The S&P 500 hit another record close. But what happens when the rate cut finally arrives? ...

Core Viewpoint - The current environment of dropping interest rates may present a favorable opportunity for investors to consider adding real estate investment trusts (REITs) to their portfolios, particularly focusing on the ALPS REIT Dividend Dogs ETF (RDOG) as a notable option [1]. Group 1: Fund Overview - RDOG charges a fee of 35 basis points and tracks the S-Network REIT Dividend Dogs Index, which is an equal-weighted index comprising the five highest yielding U.S. REITs from each of the nine REIT categories [2]. - The fund strategically excludes mortgage REITs, which are more susceptible to credit spread issues, and includes technology REITs to potentially enhance upside [2]. Group 2: Performance Metrics - Over the last month, RDOG has returned 8.3%, and 6.35% over the last three months, outperforming both its ETF Database Category and FactSet Segment averages, which were 5% and 6.2% respectively for the same periods [3]. - As of September 12, RDOG reported a trailing 12-month yield of 6.18% and a quarterly distribution of $0.55810 as of June 25 [3]. Group 3: Investment Considerations - Investors may find RDOG appealing in the latter months of 2025, especially if rate cuts positively impact technology sectors, which could in turn benefit technology REITs [3]. - In a potentially slowing economy, dividend-yielding investments like RDOG may provide necessary income and stability for investors [3].

Gold (GC=F) futures opened at $3,680.20 per ounce on Monday, up 0.8% from Friday’s close of $3,649.40. Gold has opened above $3,600 daily since September 9. Investors are awaiting the Fed’s next interest rate decision on September 17. A 25-basis-point cut is widely expected, though President Trump told reporters Sunday that he expected “a big cut.” The Fed will also release its dot plot this week, a chart outlining how each Fed committee member predicts interest rates will evolve over the next few years. ...

Economic Overview - The U.S. economy is showing signs that it may be ready for an interest rate cut at the upcoming Federal Open Market Committee (FOMC) meeting, driven by milder inflation data and a surge in jobless claims [1][4] - The Consumer Price Index (CPI) for August reported a headline increase of +0.4%, which is slightly above expectations, while the inflation rate remains at +2.9%, indicating persistent high retail prices [2][5] - The Producer Price Index (PPI) fell to -0.1% month over month, suggesting that future CPI figures may also remain mild [3] Labor Market Insights - A significant increase in Initial Jobless Claims, particularly due to a one-time event in Texas, has reinforced expectations for a rate cut by the Fed [4] - The Fed has been data-dependent and has previously observed a stable labor market, but recent downward revisions indicate a loss of 911,000 jobs over the past year [5] Market Reactions - Stock market indexes are reaching record highs, with investors optimistic about potential rate cuts, which could stimulate sectors like housing that have been affected by high mortgage rates [6] - The anticipation of rate cuts is creating a positive sentiment in the market, although there are concerns about the sustainability of this optimism [7] Consumer Impact - Despite the potential for rate cuts, there are warnings that prices may not decrease, which could lead to consumers curbing spending or accumulating debt [8][9] - The gradual introduction of tariffs may further impact prices, posing challenges for consumers in the future [8][9]

Market Overview - Trading on Wall Street was mixed as markets approach the end of a record-setting week [1] - S&P 500 futures were flat, Dow Jones Industrial Average futures decreased by 0.2%, and Nasdaq futures increased by 0.1% [1] Federal Reserve Interest Rate Decision - Markets are anticipating a potential interest rate cut by the Federal Reserve next week, which could stimulate the economy [1] - The Federal Reserve has been cautious about cutting interest rates throughout 2025 due to concerns that tariffs imposed by President Donald Trump could worsen inflation [1] - Lower interest rates may lead to increased inflation risks [1]

