Dear Friend,
Trump’s back, but so are the debt fights, fiscal gridlock, and market jitters.
With a $29 trillion national debt and GOP infighting over tax cuts, his economic plans face a tougher crowd than ever—and Wall Street is already sweating those bond yields.
Meanwhile, the U.S. is running out of time to chase $135 billion in pandemic unemployment fraud, Costco’s loyalty game is crushing boycotts, and scientists want you to trade Netflix binges for yoga if you want to stick around longer.
Stick with this edition of the Everlasting Wealth Insider Report—we’ve got all the stories to keep you sharp.
Jeremy Blossom
Editor in Chief, Everlasting Wealth
MARKET HEADLINES
🚀 XRP’s price surged past $3, fueled by declining inflation data, optimism around crypto ETFs, and Ripple’s ongoing legal battle with the SEC, which is viewed as increasingly favorable for the company.
📈 Nvidia stock rose on cooling inflation data and a 57% profit surge at its supplier TSMC, which forecasted doubling AI chip revenue in 2025, solidifying Nvidia’s dominance in AI hardware.
⚡ Tesla stock, caught in a volatile range, awaits catalysts like AI technology licensing deals or humanoid robot sales to sustain growth, amid risks from high interest rates and possible policy changes affecting EV credits.
💻 TSMC’s profits surged 57% in Q4, driven by high AI chip demand, as the company reassured investors it could manage U.S. export restrictions while expecting continued growth in AI-related sales.
🏗️ Beacon Roofing stock rose after QXO proposed an $11 billion cash acquisition, though Beacon’s board rejected the offer as undervaluing the company’s growth prospects and shareholder value.
Trump’s Second Term Faces GOP Budget Battles and Wall Street Tensions
As Trump prepares to take office again, he’s stepping into a fiscal minefield.
The national debt has doubled to nearly $29 trillion since his first term, deficits are surging, and rising bond yields are rattling Wall Street.
Trump’s plans for sweeping tax cuts are already clashing with GOP budget hawks like the Freedom Caucus, who demand spending cuts to offset any new legislation.
With Republicans holding only a slim majority in Congress, infighting between fiscal hardliners and moderates—some of whom want SALT tax relief—makes consensus nearly impossible.
Failure to pass Trump’s tax cuts could hurt the stock market, while adding to the deficit risks pushing bond yields even higher.
Investors should prepare for political gridlock and market volatility as Trump’s debt-driven growth playbook hits serious resistance.
STOCKS TO WATCH
🔎 Bank of America and Morgan Stanley: These major financial institutions, along with smaller players like PNC Financial and U.S. Bancorp, are set to release earnings reports before markets open.
↗️ TSMC: The chipmaking giant recorded another record-breaking quarter, driven by AI demand, and projected continued growth. Despite new U.S. chip restrictions impacting the company, its Taiwan-listed shares climbed over 3%.
↗️ Richemont: The Swiss luxury firm posted its highest-ever quarterly sales, exceeding expectations. This uplifted Richemont’s shares and spurred a nearly 8% increase in LVMH shares in Paris.
↗️ DuPont: The chemical maker reversed its decision to spin off its water division, opting to maintain its current structure. This strategic shift boosted its shares in premarket trading.
This Day in the Markets
📈 On this day in 1956, Ford Motor Company went public in one of the largest initial public offerings (IPOs) of its time, offering shares at $64.50 each, which surged to close at $70.50 by the end of the day, bringing the company’s valuation to $660 million and marking a pivotal moment in automotive and stock market history.
STOCK PICK OF THE WEEK
Brownstone Research
How to Profit from AI Without Losing Your Shirt—A Simple Strategy for Retirees
If you’re starting to invest in AI or even just thinking about it, it can feel overwhelming and even a bit scary.
And for good reason.
Between wildly overvalued AI stocks and bad actors attempting to ride the coattails of something they don’t understand, following the wrong advice could wipe out your entire portfolio.
And take decades to rebuild.
If you’re at or close to retirement, this is not an option.
That’s why Jeff Brown followed a playbook he honed over the years.
It’s a method he used to make profitable gains on innovative new opportunities on the outer limits of technology.
And now he tailored it specifically for the AI boom.
It’s a two-part strategy that anyone can follow.
-
You don’t need to be an AI expert.
-
You don’t need any experience with ChatGPT.
-
And you certainly don’t need to spend countless hours trading the markets.
Click here to check out myAI Retirement Playbooknow.
ECONOMY
The Clock Is Ticking: Will Congress Act on $135 Billion in Pandemic Fraud?
The U.S. is running out of time to recover up to $135 billion stolen through pandemic-era unemployment fraud, with a five-year statute of limitations looming and most of the 209,000 open cases expected to remain unresolved.
