Latest news with #CharlesSchwab
CNN
6 hours ago
- Business
- CNN
Markets are absolutely booming under Trump. They're about to face a huge test
Six months into President Donald Trump's second term, a quick glance at the stock market might offer a reassuring picture: The S&P 500 just closed above 6,300 points for the first time ever and has notched eight record highs in the past month. If you look at markets halfway into the year, it might be not be apparent that there has been unprecedented trade turmoil, conflict in the Middle East and relentless attacks on the Federal Reserve's independence. The stock market and bitcoin have soared to record highs, while bonds have resumed a steady rally and volatility in oil prices has subsided. Global markets so far this year have been remarkably resilient. The calm mood on Wall Street is an extraordinary change from early April, when the S&P 500 hit its lowest level in over a year and was on the precipice of a bear market after Trump unveiled his initial 'Liberation Day' tariffs. 'Perhaps the move by US stocks off the early-April lows is emblematic of the age-old adage about bull markets often climbing a 'wall of worry,'' Liz Ann Sonders and Kevin Gordon, investment strategists at Charles Schwab, said in a note. 'There is no shortage of things to worry about; but that's the wall markets often climb.' Markets are floating near record highs despite underlying tariff uncertainty. While investors have begun to shrug off a myriad of concerns, US stocks are trading at historically expensive valuations as Trump's self-imposed August 1 tariff deadline approaches. As Trump presses forward with his trade war, markets' momentum will face a tariff test. 'What has held stocks aloft … is the premise that whatever tariff increases come on August 1, they will not be permanent,' Thierry Wizman, global FX and rates strategist at Macquarie Group, said in a note. 'The prospect that 'deals' will be struck thereafter remains a factor, we believe, in keeping traders from selling stocks more aggressively,' Wizman said. Jeff Buchbinder and Adam Turnquist, strategists at LPL Financial, said in a note that the S&P 500's 'unusually sharp and swift 'V-shaped recovery'' from its low point in early April was 'one of the most powerful post-correction rebounds in stock market history.' The ferocity of the market's recovery has raised questions about whether it is supported by fundamentals — or if underlying weakness could arise. While the market experienced bouts of enormous volatility in recent months, stocks continue to push higher. The S&P 500 is up 5.2% since Trump took office. Trump has acknowledged the market's rebound. The president earlier this month told NBC News that 'tariffs have been very well received,' noting that the 'stock market hit a new high.' The 'softening' of initial tariff announcements has 'removed the worst-case scenarios' for outlooks for economic growth and inflation, investors at BlackRock said in a note, which has supported the market's rally. Steve Sosnick, chief strategist at Interactive Brokers trading platform, told CNN that the rally has also been driven by momentum and a fear of missing out. 'Ever since the president's about-face in early April that turned the market around, a lot of money has been made basically by investors assuming that these tariffs will be postponed, renegotiated or otherwise watered down,' Sosnick said. 'And if there's a trade that works very well for people over a long period of time, they're going to keep doing it.' Meanwhile, bitcoin last week surged to a record high above $123,000 as Republicans in Congress pressed forward with landmark legislation to regulate cryptocurrencies. Economists at the consultancy Capital Economics said in a note that they think the 'US economy will weather the global trade war,' enabling the S&P 500 to rise further. However, they said, Trump's 'unpredictable approach' to trade and attacks on the Fed's independence could 'trigger' a downturn in stocks. 'The widespread assumption among market participants still appears to be that the president will not follow through on threats to raise tariffs much further and that Chair Powell will remain in place, but that may prove too optimistic,' they said. The S&P 500 has not posted a gain or loss of more than 1% since June 24. It's a sign that momentum has slowed down. Bitcoin traded around $119,000 as of Tuesday. Megan Horneman, chief investment officer at Verdence Capital Advisors, said she thinks markets might be complacent about potential risks, given stocks are historically expensive. While stocks and bonds have emerged relatively unscathed, one outlier is the US dollar, which has continued a precipitous decline. The US dollar index, which measures the dollar's strength against six major foreign currencies, is down almost 11% since Trump took office. Gold and silver, meanwhile, have continued to serve as hedges against Trump's trade uncertainty. The yellow and silver precious metals have soared 30% and 35% this year, respectively. The rally in recent months has been driven by retail investors, or individuals buying their own stocks, as opposed to Wall Street institutions, according to Venu Krishna, an equity strategist at Barclays. 