Bitcoin went through a political stress test after Federal Reserve Chair Jerome Powell said the Justice Department had threatened him with criminal charges during a growing conflict with President Donald Trump. Bitcoin’s price dropped to around the $90k level on the day before regaining the $91k price level as of today, which is a small move for a story that stirred tension in Washington. The timing stands out as investors continue to debate whether Bitcoin really holds up when governments clash. There ...

Wall Street has for the most part bounced back since falling at the opening bell after an investigation into the current chair of the Federal Reserve raised questions about the independence of the central bank.The pan-European Stoxx 600 closed 0.2pc higher, with silver producer Fresnillo among its top risers after the white metal reached a new high earlier on Monday.Germany’s Dax jumped almost 0.6pc at the close, hitting a fresh record of 25,405.34 and extending a 10-day rally.European stocks ended the trad ...

Core Viewpoint - The ongoing conflict between President Trump and Fed Chair Jerome Powell may lead to inflationary pressures, potentially unanchoring inflation expectations [1]. Group 1: Federal Reserve and Inflation - The credibility of the Federal Reserve is at risk, which could undermine progress in controlling inflation expectations [2]. - Year-ahead inflation expectations remained steady at 4.2% in January, the lowest since January 2025, indicating some stability despite underlying tensions [5]. - The Federal Reserve's independence is crucial for maintaining stable interest rates, and any challenge to this independence could lead to increased inflation expectations [4]. Group 2: Market Reactions and Investment Strategies - Investors are advised to consider real assets, such as gold and energy stocks, as hedges against potential inflation risks [2]. - A potential sell-off in stocks may occur as investors adjust to the heightened risks associated with the Fed's independence being challenged [5]. - The situation is expected to evolve, with Fed independence risks becoming a significant theme throughout 2026 [5].

Core Insights - Gold prices reached a record high of $4,640 per ounce, driven by investor concerns regarding the Federal Reserve's independence amid a criminal investigation into Fed Chair Jerome Powell [1][3][8] - The investigation by the Justice Department is perceived as a political maneuver to pressure the Fed into lowering interest rates, which could undermine the legitimacy of U.S. monetary policy [2][5][8] Gold Market Dynamics - Gold futures increased nearly 2.7% to $4,625 per ounce, following a more than 4% rally the previous week, influenced by persistent inflation concerns and expectations of further interest rate cuts by the Fed [3][4] - The rise in gold prices reflects a trend where investors seek safe-haven assets during economic uncertainty, particularly when the independence of the Federal Reserve is questioned [5][8] Federal Reserve Context - The Federal Reserve has faced political pressure, with Powell asserting that interest rate decisions should be based on public interest rather than presidential preferences [2][3] - The Fed has cut interest rates in response to labor market weaknesses, but there is a division among policymakers regarding future rate cuts, especially with inflation remaining above the 2% target [7]

The December U.S. jobs report was just good enough to persuade investors the Federal Reserve won't cut interest rates again in January. Stubborn inflation could ensure the Fed stands pat. ...

Core Insights - Inspirion Wealth Advisors, LLC increased its stake in Harbor Commodity All-Weather Strategy ETF (HGER) by adding 158,852 shares, bringing the total to 602,939 shares, with an estimated transaction value of $4.14 million [2] - The value of the HGER position rose by $4.93 million due to new purchases and price appreciation, now accounting for 1.83% of the fund's 13F assets under management [2][5] Transaction Details - The transaction reflects a strategic portfolio decision rather than a market timing call, indicating a long-term approach to managing inflation risk through commodities [9] - As of January 8, 2026, HGER shares were priced at $25.40, representing a 22.1% increase over the past year, with a 6.9% annual dividend yield [3][4] ETF Overview - Harbor Commodity All-Weather Strategy ETF has an AUM of $1.44 billion and a 1-year total return of 22.12% [4] - The ETF employs a systematic approach to commodity investing, focusing on inflation sensitivity and liquidity, with a dynamic allocation to gold based on inflationary changes [5][7] Investment Strategy - The fund utilizes a rules-based approach to select and weight futures contracts, targeting diversified exposure to commodities sensitive to U.S. CPI [7] - The structure is designed for tax efficiency and operational simplicity, using excess return swaps through a Cayman Islands subsidiary [8]

