US, China to Resume Trade Talks With Focus on Rare Earths…
What Does It Mean – The U.S. and China are resuming trade negotiations in London to address tensions over rare earth mineral exports and advanced technology. China, a dominant supplier of these critical minerals, increased exports by 23% in May, while the U.S. seeks to ease restrictions on tech exports in exchange for relaxed Chinese limits on rare earth shipments. Both nations aim to stabilize their trade relationship following a prior agreement in Geneva, with the U.S. pushing for a handshake deal to secure rare earth supplies vital for electronics and defense. Progress is expected to reduce export controls. Read more.
A downgrade for Tesla as this Wall Street firm sees too much uncertainty on too many fronts…
What Does It Mean – Baird analysts downgraded Tesla’s stock from “Outperform” to “Neutral,” setting a $320 price target, citing multiple uncertainties. Key concerns include Elon Musk’s political activities, particularly his public feud with President Trump, which introduces brand damage risks. Additionally, overly optimistic expectations for Tesla’s robotaxi program and increasing competition in the electric vehicle market contribute to a bearish outlook. Despite a 24% stock rise since late April, Tesla’s shares dropped nearly 15% last week amid these concerns. The downgrade reflects caution over non-fundamental trading and soft EV demand, though long-term bullishness persists. Read more.
‘Most-Unloved Bonds’ Turn Routine US Auction Into Crucial Test…
What Does It Mean – Global investor resistance to long-term government debt has elevated a routine U.S. Treasury bond auction into a critical market test. The auction, involving $22 billion in 30-year bonds, faces scrutiny due to rising yields and skepticism about long-term debt value amid inflationary pressures and tighter monetary policies. Weak demand could signal broader market instability, while strong participation might restore confidence. Wall Street anticipates volatility, with the outcome potentially shaping global bond market trends. The auction’s success hinges on investor appetite for risk in an uncertain economic climate. Read more.
AI Infrastructure Trade Roars Back as Tech Giants Boost Spending…
What Does It Mean – Tech giants like Amazon, Alphabet, Microsoft, and Meta are significantly increasing investments in AI infrastructure, driving a 52% surge in AI data center and power supply stocks. This spending, with Amazon alone committing $100 billion, fuels a market rebound after earlier volatility. Key beneficiaries include Nvidia, Broadcom, and Vertiv, with data center stocks doubling the S&P 500’s performance. The focus on AI-driven computing power underscores long-term growth potential, despite short-term valuation concerns. Posts on X highlight this as a historic infrastructure buildout, signaling a robust AI supercycle. Read more.
A hungry wild elephant raids a grocery store in Thailand for snacks…
A hungry wild elephant caused havoc in a grocery store in Thailand on Monday when he strolled in from a nearby national park and helped himself to food on the shelves.
Videos of the incident showed the huge male elephant, known as Plai Biang Lek, briefly stopping in front of the shop, located next to a main road near the Khao Yai National Park in northeastern Thailand, before ducking his whole body inside.
The elephant stopped in front of the shop’s counter, calmly snatching and chomping snacks, and did not flinch as the national park workers tried to shoo him away.
The elephant later backed out of the shop still holding a bag of snacks with his trunk. He left little damage behind, except mud tracks on the floor and the ceiling of the shop.
In a video posted on social media, Kamploy Kakaew, the shop owner, appeared amused as she described the moment the elephant rifled her shop. She said he ate about nine bags of sweet rice crackers, a sandwich and some dried bananas she had bought that morning.
“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.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Investor Resources, Inc. (“Investor Resources”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Investor Resources. Please remember to contact Investor Resources, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Investor Resources shall continue to rely on the accuracy of information that you have provided. Investor Resources is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of Investor Resources’ current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at https://www.investorresourcesinc.com/. Clients Please Note: Advise us if you have not been receiving account statements (at least quarterly) from Charles Schwab & Co.™