Dear Client, Prospect, Partner:
What a difference a quarter makes! While the markets looked bleak and at times were uncomfortable, they snapped all the way back. Has the storm passed or are we in the eye of the hurricane? We continue to have volatility with President Trump announcing his intent to raise tariffs on various countries, but the temperature usually lowers after an initial spike. Furthermore, when there is an agreement communicated with the U.S. and another country, the markets have responded favorably. These discussions or rather, demands by President Trump appear to be ongoing and the timelines are in question. We will see how this materializes.
U.S. payrolls increased by 147,000 in June, which was more than expected at 110,000. Government employers posted a large gain leading all categories with an increase of 73,000 due to solid local and state hires. Unemployment fell to 4.1%, the lowest since February. The labor force participation rate dropped to 62.3%, it’s lowest rate since late 2022. The Federal Reserve and Chair Jerome Powell are staying stoic in their beliefs to keep interest rates steady. Based on lack of new home sales and some inventory issues nationwide, a rate reduction would help tremendously.
Earnings season has officially started with Delta Airlines (DAL) announcing their results and the banks and financial services firms will be coming next. We own several companies including MS, BAC, COF, and Visa, so we will see how the results pan out over the next two to three weeks.
The President’s Big, Beautiful Tax Bill has passed in Congress. While there is a lot to unpack with the bill, here are a couple of noteworthy points.
- NO tax on overtime.
- Increase in the child tax care credit for over forty million people.
- A $6,000 deduction for people over the age of seventy-five who earn more than $75,000.
- Many businesses can write off 100% of the cost of equipment and research.
- 350 billion for borders and national security agenda and much more…
Sincerely,
J.B. L’Esperance, ChFC
If you have questions about our strategies or would like to open an account with Barking Sands Capital, please give us a call at 952.500.8854 or 248.687.1400 or email us at jb@barkingsandscapital.com.
CHANGES WITHIN OUR CORE-EQUITY & REDUCED EQUITY INCOME STRATEGIES/MODELS
Alternatives including Private Credit, Direct Lending and Private Equity are areas and asset classes we have not waded into in past years. They also haven’t been widely available without the typical 2% fee and 20% of profits from many hedge funds. We will be changing or rather adding some of these asset classes in the fourth quarter of 2025. This may include the following: fund of funds, mutual funds and or exchange-traded fund (ETF) as options. Due to long-term growth prospects, diversification, and high yields for the desired income generation for our clients, we are going to be adding these to our models. This isn’t a wholesale change at all but just a small addition that we feel is imperative to our overall strategy of growing the assets we manage. If you are NOT interested in adding these or owning these as part of your accounts with us, please let us know promptly.