US Loses Last Top Credit Rating With Downgrade From Moody’s…
What Does It Mean – Moody’s Ratings downgraded the U.S. credit rating from Aaa to Aa1 due to escalating government debt, now exceeding $36 trillion, with annual deficits growing by $2 trillion. Persistent fiscal imbalances and rising interest payments, costing $800 million yearly, strain debt affordability. The downgrade reflects concerns over political gridlock impeding fiscal reforms, increasing borrowing costs as 30-year Treasury yields briefly surpassed 5%. This impacts corporate refinancing and heightens bond market volatility. The Trump administration’s proposed tax cuts and spending hikes further exacerbate fiscal concerns, signaling a trend of deteriorating U.S. fiscal health. Read more.
Moody’s Blues Come for US Sentiment…
What Does It Mean – Moody’s downgrade of the U.S. credit rating from Aaa to Aa1 highlights deepening concerns over unsustainable debt, exceeding $36 trillion, with deficits projected to widen. Rising interest payments, at $800 million annually, and political paralysis on fiscal reforms amplify risks. The downgrade fuels market volatility, with 30-year Treasury yields briefly exceeding 5%, impacting borrowing costs and corporate refinancing. Investor sentiment sours as the “Sell America” trade reemerges, reflecting diminished confidence in U.S. fiscal stability. The article warns of a potential crisis if debt trends persist, urging structural reforms to restore economic credibility. Read more.
Nvidia Shares Roar Back as Clouds Hanging Over Chipmaker Fade…
What Does It Mean – Nvidia’s stock surged, recovering from a 37% drop since January 2025, driven by eased concerns over Big Tech spending, U.S.-China trade tensions, and new chip buyers. Long-term sales agreements from President Trump’s Middle East trip, a U.S.-China tariff détente, and strong AI infrastructure demand from major clients fueled the rally. At Computex 2025, Nvidia unveiled NVLink Fusion, enabling data centers to integrate rival chips, expanding its AI ecosystem. Despite bearish bets from investors like Michael Burry, Nvidia’s dominance in AI chips and a 56% Q4 profit margin bolster market confidence. Read more.
AI’s Thirst for Power Turns Utility Stocks Into Big Tech Proxies…
What Does It Mean – The surging demand for AI infrastructure has driven a 10-fold increase in data center power needs since 2020, with generative AI requiring significantly more electricity than traditional computing. U.S. utilities like NextEra Energy and Southern Co. have seen stock gains, with power demand projected to grow 9% annually through 2030. Data centers could account for 20% of U.S. electricity consumption by decade’s end, fueled by AI’s energy-intensive training and inference processes. Investors view utilities as proxies for Big Tech’s AI boom, though grid reliability and renewable integration pose challenges. Read more.
‘DA POPE!’ Leo XIV’s Chicago roots unleash spate of holy humor…
A Chicago-born cardinal walks into a conclave. The rest of the joke tells itself.
In the breathless day since Pope Leo XIV’s election as the first American pontiff, the memes, doctored images and tongue-in-cheek references have piled up deeper than Chicago’s pizza and more loaded than its hot dog, seemingly irresistible to comics and commoners alike.
Stained-glass windows depicting a dunking Michael Jordan? A change in canon law to make ketchup-topped frankfurters a sin? Cameos in “The Bear”? All of it apparently as tempting as the forbidden fruit.
“You just saw a billion jokes,” says Chad Nackers, who was raised Catholic and now presides as editor-in-chief of The Onion, the satirical site that heralded Robert Prevost’s elevation with an image of the smiling pontiff encased in a poppyseed-dotted bun.
“Conclave Selects First Chicago-Style Pope,” read the headline.
The pageantry of the church and the idea of a man who acts as a voice for God, Nackers says, combine for fertile humorous ground no matter the pontiff. Having him hail from the U.S., though, and a city as distinct as Chicago, opens up a whole new world of funny.
“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.™