Sep 09, 2025

min read

💬 Daily Observation

“The big money is in the waiting.” — Charlie Munger

A friend of mine has a quiet rule: every time they get a raise, they auto-increase retirement contributions by 1% the same day. No market calls, no drama—just a standing order. Five years in, they barely notice the smaller paycheck, but they definitely notice the larger balance. Like a pilot’s pre-flight checklist, small, repeatable actions keep the long journey smooth.

☕ Let’s dive in today’s fresh edition of Diversification Daily.

🗞️ Today's stories that matter (and why)

1. 📉 Markets near highs—BLS Cuts ~911k jobs from past year

‍The Bureau of Labor Statistics’ preliminary benchmark revision shows the US added ~911,000 fewer jobs in the 12 months through March 2025 than previously reported. Stocks were little changed after the release as rate-cut odds for Sept. 17 stayed elevated.

Why it matters: A weaker starting point for employment supports bonds and rate-cut hopes, but also argues for balance if equity optimism is leaning on headline highs rather than underlying strength.

Assets in Focus: Fixed Income

2.🚦JPMorgan flags possible "sell-the-news" on Fed cut

‍
JPMorgan cautions that the widely anticipated Fed rate cut on September 17 could spark a stock sell-off rather than a rally.

Reasons include persistent wage inflation, tariff-driven cost pressures, and stretched market positioning. The firm recommends greater exposure to gold, anticipating downward pressure on the US dollar.

Why it matters: Rate cuts don't always spark rallies. Investors should beware reflexive optimism and consider defensive cushions.

Assets in Focus: Fixed Income

3. 🛢Oil faces pressure from rising supply and tariffs

At the APPEC conference, oil executives warned of a weak outlook. OPEC+ plans to ramp up production starting October, and demand remains soft.

On top of that, US tariffs could dampen global growth—and therefore, fuel demand. Brent crude is already down from ~$75 to ~$66 per barrel year-to-date.

Why it matters: If oil stays under pressure, energy-sensitive sectors and inflation hedges may weaken. It’s a reason to check energy balance.

Assets in Focus: Commodities

4. ⚡ Big mining merger will extend copper reach

Mining giants Teck Resources and Anglo American are merging to form “Anglo Teck,” a copper leader worth about $53 billion.

The move responds to surging copper demand from EVs and AI infrastructure. The merged entity will be based in Vancouver and listed globally.

Why it matters: Copper is a key industrial bellwether. This consolidation illustrates how critical metals are reshaping global plays tied to sustainability and tech.

Assets in Focus: Commodities

5. 🍏 Apple’s thinner Iphone takes center stage; pricing & AI strategy under scrutiny

Apple is set to unveil its 2025 iPhone lineup today, headlined by a slimmer “iPhone 17 Air,” with investors watching how tariffs may influence pricing and what—if any—near-term AI features show up in iOS.

Historically, Apple’s launch events haven’t guaranteed stock pops, so attention is on whether a notable form-factor change can shift that pattern.

Why it matters: Apple is a market heavyweight; a stronger upgrade cycle can ripple across tech suppliers—and a weak one can do the opposite.

Assets in Focus: Equities

🌀 Diversification Score – Have you evaluated your portfolio's diversification?

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📊 Market Movements Snapshot

Asset Classes:

🟢 Large Cap US Equities: +9.72% YTD . The S&P continued rising as the bull market approaches its three-year mark—driven by a resilient economy, strong earnings, and escalating AI investments—while rate-cut hopes sustain investor confidence.
🟢 Gold: +27.76% YTD. Gold hit new record highs above $3,600, propelled by rising expectations of Fed rate cuts, central bank demand (especially from Asia), and growing concerns about US Fed independence—fueling strong safe-haven sentiment.

For the full list, click here

Sectors:

🟢 Industrials: +13.16% YTD. A sustained wave of infrastructure and defense spending continues to bolster industrial activity, with robust US factory data and multi-year machinery backlogs supporting equity gains.
🟢 Materials: +8.87% YTD. Strength in retail and travel sectors, helped by resilient consumer spending and tourism, has kept this sector among the top performers as economic activity holds steady.

For the full list, click here

🤯 Alternative investment highlight: Can raising rates really tame inflation?

‍The Gold-Leaf Bonsai. A collector commissions a miniature bonsai sculpture—bronze trunk and branches, leaves finished with real 24k gold leaf—so the “store of value” becomes an art object you can place on a shelf. The metal content is tiny; the value lives in the craft and the story, not the melt.

Price reality check: Recent listings put a smaller piece (≈61×56×59 cm) at $74,688.70 and the larger “Bonsai Mayflor” (≈100×70×70 cm) at $193,637.36—a good reminder that in alternatives, narrative and scarcity often set the price tag.

🧠 From the Education Center:Can raising rates really tame inflation?

Why raising interest rates sometimes works—and sometimes doesn’t.

🔗Learn more

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