The Means AND the Ends

In recent weeks, I have written extensively about tariff-induced economic uncertainty. Many analysts continue to call for a recession, and this past week the World Bank projected the U.S. economy would grow just 1.4% in 2025—down from 2.8% last year.

To be fair, I think concerns about rising input costs, inflation, business investment, and consumer spending are all valid and should be monitored closely in the coming months. But as I write, the reality on the ground looks quite different from the gloomy outlook that tends to play out in financial media.

The U.S. economy has largely been resilient, with worst-case scenarios on tariffs avoided while economic fundamentals remain stable and strong. This combination has been driving the market rally, in my view.2

Read the entire article: Economy Keeps Chugging Along Despite Negative Headlines | Zacks Investment Management Blog

The Department of Labor has pulled Biden-era guidance urging 401(k) plan fiduciaries to use special caution when considering cryptocurrencies on plan menus, in a win for firms that already do so — chief among them Fidelity Investments.

Read the entire article: Financial Advisor IQ – DOL Rescinds Guidance on Crypto in 401(k)s in Win for Fidelity

Barriers for everyday retail investors to access alternative investments—until now primarily the playground of larger, well-heeled clientele—seem poised to crumble.

Newly installed Securities and Exchange Commission Chair Paul Atkins said last week it’s about time to roll back investment minimums and accreditation standards required to buy certain closed-end strategies with illiquid holdings.

Read the entire article: Financial Advisor IQ – Even Wall Street’s Top Cop Wants Alts Access for All

Earnings Expectations are Falling. That’s a Good Thing

The first four months of the year were dominated by trade and economic policy uncertainty. But let’s not forget what ultimately matters most for stocks: corporate earnings.I’ll dive into some details below, but the high-level takeaway is that U.S. corporations held up relatively well in the first quarter, while also scaling back expectations for the quarters ahead. And I see this latter point as good news for stocks.As I write, roughly half of S&P 500 companies have reported Q1 2025 earnings, and the results show +14.0% year-over-year earnings-per-share (EPS) growth on +4.0% higher revenues. Approximately 72.3% of companies beat their EPS estimates, which is pretty much in line with historical averages.

Read the entire article: Earnings Estimates Are Falling—And That’s Good | Zacks Investment Management Blog