What a week last week was. You have the dust up between Trump and Zelensky in the Oval office.
Nvidia posted better than expected earnings.
Bitcoin dropped below 80,000 before rebounding to above $90,000.
On the economic front, we had personal spending down in January, while the Fed’s preferred measure of inflation came in as expected.
The thoughts of lowering interest rates are yesterday’s news.
It is so much to try and assimilate into any kind of reasonable consequence.
All of that did push the S&P 500 down below 6000 for awhile.
We’ll see as if in the past that the preferred market measure will climb again to record levels.
It was hard to believe that all that is going on with DOGE spending cuts that Elon could be pushed off the front page.
Not for long I am sure.
Of all of that concern, I was heartened to learn that the current administration is planning on cutting the Defense budget 8% a year for the next 5 years.
The Sequester proposed by Obama is coming back to life.
All of these cuts are going to have an impact, but you cannot ignore the reality of our national debt.
The kicking the can down the road has run its limit.
I have no idea what the right course is for resolving the conflict between Russia and Ukraine, but I do know that it is time for Europe to step up.
The US cannot afford to be the only one defending freedom.
Hopefully you saw the interview with Warren Buffet.
He simply stated that tariffs are a tax that consumers will have to pay.
But you also have to understand that our trade deficit is continuing to grow to record high levels. Trusting the current administration to negotiate a fair trade deal is expected a lot after decades of the US being on the losing side.
This old belief that the US is rich enough to support the rest of the world doesn’t hold economic water.
I am wondering what in the world this week can bring that won’t put everyone to sleep after all that happened last week.
It does seem that this market does take most of this in stride.
I would have thought that any one of the incidents last week would have been a catalyst for a correction.
More a bump in the road it appears.
We have moved beyond the earnings season and hopefully can refocus on value.
I would be encouraged about the prospect, except for the fact that the President was to speak to the Senate and the House Tuesday.
Just when I thought there might be some normalcy. Moreover, we all will have to deal with the time change, which I find completely pointless.
If you want more daylight, get up earlier.
Just another thing to adjust to this week.
