Traders Load Up on Hedges Against Dramatic Fed Rate Cut Shifts…
What Does It Mean – Traders are intensifying hedging strategies in the options market due to uncertainty surrounding the Federal Reserve’s interest-rate trajectory, driven by the evolving economic policies of the Trump administration. The heightened volatility stems from potential outcomes ranging from no rate cuts to aggressive half-point reductions by the end of 2025. This reflects broader market concerns about the economic impact of policy shifts, prompting investors to secure protections against significant rate fluctuations. The options market activity underscores a cautious approach to monetary policy expectations. Read more.
Global Stocks Hit Record as Economic Bets Outweigh Trade Jitters…
What Does It Mean – Global equities reached a record high, with the MSCI All-Country World Index climbing 0.2% to 887.73, surpassing its February peak, driven by optimism for a resilient U.S. economy. Strong U.S. labor market data and expectations of Federal Reserve rate cuts fueled the rally, despite trade negotiation uncertainties. European markets outperformed, with the Stoxx 600 Index surpassing the S&P 500 by 18 percentage points, bolstered by Germany’s fiscal spending and a stronger euro. Defense, banking, and insurance sectors led gains, reflecting confidence in economic stability amid tariff concerns. Read more.
Apple Can’t Leave China, With or Without Tariffs…
What Does It Mean – Apple’s deep integration into China’s supply chain, driven by cost efficiencies and specialized manufacturing, makes relocation challenging despite potential U.S. tariffs. Over 90% of iPhone production occurs in China, leveraging skilled labor and infrastructure. Moving to alternatives like India or Vietnam involves higher costs, longer timelines, and quality risks due to less developed ecosystems. Tariffs could raise iPhone prices significantly, impacting demand, yet staying in China risks supply chain disruptions from geopolitical tensions. Apple’s reliance on China persists regardless of trade policies. Read more.
Central Bankers Are Still Buying Gold After Record Bull Run…
What Does It Mean – Central banks and sovereign wealth funds have driven a record-breaking gold market rally by doubling their gold purchases over the past three years, often without public disclosure. This surge, fueled by countries like China, India, and Russia, reflects gold’s appeal as a hedge against U.S. dollar reliability concerns and geopolitical risks. Despite high prices, demand remains strong, with China’s imports hitting an 11-month high. The rally persists amid U.S. economic uncertainties, including trade tensions and deficits, reinforcing gold’s role as a safe-haven asset. Read more.
Millions of honeybees abuzz after truck overturns in Washington state…
There was a buzz in the air Friday in northwestern Washington state as about 250 million honeybees escaped a commercial truck that overturned.
The truck hauling an estimated 70,000 pounds (31,751 kilograms) of honeybee hives rolled over around 4 a.m. close to the Canadian border near Lynden, the Whatcom County Sheriff’s Office said in social media posts.
It appears the driver did not navigate a tight turn well enough, causing the trailer to roll into a ditch, county emergency management spokesperson Amy Cloud said in an email. The driver was uninjured, Cloud said.
Deputies, county public works employees and several bee experts responded to the scene. The box hives later came off the truck, and local beekeepers swarmed to help recover, restore and reset the hives, according to the sheriff’s office.
The plan is to allow the bees to return to their hives and find their queen bee in the next day or two, according to the sheriff’s office. The goal is to save as many of the bees as possible.
“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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