Make sure to check out Interactive Brokers above as idle cash now will yield more than 4.5% as the Fed just raised rates.
Key Investing Resource: Strategist Larry uses Interactive Brokers as his core brokerage. Feel free to check out IB. I currently park excess cash at Interactive Brokers. Check it out. It’s a great brokerage.
In our emails, we will provide the following coverage points:
“The Biggest Picture: Goldilocks macro, Goldilocks yields (10-year UST 3¾% to 4¼%), US stocks surging to new highs driven by monopolistic tech as AI “baby bubble” grows; rates, penetration, regulation 3 catalysts that pop tech bulls/bubble; regulators on prowl but need US 10-year real rates back to 2½% (currently 1¾%) to pop this one.” - Bank of America
Macro Chart In Focus
Analyst Team Note:
In 2023, the US solidified its lead over China as the world's largest economy, with its GDP growing by 6.3% in nominal terms, outpacing China's 4.6% growth.
America’s economic outperformance, is in part due to robust American consumer activity and despite high inflation, contrasts sharply with China's struggles, including a prolonged real estate downturn, deflation, and weakened exports.
In December, the Fed's preferred measure of core inflation, which excludes food and energy prices, showed a 2.9% increase from the previous year, marking a nearly three-year low despite strong holiday consumer spending.
This deceleration in inflation, coupled with a 0.5% increase in inflation-adjusted consumer spending for the second consecutive month, fueled by wage and salary growth, suggests a cooling inflationary environment.
Despite these positive signs, Fed officials remain cautious about cutting borrowing costs, aiming to see more sustainable evidence of cooling inflation.
Chart That Caught Our Eye
Sentiment Check
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