The Hidden Engine and Policies Behind Wall Street’s “Trump Trade”
In the world of trading, the real action isn't about predicting election outcomes—it's about tracing the movement of money. That’s where the true profits lie.
In the world of trading, the real action isn't about predicting election outcomes—it's about tracing the movement of money. That’s where the true profits lie.
-- The Japanese yen firmed sharply against the dollar on Wednesday and Thursday, with the USDJPY pair dropping to an over one-month low amid speculation that the...
-- Australia’s job market grew more than expected in June, as high vacancies and a strong amount of participation saw the labor market running hot even as unemployment...
-- Gold prices rose in Asian trade on Thursday, remaining close to record highs as weakness in the dollar, amid increased bets on U.S. interest rate cuts, supported the yellow metal.
-- Japan’s exports and imports grew less than expected in June as local economic activity remained subdued, while demand in the country’s biggest export destinations...
The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) are sinking while small caps (^RUT) are seeing a rebound of more than 10% in the last week. Wall Street Alliance Group Partner Aadil Zaman joins Wealth! host Alexandra Canal to discuss the pullback and how investors should be positioning their portfolios. June saw a 3% increase in housing starts, although single-family home construction remains at an eight-month low. John Burns Research & Consulting director of research Rick Palacios Jr. comes onto the program to provide insights into the current housing market construction dynamics. Palacios highlights a significant downturn in multi-family housing starts, noting a nearly 23% year-over-year decline. While the majority of investors are confident the economy will see the Fed's goal of a soft landing, some worry that hard landing risks are underpriced amid a slowing consumer labor market and government spending. BlackRock Head of iShares Investment Strategy Americas Kristy Akullian breaks down how investors can manage risk and protect themselves in the event that a soft landing is not achieved. Tesla (TSLA) CEO Elon Musk has announced plans to contribute $45 million monthly to a Trump Super PAC in support of the former president's reelection campaign. This move comes despite potential conflicts with Trump's policy direction, as Trump's current vice presidential pick, Senator JD Vance (R-Oh.) seeks to eliminate nearly $100 billion in electric vehicle subsidies through his proposed "Drive American Act." For more expert insight and the latest market action, click here. This post was written by Nicholas Jacobino
While the majority of investors are confident the economy will see the Fed's goal of a soft landing, some worry that hard landing risks are underpriced amid a slowing consumer labor market and government spending. BlackRock Head of iShares Investment Strategy Americas Kristy Akullian breaks down how investors can manage risk and protect themselves in the event that a soft landing is not achieved. "We're still relatively constructive on the equity markets and on risk assets more broadly. And part of that is just because growth has held up better than we expected to. So I think that we're generally risk-on, but that certainly doesn't mean that we're reaching for risky assets," Akullian says. Instead, she encourages hedging and "getting smarter" about the volatility expected in the second half of the year. In order to manage risk, she encourages investors to pick "the highest quality companies across sectors rather than taking a really specific sector bet." She points to yields that are on offer and fixed income as solid investment opportunities to capture higher yields and diversify portfolios. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl
Gold hit a record as markets are bracing for global interest rates to fall. Assassination attempt on Trump is also favoring gold.
With concerns about inflation declining, investors are feeling increasingly confident about the global economy exiting the central bank interest rate hiking cycle without an economic downturn.
According to Odaily, Federal Reserve's Barkin has expressed confidence that the Fed will discuss whether it is still appropriate to describe inflation as high during its July policy meeting. He stated that a 25 basis point rate cut is insignificant regardless; the key issue is when to change the narrative. Barkin emphasized that the best way to maintain credibility is to do the right thing at the right time.