This Week’s Must-Know Market News | ft. Peter Boockvar and Scott Schwartz | Rise UP!

Hosts Terry Kalson and Joe Duran, along with guests Peter Boockvar and Scott Schwartz, opened the episode by discussing the latest Consumer Price Index (CPI) data, which rose by 0.5% from December, now sitting at 3%. This increase led to a significant market reaction with the S&P 500 dropping 3%, showcasing how inflation continues to impact investor sentiment. The discussion highlighted the 10-year Treasury yields that reached nearly 4.64% before fluctuating back, underlining the current financial volatility. Peter Boockvar pointed out that the enduring inflation is a major concern for the Federal Reserve, indicating that tariffs imposed by President Trump could further exacerbate inflation, as inflation remains above the Fed’s 2% target.

The episode delved deeply into consumer behavior influenced by inflation. Discussion revolved around the differentiation between lower and upper-income consumers, with the former experiencing significant pressure on their finances. Examples from recent experiences, such as rising egg prices due to bird flu and hotel room giveaways during the Super Bowl, reflect how inflation is altering spending habits. Scott Schwartz mentioned the importance of liquidity in advising clients to navigate this difficult landscape effectively, prioritizing cash flow and regular portfolio reviews to accommodate rising living costs.

The hosts explored the evolving landscape of the market, particularly reflecting on the so-called 'Mag 7' stocks and their performance amidst economic uncertainty. They discussed how diversification remains essential, especially as market dynamics shift away from solely relying on these leading stocks. Scott emphasized being cautious about heavily investing in the 'Mag 7' while maintaining broader portfolio exposure to healthcare, mid-cap, and international equities, which are starting to show promise. The dialogue continued to underline the importance of understanding investment positioning and avoiding overreliance on any single sector or asset.

The conversation also tackled the current state of Diversity, Equity, and Inclusion (DEI) initiatives in the corporate world, noting that many companies, including Goldman Sachs and Disney, are reevaluating their DEI commitments amid backlash from investors. Joe Duran shared insights from his experience at Goldman Sachs and pointed out the legal challenges facing such initiatives. The discussion highlighted contrasting approaches from companies that remain steadfast in their DEI efforts versus those pulling back, prompting the hosts to urge investors to stay informed about these dynamics.

As tax season approaches, the hosts discussed crucial strategies for 2025 tax planning, emphasizing higher contributions to retirement accounts and changes in estate tax exemptions. They outlined new thresholds for 401(k) contributions and potential tax implications for high-income earners. Duran advised that individuals with significant assets should be mindful of where and how they save, as higher contributions to retirement accounts might not always yield tax benefits if they remain in higher tax brackets post-retirement. They encouraged proactive strategies, such as gifting to trusts, to navigate upcoming tax changes effectively.

The podcast concluded with a look ahead at important economic data expected in the coming week, such as housing starts, builder confidence, and jobless claims. The hosts noted that while the Fed has taken a back seat in terms of influence, the employment reports would be integral in determining the economic trajectory, especially relating to inflation control and potential recession risks. They anticipated a calmer period free of significant news impacting the markets, welcoming a moment of respite after a week filled with pressing data.