Q: Could long U.S. Treasury bond rates spike as short U.S. Treasury bond rates fall?
A: To reverse the inversion of the yield curve back to a more normal reward for duration risk, long rates would have to rise as the Federal Reserve (Fed) lowers the overnight bank lending rate.
Q: What happens to the net present value of the stock market under net proposed corporate tax rules?
A: A potential reduction in the value of future S&P 500 Index net earnings of 25%. Currently, Democrats propose raising corporate tax rates to 28% from 21% and Republicans discuss maintaining or lowering the 21% rate.
Headline Round Up
*Soaring U.S. Debt Estimates With a Huge Increase Since This Past February?
*Microsoft’s Artificial Intelligence (AI) Empire. OpenAI Was Just the First Step.
*Condo Insurance Soars in California Pushing Median Condo Association Dues to $480 Per Month.
*Nvidia Will Get a 20% Weighting in the Technology Sector SPDR Fund, XLK. “Thin market”?
*Chief Economist at New Century Advisors, Claudia Sahm, Says Fed is “Playing with Fire” by Not Cutting Interest Rates.
*Another New Tax? Underpayment Penalties for Quarterly Tax Filers Nearly Quadrupled in 2023 to $7 Billion.
*Goldman Economist, Jan Hatzius, Expects Interest Rate Cuts in September and December.
*New Home Construction Slows in May to Four Year Low.
*MicroStrategy Inc.’s Bitcoin Strategy: $800 Million More Debt to Buy Bitcoin? They now hold over 226,000 Bitcoin with a value of about $14.9 Billion which is up 600% since they began purchasing it.
*Bill Gates Ready to Put Billions in Nuclear Power.
*Solar Growing Faster than Any Electricity Source as Big Tech Seeks Clean Energy for Data Centers.
*Fisher Investments Founder and Owner, Ken Fisher, Cashing Out $2.5 Billion Following Minority Stake Sale.
*Electric Vehicle (EV) Slowdown Gets Real Says OilPrice.com’s Irina Slav.
*EV Makers Target a $25,000 Car for the U.S. as High-End Growth Slows.
Mergers and Acquisitions
*Honeywell Buys Aerospace and Defense Technology Company CAES Systems for $2 Billion.
Skid Row
*EV Maker Fisker Files for Bankruptcy.
SPDR Dow Jones Industrial Average Exchange Traded Fund (ETF) Trust (12/29/2023 – 06/21/2024)
– Courtesy of Bloomberg LP
Invesco QQQ Trust Series 1 & SPDR S&P 500 Exchange Traded Fund (ETF) Trust (12/29/2023 – 06/21/2024)
– Courtesy of Bloomberg LP
C.B.O.E. 30 Year Treasury Bond Yield Index, 10 Year Treasury Note Yield Index & Short-Term Interest Rate Index (06/23/2019 – 06/21/2024)
– Courtesy of Bloomberg LP
NVIDIA Corp. (12/29/2023 – 06/21/2024)
– Courtesy of Bloomberg LP
Generic Crude Oil Futures Spot Price (06/23/2019 – 06/24/2024)
– Courtesy of Bloomberg LP
U.S. New York Federal Equifax Transition – Serious Delinquency 90+ Days For Auto Loans by Age Index (06/22/2019 – 03/31/2024)
– Courtesy of Bloomberg LP
U.S. Treasury Federal Budget Debt Summary – Deficit or Surplus, Non-Seasonally Adjusted Index (06/20/2021 – 05/31/2024)
– Courtesy of Bloomberg LP
Profit Report
Tax Efficient Giving Strategies:
1. Direct donations of highly appreciated stock?
2. Qualified Charitable Distributions (QCDs) from IRA’s?
3. Donor Advised Funds?
