Dear Friend,
Only in California could you lose your house to wildfires and still owe the bank like it’s standing tall.
Don’t worry, though—“borrower-friendly” laws mean you might get a tiny breather on payments, but forgiveness? Not a chance.
Meanwhile, insurers like Allstate and Chubb are already eyeing a rebound after taking the initial hit, proving yet again that Wall Street always finds a silver lining—even in ashes.
In other news, food prices are climbing so fast you’d think eggs are being laid in Fort Knox, and United Airlines is flying high on a 124% stock rally.
Oh, and Trump’s new financial agenda might shake up your 401(k)—for better or worse.
Keep reading for all the details in this week’s Insider Report.
Jeremy Blossom
Editor in Chief, Everlasting Wealth
MARKET HEADLINES
📈 Tesla gained on optimism about its alignment with the Trump administration despite anti-EV rhetoric, Moderna rose on vaccine funding, and D.R. Horton soared on strong earnings, while Apple dropped due to weak iPhone sales forecasts, and Walgreens plunged after facing an opioid crisis lawsuit.
💰 Cryptocurrencies like XRP, Bitcoin, and Ethereum declined as Trump’s return to office brought hopes of reduced regulations but disappointed investors with no immediate crypto-friendly actions.
🚗Trump’s pledge to relax EPA standards and challenge California’s emissions authority could reduce regulatory pressure on automakers but threaten Tesla’s credit revenues and the EV market’s growth trajectory.
📉 Bitcoin, along with Trump’s branded tokens, tumbled as investors locked in profits and grew wary of the lack of immediate policy support for digital assets following his inauguration.
🚀 Trump’s ambitious vision to plant the U.S. flag on Mars could accelerate reliance on SpaceX, given its leadership in commercial spaceflight and readiness for Mars missions as early as 2026.
How Natural Disasters Spark a Comeback for Insurance Stocks
The L.A. wildfires, with an estimated $250 billion in damages, may be the most costly in the city’s history, but insurance stocks are already primed for a rebound.
Companies like Allstate, Chubb, and Progressive often take an initial hit after disasters, yet history shows they typically recover within three months, barring rare cases like Hurricane Katrina.
Insurers offset their losses by hiking premiums and shedding unprofitable policies, helping them outperform the S&P 500 over time.
While disaster recovery spending doesn’t fuel real economic growth—rebuilding homes isn’t exactly productive—insurers and even home improvement giants like Home Depot (up 4% in the last month) tend to benefit as communities rebuild.
It’s a grim reminder that on Wall Street, even tragedies can have a silver lining.
STOCKS TO WATCH
↗️ Moderna: The biotech firm secured $590 million in U.S. funding to accelerate development of its bird flu vaccine, lifting its shares in premarket trading.
↘️ Ørsted: Shares of the offshore wind giant plummeted in Denmark after a $1.7 billion write-down on a major U.S. project. This came alongside an order from Trump halting approvals for wind projects in the U.S.
↘️ Santander, BBVA: The two Spanish banks, significant lenders in Mexico, saw their shares drop after Trump announced plans for a 25% tariff on imports from Mexico.
🔎 Materials maker 3M, D.R. Horton, Charles Schwab, Fifth Third Bancorp, and KeyCorp: These companies are expected to release their earnings ahead of the market opening.
↘️ MicroStrategy: Cryptocurrencies retreated following Trump’s inauguration speech, which omitted any mention of crypto, weighing on MicroStrategy’s bitcoin-heavy shares in premarket trading.
🔎 Trump Media & Technology: The social media company linked to Trump saw heavy premarket trading activity, though its stock price remained relatively unchanged.
This Day in the Markets
📉 On this day in 2008, the Bombay Stock Exchange’s Sensex witnessed its steepest intraday drop in history, plunging by a staggering 2,273 points to hit a low of 15,332 before rebounding to close at 16,730. The sharp decline was part of a global market sell-off triggered by mounting concerns over the U.S. subprime mortgage crisis, fears of a potential global recession, and declining investor confidence.
STOCK PICK OF THE WEEK
Brownstone Research
Trump, Musk, and the Billionaire Boys’ Club: Saving America and Your Wallet?
Donald Trump and Elon Musk are teaming up to fix America’s broken government.
They’re creating a Department of Government Efficiency, or DOGE, for short.
They hope to shave nearly $2 trillion off the yearly federal budget.
Musk has been open about his concerns, saying:
“Excess government spending is driving America to bankruptcy.”
“The government is out of control. This needs to stop.”
Sadly, there’s one thing Trump and Musk can’t fix:
Our broken Social Security system.
It’s bad enough that the Associated Press reports Social Security will be unable to pay out full benefits by 2035.
And the Senior Citizens League says cost of living adjustments “have become less likely to beat inflation over time.”
No wonder Musk is so worried about our government’s finances.
But while there is little he can do about Social Security’s mismanagement…
Musk could help pay for your retirement…
Thanks to a unique investment he’s pouring money into.
And it’s not just Musk.
Jeff Bezos…
Mark Zuckerberg…
Larry Ellison…
ChatGPT creator Sam Altman…
They’re all putting over $1 trillion into a potentially explosive investment.