Investment Strategies for Retirement Portfolios - A conservative portfolio with $2 million invested at an average yield of 3.5% can generate approximately $70,000 annually, equating to $5,833 monthly before taxes [1] - A balanced income approach targeting 4-5% yields can produce around $90,000 annually or $7,500 monthly before taxes, utilizing a mix of dividend growth stocks, REITs, and income-focused ETFs [7] - An aggressive income strategy aiming for 6-7% yields can yield $120,000 annually or $10,000 monthly before taxes, focusing on high-yield dividend stocks and covered call ETFs [11][12] Portfolio Composition - Conservative portfolios may include holdings like Vanguard's Dividend Appreciation ETF (yielding 1.6%) and Vanguard Total Bond ETF for modest income [1] - Balanced portfolios might incorporate Enterprise Product Partners (yielding 6.88%), Realty Income, and dividend ETFs like Schwab US Dividend Equity ETF [8][9] - Aggressive portfolios could feature JPMorgan Equity Premium Income ETF (yielding 8.19%), VICI Properties (6.53%), and Global X SuperDividend ETF (9.68%) [12] Considerations for Retirees - At age 60, retirees should consider how to structure their portfolios to last at least 25-30 years, focusing on maintaining purchasing power amid inflation [3][14] - The conservative approach offers stability but may not provide sufficient income for those accustomed to higher earnings, especially if inflation exceeds 4% [6] - The choice of strategy should align with individual financial situations, such as the presence of pensions or other income sources [14]

Core Insights - The S&P 500 reached a record high, continuing a bull market that began after the Covid lows in March 2020, indicating strong market resilience and investor confidence [4]. Group 1: Market Performance - The S&P 500 has extended its gains, reflecting a robust bull market despite some fluctuations [4]. - The SPDR S&P 500 Trust (SPY) ETF is highlighted as a potential investment opportunity due to the index's performance [4]. Group 2: Investment Opportunities - Analysts are optimistic about 11 S&P 500 stocks for 2026, suggesting a favorable outlook for specific equities [9]. - There is a mention of a stock yielding 12% that has already increased by 10% this year, indicating strong performance among select stocks [7].

Federal Reserve Chairman Jerome Powell charged in a video released Sunday night that President Donald Trump's Department of Justice has launched a criminal investigation of his testimony to Congress about the Fed building renovation project as a "pretext" for gaining control of monetary policy. The 10-year Treasury yield rose early Monday as investors reacted to added uncertainty over Fed independence and the implications for inflation. ...

Core Viewpoint - The Justice Department has threatened the Federal Reserve with a criminal indictment over Fed Chair Jerome Powell's testimony regarding building renovations, marking a significant escalation in the administration's attempts to exert control over the independent institution [1]. Group 1: Federal Reserve's Independence - The independence of the U.S. Federal Reserve is crucial as it wields extensive power over the economy, influencing borrowing costs and economic growth through interest rate adjustments [5]. - Economists favor independent central banks because they can take unpopular measures, such as raising interest rates to combat inflation, without political pressure [6]. - The importance of an independent Fed was solidified after the inflation spike of the 1970s and 1980s, where political pressure led to detrimental economic consequences [7]. Group 2: Political Pressure and Reactions - President Trump has repeatedly criticized Powell for not cutting short-term interest rates and has threatened to fire him, reflecting ongoing tensions between the administration and the Fed [2]. - Trump has accused Powell of mismanaging a $2.5 billion building renovation project, which Powell described as a "pretext" to undermine the Fed's independence [3]. - There is a growing concern among some lawmakers, such as Senator Thom Tillis, regarding the administration's efforts to diminish the Fed's independence [4].