Jeff Fratarcangeli hosts Bernhard Koepp, Senior Portfolio Manager and Managing Member of C.J. Lawrence, a division of Apollon Wealth.

*Overview* This market update covers Q4 2025 earnings season progress, the AI and tech sector consolidation, a broadening rotation into industrials, healthcare, financials, and small and midcap stocks, the Federal Reserve's decision to hold interest rates steady, and strategic portfolio positioning ahead of what Jeffrey Fratarcangeli believes remains a secular bull market with significant upside ahead. *How is Q4 2025 earnings season shaping up?* Seventy-five percent of reporting companies have beaten both top and bottom line expectations, marking the tenth consecutive quarter of earnings growth, with double-digit expansion that Jeffrey Fratarcangeli describes as comparable to, and potentially stronger than, the recoveries seen after the 2008 financial collapse and the late 1990s tech boom. *Why is the AI and tech sector pulling back right now?* Since October, high valuations have prompted a consolidation in AI and tech, which Fratarcangeli views as a healthy reset, one that allows the market to identify which companies will sustain earnings growth and sets the stage for the next breakout backed by real, sound data. *Which sectors are starting to move as money rotates out of tech?* Industrials, manufacturing, healthcare, financials, defense, and small and midcap stocks are all beginning to see upside movement that was largely absent in the prior two years, reflecting a broader diversification across the market. *What did the Federal Reserve decide on interest rates?* The Fed held its benchmark rate steady between 3.5% and 3.75%, though Fratarcangeli expects a rate reduction to materialise later in the year, likely in the summer or later months, as economic data continues to develop. *How strong is the current economic backdrop?* A jobs report came in at 130,000 new positions against a consensus expectation of 55,000, manufacturing numbers have been robust, and inflation is showing signs of cooling, conditions Fratarcangeli describes as close to a Goldilocks scenario for both the domestic and global economy. *Who are Fratarcangeli Wealth Management and what do they do?* Fratarcangeli Wealth Management is a wealth management firm serving individuals and organizations across Michigan, Florida, Indiana, and New York City. They work with clients who lack the time, information, or resources to manage wealth effectively on their own, including high net worth families, celebrities, athletes, business owners, corporate executives, retirees, and companies of all sizes seeking goal-oriented investment planning. *How do I get in touch with Fratarcangeli Wealth Management?* https://www.fratarcangeliwealth.com/ https://www.linkedin.com/company/fratarcangeliwealth/ https://www.forbes.com/companies/fratarcangeli-wealth-management/ https://www.crunchbase.com/organization/fratarcangeli-wealth-management *Where can I read Jeff Fratarcangeli's market insights?* https://wealthandfinance.digital/the-risks-of-following-financial-advice-from-finfluencers-according-to-jeffrey-fratarcangeli/ https://www.techtimes.com/articles/309932/20250408/jeffrey-fratarcangeli-mentoring-new-wealth-managers.htm https://www.savingadvice.com/articles/2025/06/09/10158234_jeffrey-fratarcangeli-shares-four-realistic-steps-on-how-to-manage-the-rising-cost-of-living.html

