’s based on an underlying asset: e.g., stocks, bonds, commodities, or other securities. Thus, the buyer of an options contract doesn’t purchase the asset directly, but a contract with an option to buy or sell that security. For example, with stocks, also called equity options, one contract represents 100 shares.

Options come in two flavors, as noted above: calls and puts. For the sake of simplicity, this article will refer primarily to stock or equity options.

Options Buyers vs. Options Sellers

An options buyer, also called the holder, has the right, but not the obligation, to buy or sell the underlying asset at the agreed-upon price (the strike price) by a specific date (the expiration). Buyers pay a premium for each option contract, which is assessed per share. If there is a $1 premium per share, at 100 shares, the total cost of the option is $100.

The potential upside for an options buyer could be unlimited, depending on their strategy. And since an options buyer is not obligated to exercise their option — meaning to actually buy or sell the underlying stock at the price agreed to in the option contract — the most they stand to lose is the premium paid for the option.

An options seller, also called the options writer, is on the other side of the trade. In this case, if the options holder exercises the contract, the option seller has an obligation to buy or sell the underlying asset at the strike price.

The potential upside for an options seller is the option’s premium. Their potential downside depends on whether they’re selling a put option or a call option. More on this below.

Trading options requires familiarity with options terminology, since these strategies can be complex and come with the potential risk of steep losses, depending on the strategy.
💡 Quick Tip: How do you decide if a certain trading platform or app is right for you? Ideally, the investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.

What Is a Call Option?

When purchased, a call option gives the options buyer the right, but not the obligation, to buy 100 shares of the underlying asset at the strike price, by the expiration of the contract.

Buying a call option can be appealing because it gives a buyer a way of profiting from a stock’s increase in price without having to pay what could be the current market price for 100 shares.

If the price of the underlying asset rises above the strike price, then the buyer may choose to exercise their option, paying less than what it’s worth on the market and potentially selling shares for a profit.

For a call option buyer, the profit is determined by the premium they pay and if, and by how much, the price of the security rises above the option’s strike price before it expires. The maximum potential upside is unlimited since, theoretically, the price of the underlying asset could continue to rise. The maximum potential downside is limited to the premium paid for the option.

Conversely, the seller, or writer, of the call option has the obligation to sell the underlying shares to the buyer, if the buyer exercises the option. The seller’s maximum potential gain is limited to the option’s premium. Their potential downside is unlimited, since they must sell shares at the option’s lower strike price, no matter how high the market price has risen.

Example of Buying a Call Option

If an investor buys an option with a strike price of $50 for a stock that’s currently worth $40, the option will be “out-of-the-money” until the stock rises to $50. If the premium is $1/share — meaning they only pay $1 up front — then the investor will only be risking $100, not $4,000.

If the stock is trading at $55 on or before the expiration date, it would make sense to “exercise” the option and buy the stock for $50, thus giving the investor shares with built-in profit thanks to the difference between the strike price of $50 and the value of $55. In this case the profit would be $4/ per share (or $400), minus the premium paid: a strike price of $50 gives the investor the right to buy 100 shares of a stock worth $55, with a premium of $1 per share.

On the other hand, if the stock has not risen enough in price, the investor can just let the option expire, having only lost the price of the premium, rather than being saddled with shares they can’t profit from.

Recommended: A Beginner’s Guide to Options Trading

What Is a Put Option?

A put option gives the investor buying the contract the right, but not the obligation, to sell the underlying security at the agreed-upon strike price, by the expiration date of the option.

If buying call options are a way to profit when the price of a stock or other underlying asset moves in the right direction, buying put options can be a way to profit from the fall of a stock’s price, without having to short the stock (i.e. borrow the shares and then buy them back at a lower price).

Purchasing a put option contract gives its buyer the right, but not the obligation, to sell shares at a certain price, at or by a specified time in the future. The key difference between buying a put vs. a call option is that the put option becomes increasingly valuable as the price of the underlying asset decreases. A put option buyer is hoping they can sell the underlying asset at a strike price that’s higher than the market price.

For the put option buyer, the maximum potential upside is the difference between the option’s higher strike price and the price at which the option is exercised (minus the premium), while the maximum potential downside is limited to the premium paid.

Again, the put option seller is on the other side of the trade, and is obligated to buy the shares from the put buyer, if the buyer decides to exercise the put option. The put option seller’s maximum upside is the option’s premium. Their potential downside extends to the difference between the option’s higher strike price and the lower market price at the time the option is exercised.

