Futures tracking the Dow Jones Industrial Average slipped 96 points, or 0.2%. S&P 500 futures were down 0.1%, as were contracts tied to the tech-heavy Nasdaq 100. Stocks looked set to edge lower on Tuesday, as investors tried to figure out if geopolitical concerns tied to the raid on Venezuela would lead to the risk-on rally losing some steam. The Dow kicked off the first full trading week of 2026 by surging to a record high, as Wall Street shrugged off the U.S. capturing Venezuela President Nicolás Maduro. ...

The Home Depot, Inc. (NYSE:HD) is one of the stocks Jim Cramer shared his take on. Noting that the stock is down despite Fed rate cuts, a caller inquired if they should add to their position, sell, or hold. Cramer stated: “Yes, I would buy more. It’s a big position for my Charitable Trust. Why would I buy more? Because we are going to get more rate cuts, particularly because the president wants them, and he’s going to pick someone who’ll forget all this nonsense you hear. They’re going to cut rates and cu ...

Christopher Waller, governor of the US Federal Reserve, speaks during the C. Peter McColough Series on International Economics at the Council on Foreign Relations in New York, US, on Thursday, Oct. 16, 2025.Federal Reserve Governor Christopher Waller had a "strong interview" for the central bank chair position with President Donald Trump in which the two discussed the labor market in depth and how to jumpstart job creation, according to senior administration officials.The interview took place in the preside ...

I know, I know. Short-term bonds? As great investments? Blasphemy, right? But hear me out. I think there’s more than a puncher’s chance that among all of those fancy covered call option ETFs, closed-end funds with double-digit yields, and dividend stocks “due” for a rebound in 2026, the year might belong to some of the most boring ETFs on planet earth. I’ll name names below. First, allow me to make the case for why ETFs owning U.S. Treasury securities with maturities between 1-7 years might just surprise ...

Core Viewpoint - Financing costs are a significant challenge for Real Estate Investment Trusts (REITs), but declining interest rates could lead to a rally for REITs with strong fundamentals [1] CICT (CapitaLand Integrated Commercial Trust) - CICT reported a strong occupancy rate of 97.2% and year-to-date rental reversions of 7.8% for retail and 6.5% for office properties [2][5] - As of September 30, 2025, CICT's diversified portfolio consists of retail (36.9%), office (33.4%), and integrated development assets (29.8%) contributing to its net property income [3] - The distribution per unit (DPU) for 1H2025 is S$0.0562, reflecting a 3.5% annual increase from S$0.0543 in 1H2024 [3] - CICT benefits from a lower average cost of debt at 3.3%, with 74% of borrowings at fixed rates, allowing for potential refinancing at lower rates [4] - The REIT has a well-structured debt profile, with a maximum of 20% of debt due in 2027 [4][5] FLCT (Frasers Logistics & Commercial Trust) - FLCT reported a DPU of S$0.0595 for FY2025, a decrease of 12.5% from FY2024's DPU of S$0.0680 [6] - The occupancy rate for FLCT is robust at 95.1%, with a positive rental reversion of 5% [6] - FLCT has a better aggregate leverage of 35.7% and an average cost of debt of 3.1% [6] - With 70.4% of borrowings at fixed rates, FLCT is positioned to benefit from refinancing at lower interest rates [7] - The REIT has significant exposure to logistics assets, with 75.1% of its assets in logistics and industrial properties [8] Comparative Analysis - CICT shows a year-on-year DPU growth of 3.5%, while FLCT has a decline of 12.5% [10] - CICT has a higher portfolio occupancy rate of 97.2% compared to FLCT's 95.1% [10] - CICT's average rental reversion is 7.15%, outperforming FLCT's 5% [10] - FLCT has a longer weighted average lease expiry (WALE) of 4.8 years compared to CICT's 3.2 years [10] - CICT primarily focuses on local properties, while FLCT has a more global tenant mix [11] Sector Context - The broader REIT sector is expected to benefit from lower interest rates, which could lead to a general rerating to the upside for both CICT and FLCT [12][14]