'Re-risking by institutional money remains muted, making it likely that retail investors were at the helm for the latest leg of the rally,' Krishna said. He estimates retail investors poured more than $50 billion into global stocks across the past month. Investors who bought the dip when markets dropped in April have been rewarded with an extraordinary march to fresh highs. The S&P 500 has gained almost 27% since its low point in April. The tech-heavy Nasdaq Composite has soared almost 37%. The smaller Nasdaq 100 has gone 62 days without crossing below its 20-day moving average, which is the second longest streak on record after a 77-day streak in 1999, according to Jonathan Krinsky, chief markets technician at investment firm BTIG. And Wall Street money that has been on the sidelines has been creeping back into the market. A survey of global fund managers in July by Bank of America showed the biggest surge in 'risk appetite' on record. The survey also showed the most bullish sentiment since February. Ethan Harris, a market watcher and former economist at Bank of America, said in a post on LinkedIn that Trump's tariff announcements could be characterized as 'Trump always tries again,' as opposed to 'Trump always chickens out.' 'His aggressive announcements are a way to test what he can 'get away with,'' Harris said. 'Hence the steady flow of new threats, partial retreats and then more threats.' As stocks hold near record highs as Trump's trade deadline approaches, it remains to be seen whether markets will push back on the president's plan to disrupt international trade. 'The bond vigilantes may or may not have started to make a comeback this year,' Harris said. 'Will the stock market become the trade war vigilante or remain complacent?'
CNN
6 hours ago
- Business
- CNN
Markets are absolutely booming under Trump. They're about to face a huge test
Six months into President Donald Trump's second term, a quick glance at the stock market might offer a reassuring picture: The S&P 500 just closed above 6,300 points for the first time ever and has notched eight record highs in the past month. If you look at markets halfway into the year, it might be not be apparent that there has been unprecedented trade turmoil, conflict in the Middle East and relentless attacks on the Federal Reserve's independence. The stock market and bitcoin have soared to record highs, while bonds have resumed a steady rally and volatility in oil prices has subsided. Global markets so far this year have been remarkably resilient. The calm mood on Wall Street is an extraordinary change from early April, when the S&P 500 hit its lowest level in over a year and was on the precipice of a bear market after Trump unveiled his initial 'Liberation Day' tariffs. 'Perhaps the move by US stocks off the early-April lows is emblematic of the age-old adage about bull markets often climbing a 'wall of worry,'' Liz Ann Sonders and Kevin Gordon, investment strategists at Charles Schwab, said in a note. 'There is no shortage of things to worry about; but that's the wall markets often climb.' Markets are floating near record highs despite underlying tariff uncertainty. While investors have begun to shrug off a myriad of concerns, US stocks are trading at historically expensive valuations as Trump's self-imposed August 1 tariff deadline approaches. As Trump presses forward with his trade war, markets' momentum will face a tariff test. 'What has held stocks aloft … is the premise that whatever tariff increases come on August 1, they will not be permanent,' Thierry Wizman, global FX and rates strategist at Macquarie Group, said in a note. 