Example of Buying a Put Option

As an example, let’s say a stock is worth $50 today. If an investor thought the stock’s value could go down, they might buy a put option with a strike price of $40. Let’s say the premium for the option is $1, and they buy a contract that gives them the right to sell 100 shares at $40. The premium, then, is $100.

At the time the investor buys the put option, it’s out-of-the-money. If the price remains above $40 until it expires, the investor will not be able to exercise the option and they will lose the premium.

But if the stock has dropped from, say, $50 to $35, the option is in-the-money and if they were to exercise the option, they’d profit from being able to sell shares for $40 that are worth $35, pocketing $5 per share or $500, minus the $100 premium, leaving them with $400, minus any brokerage fees.

Risks of Options Trading

Option trading can be a useful way to manage risks in a volatile market and potentially profit from movements in stocks one doesn’t own. Again, an investor buying options only stands to lose the premium they pay for an options contract, though the cost of premiums can accrue if purchasing multiple options contracts over time.

However, an investor selling call options or put options, who is obligated to either buy or sell an option’s underlying assets per the terms of the options contract, could potentially see substantial losses. This is especially true if they don’t understand the potential downside to the trades they’re executing.

The Takeaway

Option trades may appeal to individual investors because they offer a way to potentially see a gain from movements in a stock price, without having to own the underlying shares. If an investor isn’t able to exercise the call or put option they purchased, they’ll lose the premium they paid for that contract. However, selling a call or put option can be high risk, potentially leading to significant losses.

Investors who are ready to try their hand at options trading despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to buy put and call options through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button. Currently, investors can not sell options on SoFi Invest®.

Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.

Explore user-friendly options trading with SoFi.


SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.
Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOIN-Q324-061

Source: sofi.com

Apache is functioning normally

Need to dry clothes without a dryer? We’ll walk you through your options.

Whether you live in an apartment in San Jose or a Milwaukee rental, living in an apartment often means adapting to space constraints and finding creative solutions for everyday tasks, including doing laundry. While many apartments lack in-unit dryers, this doesn’t mean you have to sacrifice the freshness and comfort of well-dried clothes.

Drying clothes without a dryer can be both an energy-efficient and garment-friendly method. This comprehensive Rent. guide will walk you through a few tips on the best practices for drying clothes without a dryer in an apartment.

1. Gentle washing and spinning 

  • Optimize washing machine settings: Use the “delicate” or “gentle” wash cycle to prevent wear and tear, especially for delicate fabrics. This cycle reduces agitation and helps preserve the quality of your clothes. After washing, select a “spin only” cycle to remove excess water—this will help reduce drying time without stressing the fabric. If hand washing, gently press out the water rather than wringing to protect the fibers.

2. Shake clothes and sort effectively

  • Shake clothes out: Vigorously shake each garment after washing. This loosens the fibers and helps clothes dry quicker and with fewer wrinkles.
  • Sort by time: Group clothes by thickness and fabric type. Lighter fabrics dry faster and should be hung separately from heavier ones like jeans or towels.

Color care: Prevent color bleeding by drying similar colors together, especially for new garments.

3. Select the right spot for drying

  • Air circulation is key: Choose an area with good airflow. A room with a ceiling fan or near an open window is ideal.
  • Consider sunlight: While natural light is beneficial, direct sunlight can cause colors to fade. A balance is essential.

4. Utilize drying racks efficiently

  • Invest in quality racks: A sturdy, foldable drying rack is a worthwhile investment for apartment living.
  • Strategic placement: Don’t overcrowd the rack. Arrange items with enough space in between for air to circulate between them.

5. The art of hanging clothes

  • Hanger drying: Utilize hangers for shirts, dresses and pants. This not only saves space but also minimizes the need for ironing. To avoid small shoulder creases, use padded or wide hangers, which help distribute the weight more evenly and maintain the shape of the garment.
  • Hanging techniques: For pants, clip the waistband to the rack. For sheets and larger items, fold them over multiple bars.

6. Indoor enhancements

  • Dehumidify: In humid apartments, a dehumidifier can accelerate drying times significantly. This can be incredibly handy if you live in a tropical climate like Miami, FL.
  • Fans are your friends: Positioning a fan near your drying setup can simulate a gentle outdoor breeze.

