Jul 11, 2025

In the latest financial news, President Trump signed a nearly 900-page bill into law known as the “Big Beautiful Bill,” which includes a $4.5 trillion tax cut. This move is expected to have a mixed impact on individuals and businesses, with the wealthiest families benefiting the most. However, the bill also includes cuts to programs like Medicaid and food stamps, which could affect the less affluent. Additionally, there are changes to tax deductions and credits, such as the elimination of the $7,500 tax credit for electric vehicles.

The US Dollar Index has experienced its worst start to a year since 1973, dropping more than 10% in just six months. This decline is attributed to investor nervousness surrounding US policies, including trade wars and the massive spending associated with the new bill. This weakening of the dollar could have implications for global trade and investments, as investors may seek alternatives to the dollar, such as other currencies or commodities like gold.

Other significant events include Trump’s announcement of potential tariffs as high as 70% on certain countries, a disappointing jobs report showing a loss of 33,000 jobs in June, and Federal Reserve Chair Jerome Powell’s confirmation that interest rates would have been cut if not for the impact of tariffs on inflation. Additionally, Elon Musk’s announcement of the formation of a new political party called the America Party adds an element of political uncertainty to the landscape, potentially affecting businesses and investors in the future.

Today I learned that the U.S. may lose its “safe haven” status if investors lose faith in our ability to repay due to increasing debt levels and inflation risks. It is suggested to hold inflation-protected assets like TIPS, gold, or real estate, and to diversify globally to hedge against a weaker U.S. dollar. Additionally, public companies are buying Bitcoin at a rapid pace, with Bitcoin potentially becoming a core treasury asset for more companies in the future.

Furthermore, I came across some stock picks and analysis, including MercadoLibre (MELI), Datadog (DDOG), Seagate Technology (STX), Sprott Gold Miners ETF (SGDM), and YieldMax PLTR Option Income Strategy ETF (PLTY). These investments are highlighted for various reasons, such as MercadoLibre being a dominant player in e-commerce and digital payments in Latin America, and Datadog being essential for monitoring software applications, especially in the AI industry.

Stay Well!