Fed Rate Cut is Unlikely: Now What?

Last Friday, the U.S. BLS posted jobs growing by 272,000. This is above the 232,000 average monthly gain. Market pundits expected an increase of around 170,000. With the S&P 500 (SPY), Nasdaq (QQQ), and Dow Jones near all-time highs, the stock market is growing increasingly frothy.

Investors should book profits in gold stocks like Newmont (NEM) and Barrick Gold (GOLD). Shares of GOLD peaked at $18.50 between Dec. 2023 and April 2024. Investors would rather park their money in U.S. currency and short-term treasury bills (SGOV). The interest income yield from SGOV stock is 5.35%.

Bank stocks are still attractive. The high interest rates widen net interest income. Additionally, the strong economy will offer banks like B of A (BAC), Citigroup (C), and JPMorgan (JPM) plenty of business deals. Conversely, TD Bank (TD) and the Bank of Nova Scotia (BNS).

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