From the desks of Stanley Katz & Lauren Madera
IN THE DEPTHS OF WINTER, ENJOY THE LENGTHIER DAYLIGHT!
The three major U.S. stock market indices retreated this week as investors digested new policy developments (i.e., DJIA: -2.87%, S&P 500: -1.67%, Nasdaq: -2.11%). Markets are adjusting to Trump’s second-term opening moves with major changes coming to sectors spanning defense to tech. Capital Group’s analysis reveals a shifting landscape where aerospace and banking may see tailwinds from increased defense spending and deregulation, while sectors like homebuilding face headwinds from potential immigration restrictions. The administration’s “America First” manufacturing agenda aims to recreate the robust industrial base of the 1950s and ’60s. To note, however, today’s manufacturing jobs represent just 8% of employment, down from 32% in 1953.
J.P. Morgan’s latest research highlights the far-reaching implications of new reciprocal tariff policies, particularly for U.S. trading partners. The EU, which accounts for 17% of U.S. imports, could face significant pressure from proposed tariffs meant to counter its value-added tax system, which averages 20% compared to U.S. sales tax of 6.6%. It’s like a global economic domino effect – as one trade policy shifts, it triggers reactions across multiple markets and regions. Other major economies aren’t immune either, with India’s 12% average tariff rate and Brazil’s 6.7% potentially drawing renewed attention under the administration’s enhanced focus on trade fairness.
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.
Capital Group:
J.P. Morgan Asset Management:
Argus:
Nuveen:
Northern Trust:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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