'The prospect that 'deals' will be struck thereafter remains a factor, we believe, in keeping traders from selling stocks more aggressively,' Wizman said. Jeff Buchbinder and Adam Turnquist, strategists at LPL Financial, said in a note that the S&P 500's 'unusually sharp and swift 'V-shaped recovery'' from its low point in early April was 'one of the most powerful post-correction rebounds in stock market history.' The ferocity of the market's recovery has raised questions about whether it is supported by fundamentals — or if underlying weakness could arise. While the market experienced bouts of enormous volatility in recent months, stocks continue to push higher. The S&P 500 is up 5.2% since Trump took office. Trump has acknowledged the market's rebound. The president earlier this month told NBC News that 'tariffs have been very well received,' noting that the 'stock market hit a new high.' The 'softening' of initial tariff announcements has 'removed the worst-case scenarios' for outlooks for economic growth and inflation, investors at BlackRock said in a note, which has supported the market's rally. Steve Sosnick, chief strategist at Interactive Brokers trading platform, told CNN that the rally has also been driven by momentum and a fear of missing out. 'Ever since the president's about-face in early April that turned the market around, a lot of money has been made basically by investors assuming that these tariffs will be postponed, renegotiated or otherwise watered down,' Sosnick said. 'And if there's a trade that works very well for people over a long period of time, they're going to keep doing it.' Meanwhile, bitcoin last week surged to a record high above $123,000 as Republicans in Congress pressed forward with landmark legislation to regulate cryptocurrencies. Economists at the consultancy Capital Economics said in a note that they think the 'US economy will weather the global trade war,' enabling the S&P 500 to rise further. However, they said, Trump's 'unpredictable approach' to trade and attacks on the Fed's independence could 'trigger' a downturn in stocks. 'The widespread assumption among market participants still appears to be that the president will not follow through on threats to raise tariffs much further and that Chair Powell will remain in place, but that may prove too optimistic,' they said. The S&P 500 has not posted a gain or loss of more than 1% since June 24. It's a sign that momentum has slowed down. Bitcoin traded around $119,000 as of Tuesday. Megan Horneman, chief investment officer at Verdence Capital Advisors, said she thinks markets might be complacent about potential risks, given stocks are historically expensive. While stocks and bonds have emerged relatively unscathed, one outlier is the US dollar, which has continued a precipitous decline. The US dollar index, which measures the dollar's strength against six major foreign currencies, is down almost 11% since Trump took office. Gold and silver, meanwhile, have continued to serve as hedges against Trump's trade uncertainty. The yellow and silver precious metals have soared 30% and 35% this year, respectively. The rally in recent months has been driven by retail investors, or individuals buying their own stocks, as opposed to Wall Street institutions, according to Venu Krishna, an equity strategist at Barclays. 'Re-risking by institutional money remains muted, making it likely that retail investors were at the helm for the latest leg of the rally,' Krishna said. He estimates retail investors poured more than $50 billion into global stocks across the past month. Investors who bought the dip when markets dropped in April have been rewarded with an extraordinary march to fresh highs. The S&P 500 has gained almost 27% since its low point in April. The tech-heavy Nasdaq Composite has soared almost 37%. The smaller Nasdaq 100 has gone 62 days without crossing below its 20-day moving average, which is the second longest streak on record after a 77-day streak in 1999, according to Jonathan Krinsky, chief markets technician at investment firm BTIG. And Wall Street money that has been on the sidelines has been creeping back into the market. A survey of global fund managers in July by Bank of America showed the biggest surge in 'risk appetite' on record. The survey also showed the most bullish sentiment since February. Ethan Harris, a market watcher and former economist at Bank of America, said in a post on LinkedIn that Trump's tariff announcements could be characterized as 'Trump always tries again,' as opposed to 'Trump always chickens out.' 'His aggressive announcements are a way to test what he can 'get away with,'' Harris said. 'Hence the steady flow of new threats, partial retreats and then more threats.' As stocks hold near record highs as Trump's trade deadline approaches, it remains to be seen whether markets will push back on the president's plan to disrupt international trade. 'The bond vigilantes may or may not have started to make a comeback this year,' Harris said. 'Will the stock market become the trade war vigilante or remain complacent?'
