Latest news with #CreativePlanning
New Straits Times
16-07-2025
- Business
- New Straits Times
Tariff 'doom loop' hangs over global equities: McGeever
ORLANDO: The astonishing rebound in stocks since early April largely reflects investors' bet that US President Donald Trump won't follow through on his tariff threats. But the market's very resilience may encourage the president to push forward, which could be bad news for equities in both the US and Europe. Investors appear to believe that the April 2 "reciprocal" tariffs were mostly a tactic to bring countries to the negotiating table, and Washington's levies will end up being much lower than advertised. Tariffs may end up much higher than they were before Trump's second term began, but the situation will still be better than the worst-case scenarios initially priced in after Trump's so-called "Liberation Day". Monday's equity moves were a case in point. Trump's threat on Saturday to impose 30 per cent levies on imports from the European Union and Mexico - two of America's largest trading partners - was met with a collective market shrug. European and Mexican stocks dipped a bit, but Wall Street closed in the green and the Nasdaq hit a new high. This follows threats in recent days to place a 50 per cent tariff rate on goods imported from Brazil and a 35 per cent levy on goods from Canada not covered under the USMCA agreement. Brazilian stocks have slipped 5 per cent, but Canadian stocks have hit new peaks. The question now is whether the line between complacency and the "TACO" trade - the bet that "Trump always chickens out" - is getting blurred. GETTING STRETCHED The scale of the recovery since April 7 is truly eye-popping. It took the S&P 500 less than three months to move from the April bear market lows to a new all-time high, as Charlie Bilello, chief market strategist at Creative Planning, recently noted on X. This was the second-fastest recovery in the last 75 years, only bested by the bear market recovery in 1982 that took less than two months. On a 12-month forward earnings basis, the S&P 500 index is now near its highest level in years and well above its long-term average. The tech sector, which has propelled the rally, has rarely been more expensive in the last quarter century either. None of that means further gains cannot materialize, and one could argue that the valuations are justified if AI truly delivers the promised world-changing productivity gains. Regardless, it is hard to argue that the rally since April is not rooted in the belief that tariffs will be significantly lower than the levels announced on Liberation Day. If many countries' levies do end up around 10 per cent like Britain's and the aggregate rate settles around 15 per cent, then equity pricing might very well be reasonable. But if that's not the case, growth forecasts will likely have to be revised a lot lower. "We stay overweight US stocks, but don't rule out more sharp near-term market moves. Uncertainty on who will bear tariff costs means yet more dispersion in returns – and more opportunity to earn alpha, or above-benchmark returns," BlackRock Investment Institute analysts wrote on Monday. DOOM LOOP? One concern is that a loop is potentially being created, whereby Wall Street's resilience and strength in the face of heightened trade uncertainty actually emboldens Trump to double down on tariffs. Most analysts still believe cooler heads will prevail, however. Trump's tolerance for equity and bond market stress, and therefore US economic pain, appears "limited", according to Barclays. But if markets have gotten too complacent and Trump does increase tariffs on EU goods to 30 per cent, potential retaliation would risk a repeat of something similar to the post-Liberation Day selloff, sending European equities down by double digits, Barclays warns. It may also be that when it comes to tariffs, investors are focusing so intently on China that not much else moves the dial. This may be short-sighted though. China accounted for 13.4 per cent of US goods imports last year, the lowest in 20 years. In contrast, the US imported US$605.7 billion of goods from the European Union, or 18.6 per cent of all imports and the most from any single jurisdiction. As Trump sees it, Europe is "ripping off" America almost as much as China. Bilateral US-China trade last year totaled US$582 billion, compared with bilateral US-EU trade flows of US$975 billion, US Census data shows. America's US$235.9 billion goods deficit with the EU was smaller than its US$295.5 billion gaps with China, but that's still comfortably America's second-biggest trade deficit. If Trump doesn't back down in his standoff with Europe, Wall Street might have to.
