[Music] Washington is in turmoil once again with investors wondering how a government shutdown can affect their money. That's what we're digging into on today's Stocks and Translation. A shutdown happens when Congress misses a budget or a short ter short-term fix.Essential services keep running, but many others pause as most federal workers are temporarily let go or furlowed. So, let's break down what a government shutdown is and is not. First, it's a temporary funding lapse.It slows some services and it ca ...

Asset Allocation Shift - The asset manager with $11 trillion in assets has shifted its recommended allocations to 70% fixed income [1] - The company now has more than $1 trillion in funds committed to bonds [1]

The Bank of Japan will scale back purchases of super-long bonds in a move that risks deepening losses in the nation’s longest-dated debt https://t.co/1nEDCqsapp ...

Indian bonds have been stuck in listless trading in recent weeks, with analysts saying only strong dovish signals from the Reserve Bank of India this week may help rekindle bullish sentiment https://t.co/E4pNXl6mtD ...

India will scale back the issuance of longer-maturity bonds over the next six months, as demand from insurance and pension funds shows signs of easing https://t.co/JoKnu9gNQo ...

Pressure on long-dated bonds is easing around the world as investors eye supply changes and hunt for bargains after a selloff https://t.co/fGqiE3sm4n ...

A bondholder industry group has accused Warner Bros. Discovery and its bankers of undermining creditors when the company repurchased billions of dollars of its bonds earlier this year https://t.co/zf6ifkl1jp ...

Market Trends & Client Behavior - Charles Schwab's clients are trading approximately 30% more than the previous year, with increased margin balances and options usage [1] - Clients express happiness with high balances but also nervousness about the market's elevation, prompting questions about profit-taking [3][4] - Retail investors have been actively invested in equities, contributing to all-time high balances [6] - There's a growing demand from retail investors for financial advice and renewed interest in fixed income products [9][10] Crypto Strategy - Charles Schwab is planning a significant entry into the crypto space in early 2026 [1] - The company aims to provide education and support regarding crypto investments, acknowledging its increasing importance in client conversations [21] - Charles Schwab clients already hold 20% of all crypto ETF assets in the US [22] - The launch of Spot Crypto is expected in the first half of next year, aiming to attract clients who have moved funds to platforms like Coinbase [23] Company Strategy & Performance - Charles Schwab aims to meet clients' needs through both digital and in-person interactions, recognizing that most customers prefer a combination of both [19][20] - The company emphasizes a long-term orientation, prioritizing client interests to drive shareholder value [31][34] - Charles Schwab is experiencing record digital logins, approximately 500 million per quarter [19] - One in six new clients are under the age of 24, indicating success in attracting younger investors [27]

Abu Dhabi is selling dollar-denominated bonds, its first debt issuance in over a year https://t.co/KFiqTXwfLJ ...

Market Sentiment & Investment Strategies - Mark Spitznagel's firm, Universal Investments, manages $20 billion in assets under a tail risk hedge fund strategy [4] - Despite his firm's usual pessimism, Spitznagel is currently bullish on stocks, expecting them to surge higher before a correction, drawing parallels to early 1929 [4] - US margin debt is at an all-time high, which is considered a bullish indicator, while retail investors had the highest weekly inflow into the market for 2025 [4] - The bond market is pricing in two more 25 basis point cuts this year and three more 25 basis point cuts next year, potentially bringing the Fed funds rate below 3% [4] Housing Market Analysis - US incomes need to spike 60% to return to pre-pandemic housing affordability levels [4] - Home prices would need to fall 38% to return to pre-pandemic housing affordability levels [4] - Mortgage rates need to fall more than 400 basis points from over 65% down to under 23% to return to pre-pandemic affordability levels [4] Trading & Market Dynamics - Retail volume in derivatives has increased significantly, with options, futures, and options on futures now representing close to 80% of the market, compared to 8% previously [3] - Event-based markets are currently trading with high fees (1% per transaction), making them less attractive compared to traditional markets like Apple (approximately $1 per $100,000 traded) [21][22] - The speaker expresses concern about the frothy stock market, noting the difficulty in finding cheap assets across various sectors, commodities, and countries [5][6] - The speaker is selling a lot of stock and trading a lot also, and is concerned that there are no bears right now [36][37]