Core Viewpoint - President Trump has nominated Kevin Warsh as the new Fed chair, expressing a desire for an ambitious economic growth rate of 15%, which is rarely achieved outside of wartime [1][8]. Economic Growth Metrics - The president did not clarify the specific metric or timeframe for the 15% growth target, but typically, economic growth is measured as the inflation-adjusted annual rate of GDP growth [2]. - Historically, real GDP growth averages between 2%-3% annually, with double-digit growth occurring only in extreme situations, such as post-catastrophe recoveries [3]. Historical Context - The last instance of GDP growth reaching Trump's predicted level was during the reopening of businesses after COVID-19 restrictions, while the last year with growth exceeding 15% was 1943, during World War II [4]. Fed's Role and Challenges - As Fed chair, Warsh will have the ability to influence the economy through the fed funds rate, which impacts borrowing costs; however, his influence is limited as he is one of 12 voting members [7]. - The Fed can stimulate economic growth by lowering interest rates, but it must also manage its mandate to control inflation, which remains above the Fed's 2% target [6][8].

Core Insights - Unemployment rates are increasing for workers with college experience while falling for those without college education [1] Group 1 - The trend indicates a growing disparity in employment opportunities based on educational attainment [1] - Workers with college degrees are facing higher unemployment rates, suggesting potential challenges in the job market for this demographic [1] - Conversely, the decline in unemployment for non-college-educated workers may reflect a shift in demand for labor in certain sectors [1]

Core Insights - Wage growth has slowed, with private-sector salaries rising only 0.7% in Q4 2025, the slowest increase since Q2 2021, indicating a shift in the job market favoring employers [1][1][1] - Year-over-year wage growth stands at 3.4%, consistent with Q1 but down from Q3, reflecting a tougher job market as job openings have decreased and unemployment has risen [1][1][1] - The Employment Cost Index's weak growth in Q4 aligns with a broader trend of a softening labor market, leading to reduced pressure on employers to raise wages [1][1][1] Economic Implications - The slowdown in wage growth may prompt the Federal Reserve to consider cutting interest rates to stimulate hiring and mitigate rising unemployment [1][1][1] - Despite the slowdown, average wages are still growing faster than inflation, which rose 2.7% in 2025, suggesting a positive outlook for workers in terms of purchasing power [1][1][1] - Wage growth has not been evenly distributed, with higher-income households seeing a 3.7% increase in after-tax wages, while lower-income households only experienced a 0.9% increase [1][1][1] Job Market Context - The job market is currently facing challenges due to tariffs and uncertainty in trade policy, which have led businesses to reduce hiring and expansion plans [1][1][1] - A forthcoming report from the Bureau of Labor Statistics is expected to provide further insights into job creation and unemployment rates for January 2026 [1][1][1]

Core Insights - The article emphasizes that individuals over 50 do not necessarily need to shift their investment strategy towards bonds, as asset allocation should be tailored to individual financial plans rather than following generic rules [1][1]. Investment Strategy - It is suggested that pre-retirees consider increasing their bond allocation and cash reserves two to three years before retirement to mitigate sequence-of-returns risk [1][1]. - The article critiques the common rule of thumb that suggests older investors should become more conservative, advocating instead for a personalized financial plan to dictate asset allocation [1][1]. Bucketing Strategy - The bucketing strategy is recommended, which involves dividing investments into three categories: - Bucket 1: Cash for immediate expenses - Bucket 2: Low-risk investments such as CDs and Treasurys - Bucket 3: Long-term investments like stocks and alternatives [1][1]. - This strategy aims to reduce the need to sell declining assets during market downturns by relying on cash and low-risk investments for short-term needs [1][1]. Bond Investment Recommendations - Investors are advised to avoid high-yield bonds due to their associated risks and instead focus on Treasurys and corporate bonds, as well as bond ladders for diversification [1][1]. - The emphasis is placed on starting with high-quality, investment-grade bonds to avoid unnecessary risk in the bond portion of the portfolio [1][1].

Boost In AI Spending. The Stock Is Tumbling.][Oracle Is Raising Billions to Fund Its AI Buildout. Today, Investors Are Cheering][Palantir's CEO Is Feeling Good After the Software Company's 'Remarkable' Quarter] [Tesla Is Promoting Its 'FSD' Sales. They're Also an Important Part of Elon Musk's Pay][Elon Musk's Latest Big Move: Tesla Won't Make Two of Its Car Models Anymore][The Once-Hot AI Trade Hit a Snag. Some Experts Call That a 'Fantastic' Sign.][Investors Love Palantir's Earnings. The Stock Is Soaring.] ...

