Core Insights - February has shown increased volatility compared to January, with investors adopting a "sell first, ask questions later" strategy due to AI-driven disruption fears [1] - The U.S. Consumer Price Index (CPI) release provided some relief by easing inflation concerns, leading to expectations that the Federal Reserve may start cutting rates around mid-year [1] Inflation Data - Consumer inflation rose 2.4% year-over-year in January, down from 2.7% in December, returning to its April 2025 level [2] - Core CPI increased 2.5% annually, marking its lowest reading since April 2021, while economists had anticipated both headline and core inflation to be at 2.5% [2] Federal Reserve Rate Expectations - Following the softer-than-expected January inflation data, U.S. interest rate futures increased the probability of a June rate cut to approximately 70%, up from 64% prior to the report [4] - The CME FedWatch tool indicates a 50.7% likelihood of interest rates being lowered to 3.25-3.5% in June 2026, an increase from 44.5% a month earlier, with expectations for July strengthening to an 80.4% likelihood of a rate cut [5] Investment Opportunities in ETFs - Small-cap stocks, which are heavily reliant on external borrowings, could significantly benefit from lower interest rates, enhancing capital availability and allowing for refinancing of existing debt [7] - Suggested small-cap ETFs include iShares Core S&P Small-Cap ETF (IJR), iShares Russell 2000 ETF (IWM), and Vanguard Small Cap ETF (VB), all rated Zacks ETF Rank 2 (Buy) [8] - Financial ETFs are expected to gain from anticipated Fed interest rate cuts, which could lower capital costs for banks and boost loan activity [9] - Recommended financial ETFs include State Street Financial Select Sector SPDR ETF (XLF), Vanguard Financials ETF (VFH), and iShares U.S. Financials ETF (IYF), with XLF and VFH rated Zacks ETF Rank 1 (Strong Buy) [12] - The utilities sector, being capital-intensive, will also benefit from reduced financing costs, making utility ETFs like Utilities Select Sector SPDR Fund (XLU), Vanguard Utilities ETF (VPU), and iShares U.S. Utilities ETF (IDU) attractive options [13][14]

There are many reasons why volatility in the fixed income (bond) market can be expected to continue for the remainder of 2026. Indeed, we've only just kicked off the year, and the amount of volatility we've already seen to start 2026 has been notable. Quick Read Job reports show red across the board outside healthcare, construction and hospitality sectors. Inflation declined from 9% in 2022 to 2.4% today, nearing the Fed’s 2% target. Housing costs represent over one-third of CPI as rents and propert ...

Core Insights - President Trump's tariffs have led to layoffs in some supply chain sectors, while other industries are thriving during his second term [1] Defense and Aerospace - Defense contractors and military suppliers are benefiting from increased federal budgets and spending on national defense, resulting in significant backlogs and revenue growth [2] - The U.S. aerospace and defense industry generated nearly $1 trillion in economic activity, highlighting its importance [3] Energy and Fossil Fuels - The U.S. is the largest exporter of crude oil and natural gas, with recent production increases due to deregulation and domestic fuel production, creating jobs and capital investment [4] Healthcare and Social Assistance - The healthcare sector continues to grow, driven by demographic trends and increased longevity, making it one of the largest job-producing sectors [5] Blue Collar Jobs - There is a rising interest in vocational careers such as plumbing and HVAC due to the instability of digital services caused by inflation and policy changes [6] - Industries that combine trade skills with modern technology, like AI, are seeing higher profit margins compared to traditional tech roles [7]

Quick Read Suze Orman advises parents to fully secure their retirement before giving money to children. American savings rates fell from 6.2% in Q3 2024 to 4.2% by Q3 2025. Children can borrow for college and homes. Retirees cannot borrow for retirement. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. Financial advice personality Suze Orman has a clear rule about giving money to your children: do n ...

Group 1 - Elections are a normal aspect of democratic societies, accompanied by promises and narratives from candidates [1] - Rida Morwa has over 35 years of experience in investment and commercial banking, advising clients on high-yield investment strategies since 1991 [1] - The Investing Group High Dividend Opportunities focuses on sustainable income through high-yield investments with a targeted safe yield of +9% [1] Group 2 - The service includes a model portfolio with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates [1] - The philosophy emphasizes community, education, and the belief that investors should not invest alone [1]

Group 1 - GDP and inflation data are expected to be released in the coming days, which may impact market sentiment and investment strategies [1] - Walmart is highlighted as a key focus in the upcoming batch of blue-chip earnings reports, indicating its significance in the retail sector [1]

Core Insights - Many workers mistakenly believe that consistently contributing to their 401(k) plans is sufficient for retirement security, but financial advisors highlight that failing to increase contributions annually undermines long-term growth potential [2][3] Group 1: Contribution Strategies - The primary mistake is not increasing contributions each year, which leads to missed opportunities for exponential growth in retirement savings [2] - Consistent savers often operate on autopilot, thinking they are secure, but they are actually losing ground to inflation and lifestyle changes [3] Group 2: Inflation and Lifestyle Impact - Flat contributions can be viewed as a "hidden tax" due to inflation, effectively decreasing the future value of 401(k) accounts relative to living costs [5] - Maintaining the same savings ratio while experiencing salary growth of 3% to 4% annually results in reduced future buying power [5] Group 3: Behavioral Biases - Lifestyle creep occurs as incomes rise, leading to increased expenses that absorb any additional income, which can hinder savings growth [6] - Many pre-retirees fall into the trap of believing they are on track simply because they have been saving, a phenomenon referred to as the "'I'm doing enough' bias" [6]

