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I'm back from my honeymoon to Costa Rica
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with my beautiful bride. So, let's get
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back to work. This video is going to
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highlight some of the biggest things
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that have happened in the last week or
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so. And there's been a lot of things
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that happened while I was gone. And
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there's going to be a lot of things that
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are going to continue to happen in the
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next week or two. So, I'm going to give
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you all the highlights of what happened
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this past week, what's coming up, all
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the dates to consider, and a bunch of
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things that are about to move the stock
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market in July. This week's postponement
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of the July 9th US tariff deadline to
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August 1st, along with pressure to get
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more deals done by then was obviously
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the biggest piece of news. But come on,
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who didn't see that coming? So, first
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up, let's talk about this big beautiful
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bill Roth IRA stuff. Recently, a number
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of YouTubers and bloggers have come out
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with some information breaking down the
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bill, but none bigger than Andre Jack.
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When I heard what he had to say, it
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definitely piqued my interest. And so I
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did my own digging. It's always
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important for you to do your own
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research. And I'll show you what I
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found. But first, this is what he said.
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Now, this bill also has some major
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changes to the Roth IRA by 2026. And
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this is super important. Right now, you
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know that if you make too much money to
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contribute to a Roth IRA, there's a
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loophole. You can just contribute to a
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traditional IRA and then convert it to a
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Roth. A lot of people I know do this and
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it's totally legal, but not for a lot
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longer because starting in 2026, this
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bill will get rid of the backdoor Roth
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IRA strategy completely. That means no
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more after tax IRA conversions. If
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you've been doing that trick every year
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to build tax-free income in retirement
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with a backdoor or even a mega backdoor
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Roth IRA, you might want to start
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looking at other options right now. And
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there's two reasons why they're doing
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this. First, it raises tax revenue. And
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second, lawmakers say that this loophole
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mainly benefits wealthy people and
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wasn't really what Roth IAS were
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intended for in the first place.
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So, after hearing that, obviously that's
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a huge deal and that's something that
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definitely affects me as I do the
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backdoor Roth IRA. So, I went ahead and
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dug a little further and here's my
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findings. The spoiler alert here is that
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there is absolutely nothing in the big
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beautiful bill as of right now that
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actually says that they're going to get
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rid of this backdoor Roth IRA. But there
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are some stipulations and some things as
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to what it might include. And that first
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one is eliminating the backdoor Roth for
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high earners. Proposed restrictions may
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ban Roth conversions of after tax IRA
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contributions for individuals earning
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above a certain income threshold like
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400,000 or above. Similar to what was
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proposed in the original build back
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better act in 2021. Number two is the
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possible elimination of mega backdoor
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Roths. The mega backdoor Roth done via
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after tax 401k contributions and inplan
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or inservice Roth conversions may also
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be limited or banned. Number three is
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one of the ones that actually could
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happen, but I'm interested to see how it
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might happen, but these are new taxes on
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Roth conversions. Some versions of the
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proposal have floated additional taxes
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or waiting periods for converting
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traditional to Roth IAS. potential five
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or 10-year holding requirements or new
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sir taxes may apply depending on income
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level. All this being said, this is
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basically just speculation and nothing
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is actually saying yes, absolutely we're
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going to be cutting out the backdoor
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Roth IRA. Also, the bill still has to
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fully pass. And even then, again, it
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doesn't say anything about killing off
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the backdoor Roth. The day after Andre
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Jack posted his video, he actually
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amended the video with this pinned
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comment. He said that he confused a
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piece of the bill with the Build Back
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Better document from 2021. He wrote,
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"Correction, backdoor Roth IAS are
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unaffected. The loophole is not going
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away." So, what should you do now with
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this information? Basically, just keep
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doing what you're doing. Nothing's
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changing yet, but do understand even if
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the big beautiful bill doesn't have this
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in it, maybe some other bill down the
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road might have it. I believe the Roth
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IRA is the most powerful tool in
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investing and actually saving with that
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tax-free wealth building. So, here's
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some quick plan B options if backdoor
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Roths are banned. You can max out your
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Roth 401k contribution if your employer
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offers one. contribute to taxable
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brokerage accounts using a taxefficient
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ETF or index strategy. You could also
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consider municipal bonds, health savings
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accounts, or life insurance retirement
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plans for tax advantaged growth. Now,
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that was a huge thing that could affect
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all of us as investors. I also quickly
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have the sparknotes version of the top
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five things that I got out of the big
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beautiful bill. So, let me highlight
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that real quick for you. One big thing
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was that it stimulated startup funding
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and venture capital activity. The
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housing market in high tax states may
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get a lift from the salt relief. EV and
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clean energy sectors face short-term
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setbacks. Health care providers and
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low-income households face budgetary
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pressure. Educational equity debates may
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intensify as voucher incentives scale.
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Despite aiming to support working
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families, the bill's generous benefits
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for investors and wealthy taxpayers,
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paired with cuts in social programs,
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have drawn criticism, even from figures
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like Elon Musk, who argue it furthers
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inequality and could harm long-term
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growth. My thoughts are, let's just wait
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and see what actually happens. This
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thing has to pass, and even then, there
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could be some changes or some
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amendments. Let's see what actually
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happens before we start freaking out.