7. Outdoor options

  • Use your balcony: If accessible, balconies are great for air drying, but always secure clothes properly. You don’t want to be the neighbor who introduces themselves to the block while chasing half-dry laundry down the street.
  • Innovate: Portable, retractable clotheslines can be a game-changer for balcony drying.

8. Iron

  • Dual-purpose ironing: Ironing clothes when slightly damp smooths out wrinkles and completes the drying process, especially for materials like cotton and linen. The key is to ensure the clothes are just slightly damp, not too wet, to avoid any risk of damaging the iron or the fabric.

9. Maintain your drying rack

  • Clean regularly: Keep drying racks clean to prevent any rust or dust transfer to your cleaned dry clothes.

How to dry clothes quicker

Speeding up the clothes drying process without a dryer involves several effective methods that maximize airflow and evaporation. Here are some key strategies to dry clothes faster without a dryer.

  • Maximize the spin cycle: Use the highest spin cycle on your washing machine that is safe for your fabrics. The faster cycle removes more moisture, reducing drying time significantly.
  • Towel roll: For particularly heavy items like jeans or sweaters, lay them flat on a dry towel and roll the towel up with the garment inside. Press gently to absorb excess water. This method is especially useful for delicate items that you can’t put through a high spin cycle.
  • Wring out excess water: For sturdy fabrics, carefully wring out extra water before hanging them to dry. Be cautious with delicate fabrics, as wringing can damage them.
  • Use air movement: Position your drying clothes near a standing or ceiling fan to increase air circulation. The airflow speeds up evaporation, reducing drying time.
  • Use dryer balls in the washing machine: Adding dryer balls to the washing machine can help separate clothes and allow more air to circulate between them during the spin cycle, thus removing more water.
  • Change the temperature: Increasing the room temperature where you’re drying clothes can help speed up the process, as warmer air can hold more moisture.

Remember, while it’s important to dry clothes quickly, it’s equally important to ensure they dry thoroughly to prevent mildew or musty smells. Always balance speed with the care needed for each type of fabric.

Benefits of drying clothes without a dryer

While it may require a bit more effort, drying clothes without a dryer has several key advantages.

  • Fabric care: Air drying is gentler on clothes. By consistently air-drying your threads, you can reduce wear and tear and preserve fabric quality.
  • Energy saving: Air drying your clothes is an environmentally friendly option that also saves on electricity bills.
  • Space efficiency: The math is simple here, hangers and foldable drying racks take up much less space than a dryer unit.

By leveraging these advantages of dryer-free clothes drying, you can live a more sustainable, less wasteful life in your apartment. Trust us, your energy bill and your clothes will thank you.

Things to keep in mind when drying clothes indoors

When drying clothes indoors without a dryer, particularly in an apartment, there are several nuances to consider to ensure your clothes dry properly and your living space remains comfortable. Here’s a detailed look at a few of these factors.

1. Optimize your space

  • Multi-functional racks: Opt for multi-level or tiered drying racks to maximize vertical space. Racks with adjustable wings are also helpful for accommodating larger items.
  • Door and shower rods: Utilize existing structures like shower rods or over-the-door hangers to create additional hanging space.

2. Strategic placement

  • Space out garments: Avoid overlapping or bunching clothes. Spreading them out allows air to circulate to each item. This drastically speeds up the drying process.
  • Heavier items at the bottom: If using a multi-tiered rack, place heavier items like jeans or towels on the lower levels, where there’s less risk of tipping.

3. Time it out

  • Schedule: Plan your laundry so that clothes have enough time to dry, especially if you need them for a specific occasion. Overnight drying can be effective for morning use.
  • Rotate: If drying space is limited, rotate clothes periodically to ensure all parts get exposed to air.

4. Minimize odors and dampness

  • Frequent air changes: Make sure the room has proper air circulation to prevent dampness and odors from settling.
  • Use of fabric fresheners: Lightly spritz clothes with a fabric freshener or a mix of water and essential oils to maintain a fresh scent during the drying process.

Lay flat to dry: Some delicate items, like sweaters or knitwear, are best dried flat to maintain their shape. Use a mesh drying rack or a clean towel for this purpose.

Drying clothes without a dryer can be a breeze

Drying clothes without a dryer in an apartment requires some creativity and careful planning. By following the steps detailed above, you’ll not only enjoy dry clothes, but you’ll also extend the life of your most worn threads while saving on your energy bill.