CNN
6 hours ago
- Business
- CNN
Markets are absolutely booming under Trump. They're about to face a huge test
Six months into President Donald Trump's second term, a quick glance at the stock market might offer a reassuring picture: The S&P 500 just closed above 6,300 points for the first time ever and has notched eight record highs in the past month. If you look at markets halfway into the year, it might be not be apparent that there has been unprecedented trade turmoil, conflict in the Middle East and relentless attacks on the Federal Reserve's independence. The stock market and bitcoin have soared to record highs, while bonds have resumed a steady rally and volatility in oil prices has subsided. Global markets so far this year have been remarkably resilient. The calm mood on Wall Street is an extraordinary change from early April, when the S&P 500 hit its lowest level in over a year and was on the precipice of a bear market after Trump unveiled his initial 'Liberation Day' tariffs. 'Perhaps the move by US stocks off the early-April lows is emblematic of the age-old adage about bull markets often climbing a 'wall of worry,'' Liz Ann Sonders and Kevin Gordon, investment strategists at Charles Schwab, said in a note. 'There is no shortage of things to worry about; but that's the wall markets often climb.' Markets are floating near record highs despite underlying tariff uncertainty. While investors have begun to shrug off a myriad of concerns, US stocks are trading at historically expensive valuations as Trump's self-imposed August 1 tariff deadline approaches. As Trump presses forward with his trade war, markets' momentum will face a tariff test. 'What has held stocks aloft … is the premise that whatever tariff increases come on August 1, they will not be permanent,' Thierry Wizman, global FX and rates strategist at Macquarie Group, said in a note. 'The prospect that 'deals' will be struck thereafter remains a factor, we believe, in keeping traders from selling stocks more aggressively,' Wizman said. Jeff Buchbinder and Adam Turnquist, strategists at LPL Financial, said in a note that the S&P 500's 'unusually sharp and swift 'V-shaped recovery'' from its low point in early April was 'one of the most powerful post-correction rebounds in stock market history.' The ferocity of the market's recovery has raised questions about whether it is supported by fundamentals — or if underlying weakness could arise. While the market experienced bouts of enormous volatility in recent months, stocks continue to push higher. The S&P 500 is up 5.2% since Trump took office. Trump has acknowledged the market's rebound. The president earlier this month told NBC News that 'tariffs have been very well received,' noting that the 'stock market hit a new high.' The 'softening' of initial tariff announcements has 'removed the worst-case scenarios' for outlooks for economic growth and inflation, investors at BlackRock said in a note, which has supported the market's rally. Steve Sosnick, chief strategist at Interactive Brokers trading platform, told CNN that the rally has also been driven by momentum and a fear of missing out. 'Ever since the president's about-face in early April that turned the market around, a lot of money has been made basically by investors assuming that these tariffs will be postponed, renegotiated or otherwise watered down,' Sosnick said. 'And if there's a trade that works very well for people over a long period of time, they're going to keep doing it.' Meanwhile, bitcoin last week surged to a record high above $123,000 as Republicans in Congress pressed forward with landmark legislation to regulate cryptocurrencies. Economists at the consultancy Capital Economics said in a note that they think the 'US economy will weather the global trade war,' enabling the S&P 500 to rise further. However, they said, Trump's 'unpredictable approach' to trade and attacks on the Fed's independence could 'trigger' a downturn in stocks. 'The widespread assumption among market participants still appears to be that the president will not follow through on threats to raise tariffs much further and that Chair Powell will remain in place, but that may prove too optimistic,' they said. The S&P 500 has not posted a gain or loss of more than 1% since June 24. It's a sign that momentum has slowed down. Bitcoin traded around $119,000 as of Tuesday. Megan Horneman, chief investment officer at Verdence Capital Advisors, said she thinks markets might be complacent about potential risks, given stocks are historically expensive. While stocks and bonds have emerged relatively unscathed, one outlier is the US dollar, which has continued a precipitous decline. The US dollar index, which measures the dollar's strength against six major foreign currencies, is down almost 11% since Trump took office. Gold and silver, meanwhile, have continued to serve as hedges against Trump's trade uncertainty. The yellow and silver precious metals have soared 30% and 35% this year, respectively. The rally in recent months has been driven by retail investors, or individuals buying their own stocks, as opposed to Wall Street institutions, according to Venu Krishna, an equity strategist at Barclays. 