From the desks of Stanley Katz & Lauren Madera
“IF YOUR ACTIONS INSPIRE OTHERS TO DREAM MORE, LEARN MORE, DO MORE, AND BECOME MORE, YOU ARE A LEADER.”
— JOHN QUINCY ADAMS, 6th U.S. PRESIDENT
The three major U.S. stock market indices posted positive returns across the board this week (i.e., DJIA: +0.55%, S&P 500: +1.47%, Nasdaq: +2.58%). Like a game of financial hot potato, markets juggled two major developments: the looming debt ceiling deadline and breakthrough AI news.
With the Treasury’s “X-date” (i.e., when the government exhausts extraordinary measures and cannot pay obligations in full and on time) potentially arriving as early as March, investors are watching Washington’s familiar debt ceiling dance with new urgency. Invesco’s analysis suggests we’re in uncharted territory. While the U.S. has raised its debt ceiling over 100 times since World War II, today’s $36.1 trillion limit presents unique challenges in our modern economic landscape.
Capital Group’s investment strategists remind us that even gravity-defying markets need to keep one foot on the ground. The S&P 500’s remarkable run of back-to-back 20%+ returns in 2023 and 2024 may trigger comparisons to the dot-com era, but today’s tech sector stands on firmer fundamental footing. Nonetheless, January’s market jitters – sparked by Chinese AI developments and trade policy uncertainties – serve as a timely reminder that what goes up must occasionally catch its breath. The market is more like a marathon than a sprint. The pace may vary, but it’s the long-term endurance that counts.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Invesco:
Capital Group:
BlackRock:
J.P. Morgan Asset Management:
Neuberger Berman:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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