Powell Tells Congress Fed Still in No Rush to Lower Rates…
What Does It Mean – Federal Reserve Chair Jerome Powell emphasized a cautious approach to interest rate adjustments during his testimony to Congress, stating that the central bank does not need to rush into lowering rates given the current economic strength. With inflation still above the Fed’s 2% target, policy remains appropriately restrictive. Powell highlighted the economy’s resilience, with low unemployment and solid growth, suggesting patience in monetary policy decisions. Market expectations for rate cuts have been adjusted, with investors now anticipating fewer cuts in 2025. This cautious stance aims to ensure inflation is sustainably managed. Read more.
Corporate America Beats Profit Projections, Investors Don’t Care…
What Does It Mean – Despite U.S. corporations outperforming profit projections in Q4 2024, investor sentiment remained subdued. Earnings exceeded expectations by an average of 5.2%, yet stock prices showed minimal reaction, suggesting a disconnect between earnings performance and market valuation. Analysts attribute this to concerns over future growth prospects, macroeconomic uncertainties, and elevated interest rates. The market’s focus has shifted towards broader economic indicators rather than individual company earnings. This indicates a cautious investment climate where even strong earnings are not enough to drive significant stock gains. Read more.
CNN: Trump Is Massively More Popular Now Than First Term; “It’s A Different World”…
What Does It Mean – According to recent polls, Donald Trump’s approval ratings have surged to 53% in his second term, surpassing his first-term highs. This increase is attributed to 70% of voters believing he is fulfilling his campaign promises, with 69% describing him as “tough and energetic.” The data suggests a significant shift in public perception, highlighting Trump’s effectiveness in enacting his agenda, which includes aggressive policy changes and a focus on national security and economic stability. This popularity reflects a changed political landscape, where Trump’s decisive actions resonate more profoundly with the American electorate than during his initial presidency. Read more.
Carried Interest…
What Does It Mean – The practice of carried interest allows fund managers, particularly in private equity and hedge funds, to pay tax at the capital gains rate rather than the higher income tax rate on their performance fees. Critics argue this tax treatment is unjust, as it provides a significant tax advantage, with rates as low as 20% compared to top income tax rates exceeding 37%. Proponents contend it incentivizes investment and entrepreneurship. Legislative attempts to reclassify carried interest as ordinary income have faced resistance, with debates centered on economic impact, fairness, and the potential for reduced investment if benefits are curtailed. Read more.
The number of venomous snakes removed from this Australian yard will make you shudder…
A man described feeling “the shudders” as more than 100 venomous, red-bellied black snakes were removed from a pile of mulch in his Sydney backyard.
David Stein called Reptile Relocation Sydney last week after watching around six snakes slither into the mulch. He learned from an internet search that pregnant, known as gravid, red-belly blacks pile on top of each other before they give birth.
Snake catcher Dylan Cooper arrived that afternoon. Stein helped rake away mulch as Cooper bagged 102 pregnant and newborn snakes.
“Just seeing that amount in one group, it gives you a bit of the shudders,” Stein said on Friday.
Reptile Relocation Sydney owner Cory Kerewaro said two of the captured adults gave birth to a total of 29 snakes in the bag while Cooper was still sifting through mulch catching more.
The final tally was five adults and 97 offspring caught, Kerewaro said.
“When the facts change, I change my mind.
What do you do?” ~ John Maynard Keynes
Our plan is “the plan will change.”
What is your plan?
Relative strength measures the price performance of a stock against a market average, a selected universe of stocks or a single alternative holding. Relative strength improves if it rises faster in an uptrend, or falls less in a downtrend. It is easily applied to individual positions in your portfolio and to sectors and asset classes.
A copy of our form ADV Part 2 is available online.
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