'Re-risking by institutional money remains muted, making it likely that retail investors were at the helm for the latest leg of the rally,' Krishna said. He estimates retail investors poured more than $50 billion into global stocks across the past month. Investors who bought the dip when markets dropped in April have been rewarded with an extraordinary march to fresh highs. The S&P 500 has gained almost 27% since its low point in April. The tech-heavy Nasdaq Composite has soared almost 37%. The smaller Nasdaq 100 has gone 62 days without crossing below its 20-day moving average, which is the second longest streak on record after a 77-day streak in 1999, according to Jonathan Krinsky, chief markets technician at investment firm BTIG. And Wall Street money that has been on the sidelines has been creeping back into the market. A survey of global fund managers in July by Bank of America showed the biggest surge in 'risk appetite' on record. The survey also showed the most bullish sentiment since February. Ethan Harris, a market watcher and former economist at Bank of America, said in a post on LinkedIn that Trump's tariff announcements could be characterized as 'Trump always tries again,' as opposed to 'Trump always chickens out.' 'His aggressive announcements are a way to test what he can 'get away with,'' Harris said. 'Hence the steady flow of new threats, partial retreats and then more threats.' As stocks hold near record highs as Trump's trade deadline approaches, it remains to be seen whether markets will push back on the president's plan to disrupt international trade. 'The bond vigilantes may or may not have started to make a comeback this year,' Harris said. 'Will the stock market become the trade war vigilante or remain complacent?'
Yahoo
8 hours ago
- Business
- Yahoo
8 ways to get free financial advice
Key takeaways There are many ways to get free financial advice from a variety of sources. It may be possible to see a financial advisor for free or at a reduced cost. For more complex financial planning issues, such as estate planning or starting a business, it may be worth paying a financial advisor for personalized advice. Paying for financial advice can seem like a catch-22. After all, shelling out cash for financial advice can be difficult if you don't have money to spend. As a result, you may find yourself looking for free financial advice. Perhaps you like to read Reddit threads or maybe you're someone who goes down a TikTok rabbit hole, spending hours watching every video you can find that discusses finances. While there is a substantial amount of free financial advice online, what you will find isn't always the best information. On the other hand, you may not have reached the minimum threshold for a financial advisor or paid advice is beyond your budget. You still have options though. These are some of the top ways to get free financial advice. Compare advisors: Bankrate's list of the best financial advisors 1. Online brokers Many online brokers, such as Charles Schwab, E-Trade and Fidelity, offer robust educational resources such as articles and videos, which can be particularly helpful for new investors. While brokers naturally cover investing topics, the information they publish typically goes beyond stocks and bonds. For instance, they might cover topics like retirement, budgeting, debt reduction and more. Even if you aren't an existing customer, you can find lots of information free of charge on these websites. Check your benefits You may have access to free financial advice, such as workshops with your 401(k) provider, through your retirement benefits at work. 2. Your bank or credit union Banks and credit unions provide many valuable services beyond deposits and withdrawals. You might be able to speak with a banker who can walk through your finances and make recommendations. For instance, they might review your accounts with you and help you get the most out of your money. In addition, some banks have financial education resources on their websites. Several large national banks have many articles online that discuss various topics. These resources are generally free and available to anyone — not just customers. 3. Budgeting and financial planning apps A budgeting app, like PocketGuard or You Need A Budget, can analyze your spending habits and offer recommendations based on your budgeting goals. Many budgeting and financial planning apps are available, and the companies that develop them want to attract new customers to create accounts with them. These companies aim to bring in new customers by offering financial education on their websites and apps. Some also offer articles, videos and other supplemental material to help you learn about personal finance. Explore: Best financial planning software 4. Consumer Financial Protection Bureau (CFPB) The CFPB is a U.S. government agency 'dedicated to making sure you are treated fairly by banks, lenders and other financial institutions.' In support of its mission, it provides numerous articles, guides and news reports on credit cards, debt collection, mortgages and more. You can find useful information in the consumer education section of the CFPB's website. 5. Public resources Many public entities offer free financial classes and seminars. Your local library, community center and county extension office are some places to look. The Department of Labor publishes retirement tool kits and other online materials at the national level, and the Federal Trade Commission offers guides for loans, mortgages and credit reports. is another government-run website providing free financial education and tools. You can also look into resources available at local community centers and credit unions. For example, you might have a local community center that hosts seminars covering budgeting, credit management and buying a home. Local credit unions may also offer one-on-one financial counseling, though that service might be reserved for members. 