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:
Since 1980, purchasing the index when it's 5% below its recent high has yielded a median return of 6% over the following three months, with a positive return in 84% of cases.
Macro Chart In Focus
Analyst Team Note:
“A soft retail sales reading next week (reversing seasonal strength in June), a further rise in initial jobless claims and more weakness in risk assets could be enough to provoke earlier action. A very similar set of circumstances precipitated an intermeeting rate cut in January 2001.
The August jobs report (out in early September) and (likely downward) preliminary revisions to payrolls (out August 21) now take on increased importance as Fed officials await, in their words, ‘the totality of the data.’” - Citi Research
The U.S. trade deficit narrowed in June 2024 for the first time in three months, decreasing by 2.5% to $73.1 billion. This improvement was driven by a 1.5% increase in exports, which outpaced the 0.6% rise in imports.
The narrowing deficit was primarily due to a broad-based increase in merchandise exports, including commercial aircraft, natural gas, petroleum products, and motor vehicles.
On the import side, gains were seen in pharmaceuticals and capital goods.
Chart That Caught Our Eye
Analyst Team Note:
US household savings are at an all-time low and US credit card outstanding debt is at an all-time high since 2010...
Sentiment Check
Make sure to check Larry’s most recent market updates via his personal newsletter.
