Economic and Market Review January 2025

• US stocks had a volatile start to the year, with the Fed keeping rates steady, new trade uncertainty, and disruptions in the tech industry. • Trump announced new potential tariffs on Mexico, China and Canada, sending gold to new all time highs and routing crypto. • China’s DeepSeek R1 AI model, reportedly trained for just $6 million, triggered a 3.5% drop in the NASDAQ and a 12.8% decline in NVIDIA (NVDA), while US regulators launched a probe into potential violations of semiconductor export controls. • US economic data showed manufacturing optimism but slowing services due to continued inflationary pressures. • The Baltic Dry Index (BDI) dropped 25% to a 23-month low, reflecting weaker industrial demand globally and shipping overcapacity.

Is Your Portfolio and Retirement Safe from the Devasting Damage of Inflation?

Investors need to be aware that inflation damage compounds over time. We have undergone a secular change, and inflation will continue to move up over the medium term.