This Week’s Takeaways:
- The Fed started a rate cutting cycle. Historically, rate cut cycles typically precede a recession, there’s no clear-cut stock market winners, and markets are positive 12-36 months out.
- Powell’s statement that stocks are expensive isn’t a warning to sell.
- The Norwegian 4 x 4 Protocol efficiently improves VO2 max, which is one of the strongest predictors of longevity and cardiovascular health.
- Chinese stocks have done well recently, but headwinds remain. Investing in them requires a willingness to hold for the long-run and avoiding too big an allocation.
- Things to Do This Weekend in Boston.
- Plus my latest book recommendation.
When the Fed Cuts: Lessons from Past Cycles for Investors by CFA Institute
Rate cut cycles typically precede a recession, although not always. There’s no clear-cut signal for what types of stocks do well during rate cut cycles, although markets are typically positive 12-36 months out.
Fed Chair Powell’s remark about the stock market is not breaking news ????️ by TKer
Powell said stock prices are fairly highly valued, echoing for some Greenspan’s irrational exuberance comment from years ago. Powell’s statement was nothing new. The Fed Chair has said this for a while and it fits into their view of current financial conditions. We should also remember that Greenspan’s famous line was uttered four years before the market peaked, making it a terrible sell signal.
A renowned biochemist has identified what she calls the “gold standard” exercise routine that could turn back the clock on your heart by up to two decades, taking less than an hour to complete and needing to be performed just once or twice weekly. It improves your VO2 max, the maximum amount of oxygen your body can utilize during exercise, and one of the strongest predictors of longevity and cardiovascular health. It’s called the Norwegian 4 x 4 protocol and it’s four-minutes of high intensity intervals followed by three-minute recovery periods.
Is the Chinese Stock Market Rally Sustainable? by Charles Schwab Asset Management
Chinese stocks hit a level not seen in ten years. It’s sustainable if AI advancements continue, the government can stimulate consider demand, and the dollar stays weak, but there are also headwinds and Chinese stocks are volatiles, so it’s best to have a long-term horizon and smaller allocation.
Tax Changes Business Owners Should Know by Heritage Financial
The Heritage team shares five key tax changes every business owner should know to maximize the benefits and avoid surprises with the OBBBA.
Book Recommendation
Brady vs. Belichick: The Dynasty Debate by Gary Myers
Die-hard Pats fans will find some new stuff in here, but not a tremendous amount. Still, the book is a fun recap of the glory years and provides a good thought exercise on the credit question.
