In a surprise last week, the April employment report showed surprisingly strong results, further re-enforcing the notion that the US economy is resilient in the face of uncertainty and declines in the stock market year-to-date. This latest report would normally provide further proof for Federal Reserve Chair, Jerome Powell, to continue to delay the lowering of interest rates, especially given the pace of hiring, combined with a manufacturing report on Thursday that was not as downbeat as originally expected. However recent political pressure and trying to economically decipher what the true threat that imposed tariffs could play on inflation, has people wondering if he will in fact lower interest rates, or hold firm on the current rates for an additional period. Bond traders are certainly in a wait and see mode (as has been the Fed), until there is additional evidence that the economy has turned for the worse. Of course, this is a massive balancing act, one that Powell does not want to get wrong. With incoming tariffs threatening to increase inflation, he will want to be 100% convinced of that final decision, before jumping the gun on lowering interest rates. The pressure is immense for Powell, and we all hope, from an investor’s perspective, that he gets it right!
Additionally, Warren Buffet shocked everyone at the recent Berkshire Hathaway investor, by announcing that he will retire at the end of this year. At 94, Buffet is seen as the most influential investor in the world and his company has been a boom for anyone who has invested in it over the years. In fact, here are a few interesting stats (Source: Bloomberg, May 5, 2025):
- Overall gain in the per share market value of Berkshire Hathaway from 1964 to 2024: 5,502,284%- that translates into an annualized return of nearly 20%.
- The current market capitalization of Berkshire Hathaway: $1.2 trillion (eighth highest in global markets)
- The number of people employed by Berkshire Hathaway companies (at year-end): 392,396
- The number of times Berkshire Hathaway has paid out a dividend to investors: 1
- The person scheduled to take reigns of the company once Buffet retires: Greg Abel (a Canadian from Edmonton)
Mr. Buffet has earned a well-deserved retirement, and the financial world will miss his legendary comments, his down-to-earth demeanour, and his proven results in the markets.
With the steep Chinese tariffs threatening to explode the prices of many household items, we found an excellent article that highlights many of the products, by room in your house, made in China. It may be very surprising!
Most financial plans are linear, but what happens when a significant personal or world life event occurs and upends those plans? We have an excellent article that helps to provide some insight for those planning a major life change. Check it out!
A drug, used for treating Type 2 Diabetes is making some news, for its ability to ward off a number of chronic diseases before they even develop. Find out more about Metformin in this interesting article!
Unfortunately, digital forgeries are sprouting up everywhere, especially with the growth of AI. We have an insightful article that provides analysis into deepfakes and whether or not they can be stopped.
Is it cheaper to book a flight on Tuesdays? We have this and other travel myths debunked in the attached article.
We hope that the warm, sunny days will make their return soon, after a chillier than normal last week of April.
Have an amazing week everyone!
We have additional information on the retirement of Warren Buffet in the attached article. Have a read!
