In August 2025, President Trump signed an executive order aimed at allowing 401(k) account holders to invest in private equity assets. This means that American workers may be able to invest in companies that are not publicly traded on the stock market, such as private real estate investments (1). Supporters of the change say it's a way to expand investment choices for everyday Americans and even the playing field (2), while other experts insist this shift poses a "huge exposure to risk" and question how p ...

Federal Reserve Interest Rate Cuts - The Federal Reserve cut interest rates three times in 2025, each by a quarter of a percentage point, with the most recent cut on December 10, leaving benchmark rates at 3.5% to 3.75% [1] - The decision was controversial, marked by a six-year high of three dissents among Federal Reserve members [1] - Chair Jerome Powell indicated that further cuts would be difficult to justify, but future decisions may be influenced by post-shutdown data [1] Investment Recommendations Post-Cut - ChatGPT recommends investing in cyclical and growth sector stocks, particularly in technology-related industries, as these stocks tend to benefit most from rate cuts according to BlackRock Capital [3] - Growth stocks are characterized by companies expected to grow revenue faster than the market average, often possessing competitive advantages and loyal customer bases [4] - Cyclical sectors are suggested for investment as they typically outperform stable sectors in the early days following a rate cut [4] Broader Market Exposure and Bonds - ChatGPT advises considering broad market exposure, such as S&P 500 or total-market ETFs, with a focus on sectors that historically benefit from rate easing [5] - Long-term bonds and bond funds are recommended as bond values typically rise when interest rates fall, making existing bonds with higher fixed rates more attractive [5] - The present value of long-term bonds (20- to 30-year) increases with falling rates, providing capital gains in addition to interest [6]