Also in Weekend Reads: Kevin O'Leary's investing strategy, a 9% dividend paired with lower stock-market risk and advice from the Moneyist
Gold prices have been recovering as U.S. Treasury bond yields have risen and the dollar's value has pulled back, since the end of June.
With the yen sliding early this week after Japan's central bank kept its policy for the country's overnight borrowing interest rate at 1%, it wasn't a surprise to see that Japan's government started buying yen to prop up the currency's value. But you might have been surprised when the U.S. Treasury and the Federal Reserve participated in that intervention.
And it was the mechanics of the U.S. move that raised questions about the dollar's status as the international reserve currency, as Joseph Adinolfi explained.
The U.S. Dollar Index DXY has declined 1.6% since the end of June. On Friday, front-month continuous contracts for gold (GC00) on the New York Mercantile Exchange were trading for $4,402.60 an ounce, up 9% from the end of June but still down nearly 22% from an intraday high of $5,626.80 set in January.
This might be your best way to play a prolonged up cycle for gold prices.
Related: There are good reasons why higher bond yields are here to stay, this strategist says
How to prep a house for sale
Any homeowner faces the challenge of continual renovation. But how much is too much? A lot depends on how long you plan to continue living there.
Aarthi Swaminathan listed four types of home renovations and how their costs could be lowered, while providing a guide on how to put your dollars to best use while preparing a house for sale.
More from Aarthi Swaminathan: Is it a bad time to buy a home? Buyers say yes.
What is going on with the U.S. labor market?
The U.S. job market is going through a confusing period. The July unemployment rate was down slightly to 4.1%, even as full-time payrolls declined by 23,000.
Weekly unemployment claims were at their lowest level since 1969. Then again, the U.S. labor participation rate has been declining. And your own conversations with colleagues, friends and family might underscore a difficult environment for people looking for work.
Jeffry Bartash took a deeper look at the positive and negative aspects of the U.S. labor market and employment opportunities.
More coverage of jobs and careers:
-- I'm an unemployed software developer who is skeptical of AI. Can I still find a job in tech?
-- Disappointed by your skimpy pay raise? Blame your healthcare benefits.
-- The trade-off of graduating college early: no debt, but no job?
-- The size of the American workforce has fallen by over 1 million people in the past year. Here's what's going on.
Signs that AI is paying off for technology companies
Microsoft's stock has risen 35% since the end of June.
Microsoft's stock $(MSFT)$ fell 23% during the first half of 2026. But the stock has risen 35% since the end of June. Britney Nguyen explained how changing perceptions about Microsoft's spending on AI development have pushed up its share price.
More tech coverage:
-- Optical stocks have a China problem that most investors are missing
-- Block slashed 40% of its workforce for AI - and its earnings suggest that's paying off
-- SpaceX insiders get their first chance to cash out - but the stock's slide will limit that opportunity
-- As Alphabet burns through cash on AI, it's turning back to the bond market
A 9% dividend yield while you take less risk in the stock market
If you are worried that a stock market at a record high might be headed for a decline, it might be time to rethink your investment strategy. Over the past 20 years, the S&P 500 has had an average annual return of 11.5%, according to FactSet, despite many sharp stock-market downturns.
But if you no longer want to face that type of decline cycle, or if you are considering shifting your investment portfolio to focus on income rather than long-term growth, exchange-traded funds that use covered-call strategies to provide monthly income might fit the bill. Here is one example with a distribution yield of 9% that takes a lower-risk approach to the stock market.
How to trade options around companies' quarterly earnings reports
In his weekly column, Lawrence McMillan shares specific options-trading strategies. This week he looked ahead to next week's earnings reports from four companies, including Cisco Systems $(CSCO)$, which reports on Tuesday, to outline specific trades to take advantage of quarterly patterns he has observed around quarterly earnings announcements.
An interview with Kevin O'Leary, who shares his AI investment strategy
Kevin O'Leary, known as Mr. Wonderful on "Shark Tank," talked with MarketWatch about his strategies for the AI build-out, cryptocurrencies and new questions he asks entrepreneurs.
Michael Sincere spoke with Kevin O'Leary, who believes the increase in productivity as artificial intelligence is deployed will create job opportunities rather than taking them away. He shared his strategy for investing in the AI build-out, which enables him to avoid guessing "who wins and who loses on the software side."
Take a look at your target-fate fund
If you contribute to an employer-sponsored retirement account, such as a 401(k) or 403(b), your default investment choice is likely to be a target-date fund. This is a mutual fund designed to be more aggressively managed for workers at early stages of their careers and to shift toward bonds as part of a more conservative allocation for people nearing retirement age.
Jessica Hall looked into a potential problem for some target-date funds - they might not be managed to cover your full life expectancy. Here's what you can do to avoid that potential problem with your target-date fund.
More about retirement planning:
-- 'I'm easing into retirement': I'm getting an $80,000 pension payout. Where can I invest it safely?
-- If I buy a house for $1 million in cash at 70, will I run out of money by 90?
-- My relative inherited money in her 80s. Will it affect her Social Security taxes or Medicare premiums?
The Moneyist and the car accident
Quentin Fottrell is the Moneyist.
This week Quentin Fottrell - the Moneyist - helped a MarketWatch reader who had been in a car accident. The the other driver was at fault and was properly insured. The reader and his wife both needed medical treatment following the accident. This is where it gets complicated: Who pays for what? The couple are covered by Medicare and are waiting to see how much of their medical costs will be covered by the other driver's insurance. Here is Fottrell's advice on how the couple should proceed.
More from the Moneyist:
-- 'I don't wish to be cold-hearted': My elderly relative can no longer care for himself. Am I wrong to leave his care to the state?
-- I got two email invitations from friends. Is this a phishing scam - or am I suddenly popular?
-- My brother asked me to sign as his executor, but wouldn't let me read the document. Should I have refused?
-- If I marry my girlfriend, 67, will she lose her Supplemental Security Income and divorced spouse benefits?
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-Philip van Doorn
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