Hi ,

I hope you're doing well! I wanted to share some important updates about what's happening in the economy and markets right now. Here's what you need to know:

1. Trade Wars Are Changing How Companies Do Business

What's happening: The U.S. is charging higher fees (called tariffs) on products coming from many Asian countries - sometimes 10-40% extra on top of the regular price. Chinese goods face an even steeper 40% fee.

Why it matters: This is like adding a big tax to imported goods, making them more expensive. Companies that moved their factories out of China to avoid these fees are now getting hit too. Some are even considering moving back to China because it's getting too complicated and costly elsewhere.

Impact on you: This could mean higher prices on everyday items and some uncertainty for companies that rely on international manufacturing.

2. Big Tech and Banks Are Doing Great, But Most Other Companies Are Struggling

What's happening: The biggest technology companies (Apple, Meta, Microsoft) and major banks made huge profits recently - tech companies saw profits jump by 41%! Banks also did well with profits up nearly 13%.

However: Most other types of businesses are having a tough time. Car companies, airlines, and companies that make household products are seeing their profit margins shrink because their costs are rising faster than they can raise prices.

What this means: While you might hear that the economy is doing well, it's really just a few very large companies driving most of the good news. The majority of businesses are actually facing challenges.

3. Job Market Shows Mixed Results Amid Political Drama

What's happening: President Trump recently fired the person in charge of collecting job statistics, claiming (without proof) that the numbers were being manipulated. This has raised questions about whether we can trust the official economic data.

The actual job numbers: The latest employment report wasn't great - unemployment ticked up to 4.2%, and previous months' job numbers were revised downward. Government hiring has slowed, and some industries like manufacturing are seeing fewer jobs.

The silver lining: Even with these concerns, unemployment is still very low by historical standards, and the biggest companies are still growing their profits by about 10% per year.

Simple Analogy To Understand All These Shifts

Think of the economy right now like a neighborhood where a few wealthy families are doing extremely well, while most other households are dealing with rising costs and tighter budgets. The overall neighborhood statistics might look good because of those wealthy families, but the reality for most residents is more challenging.

Key takeaways:

• A small number of very large, successful companies are masking broader economic challenges
• Trade tensions are making business more complicated and potentially more expensive
• Job growth is slowing, but we're still not in crisis territory
• Political interference in economic reporting is creating uncertainty about data reliability

Next Steps

These trends create both opportunities and risks for your investments. The strong performance of tech and banking stocks has been great for portfolios heavy in these areas, but we should also be prepared for potential challenges in other sectors.

Feel free to call or email if you have any questions; I am here to help make sense of all this!

Best Regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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