6. HUD-approved counselors The Department of Housing and Urban Development (HUD) offers comprehensive home advice for free or at a low cost. HUD-approved counselors can offer guidance on buying a home and rental housing services, foreclosure avoidance, credit issues and reverse mortgages. HUD partners with local nonprofit agencies to host seminars and workshops and meet with members of the public. To find a HUD-approved housing counseling service near you, use this HUD database. 7. Financial Planning Association (FPA) The FPA offers pro bono financial planning for underserved and at-risk communities. The association has 77 active chapters in states all over the U.S. It also lists financial planners who provide pro bono financial planning for low-income individuals and families, military personnel/veterans and domestic violence survivors. To find an FPA chapter in your area, visit the Find Your Chapter page on the organization's website. 8. Savvy Ladies Savvy Ladies is a nonprofit organization that promotes the advancement of self-reliant, financially educated women. It offers webinars, panel discussions and articles. In addition, it offers free courses to empower women through financial knowledge. The classes cover various topics, such as budgeting, investing, marriage and caregiving. Savvy Ladies also runs a free helpline, connecting you to a volunteer financial professional for one hour of free financial advice. Over 280 volunteers give guidance monthly on the helpline. Getting ready for your financial consultation: What to prepare With so many resources available, you might be eager to get started and meet with a financial professional immediately. However, it's best to prepare for your meeting in advance. Assemble important documents: Start by obtaining your pay stubs, tax returns and records of any other income you may have. Show your spending: You should also have information on your expenses, which may be as simple as downloading your bank and credit card statements. And your debt: You may also need statements for your loans, such as mortgage, student loans and auto loans. If you want your session to be productive, you should also clearly define your financial goals ahead of time. For instance, what do you want to achieve in the short and long term? Short-term goals might include building an emergency fund, reducing debt or saving for a vacation. Long-term goals could be buying a home or saving for retirement. Whatever your goals, decide what they are ahead of time to get the most out of your session. When should you pay for financial advice? Free financial resources can make you more money-savvy but can't replace personalized advice in all situations. For more advanced financial planning, it might be worth paying someone instead. This is especially true if you have complex estate planning or tax questions since these go beyond the scope of free financial advice services. The same is true if you're starting a business and need help organizing your startup's finances. Volunteers or pro bono services are best for helping with basic, day-to-day financial planning. Get started: Match with an advisor who can help you achieve your financial goals FAQs Is it possible to get free financial advice? There are many ways to get free financial advice, including possible sources from your bank or local library. Various government agencies and nonprofit organizations can also be invaluable sources of information and even free financial consultations. However, these resources can be limited in scope, especially if your finances are complex. In these cases, it may be best to seek help from a fee-only financial advisor. Can I see a financial advisor for free? Some organizations may let you meet with a financial advisor for free, especially if you are part of an underserved community. Organizations like the National Foundation for Credit Counseling (NFCC) provide free and low-cost services like credit counseling and debt management. Other places, like credit unions, universities and local libraries, often provide free resources for their communities. What is the normal fee for a financial advisor? Fees can vary quite a bit from one financial advisor to the next, as they may use fee structures such as an hourly rate, a flat rate or a percentage of assets under management (AUM). Depending on the structure, you might pay a few hundred dollars for a session or several thousand dollars annually. Looking for an advisor who is a fiduciary may help you keep fees low. Do I need a financial advisor if I don't have much money? Not everyone needs a financial advisor, and you may not always need one. However, working with a financial advisor can help you work through complex financial decisions or major life instance, getting married or having a child can greatly impact your finances. Remember that some financial advisors may require a minimum investment of $100,000. Bottom line If you're going through a major life change — like finishing college, approaching retirement or getting married— seeking financial advice is natural. Plenty of free resources exist, but it's sometimes worthwhile to pay a financial professional. Complex tax and estate planning questions justify a fee because making mistakes here can cost you big and cause long-lasting legal headaches. Starting with free resources is a good idea, but be aware of their limitations. Get matched: Find a financial advisor who can help you maximize your investments Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
9 hours ago
- Business
- Mint
Crypto investors are changing the stock market. How to profit.
