Dear Friend,
With the Fed cutting rates and Wall Street throwing a party, you’d think it’s time to pop the champagne.
But wait—Bank of America’s Michael Hartnett is waving a caution flag, warning that the easy money could inflate another tech bubble.
Meanwhile, AI is still the hot ticket, with Bezos himself betting big on it. Smart money’s piling in, but should you?
Plus, Ray Dalio thinks we’re dancing on a debt-fueled volcano, and Amazon wants everyone back in the office.
Grab your coffee, this edition’s got a lot to unpack!
Jeremy Blossom
Editor in Chief, Everlasting Wealth
Market Headlines
📊 Despite the Federal Reserve’s recent rate cut, the 10-year Treasury yield, a key benchmark for mortgages and corporate debt, has risen, highlighting market optimism for a soft economic landing but limiting immediate relief for borrowers.
💸 The Federal Reserve’s first interest rate cut in four years may signal relief from inflation, but consumers will face a delay in feeling the impact, as borrowing costs like credit card rates and mortgages take time to adjust.
📉 Stifel’s chief equity strategist Barry Bannister warns that the S&P 500 could drop by 12% in the fourth quarter, citing overvaluation, fading labor demand, election uncertainty, and a tech stock bubble reminiscent of the 1990s.
Fed Easing Sparks Stock Rally: Are We Heading for Another Bubble?
With the Fed cutting rates and hinting at more to come, the stock market is taking off. Great news, right? Well, Bank of America strategist Michael Hartnett isn’t so sure.
He’s warning that all this easy money could set the stage for another bubble—especially in the tech sector, which is already booming thanks to AI investments.
Tech stocks like Nvidia and Meta are flying high, but Hartnett says we should tread carefully.
His advice? Don’t just chase the stock surge—hedge your bets with bonds and gold to guard against inflation and the looming recession.
Smart play, or bubble déjà vu? Time will tell.
Stocks to Watch
🔎 23andMe: The DNA-testing company saw all seven independent directors resign after lengthy talks with CEO Anne Wojcicki regarding her plan to take the company private.
🔎 Alphabet: Google, the tech giant’s subsidiary, achieved a major victory when a European Union court overturned a nearly $1.7 billion antitrust fine.
↗️ Trump Media & Technology Group: Parent company of Truth Social saw a 2% premarket gain, continuing a volatile streak where the stock has fluctuated by 3% or more over the past seven sessions.
↘️ BurgerFi: Shares of the restaurant chain dropped 10% in premarket trading, following a sharp 100% surge the previous day. The company recently received court approval for $3.5 million to maintain operations amid Chapter 11 bankruptcy proceedings.
🔎 General Mills: The food giant, known for brands like Cheerios and Golden Grahams, is set to release earnings before the market opens.
↘️ Intel: The chipmaker’s stock slid in premarket trading, poised to give back some of the recent gains made over the last two sessions.
This Day in the Markets
On this day in 2008, the S&P 500 dropped nearly 4% as the financial crisis worsened, following the collapse of Lehman Brothers and the government’s bailout of AIG.
STOCK PICK OF THE WEEK
Weiss Research
Jeff Bezos didn’t become a billionaire by accident.
He turned Amazon from a basement startup into a $600-billion-per-year monster.
That takes a lot more than just luck.
So, when Bezos makes a move, we need to sit up and take notice.
And right now, he’s all-in on one very big sector: Artificial Intelligence.
That’s right! According to FINTRX, a private wealth intelligence platform, every single investment made by Bezos Expeditions (Jeff’s family office) this year has been in AI.
And it’s not just Bezos …
The UBS Global Family Office Report reveals that AI is the #1 investment category for family offices worldwide right now.
The message is clear: AI is where nearly all the smart money is going.
But which AI stocks should YOU invest in? That’s the million-dollar question.
We’ve identified 3 stocks that could be your best bet to cash in.
Here’s why …
These 3 small companies are set to play a HUGE role in Nvidia’s game-changing AI pivot, reaping substantial returns in the process.
Want to learn more about this once-in-a-lifetime opportunity?
Watch my urgent presentation for the full details!
Ray Dalio Calls Out the Fed’s Debt Magic Trick
So, Ray Dalio is out here ringing the alarm bells again, this time over the mountain of debt the U.S. (and the rest of the world) is piling up.
Apparently, $35.3 trillion in debt just isn’t enough excitement for our government. Dalio says the Fed’s latest move to cut rates is like slapping a band-aid on a bullet wound.
The Fed’s now more worried about keeping jobs than battling inflation, so they’re keeping rates low—again.
Dalio’s take? We’re basically following Japan’s lead—creating massive debt, keeping rates low, and devaluing our money in the process.
But hey, as long as we can pretend everything’s fine, right?
Spoiler alert: according to Dalio, the creditors are gonna lose big while the debtors dance away with cheaper loans. Because, why not?
Economy Headlines
🏠 Americans are increasingly frustrated by the rising cost of housing, while Japan stands out as a rare exception where most citizens are satisfied due to factors like population decline and streamlined land-use policies.
📉 Fed Governor Michelle Bowman dissented from a 50 basis point rate cut, favoring a more cautious 25-point reduction to avoid prematurely declaring victory over inflation.
📈 Despite the Fed’s rate cut, long-term interest rates, like the 10-year Treasury yield, continue to rise, signaling potential economic optimism and complicating relief for borrowers.
🛑 Economist David Rosenberg remains firm in his prediction of a looming U.S. recession, even as markets rally following the Fed’s interest rate cut.
🗣️ Donald Trump criticized the Fed’s rate cut as politically motivated or indicative of a weak economy, while pushing for more control over monetary policy decisions if re-elected.
Business
Amazon’s Office Return Plan: Bye Bye, Hybrid Work
Well, Amazon’s decided it’s time to haul people back to their desks, and you can bet this will embolden every employer itching to kill off hybrid work for good.
If the tech behemoth says in-office work is essential, expect others to fall in line. Big Tech bosses don’t want to be the odd ones out, after all.
Who cares if their employees lose hours of their lives commuting, right?
Of course, this could blow up in their faces.
Employees love remote work, and pulling them back full-time could lead to mass mutinies.
But companies like Amazon will just keep talking about “culture” and “collaboration” while workers mumble about their lost freedom.
At the end of the day, both sides have a point, but it’s looking like the cubicle might win this round.
Retirement
Gen Z’s Job Market Struggles: Not Exactly Golden Years for Retirement Planning
Well, Gen Z grads are entering the job market at possibly the worst time. Despite having a shiny new degree, many are struggling to find work.
Layoffs are low, but companies just aren’t hiring like they used to, especially for college-educated positions. This isn’t exactly the “land of opportunity” they were promised.
And the cherry on top? It’s hitting them right when they should be saving for retirement.
But how do you save for your golden years when you can’t even land an entry-level gig? If this trend continues, a whole generation might be working well past retirement age—or worse, hoping Social Security doesn’t run out of steam.
Taxes
Tax Battle: Trump vs. Harris on Corporate Rates and the Wealthy
Trump’s out here pushing to slash corporate taxes down to 15%, because apparently 21% just isn’t low enough.
Meanwhile, Harris wants to jack it up to 28% and has promised no new taxes for anyone making under $400K—but if you’re above that, expect Uncle Sam to come knocking.
Harris also endorsed a 25% minimum tax on the ultra-wealthy, targeting unrealized capital gains.
It only affects the top 0.01% (about 10,660 people), but it’s got investors sweating bullets.
Critics say her plan probably won’t survive the legal minefield, but hey, it’s sure stirring up the tax debate!