Group 1: Gold Market Dynamics - The gold rally is driven by continued central bank buying, particularly from China, as they diversify away from the dollar [1] - US and Western investor concerns regarding the increasing budget and trade deficits are contributing to the demand for gold [2] - Agnico Eagle Mines is highlighted as a top pick for investors looking to capitalize on the gold rally without directly purchasing gold, with a price target set at 209 [2] Group 2: Agnico Eagle Mines - Agnico Eagle Mines is distinguished from other gold miners by its ability to deliver on guidance and outperform the gold price, ideally by a ratio of 2 to 1 [3] - The company has a market capitalization of $70 billion, low costs, significant exploration potential, and a portfolio of promising projects [4] Group 3: Platinum Market Insights - The platinum market is experiencing increased interest due to limited supply from South Africa and reduced access to Russian supplies [5] - Demand for platinum in China is believed to be rising, driven by jewelry purchases and potential investments in hydrogen infrastructure [5] Group 4: Silver Market Outlook - A potential rate cut may benefit the silver market, which typically outperforms gold during prolonged gold bull markets [6][7] - Pan-American Silver is mentioned as a stock with a buy rating that offers exposure to the silver market [7]

Thursday, September 11, 2025After a mostly in-line inflation report ahead of today’s opening bell from the Consumer Price Index (CPI) and a surprise spike in new jobless claims spurred markets to record highs today. The Dow gained +617 points, +1.36%, to an all-time record closing high 46,108. The S&P 500 grew +55 points, +0.85%, to 6587 for the first time ever. The Nasdaq added +157 points, +0.72%, to an all-time high 22,043. Only the small-cap Russell 2000 is off its all-time high from late 2021, but stil ...

Core Viewpoint - US stocks experienced an increase on Thursday as investors remained optimistic about a potential interest rate cut by the Federal Reserve, despite mixed inflation data and a rise in jobless claims [1] Group 1: Market Performance - The Dow Jones Industrial Average rose by 115 points, which is a 0.2% increase [1]

Core Viewpoint - Investors are anticipating consumer price data to provide insights into the potential pace of interest rate cuts by the end of the year [1] Group 1 - The upcoming consumer price data is expected to influence market expectations regarding interest rate adjustments [1]

Economic Data and Job Market - The Bureau of Labor Statistics (BLS) revised employment data, indicating that the US economy created over 900,000 fewer jobs from April 2024 to March 2025 than initially reported, highlighting a weaker job market under the Biden and early Trump administrations [2][3] - The job market had been deteriorating prior to the implementation of Trump’s tariff policy, suggesting that tariffs are not the primary cause of job losses [3] - The significant job revision implies that the Federal Reserve is likely to cut interest rates in its upcoming meeting, which could be a bullish signal for stocks [4] Inflation and Economic Outlook - The Producer Price Index (PPI) showed a decline of 0.1% for the month, contrary to expectations of a 0.3% increase, with year-over-year core PPI rising only 2.8%, below the anticipated 3.5% [5] - The inflation data suggests that the consumer is not bearing the full burden of tariffs, as many foreign companies and importers are absorbing the costs [5] AI Industry Developments - Nebius Group secured a five-year deal worth over $17 billion with Microsoft, significantly impacting its market cap and demonstrating the trickle-down effect of big tech's capital expenditures [7][9] - Oracle reported a Remaining Performance Obligation (RPO) increase of 359% to $455 billion, indicating strong future revenue growth and a substantial contract backlog [10] - The AI industry's growth is compared favorably to the internet boom of the late 1990s, with current AI companies being more profitable and having stronger balance sheets than their internet counterparts at that time [14][15] Market Sentiment and Valuation - Despite skepticism regarding the AI industry's growth, recent developments from Nebius and Oracle counter these criticisms, suggesting that the AI boom is still in its early stages [20] - Current valuations in the AI sector are more reasonable compared to the internet boom, with the Nasdaq price-to-earnings ratio around 30x, indicating that companies like Oracle are likely to grow into their valuations [15]