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 S&P 500 is poised to close above 5,000 for the first time, driven by a resilient US economy, anticipated Federal Reserve interest rate cuts, and significant contributions from the "Magnificent Seven."
The index's journey from 4,000 to 5,000 took over 700 sessions, marking a faster pace compared to previous milestones.
Macro Chart In Focus
Analyst Team Note:
Lower interest expense had a limited impact on margin expansion from the 90s to 2021. It turns out that higher R&D spend had a larger impact on margins than lower interest expense.
The US is experiencing a significant increase in retirement rates, with about 2.7 million more retirees than expected, a phenomenon accelerated by COVID-19.
This surge, reaching a post-pandemic high in December, has been influenced by financial factors such as the strong recovery of the S&P 500 in 2023 and continued growth in housing markets, which have boosted the wealth of older Americans.
Anticipated Federal Reserve interest rate cuts and decreasing inflation have encouraged retirement, while changes in workplace policies, particularly regarding remote work, may also be nudging more individuals towards retirement, keeping the labor force participation rate for those 65 and older lower than pre-pandemic levels.
Chart That Caught Our Eye
Sentiment Check
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