MARKET RECAP

• Trump was inaugurated, and markets rallied. The SPX was up 1.74% and hit its first record high of 2025 on Thursday.
• Trump launched a crypto coin in his name and then one for the first lady, indicating that traditional ethics don’t matter. But who would expect otherwise?
• Trump held off closing down TikTok for 75 days and issued pardons to all of the January 6th rioters, even the most violent ones.
• Trump announced a $500 billion infrastructure investment by OpenAI, Oracle, Softbank, and a UAE-based company.
• At a virtual address at the World Economic Forum, Trump said “I’ll demand that interest rates drop immediately.” Trump is also going to press OPEC to cut prices.
• Bitcoin hit a record of 109,000 on Monday but has since fallen back to 101,000.
• There were no immediate tariffs on day one, so that helped markets. But indicated that may change on February 1 in regards to Mexico and Canada.
• The SPX earnings yield is 4.1% versus a 10-year yield of 4.63%,the biggest disparity since 2002.

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