Air-drying your clothing is a simple yet effective method that, when done correctly, offers a ton of tangible benefits for your garments and the environment. Remember, the key lies in efficient use of space, proper heating and ventilation and a bit of patience.

Interested in learning more about streamlining your apartment life? We’re always here to help with up-to-date information on everything renters need to know to enjoy their apartments to the fullest.

Wesley Masters works on Redfin’s stellar Content Marketing team as a content writing specialist. She has been with Rent. since 2023 and her previous experiences include non-profit communications, graphic design, and content creation. Wesley lives in Atlanta, GA, and loves outdoor walks, hanging out with her loved ones, and finding new recipes to try on Pinterest. Her ideal home is a brownstone with contemporary interiors.

Source: rent.com

Apache is functioning normally

Block trades are big under-the-radar trades, generally carried out in private. Because of their size, block trades have the potential to move the markets. For that reason they’re conducted by special groups known as block houses. And while they’re considered legal, block trades are not regulated by the SEC.

As a retail investor, you likely won’t have anything to do with block trades, but it’s a good idea to know what they are, how they work, and how they can affect the overall market.

Key Points

•   Block trades are large-volume purchases or sales of financial assets, often conducted by institutional investors.

•   Block trades can move the market for a security and are executed through block trade facilities, dark pools, or block houses.

•   Block trades are used to avoid market disruption and can be broken down into smaller trades to conceal their size.

•   Retail investors may find it difficult to detect block trades, but they can provide insights into short-term market movements and sentiment.

•   Block trades are legal and not regulated by the SEC, but they can be perceived as unfair by retail investors.

What Are Block Trades?

A block trade is a single purchase or sale of a large volume of financial assets. A block, as defined by the New York Stock Exchange’s Rule 127.10, is a minimum of 10,000 shares of stock. For bonds, a block trade usually involves at least $200,000 worth of a given fixed-income security.

Though 10,000 shares is the operative figure, the number of shares involved in most block trades is far higher. Individuals typically don’t execute block trades. Rather, they most often come from institutional investors, such as mutual funds, hedge funds, or other large-scale investors.

Why Do Block Trades Exist?

Block trades are often so large that they can move the market for a given security. If a pension fund manager, for example, plans to sell one million shares of a particular stock without sparking a broader market selloff, selling all those shares on a public market will take some time.

During that process, the value of the shares the manager is selling will likely go down — the market sees a drop in demand, and values decrease accordingly. Sometimes, the manager will sell even more slowly. But that creates the risk that other traders will identify the institution or the fund behind the sale. Then, those investors might short the stock to take advantage.

Those same risks exist for a fund manager who is buying large blocks of a given security on a public market. The purchase itself can drive up the price, again, as the market sees an increase in demand. And if the trade attracts attention, other traders may front-run the manager’s purchases.

How Block Trades Are Executed

Many large institutions conduct their block trades through block trade facilities, dark pools, or block houses, in an effort to avoid influencing the market. Most of those institutions typically have expertise in both initiating and executing very large trades, without having a major — and costly — effect on the price of a given security.

Every one of these non-public exchange services operates according to its own rules when it comes to block trades, but what they have in common is relationships with hedge funds and others that can buy and sell large blocks of securities. By connecting these large buyers and sellers, blockhouses and dark pools offer the ability to make often enormous trades without roiling the markets.

Investment banks and large brokerages often have a division known as a block house. These block houses run dark pools, which are called such because the public can’t see the trades they’re making until at least a day after they’ve been executed.

Dark pools have been growing in popularity. In 2020, there were more than 50 dark pools registered with the Securities and Exchange Commission (SEC) in the United States. At the end of 2023, dark pools executed about 15% of all U.S. equity trades.

Smaller Trades Are Used to Hide Block Trades

To help institutional traders conceal their block trades and keep the market from shifting, blockhouses may use a series of maneuvers to conceal the size of the trade being executed. At their most basic, these strategies involve breaking up the block into smaller trades. But they can be quite sophisticated, such as “iceberg orders,” in which the block house will break block orders into a large number of limit orders.

By using an automated program to make the smaller limit orders, they can hide the actual number of orders at any given time. That’s where the “iceberg” in the name comes from — the limit orders that other traders can see are just the tip of the iceberg.

