Issues
In theory, and often as we prefer, in practice, corporate profits drive stock prices.
J.P. Morgan’s (JPM) booming profits are a testament to this, but what’s behind the profits?
It seems that recently, and perhaps even more in 2025, macro issues will drive the direction of markets and sector trends.
Identifying trends and allocating money to the right sectors and picking the leaders in these sectors is increasingly important. Those that follow the Fed and try to predict the direction of interest rates are one example of this macro-oriented strategy.
J.P. Morgan’s (JPM) booming profits are a testament to this, but what’s behind the profits?
It seems that recently, and perhaps even more in 2025, macro issues will drive the direction of markets and sector trends.
Identifying trends and allocating money to the right sectors and picking the leaders in these sectors is increasingly important. Those that follow the Fed and try to predict the direction of interest rates are one example of this macro-oriented strategy.
Updates
The Trump Administration is off and running along with Cabot Explorer stocks as markets closely watch the potential for tariffs on Canada, China, and Mexico.
Mexico and Canada are America’s two largest trade partners, and both countries are bracing for major economic disruption should Trump follow through. Mexico and Canada send about 80% of their exports to the U.S. Market turbulence in stocks based in Mexico or Canada could create an opportunity for us.
Mexico and Canada are America’s two largest trade partners, and both countries are bracing for major economic disruption should Trump follow through. Mexico and Canada send about 80% of their exports to the U.S. Market turbulence in stocks based in Mexico or Canada could create an opportunity for us.