Monetary Policy Shift - The Federal Reserve cut policy rates by 25 basis points in September and October 2025, marking the first reductions since December 2024, with expectations for further cuts ahead [1][2] Impact on Asset Classes - Lower interest rates will lead to a preference for growth equities as financing becomes cheaper, benefiting sectors like REITs [2][4] - Corporate borrowing costs will decrease, supporting earnings growth and market valuations, particularly in growth and cyclical sectors [4][12] REITs Performance - REITs will benefit from reduced financing costs for property acquisitions and refinancing, potentially increasing distributions and making them more attractive in a lower-rate environment [5][10] Bonds and Cash Dynamics - Money market rates and high-yield savings accounts will become less attractive as rates fall, with recent T-Bill auctions reflecting lower yields [6][8] - The yield on Singapore's 1-year T-Bill dropped from 2.95% in January 2025 to 1.35% by October 2025, indicating a shift in investor preference [9] Growth Stocks - Companies with strong cash flows and exposure to trends like artificial intelligence are well-positioned to benefit from lower rates, as seen with Keppel Ltd., which reported a 25% YoY increase in net profit in 1H2025 [12][13][14] Financial Sector Outlook - Banks face net interest margin compression due to lower rates, but can benefit from increased loan demand and fee-based income [15][16] - Singapore's major banks maintained healthy dividend yields despite NIM declines, indicating their attractiveness as income investments [16][17] Portfolio Strategy - Investors are advised to rebalance portfolios towards growth-oriented dividend assets and away from static cash instruments to capitalize on lower rates [11][25] - A suggested portfolio mix includes 60% equities, 30% REITs, and 10% fixed income to balance growth and stability [22][23] Market Timing and Strategy - Early repositioning in anticipation of rate cuts can provide an advantage, as markets often adjust valuations ahead of policy changes [26][27]

Core Insights - The Federal Reserve's stance on monetary policy is cautious, with indications that further rate cuts are not guaranteed, reflecting concerns about financial stability and inflation levels [1][2][3] - The labor market is perceived to have issues that may not be resolved through easier monetary policies, despite the Fed's optimistic view [4][10] - The current economic environment shows strong GDP growth, but there are questions about the sustainability of this growth driven by artificial intelligence rather than traditional consumption [8][9][13] Monetary Policy - Federal Reserve Chair Jay Powell has indicated that the decision on interest rates will be made on a meeting-to-meeting basis, suggesting a more cautious approach [2][3] - The Fed's current stance is that interest rates are above the neutral rate, and there is a belief that lower rates may be seen over time [12][13] Labor Market - There is a growing concern about the labor market, with indications that the supply of labor is decreasing, which could impact demand and employment levels [5][7][10] - The productivity boom is being driven by a shortage of labor, which contrasts with previous productivity growth periods [15][16] Economic Growth - Real GDP growth has been over 3.5% for two consecutive quarters, indicating strong economic performance, but there are concerns about speculative excesses in the market [8][12] - The current economic conditions are described as "nirvana," with low unemployment and inflation levels, although tariffs may be influencing inflation rates [13][14] Market Sentiment - There is a sense that market participants may not fully believe in the Fed's current stance, with expectations that the Fed will eventually adopt a more accommodative approach [12][17] - The National Association of Active Managers indicates a high level of bullish sentiment, suggesting potential for a market pullback due to over-optimism [17][18]

Group 1 - The S&P 500 index closed up 1.2%, marking its 35th record close for 2025, the highest among the three major indexes [2] - The Dow Jones Industrial Average increased by 0.7%, while the Nasdaq Composite rose by 1.9% [2] - Smaller companies also saw gains, with the Russell 2000 index rising 0.3% in late afternoon trading [2] Group 2 - The market rally was driven by positive sentiment regarding a fragile trade truce between the U.S. and China, along with expectations of lower interest rates [1][2]

Core Viewpoint - The market sentiment is bullish, driven by expectations of profit growth, lower interest rates, and advancements in AI technology [1] Group 1: Market Sentiment - Investors are optimistic about profit growth, indicating a positive outlook for corporate earnings [1] - Lower interest rates are anticipated, which could enhance borrowing and spending [1] - The influence of AI is seen as a significant factor propelling the market upward [1]

Core Insights - Bitcoin has demonstrated significant growth, with a price increase of 839% over the past five years, outperforming the broader stock market [1] - The cryptocurrency reached an all-time high of over $126,000 in early October, currently trading 15% below that level [1] Macro Perspective - Key macroeconomic factors are expected to support Bitcoin's price in the near and long term, making it a global asset of interest [2] - The potential for lower interest rates in the next six to twelve months may encourage investors to seek higher returns, positively impacting asset prices, including Bitcoin [3][4] - Geopolitical turmoil, particularly aggressive U.S. trade tactics, has led to increased interest in safe-haven assets like Bitcoin, which has risen 17% this year [5] Federal Debt and Liquidity - The U.S. federal debt is approaching $40 trillion, with ongoing fiscal deficits likely to persist, creating a favorable environment for Bitcoin [6] - Since Bitcoin's inception in 2009, there has been a significant increase in government debt and money supply, contributing to its price surge [7] - The ongoing rise in global liquidity is expected to continue driving Bitcoin's value [7] Future Trends - The advancement of AI and its economic implications could further enhance Bitcoin adoption [8] - Investors with a long-term perspective may find opportunities to buy Bitcoin during price dips [8]