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Happy Sunday everyone, and welcome to Benzinga’s financial advisor newsletter.

In today’s newsletter, we are covering a Natixis Investment Managers survey showing a huge gap between what Generation X wants from retirement, and what it’s likely to get - and how financial advisors can best bridge that gap.

So, let’s get into the Industry Chatter!

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INDUSTRY CHATTER

Generation X Unprepared for Retirement, New Survey Reveals

A recent survey by Natixis Investment Managers highlights the unique challenges Generation X faces as they approach retirement. The study, which included 2,928 Gen X respondents from a global pool of 8,550 individual investors, uncovers a significant gap between expectations and reality - and reveals some key insights for advisors engaging with Gen X clients.

North American Gen Xers aim to retire at 60 and expect their retirement to last 20 years. However, with a median household income of $150,000 and median retirement savings of only $250,000, they are unprepared for a retirement lasting two decades, not to mention the much longer one that their life expectancy suggests they’ll have.

The In-Between Generation

Dave Goodsell, executive director of Natixis Center for Investor Insight, describes Gen X as the "Jan Brady of demographics," often overlooked in favor of the older Baby Boomers or the younger Millennials.

The survey reveals that 78% of North American Gen Xers believe funding their retirement is increasingly their responsibility. This self-reliance has led to concerns about delaying retirement (44%), potentially returning to work post-retirement (30%), and the impact of growing public debt on retirement benefits (76%).

Safety More Important Than Risky Returns

Economic challenges loom large, with 85% recognizing inflation as a major threat to retirement security. While 46% are comfortable with investment risks, 78% prioritize safety over performance when forced to choose.

The survey also reveals some serious knowledge gaps in financial planning. Only 2% of Gen Xers correctly answered questions about how interest rates affect bonds, and 48% admit to not fully understanding all their retirement plan investments.

In-Person Advice Overwhelmingly Popular

Despite these challenges, Gen Xers show a declining interest in professional financial advice. Only 38% of North American Gen Xers believe they need professional guidance, compared to 56% globally. However, crucially for financial advisors, 79% of Gen Xers prefer in-person advice over digital alternatives.

The survey underscores the importance of tailored financial education and guidance for Gen X. As they navigate the complexities of retirement planning, addressing knowledge gaps and providing personalized advice in-person will be crucial in helping this generation bridge the gap between their retirement expectations and financial realities.

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MARKET RECAP

Nvidia Snaps 8-Week Winning Run, S&P 500 Marks Longest Streak Without A 2% Drop Since Great Recession, Oil Prices Stage Comeback: This Week In The Market

Both the S&P 500 and Nasdaq 100 indices surged to new historic highs on Tuesday, driven by strong performance in the technology and semiconductor sectors. Toward the end of the trading week, which was shortened by the Juneteenth holiday, profit-taking in chipmaker stocks emerged, tempering earlier gains.

Nvidia Corp. (NVDA) snapped a eight-week winning streak, dropping by more than 4% for the week. This decline also pulled down the broader chipmaker industry, as tracked by the iShares Semiconductor ETF (SOXX).

Concerns are growing among analysts regarding the lack of broad participation in the stock market rally and the significant concentration of major equity indices in a few mega-cap names.

Despite these warnings, the ongoing market rally continues to set new records. The S&P 500 is experiencing its longest streak without a 2% loss since the Great Recession. The last time the S&P 500 declined by more than 2% in a single session was 377 sessions ago, on Feb. 21, 2023.

Gilead Sciences Inc. (GILD) emerged as the week's top-performing stock within the S&P 500 following the release of efficacy data for its potential HIV prevention drug, lenacapavir. The drug, administered twice yearly via injection, showed 100% efficacy in HIV prevention for cisgender women.

Oil prices rebounded above $80 per barrel, buoyed by larger-than-expected inventory declines that supported a recovery in energy sector stocks after two consecutive weeks of declines.

On the macro front, surveys of private sector activity in June indicated the strongest pace of expansion in two years, accompanied by welcome declines in price pressures.

You may have missed:

Nvidia's Market Lead

Nvidia Corp. (NVDA)’s remarkable rise to become the world’s most valuable company is attributed to its pivotal role in a “once-in-a-generation” technological transformation. Economist Mohamed El-Erian this week highlighted Nvidia’s strategic focus on graphics chips and artificial intelligence that has propelled its market value to $3.33 trillion, surpassing Microsoft and Apple.

Tesla’s GPU Expansion

New drone footage showed Tesla Inc. (TSLA)’s Giga Texas expansion, which CEO Elon Musk has said will house 50,000 Nvidia GPUs for AI projects. Musk has highlighted Tesla's significant investment in AI hardware and its commitment to technological advancements and infrastructure.

Mini Starlink Dishes

SpaceX has launched “Mini” Starlink dishes that fit in a backpack, priced at $599. CEO Musk gave an earlier price estimate of $250-$300. The mini dishes are more expensive than expected, but promise enhanced portability and connectivity. The kit includes a dish, kickstand and power supply and supports Wi-Fi 5 speeds.

SPY Bleeds Outflows

The SPDR S&P 500 ETF Trust (SPY), the world's largest exchange-traded fund, has seen outflows exceeding $40 billion year-to-date. The U.S. stock market has continued to rise, as these outflows were offset by significant inflows into lower-cost Vanguard and iShares S&P 500 ETFs, demonstrating an investor preference for more cost-effective options.

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THE WEEK AHEAD

Consumer Confidence, Housing, and Bank Stress Tests

Economic Data

• Monday: Dallas Fed Manufacturing Business Index

• Tuesday: June Consumer Confidence report, April Case-Shiller Home Price Index

• Wednesday: New Home Sales, Building Index, Mortgage Market

• Thursday: Bank Stress Test report, Quarterly US GDP, Pending Home Sales, Consumer Spending

• Friday: Fed Monetary Policy Report, Michigan Consumer Sentiment and Expectations reports

Earnings

• Monday: Enerpac Tool Group

• Tuesday: FedEx, Carnival,

• Wednesday: Micron Technology, General Mills

• Thursday: Walgreens Boots Alliance, Nike

Click here for the full calendar of economic data and earnings reports.

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