And you could get a chunk of this money too.
Click here to watch the full exposé.
ECONOMY
Rising Food Prices Scramble Budgets Nationwide
Food prices are climbing faster than ever, with December marking the steepest rise in over a year—groceries up 1.8% year-over-year and eggs leading the charge with a whopping 37% increase.
Blame bird flu wiping out chickens, extreme weather jacking up coffee and cocoa prices, and food companies passing costs down the line.
Families are cutting corners, swapping chips for pretzels and hunting for store-brand deals, while major producers like Conagra and Hershey hike prices on frozen meals and candy just to keep up.
Even Trump’s administration acknowledges that tariffs and inflation won’t be a quick fix for grocery costs.
Meanwhile, egg producers like Cal-Maine are cashing in, and supermarket operators are being squeezed thin.
Parents at lacrosse games are now trading more shopping tips than sports cheers—because apparently navigating the grocery aisle has become a full-contact sport.
ECONOMY HEADLINES
💸 Trump’s $TRUMP and Melania’s $MELANIA meme coins launched to massive market interest and billions in valuation, signaling a push to make cryptocurrency central to America’s financial future while sparking debate over potential conflicts of interest.
🖥️ Nvidia and rival chip stocks rose as Trump revoked Biden’s executive order on AI risk regulation, indicating a likely relaxation of oversight to encourage innovation in the tech industry.
📉 The Federal Reserve continues quantitative tightening by reducing its balance sheet but may adjust or halt the process later in 2025 if rising yields and economic conditions strain liquidity.
🌍 Stock markets and the U.S. dollar fluctuated as Trump’s tariff threats on Mexico and Canada and his unpredictable policies left investors wary of heightened trade volatility.
🏘️ D.R. Horton surpassed earnings estimates with a focus on managing inventory for the spring season, providing cautious optimism for the housing sector despite high mortgage rates and buyer challenges.
BUSINESS
United Airlines Is Flying High—And Earnings Could Take It Even Higher
United Airlines stock has skyrocketed 124% in six months, and analysts think its upcoming fourth-quarter earnings could push it even higher.
Delta recently crushed earnings expectations and forecast strong 2025 demand for premium and corporate travel, which bodes well for United, heavily exposed to those markets.
BofA raised its price target for United to $120, while Deutsche Bank’s Jamie Baker is even more bullish at $133, citing five key tailwinds: booming premium travel, international momentum, loyalty program growth, tight aircraft supply, and the struggles of low-cost airlines.
If United delivers on expectations—$3.03 EPS for Q4 and its first Q1 profit since 2019—Wall Street’s $128 average price target, implying 19% upside, could be within reach.
With 2025 off to a roaring start, this rally might have plenty of fuel left.
RETIREMENT
Trump’s Financial Overhaul: What It Could Mean for Your Retirement
Trump is back with a bold financial agenda that might shake up your retirement plans—for better or worse.
He’s pushing to keep his 2017 tax cuts, meaning lower income taxes and possibly no taxes on tips, Social Security, or overtime.
To pay for it, though, he’s eyeing cuts to green-energy credits, so those solar panel rebates may go out the window.
He’s also gearing up to make the U.S. the “crypto capital,” which could be great for investors but may turn the financial world into the Wild West.
Student loan forgiveness? Don’t count on it—Trump’s signaling a hard stop to Biden’s relief plans.
And for homeowners, his push to privatize Fannie Mae and Freddie Mac could send mortgage rates climbing.
Love it or hate it, this agenda is setting the stage for some major changes to how Americans save, invest, and retire. Hold onto your 401(k)!
Trivia
Which U.S. city is home to the largest commodities exchange in the world, known for trading agricultural products, energy, and metals?
A. New York City
B. Chicago
C. Houston
D. Los Angeles
E. Miami
Scroll for the answer
TAXES
Pay Up Even if Your House is Toast—Because Taxes Never Take a Day Off
So, your house burns down in the L.A. wildfires, and guess what? You still get to pay your mortgage like the place is standing tall.
Sure, you might qualify for some property-tax relief (don’t spend it all in one place!), and federally backed loans let you hit pause on payments with forbearance—but don’t confuse that with forgiveness.
You’ll still owe every penny later, whether you pay it in chunks, tack it onto the end, or negotiate with your lender.
If you’ve got a jumbo loan on a multimillion-dollar mansion, good luck—you’re at the mercy of your bank’s “disaster relief programs.”
Meanwhile, California pats itself on the back for its “borrower-friendly” laws, which basically mean you can’t skip mortgage payments just because the place is a pile of ashes.
Welcome to homeownership in the Golden State—where even when your dream home is toast, the taxman and the mortgage company are still feasting on your wallet.
Answer
Which U.S. city is home to the largest commodities exchange in the world, known for trading agricultural products, energy, and metals?
B. Chicago
Chicago is home to the Chicago Mercantile Exchange (CME), the largest commodities exchange in the world.
It plays a pivotal role in the U.S. economy by providing a platform for trading a wide range of commodities, including agricultural products like wheat and corn, as well as energy and metals.
The city’s historical ties to agriculture and transportation helped establish it as a hub for commodity trading, and it remains a critical center for futures and derivatives markets globally.
