February 2025 Market Update

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In this episode of the MLD Wealth podcast, I, Chad Larson, provide an in-depth market update for February 2025. As we dive into the new year, I reflect on the significant changes and events that have shaped the financial landscape, particularly following the recent transition of power to the Trump administration.

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Timestamps

00:00:00 - Introduction and Market Overview

00:02:00 - DeepSeek and Market Panic

00:04:30 - Impact on Energy Stocks

00:07:00 - Tariffs and Trade War Concerns

00:10:00 - Elon Musk and the Department of Government Efficiency

00:15:00 - Book Announcement: Beyond Traditional

00:17:30 - Currency Outlook: US Dollar vs. Canadian Dollar

00:19:30 - Capital Gains Tax Deferral Update

00:22:30 - Conclusion and Client Services Update

Key Topics Discussed:

1. DeepSeek and Market Volatility

I begin by discussing the emergence of DeepSeek, a Chinese-based AI company that has created a competitor to ChatGPT. This development sent shockwaves through the market, causing panic and volatility, particularly affecting stocks like Nvidia and even leading to corrections in gas and uranium markets. I explore the implications of this event and how it highlights the fragility of market valuations.

2. Tariffs and Trade Wars

Next, I address the looming threat of tariffs under the Trump administration. I recount a humorous meme about surviving the trade war and discuss the potential impact of a proposed 25% tariff on various sectors. I also touch on the geopolitical dynamics involving Canada and Mexico, particularly in light of recent fentanyl manufacturing concerns.

3. Elon Musk and Government Efficiency

I share my thoughts on Elon Musk's new role as head of the Department of Government Efficiency (DOGE), appointed by Trump. Musk's findings regarding fraudulent payments within the Treasury Department raise serious questions about government accountability and spending. I emphasize the importance of transparency in government finances and the implications of Musk's discoveries.

4. Alternative Investments

I take a moment to promote my upcoming book, "Beyond Traditional: Unlocking the Potential of Alternative Investments." This book aims to educate readers on the critical role of alternative investments in modern portfolios, especially in times of market volatility. I highlight the importance of diversifying beyond traditional assets to enhance portfolio stability.

5. Currency and Economic Outlook

I discuss the current state of the Canadian dollar and the outlook for interest rates. With expectations of further weakness in the Canadian dollar, I advocate for a focus on the US dollar and the potential for interest rate cuts by the Bank of Canada. I also touch on the broader economic implications of these monetary policies.

6. Gold and Precious Metals

I provide insights into the gold market, noting the historical run in gold prices and the potential for mergers and acquisitions in the sector. I discuss our strategy of reallocating profits from larger gold positions into mid-tier companies, anticipating favorable trades in the future.

7. Capital Gains Tax Update

Finally, I address the recent announcement from the Canadian government regarding the deferral of the proposed increase in capital gains tax rates. I explain the significance of this decision and its implications for investors, particularly in light of the political landscape in Canada.

As always, I conclude the episode by encouraging listeners to reach out for any financial advice or information they may need. The month has been eventful, and I remain optimistic about the initiatives our team is undertaking to serve our clients better. Thank you for tuning in, and I look forward to our next discussion!