Fraudsters exploited the 2020 CARES Act, using stolen personal data to file fake claims and launder money through schemes involving cryptocurrency and bogus payrolls, but federal oversight funding has dried up, and Congress has stalled on extending the deadline for prosecutions.
With only 0.8% of stolen funds likely to be recovered, watchdogs warn that the U.S. risks leaving this massive theft unpunished, enriching criminal networks and setting a dangerous precedent for taxpayer accountability.
ECONOMY HEADLINES
💊 Rising costs are prompting Medicare Advantage plans to cut benefits and adjust networks, making the current open enrollment period a crucial time for enrollees to evaluate and potentially switch plans.
⚔️ L3Harris CEO proposed reforms to streamline defense spending, emphasizing AI integration and efficiency, as Elon Musk and Vivek Ramaswamy lead a government initiative to reduce waste, causing uncertainty among investors.
⚡ Energy Secretary nominee Chris Wright emphasized expanding the electrical grid, boosting nuclear and renewable energy, and leading global energy innovation, while balancing climate challenges and fossil fuel advancements.
🛍️ December retail sales are expected to rise on strong online shopping and robust consumer spending during the holidays, despite lingering inflation pressures and uneven performance across retail sectors.
⚖️ The SEC sued Elon Musk for delaying disclosure of his Twitter stake in 2022, with limited impact expected on Tesla, as Musk’s leadership in government reform under the Trump administration raises potential conflicts.
BUSINESS
Why Costco Is Standing Firm on DEI While Others Backpedal
While companies like Walmart and Ford retreat from diversity, equity, and inclusion (DEI) policies under conservative pressure, Costco is standing firm, rejecting a shareholder proposal questioning the risks of its DEI initiatives and emphasizing how diversity boosts its bottom line by attracting talent and pleasing customers.
CEO Ron Vachris made it clear Costco doesn’t use hiring quotas but instead focuses on equal opportunities and high wages, stating he’s “not prepared to change” these values.
Despite calls for boycotts from conservative activists, Costco’s fiercely loyal customer base—92% of whom renew memberships annually—makes the retailer difficult to target.
Known for paying employees better than competitors and tying executive bonuses to social metrics, Costco credits its diverse workforce with contributing to customer satisfaction, even as its leadership remains predominantly white and male, reflecting its practice of promoting from within.
In an era where many corporations are abandoning DEI, Costco is doubling down on its commitment to its values and stakeholders.
RETIREMENT
7 Simple Habits to Live a Longer, Healthier Life
Want to boost your odds of living a long, healthy life? Genetics play a role, but scientists agree your lifestyle choices matter more.
Regular exercise, a healthy diet (think Mediterranean or plant-based), and getting enough sleep are foundational.
Don’t smoke, and if you drink, do so moderately—though many experts now say even moderate alcohol may not be great for you.
Maintain strong social connections to combat loneliness, challenge your brain by learning new skills or traveling, and manage stress with practices like meditation, yoga, or regular exercise.
These habits not only improve your health but can add years to your life, whether you’re 50 or 80. It’s never too late to start!
Trivia
Which U.S. region is known as the “Silicon Valley of the East,” thanks to its rapidly growing tech industry and concentration of IT firms?
A. Research Triangle, North Carolina
B. Austin, Texas
C. Denver, Colorado
D. Boston, Massachusetts
E. Seattle, Washington
Scroll for the answer
TAXES
Another Debt-Ceiling Showdown Could Shake Up Fiscal Policy
The U.S. is bracing for another debt-ceiling standoff as the Treasury prepares to use “extraordinary measures” to fund the government, possibly starting this week.
House Republicans are demanding $2.5 trillion in spending cuts over the next decade in exchange for raising the debt ceiling by $1.5 trillion, but a last-minute deal is the most likely outcome.
With deficits exceeding $2 trillion annually and debt-to-GDP hitting 120%, the broader fiscal picture remains bleak.
While the Treasury’s $620 billion cash reserve may prevent a default until summer, political gridlock could disrupt markets and policymaking.
Some even speculate drastic moves, like scrapping the debt ceiling altogether, though such measures remain unprecedented.
For taxpayers, this ongoing saga highlights the tough questions around spending and fiscal responsibility that remain unresolved.
Answer
Which U.S. region is known as the “Silicon Valley of the East,” thanks to its rapidly growing tech industry and concentration of IT firms?
A. Research Triangle, North Carolina
The Research Triangle, comprising Raleigh, Durham, and Chapel Hill in North Carolina, is dubbed the “Silicon Valley of the East.”
This region hosts a thriving technology and innovation ecosystem, fueled by prestigious universities such as Duke, NC State, and UNC-Chapel Hill.
The area’s blend of academic research, startup culture, and large IT firms has attracted significant investment, making it a hub for biotechnology, software development, and advanced manufacturing.
