Wall Street Digests Tame Inflation Report, U.S.- China Trade Truce

Let's get to the big story breakdown.

US and Chinese negotiators wrapping up two days of intense talks in London.

Now there's a framework designed to get their trade truce back on track and ease tensions between two of the biggest economies.

Now representatives from both sides said the framework would essentially restore the deal agreed to in Geneva, Switzerland.

Now that deal saw both countries lower tariffs, with Beijing promising to speed up export licenses for critical minerals.

Talks continue and on the heels of a better than expected non-farm payrolls number, consumer prices coming in cooler than last month.

Joining me live at the New York Stock Exchange this morning is David Szey, CEO of Sound Planning Group.

Good morning, David.

Thank you so much for joining me.

Pleasure to be with you.

Well, it is a busy morning.

We got that CPI figure just moments ago, and of course all eyes were on trade talks that took place in London.

So what do you make of the market? accent, you know, the market right now is, is, is going to react on different headlines that come out.

So this is a cooler print.

I mean, maybe it's got a hotter underlying tone.

Maybe we get into some other tariffs, but I think we have clarity now on on where we're going, and I think that we're finding ourselves today in a time where you know there is a reset that's definitely taking place.

There's in a global sense, the trade that has been just so peaceful.

We're Having new conversations about and so when we begin to look at the CPI numbers, the cost of everything, well, we could see some variations and some adjustments there, but I think ultimately, you know, we are looking at a cooler inflation though when we talk about gas hitting record, you know, new highs today, that's that's obviously inflationary in long term.

Yes, and David, as we continue to keep our eyes on DC, it's not just the equity markets. traditional markets that are reacting, it is also crypto, and we had the SEC hearing yesterday and the day before we had the House Financial Services, the House Ags Committee deliberating on regulatory clarity when it comes to the crypto market, but we are close to all-time highs for Bitcoin and even when we're talking about the equity markets for the S&P 500, we're not that far off from all-time highs.

So what do you make of this action?

Well, We've seen a V shape recovery, right?

So the market has its challenge.

We get this Trump bump, things sort of even out and then we're kind of back up right now.

Here's what I'm what I'm going to say.

Depending on the time frame that people have before retirement or before they need these dollars to really do something for them for their day to day life, I think it's important that we recognize, you know, hey, a lot could go wrong from here and so what's going to be more stable in a changing environment like this and so I personally I believe that things like Bitcoin will actually be more stable long term because if we get into a more of an inflationary environment, well, if it takes more US dollars to buy one Bitcoin, then the one Bitcoin didn't change.

It just takes more US dollars to do it, so that's inflation.

The same thing is true with gold and silver, which we're seeing significant runs in right now.

And so I'm very bullish about blockchain crypto.

I think that as we look at the need for modernizing our economy, modernizing ways of how we even.

Track voting, how we track, you know, taxpayers in our nation.

I think that we're going to be able to see, you know, some some some new advances here hopefully on the government side that can bring in efficiencies and do the things that you and I, you know, and a lot of the viewers out there know are going to be a better way of forming our future and doing things safer, more cost effectively, etc.

And I do think it would be very helpful for viewers out there if we do a little bit of a sector breakdown to see what's happening underneath the surface because of course We're looking at the S&P 500 grinding higher, but at the same time if we're looking at the individual sectors, we have to keep in mind what's leading versus what's lagging.

And here this morning we're having an IPO at the New York Stock Exchange.

This comes on the heels of that big circle IPO we had last week from the stablecoin issuer.

So when we're talking about growth versus value as well as small caps, what are we actually seeing underneath the surface here?

Well, what a great question.

You know, as we look at.

Caps.

One of the challenges, I think, is that because of the artificially low interest rate environment that we had for almost 15 years, they're zombie companies and you know if you're also even in the junk market, let's, I mean if you can't make it at 4% and you're not credible enough to go get traditional financing, how in the world are you going to make it in 10 to 12% because there has to be a higher rate in the event that we start seeing defaults, and I do think that we are going to see some defaults.

Let me just speak to something that's sort of macro right now, and that is the Banks have refied 50% of all mortgages between 2020, 201, and 202, and they were doing so at 3% rates.

Well, 3% is very low relative to where inflation for sure is and what's the rate of change that's that's taken place here.

And so banks have most of their amateurized schedule in the very beginning of that mortgage.

Banks are going to become less profitable as time goes along right now, and I think that there are material challenges within the structure of bonds.

Right now I think you're going to see bankruptcy, strategic bankruptcies that are coming.

I don't want to be a doomsday, but when you have a reset like this, there's, there's, it's actually healthy for pruning.

Like we're in the midst of spring.

I was just doing some spring pruning here on some bushes, and they might have been not so happy about that initially, but they're going to grow back better.

They're going to be bigger, and so that is the natural way that things ebb and flow.

Corrections are healthy, but this is a reset right now and there's a lot of things that we need to be paying attention to and we're out of time, David, but I do want to.

Where are the opportunities to invest in right now?

Best opportunities that I can share right now are going to be looking at things like Bitcoin.

I also want people to look at Cardano ADA.

I don't think that anyone's talking about it, but it's probably got a massive future.

Ethereum is obviously amazing, but two founders, same place.

There's a lot of gold silver that people should be looking at right now.

Focus would be on silver, given the 91 to 1 ratio.

OK, David, always great having you on the show.

Thank you so much for joining me here at the New York Stock Ex.