Taken together, these networks of traders who make block trades are often referred to as the Upstairs Market, because their trades occur off the trading floor.

Pros and Cons of Block Trades

As with most things in the investment field and markets, block trades have their pros and cons. Read on to see a rundown of each.

Pros of Block Trades

The most obvious advantage of block trades is that they allow for large trades to commence without warping the market. Again, since large trades can have an effect on market values, block trades, done under the radar, can avoid causing undue volatility.

Block trades can be used to conceal information, too, which can also be a “pro” in the eyes of the involved parties. If Company A stock is moving in a block trade for a specific reason, traders outside of the block trade wouldn’t know about it.

Block trades are also not regulated by the SEC, meaning there are fewer hoops to jump through.

Cons of Block Trades

While masking a large, market-changing trade may be a good thing for those involved with the trade, it isn’t necessarily a positive thing for everyone else in the market. As such, block trades can veil market movements which may be perceived as unfair by retail investors, who are trading none the wiser.

Block trades can be hard to detect, too, as mentioned. Since they’re designed to be obscure to the greater market, it can be difficult to tell when a block trade is actually occuring.

Block trades are also not regulated by the SEC — it’s a pro, and a con. The SEC doesn’t regulate them, but rather the individual stock exchanges. That may not sit well with some investors.

Block Trade Example

An example of a block trade could be as follows: A large investment bank wants to sell one million shares of Company A stock. If they were to do so all at once, Company A’s stock would drop — if they do it somewhat slowly, the rest of the market may see what’s going on, and sell their shares in Company A, too. That would cause the value of Company A stock to fall before the investment bank is able to sell all of its shares.

To avoid that, the investment bank uses a block house, which breaks the large trade up into smaller trades, which are then traded through different brokerages. The single large trade now appears to be many smaller ones, masking its original origin.

Are Block Trades Legal?

Block trades are legal, but within stock market history they exist in something of a gray area. As mentioned, “blocks” are defined by rules from the New York Stock Exchange. But regulators like the SEC have not issued a legal definition of their own.

Further, while they can move markets, block trades are not considered market manipulation. They’re simply a method used by large investors to adjust their asset allocation with the least market disruption and stock volatility possible.

How Block Trades Impact Individual Investors

Institutional investors wouldn’t go to such lengths to conceal their block trades unless the information offered by a block trade was valuable. A block trade can offer clues about the short-term future movement and liquidity of a given security. Or it can indicate that market sentiment is shifting.

For retail (aka individual) investors, it can also be hard to know what a block trade indicates. A large trade that looks like the turning of the tide for a popular stock may just be a giant mutual fund making a minor adjustment.

But it is possible for retail investors to find information about block trades. There are a host of digital tools, some offered by mainstream online brokerages, that function like block trade indicators. This might be useful for trading stocks online.

Many of these tools use Nasdaq Quotation Dissemination Service (NQDS), Level 2 data. This subscription service offers investors access to the NASDAQ order book in real time. Its data feed includes price quotes from the market makers who are registered to trade every NASDAQ and OTC Bulletin Board security, and is popular among investors who trade using market depth and market momentum.

Even access to tools like that doesn’t mean it’ll be easy to find block trades, though. Some blockhouses design their strategies, such as the aforementioned “iceberg orders,” to make them hard to detect on Level 2. But when combined with software filters, investors have a better chance of glimpsing these major trades before they show up later on the consolidated tape, which records all trades through blockhouses and dark pools — though often well after those trades have been fully executed.

These software tools vary widely in both sophistication and cost, but may be worth considering, depending on how serious of a trader you are. At the very least, using software to scan for block trades is a way to keep track of what large institutional investors and fund managers are buying and selling. Active traders may use the information to spot new trends.

The Takeaway

Block trades are large movements of securities, typically done under-the-radar, involving 10,000 or so shares, and around $200,000 in value. It can be difficult for individual investors to detect block trades — which, again, are giant position shifts by institutional investors — on their own.

But these trades have some benefits for individual investors. The mutual funds and exchange-traded funds (ETFs) that most investors have in their brokerage accounts, IRAs, 401(k)s and 529 plans may take advantage of the lower trading costs and volatility-dampening benefits of block trades, and pass along those savings to their shareholders.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

Photo credit: iStock/marchmeena29

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

SOIN-Q324-031

Source: sofi.com