Charts & Chat - February 2, 2025

Eric Boyce • February 2, 2025

This week, CEO Eric Boyce, CFA discusses:

1. Now that tariffs have been announced, where are the biggest impacts?; also, recent spike in policy uncertainty

2. Optimism remains high on the part of consumers, individual investors, and corporate America; however, it could change depending on duration/impact of tariffs

3. Initial read of 4th quarter (2024) GDP in line, buoyed by consumption; offset by inventories

4. Trade balance worsened, as imports increased on strength of US dollar

5. Declining household debt levels and rising relative disposable income should support continued consumption

6. Notable rise in some commodity prices across both industrial and agricultural categories

7. Gold rising on uncertainty surrounding fiscal and trade policy

8. Strong inflows into equities, high yield and leverage loan investments on strength of profits, confidence.

9. Market still expecting two rate cuts by year end.  Much can happen between now and then, however...will need to monitor developments




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