Market Overview - The U.S. stock market is closed on February 16, 2026, for Presidents' Day, but global financial activity remains focused on the previous week's momentum and U.S. equity futures [1] - U.S. stock futures showed modest gains, with S&P 500 futures up 0.2% and Dow Jones futures also up 0.2%, indicating a cautiously optimistic start to the week [2] Economic Outlook - The latest Consumer Price Index (CPI) data indicates U.S. inflation cooled to 2.4% year-over-year in January, down from 2.7% in December, reviving hopes for multiple interest rate cuts in 2026 [3] - The yield on the 10-year U.S. Treasury remained flat at 4.052%, suggesting stabilization after previous volatility, with analysts anticipating potential interest rate cuts if economic data continues to show easing price pressures [4] Major Stock News - Apple (AAPL) is in focus after announcing a partnership to integrate Alphabet (GOOGL)'s Gemini AI models into Siri, with shares trading between $254.98 and $264.16 [5] - Alphabet reached a historic market capitalization of $3 trillion, joining Microsoft (MSFT) and Nvidia (NVDA) [5] - Nvidia (NVDA) saw a stock decline of 2.2% amid concerns over software industry disruptions from rapid AI advancements [6] - Tesla (TSLA) continues to experience high volatility as the market evaluates its shift towards autonomous driving software [6] - Coinbase (COIN) surged 16.46% due to a rally in cryptocurrency markets, while Applied Materials (AMAT) gained 8.08% following a strong earnings report [7] Global Market Performance - International markets remain active, with India's Sensex rising 650 points to close at 83,277.15, driven by banking stocks [8] - European markets showed upward trends, with the Stoxx Europe 600 climbing 0.3% [8] - Asian markets were mixed, with Japan's Nikkei 225 declining 0.2% due to disappointing GDP data, while Chinese markets were closed for the Lunar New Year [8] Upcoming Events - The earnings calendar for the week includes high-profile releases from Walmart (WMT), Home Depot (HD), Cisco Systems (CSCO), Alibaba (BABA), and Baidu (BIDU), which will provide insights into global consumer health and enterprise technology spending [9][10]

Core Insights - Money market accounts (MMAs) are highlighted as a favorable option for storing cash due to their relatively high interest rates, liquidity, and flexibility [1] - MMAs typically offer better returns than traditional savings accounts and may include check-writing privileges and debit card access, making them suitable for long-term savings with easy access [2] Interest Rates Overview - Despite a general decline in rates over recent months, some MMAs still offer rates exceeding 4% APY [3] - Historical fluctuations in MMA rates are largely attributed to changes in the Federal Reserve's target interest rate [4] - Following the 2008 financial crisis, MMA rates were low, averaging between 0.10% to 0.50% due to the Fed's near-zero federal funds rate [5] - The COVID-19 pandemic prompted another drop in MMA rates as the Fed cut rates to combat economic fallout [6] - Starting in 2022, aggressive interest rate hikes by the Fed led to historically high deposit rates, with many MMAs offering rates of 4% or higher by late 2023 [7] - As of 2026, MMA rates remain elevated compared to historical standards but are on a downward trend following recent Fed rate cuts [8] Considerations for Choosing MMAs - When selecting a money market account, factors beyond interest rates, such as minimum balance requirements, fees, and withdrawal limits, are crucial for assessing overall value [9] - Many MMAs require a significant minimum balance, often $5,000 or more, to qualify for the highest advertised rates, and some may charge monthly maintenance fees [10] - There are competitive MMAs available without balance requirements or fees, emphasizing the importance of comparing options before making a decision [10] - It is essential to ensure that the chosen account is insured by the FDIC or NCUA, which protects deposits up to $250,000 per institution, per depositor [11] Current Market Rates - The national average interest rate for money market accounts is currently 0.56%, while the best rates can reach around 4% APY, comparable to high-yield savings accounts [12] - For example, depositing $50,000 in a money market account with a 4.5% APY would yield approximately $2,303 in interest over one year [13] - Currently, no money market accounts offer a 5% APY, but some high-yield savings accounts from online banks may provide rates above 4% [14]

Market Overview - The recent performance of communication services stocks has been notable, raising questions about the broader market's ability to offset negative trends if large-cap companies do not contribute to the rally [2] - There is a perception that the U.S. equity markets may face challenges, leading investors to explore opportunities in Europe and South Korea [2][7] Investment Opportunities - European markets are being viewed as a potential alternative for diversification, with strengths in the IT sector, financials, and industrials, which are currently performing well [5][6] - The increase in spending in Europe contrasts with the U.S. market, suggesting that Europe may offer better investment opportunities at this time [6] Global Economic Outlook - Despite potential contagion effects from U.S. market declines, the global growth environment remains relatively positive, with high growth expectations outside the U.S. [8] - The current cyclical environment is favorable, allowing for the possibility of significant returns in global equities even if U.S. markets lag [9][10]