Core Viewpoint - Strategy, led by Michael Saylor, plans to continue purchasing Bitcoin indefinitely and will not sell its holdings despite recent market volatility [1]. Group 1: Company Actions - Strategy recently acquired 1,142 Bitcoin for approximately $90 million, with an average cost per coin exceeding $78,000 [1]. - The company is committed to buying Bitcoin every quarter "forever" [1]. - Saylor emphasized that the company will not sell Bitcoin, even if prices fall significantly, indicating a long-term investment strategy [1]. Group 2: Market Context - The recent sell-off in tech stocks and metals has raised concerns about the performance of risk assets, including cryptocurrencies [1]. - Bitcoin's price has fluctuated, recently hovering around $69,000 after dipping close to $60,000 [1]. - Experts suggest that the current market conditions do not favor Bitcoin, as investors are focusing on more stable assets [1]. Group 3: Financial Resilience - Saylor stated that if Bitcoin prices were to drop significantly, the company could refinance its debt and has sufficient cash reserves to cover dividends and obligations for over two years [1]. - The company believes Bitcoin will outperform the S&P 500 by two to three times over the next four to eight years [1].

Core Insights - Spotify reported its best quarter of user growth ever, with significant increases in both revenue and user metrics, leading to a surge in stock price [1] Financial Performance - Spotify's revenue for the fourth quarter was 4.53 billion euros ($5.39 billion), slightly exceeding estimates [1] - Earnings per share reached 4.43 euros, significantly above analyst consensus [1] - The company added 38 million net new monthly active users (MAUs) in the quarter, marking the largest quarterly increase in its history [1] User Metrics - Spotify reached 751 million MAUs and 290 million premium subscribers, both metrics surpassing expectations [1] - The company anticipates 4.5 billion euros in revenue for the first quarter, along with projections of 759 million MAUs and 293 million premium subscribers [1] Market Reaction - Following the earnings report, Spotify shares rose over 18%, although they remain down about 15% year-to-date and nearly 40% off their highs from last June [1] - The stock surge indicates growing investor confidence despite previous concerns regarding valuation and potential disruptions from AI [1] Pricing Strategy - Spotify is expected to benefit from rising subscription prices, having announced an increase in premium plan costs starting this month [1]

Group 1 - Trump Accounts are government-funded investment accounts designed to help children build wealth from birth, providing a one-time $1,000 deposit for babies born between January 1, 2025, and December 31, 2028 [1] - Families can contribute up to $5,000 annually for children up to age 18, allowing for significant savings potential [1] - At age 18, Trump Accounts convert to traditional IRAs, which can then be converted to Roth IRAs, enabling tax-free growth for decades [1] Group 2 - The conversion from a traditional IRA to a Roth IRA can be done with little or no tax due, especially for young adults with low earnings [1] - Contributions to Trump Accounts do not require earned income, allowing children to benefit from IRA savings even if they are paid in cash [1] - The structure of Trump Accounts creates a unique opportunity for families to secure tax-free savings for life, transforming a modest account into a powerful wealth-building tool [1]

Core Insights - McDonald's is expected to report its fourth-quarter earnings, with analysts predicting revenue and profit growth, potentially leading to new stock highs [1][1] - Current options pricing indicates that McDonald's stock could move up to 3% in either direction by the end of the week, with a potential high of around $336 and a low of $315 [1][1] - The stock has increased approximately 6% since the beginning of the year, reflecting a broader market trend of shifting from tech stocks to consumer-focused stocks [1][1] Financial Expectations - Analysts forecast adjusted earnings per share of $3.04, with a 7% year-over-year revenue increase to $6.83 billion [1][1] - Same restaurant sales are anticipated to rise by 3.7% compared to the same period last year [1][1] Analyst Sentiment - The majority of analysts are bullish on McDonald's stock, with eight out of eleven recommending a buy, one a sell, and two neutral [1][1] - The mean target price for the stock is $343, suggesting a 5% upside from the recent close [1][1]

Core Insights - The Super Bowl generated significant activity in prediction markets, with platforms like Kalshi and Polymarket seeing increased trading volumes despite not being able to advertise during the event [2][4]. Prediction Market Activity - Kalshi reported a total trading volume of $871 million, surpassing its previous daily record of $543 million, indicating a strong interest in prediction markets during the Super Bowl [3]. - Approximately 75% of Kalshi's trading volume was related to the Super Bowl, with prediction markets accounting for about 20% of the total wagers made at regulated sports books, which the American Gaming Association estimated to be around $1.76 billion [4][9]. User Experiences and Outcomes - One user on Polymarket reportedly made over $1.2 million from successful bets on the Seahawks, while another user won nearly $5,000 betting on celebrity appearances during the halftime show [5][9]. - A dispute arose regarding a Polymarket event contract related to performances at the Super Bowl, highlighting the complexities and ambiguities in defining what constitutes a "performance" [8].