Markets rallied to new highs — somewhat of a surprise given inflation is running hot and the Iran crisis is lingering. So, what’s driving the optimism?
For one, oil has dropped to around $90 per barrel, while Treasury yields have pulled back from recent highs. Those are signs investors believe the Iran situation is moving toward some kind of resolution, even if the official news hasn’t caught up yet.
In The News
SpaceX IPO
The long-awaited monster initial public offering (IPO) has finally arrived. The Elon Musk-run SpaceX will finally go public in June. With a record $75 billion raise and a projected $1.75-$2 trillion valuation, it stands to reason that this IPO will be a memorable one.
I’m not here to cast a positive or negative review of the company itself; there are plenty of people offering those opinions everywhere you look, but to give insight into IPOs, including this one.
When IPOs are priced attractively, they tend to be heavily under-subscribed with limited availability to retail investors. Conversely, when IPO shares are readily available to small retail investors, it usually indicates the offering is overpriced.
Let’s look at Facebook, for example. Meta, which was Facebook, is one of the big tech giants and drivers now; however, Facebook’s stock price dropped approximately 30% within two months of its IPO. We tend to avoid immediate IPO participation in favor of waiting for secondary market opportunities.
Beware – there are a number of investment solutions offering access to SpaceX that, by the time you add up all the fees, the investor is paying 5- 10%. Insanity.
We will keep our eye on this and are here to answer any questions the best we can.
The Fed Is Changing How It Calculates Inflation: Gold and Silver Provide Wealth Insurance
- Earlier this year, futures markets heavily favored a swift return to lower interest rates. That optimism has faded. Recent data from the CME FedWatch tool shows markets now overwhelmingly expect the Fed to hold rates steady through the summer.
- The long-term outlook has shifted. Markets are no longer just pricing out cuts; they are opening up to the possibility of rate hikes later in 2026 and into 2027. The Fed finds itself boxed in.
- During his confirmation hearings, the incoming Fed chair expressed strong support for moving away from core PCE—the Fed’s preferred inflation gauge since 2000.
- When governments continue to borrow heavily and central banks accommodate that debt while redefining inflation, fiat currencies steadily lose their purchasing power. This is not a new phenomenon. Throughout history, hard assets have consistently outperformed when inflation proves persistent or becomes politically managed. Gold and silver do not rely on central bank metrics to determine their value. They represent tangible, finite wealth.
Gold and silver should not be used as market timing tools, or dip-buying trades or as fear-driven purchases. They should be used as strategic portfolio insurance and long-term diversification tool within a disciplined 10–20% allocation framework. There is a lot of noise out there about buying gold, putting your IRA in gold, but strategy is important! We have metal experts on our team to help facilitate the purchase, management, and sale of metals, but it should be part of your strategic plan. Have questions? Let’s talk!
Just for Fun
Dad Joke of the Week:
If your house is cold, just stand in the corner. It’s always 90 degrees there.
Say What?
Lettuce introduce you to the live frog found in this grocery store salad bag.
When Australian farmer Rhys Smoker announced he’d found a live frog in a bag of lettuce, his housemates didn’t believe him.
Smoker had been preparing a steak and salad dinner on Saturday for the three people who share his house in Esperance in Western Australia state when he spotted the frog among the leaves inside the sealed plastic bag he’d bought from a supermarket, housemate Laura Jones said on Tuesday.
“He’s like, ‘Oh Bro, there’s a frog in the lettuce.’ And we’re like, ‘No, you’re taking the mick, like that’s not real,’” Jones told AP. Taking the mick is a slang term for attempting to fool someone.
Smoker brought the bag into the lounge room to show Jones and her partner Billy Le Pine.
This Week in History
1752 – Benjamin Franklin flies kite during thunderstorm
1944 – D-Day: Allies storm Normandy’s coast
1948 – First Porsche completed
1968 – James Earl Ray, suspect in Martin Luther King Jr. assassination, is arrested
1973 – Secretariat wins Triple Crown in breathtaking style
What Did it Cost? (Big Mac)
1974 – $0.85
2005- $2.58
2026 -$5.79
Have a great weekend!
Live Your Dream!
Michelle Bertram
www.CreatingYourDreamRetirement.com
608-987-1511
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