Yahoo
12-07-2025
- Business
- Yahoo
How To Stop Being Cheap and Start Being Frugal, According to the CEO of The Financial Diet
Chelsea Fagan, CEO of The Financial Diet, makes no secret of the fact that she used to be cheap. She also says that she no longer is — but she is frugal, and that's much better. 'Cheapness is really a completely separate concept from frugality,' Fagan said. 'Often, those two things are conflated, especially when people are trying to get good with money. But I think that's ultimately to our detriment.' Learn More: Read Next: In a YouTube video, Fagan had some advice for those who want to stop being cheap and learn to be frugal instead. Fagan drew a distinction between being cheap and being frugal, explaining that it is about your mindset. 'Being cheap,' she said, 'is really choosing to exist in a scarcity mentality.' Fagan defined this cheap mindset as a refusal to invest in better-quality things, even when you have enough money to do so. Cheap people, she said, are too focused on paying the least possible amount that they can in the moment. 'Being cheap fundamentally comes down to a sense of competition, or a sense of scarcity, rather than a sense of abundance,' she said. According to Creative Planning, a scarcity mindset can actually harm financial well-being, as it can lead to poor financial decision-making and impulse spending. Frugality, on the other hand, is 'all about not just living below your means whenever possible, but thinking about the most financially intelligent way to go about any given decision,' according to Fagan. Check Out: 'I really think in terms of quality and value, but something can be very inexpensive and still have a ton of value,' Fagan said. She emphasized that you have more options and more opportunities to spend money on things that are really meaningful to you if you're willing to be more patient. 'The more you … separate out quality and cost and you understand how often those things are conflated when they shouldn't be, or how often you're sacrificing quality, you really … shift your mentality of what is actually worth spending on,' Fagan said. In order to move toward abundance and the ability to be frugal, Fagan recommended adhering to the 'pay yourself first' mentality of budgeting. She confessed that, although she once used a strictly segmented budget, she found that she doesn't love it now. Now, she pays her monthly expenses, which include her retirement and her general savings, and considers what's left to be hers to spend as she likes. She explained that this method often results in her spending less than she otherwise would, since she doesn't feel constrained, as she did when she had every dollar accounted for in her budget. Fagan recommended finding the right budgeting method for you — the method that 'allows you to have a sense of peace and calm about your monthly expenses so that it's not just constantly on your mind,' she said. In a recent video, money expert Rachel Cruze offered advice about spending money and enjoying life on a budget. She explained that while budgeting can make people initially think of being cheap, a budget can actually help you use your money for things you want. Because you're no longer operating from a mindset of scarcity, having a sustainable budget that you don't have to think about all the time keeps you from obsessing about the price of every purchase. According to Fagan, this allows you to focus on that which has value for you. She offered this sage advice: 'Let life take the driver's seat and let money just kind of be the gas in the car, rather than the reverse.' More From GOBankingRates 10 Used Cars That Will Last Longer Than an Average New Vehicle This article originally appeared on How To Stop Being Cheap and Start Being Frugal, According to the CEO of The Financial Diet
CNBC
26-06-2025
- Business
- CNBC
Creative Planning's main message to sports draftees: Save the new money until you understand it
Mark Doman, Creative Planning managing director, joins 'Power Lunch' to discuss Creative Planning's role in managing money for new professional athletes.
CNBC
19-05-2025
- Business
- CNBC
Watch CNBC's full interview with Creative Planning's Peter Mallouk
Peter Mallouk, Creative Planning president and CIO, joins 'Power Lunch' to discuss the market's roaring return from tariff lows, why people need to take the debt downgrade seriously, and much more.
CNBC
19-05-2025
- Business
- CNBC
U.S. politics have accelerated the move away from the dollar: Creative Planning's Mallouk
Peter Mallouk, Creative Planning president and CIO, joins 'Power Lunch' to discuss the market's roaring return from tariff lows, why people need to take the debt downgrade seriously, and much more.
