Eamon Capital Management

This Thanksgiving, we’re especially thankful for you, our incredible clients. Your trust and partnership mean the world to us, and we’re grateful to be part of your financial journey. As you gather around the table—whether it’s for turkey, pie, or simply great company—we hope your day is filled with joy, laughter, and gratitude. Thank you for letting us serve you. Wishing you and your loved ones a wonderful Thanksgiving!

This month, we celebrate #NationalSmallBusinessWomensMonth and all the amazing accomplishments of women in business. At Eamon Capital, we champion all of the women business owners taking control of their financial futures.

At Eamon Capital, we concur with John Paulson, founder of Paulson & Co, that what?few are talking about is the record deficit spending by the U.S. government. History has shown a strong correlation between U.S. macroeconomic strength and excess fiscal spending. We believe this is a major factor contributing to the lofty valuations in the U.S. market. https://lnkd.in/eQVnVG_q

September and October have historically been the most negative months for U.S. equity performance, a seasonal trend that is only exaggerated in election years. However, while history may not always repeat- it often rhymes. The chart below provides a glimpse into what might be up ahead for the next year.? In all post rate cut periods shown, whether recessionary or not, bonds have always posted a positive return. On the other hand, U.S. equities, across market capitalizations, have experienced a mixed bag historically.?When combining this with the already stretched valuations, U.S. equities could see more bouts of volatility in the coming year when compared to bonds. Is your portfolio positioned to navigate these trends? If you are unsure of the answer to that question, Eamon Capital Management can help.

After keeping rates at a 23-year high for 14 months, the Fed lowered its short-term interest rate target by a larger-than-expected half-percentage point. As inflation continues to moderate, yet still not at the 2% target, job market weakness has taken center stage and is prompting the Fed to ease. Fed rate cuts typically lead to lower yields on Treasury bills and other popular savings vehicles, bringing reinvestment risk into focus. Despite the expected trajectory of lower yields, this generally bodes well for bond investments over the next couple of years, i.e., bond prices move opposite to interest rates. A decrease in a bond's yield = an increase in the bond's price. This also creates opportunities to reevaluate conservative cash investments to take advantage of any weakness across the overvalued stock markets. If you have questions or concerns about how your investments may weather this market Eamon is here to help.

Today's CPI report dampens hopes for a significant rate cut from the Federal Reserve. Let us help position your portfolio to best react to upcoming rate changes. Schedule an introductory call with us at Eamoncap.com https://lnkd.in/ejEFTyPz

Happy Labor Day! Learn the origins of why we celebrate Labor Day: https://lnkd.in/egTqTTG

Student loans can be a maze, but understanding the key differences between federal and private loans, and subsidized versus unsubsidized options, can make it more manageable. Key points to grasp include interest rates, repayment plans, and opportunities for loan forgiveness or deferment. With the right knowledge, navigating student loan debt becomes much simpler, enabling students and parents to make smart, informed choices. At Eamon, we are here to help.

?? Remember, the Federal Reserve cutting interest rates is not due to strong underlying economic fundamentals but rather due to economic weakness. At its recent meeting, it implied rate reductions are "on the table" for September. ?? For a while now, indicators have been signaling lofty valuations in the U.S. stock markets. Whether it is the earnings yield of the S&P 500 versus the yield on the 10-year U.S. Treasury, or more simply, the forward price-to-earnings ratio of the S&P 500 when measured against historical standards, most all are showing metrics well above the mean. ?? The narrative that “this time it’s different” has been prevalent for some time. Assertions have been made that the economy can endure the swiftest monetary policy tightening in history by the Federal Reserve, or that the current high valuations are warranted based on “projections” of stellar company earnings. ?? At Eamon, as the Fed enters an easing phase, we believe more volatile trading days are ahead as valuations are forced to reflect the actual economic landscape and as the market adjusts to a deceleration in U.S. growth ?? (image below is today’s 1-day market performance)