Americans may vehemently disagree about politics, but they increasingly agree on this: They love U.S. stocks. And they're not alone. International investors increasingly want our stocks, too. That insight is often overshadowed by negative media coverage of President Donald Trump, and especially over his plans to use tariffs to reshape the global order. But recent earnings reports from Charles Schwab and Interactive Brokers Group show that an intense desire to own U.S. stocks is emerging as one of the big themes of 2025. Rather than retreating to the safety of money-market funds, or watching the markets without trading, investors are increasingly embracing the volatility around Trump's policies. Schwab reported that strong transaction volumes drove a 60% increase in its second-quarter net income. Interactive Brokers reported a 170% quarterly increase from 2024 in overnight trading volume, helped by international clients who want U.S. market access—and who are able to trade 10,000 U.S. stocks and exchange-traded funds, equity index futures and options, and bonds outside of regular U.S. trading hours. Should the U.S. dollar remain weak—which seems to be a goal of the Trump administration—global consumers will likely find that U.S. goods will be cheaper. The phenomenon should further boost U.S. stocks with international sales. The initial data points from two important brokerages is a positive for the U.S. stock market. It indicates strong demand for U.S. stocks, especially on declines. We raise this point as many pundits and strategists are advising clients to hedge stocks in anticipation that primary benchmarks, like the S&P 500 index, may soon back off record levels. Sure, there are always risks, especially when markets are at record highs, as they are now. But many investors seem to be taking a page from the playbook of crypto investors, who are increasingly active in the stock and options markets. The price of Bitcoin has enjoyed extraordinary ups and downs, yet Bitcoin investors tend to stay invested. When the crypto markets are at their worst, crypto investors remind each other to HODL, for 'Hold on for Dear Life." Stock investors, conversely, often panic and sell. The influence of crypto investing styles on stock investors is too little appreciated. The next few weeks of corporate earnings reports should make the world's burgeoning love affair with U.S. stocks more apparent. Earnings results have thus far been good, and more positive news should strengthen investors' bullishness. In addition, any good news from Trump's tariff negotiations is likely to be interpreted as even more reason to buy stocks. Investors can position for more stock market upside without sharply increasing their risk with call-option spreads. The strategy—buying a call and selling another with a higher strike price but the same expiration—increases in value if the associated securities increase in price. With the SPDR S&P 500 ETF (ticker: SPY) at $628.86, investors can buy the September $635 call for $12.96 and sell the September $650 call for $5.89. If SPY is at $650 at expiration, the spread is worth a maximum profit of $7.93. The risk: That the ETF is below $635 at expiration, which would mean the trade fails. Aggressive investors could also sell a September $615 put option for $8.75. The put sale positions investors to buy SPY at $615. If the ETF is above $615 at expiration, investors keep the premium. The continued embrace of U.S. stocks anticipates a continuation of the status quo. Any diversions from the script could trigger stock volatility—but stay cool and HODL. Over time, you'll be glad you did. Email: editors@