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But it is good for you to assess what's
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the most important thing for you in your
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investing strategy and make sure you
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keep going towards that goal. Okay,
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let's go over some key dates that you
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need to know coming up here in July and
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then I'll give you the highlight quick
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version of the biggest news that moved
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markets over the last 2 weeks or so and
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what's going to be happening next week.
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So key dates in July, July 14th through
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18th is the US consumer price index CPI
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and bank earnings. July 15th
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specifically is CPI for June, including
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Headline and core inflation. Early in
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that week, we have major bank earnings
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kicking off, including JP Morgan and
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Bank of America. On July 16th, we have
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the PPI for June. On July 17th, we have
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retail sales from June and the
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Philadelphia Fed index. The big one is
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July 30th and July 31st with the FOMC
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meeting and the second quarter GDP
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advance report. On July 30th, the Fed
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sets the new federal funds rate outlook
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at 2 p.m. Eastern time. And the same day
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that morning, the second quarter US GDP
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advanced reading. expect whatever
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happens July 30th and July 31st and
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those types of things that come out of
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that meeting and what's actually
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announced to the public to really be a
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telltale sign to see what's going to
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happen with the Fed rates, which I don't
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think they're going to change in July,
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but a lot of people do think in
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September we're going to see that first
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rate cut. So, some key market events in
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the past two weeks. Number one,
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Bitcoin's at an all-time high. Bitcoin
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topped $118,000
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per coin as institutions continued
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piling into Bitcoin ETFs. On Thursday,
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Bitcoin ETFs logged their biggest day of
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inflows of 2025 at $1.18 billion.
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Ether ETFs recorded their second biggest
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day of inflows ever at $383.1
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million according to SOS so Value. For
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the week, Bitcoin's on track for a
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nearly 10% gain and its best week since
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April 25, while Ether's up more than 21%
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heading for its best week since May 9th.
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Number two is all about the tariffs. 35%
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tariffs on Canadian imports, plus 50% on
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Brazilian goods, 50% on copper, and 200%
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on pharmaceuticals. All set for August
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1st. President Trump sent letters to 14
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trading partners with similar threats.
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This reignited trade tensions. Markets
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briefly pulled back from record highs
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with the S&P 500 dipping 3% and the Dow
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losing 6% on July 11th. However, many
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investors expect the threats won't
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stick. What's dubbed the taco trade.
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Still, analysts warn that this strategy
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is becoming riskier. Number three, Fed
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policy and inflation signals. JP
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Morgan's Jamie Diamond warned markets
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are ignoring a rising chance like 40 to
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50% the Fed may hike rates again, citing
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inflation from tariffs, fiscal deficits,
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and demographic shifts. The Fed minutes
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in June showed ongoing debate on future
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cuts. Officials expect two rate cuts by
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year end, though tariff related
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inflation could delay them. And this has
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kind of been the story this whole year.
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were supposed to have rate cuts coming
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up, but maybe not. And now they're even
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talking about possibly increasing the
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rates, which I don't think is going to
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happen there either. So again, this is
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like a wait and see situation. Number
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four is huge in AI, and this is Nvidia.
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Nvidia reached the $4 trillion market
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cap, rallying the NASDAQ multiple times
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this past week. Other AI themed techs
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also propelled markets even as trade
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concerns simmered. that tech space is on
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fire. But be very, very careful. This is
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the time where a lot of people FOMO in
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because they don't want to miss it and
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they think that, okay, everything's
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good. There's the green light now. But
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this is the time statistically that most
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people actually lose the most amount of
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money when they're buying in at the top,
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like the tiptop. This is for sure the
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riskiest time to get into those specific
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investments. So, make sure and do your
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research there. Number five, asset flows
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and global rotation. Despite tariff
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worries, US equities remain up 6%
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year-to date, while international
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markets like MSCI, EF, and emerging
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markets have outperformed in quarter 2.
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Investors are rotating into bonds and
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foreign stocks with some capital exiting
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US markets. The VIX fear index, VIX, hit
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a fivemonth low on Wednesday, while the
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bond market equivalent, MOVE, is near
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its lowest for the year. It's all so
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interesting this year. Honestly, this
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has been super fun taking my university
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students through this historical time
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that we're kind of going through right
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now with the market shifting so heavily
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with these policies and things coming
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out of the White House and then what's
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going on with the Fed. It's just pretty
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cool to show them that all of this is
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connected and the market is definitely
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emotional. People were freaking out
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thinking that the USA was never going to
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recover and that literally this crash
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could be the biggest crash in our
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lifetime. And that was literally about
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three months ago and now we're
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surpassing all-time highs pretty much
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everywhere in every part of the market.
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I do think that we have a couple of dips
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coming our way. So stay tuned and I will
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keep you informed. For now, watch either
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of these two videos. Keep you going
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strong in your investing journey. And
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remember to keep investing simplified.