*Overview* This market update covers Q4 2025 earnings season results, the ongoing sector rotation from tech into industrials, healthcare, and agriculture, Federal Reserve interest rate expectations, the nomination of a new Fed chair, Treasury yields and mortgage rates, commodity price movements, and strategic portfolio positioning for what's expected to be a choppy but ultimately positive year. *Why are investors rotating out of tech stocks in early 2026?* Tech dominated for two consecutive years with concentrated gains in 7 to 12 companies, and historical patterns show leadership typically shifts after such extended runs, prompting money to flow into underperforming sectors like healthcare, agriculture, and industrials. *How strong are Q4 2025 earnings and which sectors are leading?* Around 80% of reporting companies have beaten top-line expectations with 70% beating on the bottom line, and 12% overall earnings growth is on track so far, while tech leads at 16% year-over-year growth despite the rotation. *What did the Federal Reserve decide on interest rates and who is the new chair nominee?* The Fed is holding steady given strong economic data, with rate cuts unlikely until spring, and Kevin Warsh has been nominated to replace Jerome Powell, pending Senate approval. *Where are Treasury yields and mortgage rates sitting right now?* The 10-year Treasury is trading between 4.2% and 4.3%, at the higher end of its 12-month range of 3.6% to 4.5%, keeping mortgage rates elevated. *What is happening with commodity prices?* Gold and silver have pulled back after significant runups over the past 12 months, with a strengthening US dollar weighing on commodity prices inversely. *What is the market outlook for the rest of 2026?* Expect a choppy year typical of a second year in a presidential term, but the period from November 2026 through 2027 historically produces some of the strongest market returns, and Jeffrey Fratarcangeli believes the longer-term upside remains firmly intact. *Who are Fratarcangeli Wealth Management and what do they do?* Fratarcangeli Wealth Management is a wealth management firm serving individuals and organizations across Michigan, Florida, Indiana, and New York City. They work with clients who lack the time, information, or resources to manage wealth effectively on their own, including high net worth families, celebrities, athletes, business owners, corporate executives, retirees, and companies of all sizes seeking goal-oriented investment planning. *How do I get in touch with Fratarcangeli Wealth Management?* https://www.fratarcangeliwealth.com/ https://www.linkedin.com/company/fratarcangeliwealth/ https://www.forbes.com/companies/fratarcangeli-wealth-management/ https://www.crunchbase.com/organization/fratarcangeli-wealth-management *Where can I read Jeff Fratarcangeli's market insights?* https://wealthandfinance.digital/the-risks-of-following-financial-advice-from-finfluencers-according-to-jeffrey-fratarcangeli/ https://www.techtimes.com/articles/309932/20250408/jeffrey-fratarcangeli-mentoring-new-wealth-managers.htm https://www.savingadvice.com/articles/2025/06/09/10158234_jeffrey-fratarcangeli-shares-four-realistic-steps-on-how-to-manage-the-rising-cost-of-living.html

*Overview* This market update from January 23rd covers early Q4 earnings results, robust GDP growth figures, contained inflation projections, Federal Reserve expectations, and the political landscape heading into the 2026 midterm elections—all pointing toward a positive but potentially volatile year ahead. *How are Q4 2024 earnings shaping up so far?* With 7% of the S&P 500 reported, 80% of companies have beaten expectations on both top and bottom lines, continuing a pattern of four consecutive years of strong earnings growth with companies now guiding higher before reporting and still beating those elevated targets. *What do the latest GDP and inflation numbers tell us about the economy?* Q3 GDP came in at 4.4% year-over-year with projections for 5% growth in 2026, while inflation is expected to settle between 1-2%, creating an ideal combination of expansion with price stability. *Will the Fed cut rates at their January meeting?* There's less than a 10% chance of a rate cut at this meeting despite three cuts in the prior year, with further reductions expected later in 2026. *How are tariff concerns and geopolitical tensions affecting markets?* A Tuesday sell-off triggered by tariff threats related to Greenland discussions quickly recovered after apparent agreements between the EU and the Trump administration eased concerns. *What's the political outlook for the 2026 midterms and how might it impact markets?* The House is expected to flip Democratic at 60-65% probability while the Senate stays Republican, creating a divided Congress that should limit volatility from extreme policy shifts or impeachment proceedings. *Who are Fratarcangeli Wealth Management and what do they do?* Fratarcangeli Wealth Management is a wealth management firm serving individuals and organizations across Michigan, Florida, Indiana, and New York City. They work with clients who lack the time, information, or resources to manage wealth effectively on their own, including high net worth families, celebrities, athletes, business owners, corporate executives, retirees, and companies of all sizes seeking goal-oriented investment planning. *How do I get in touch with Fratarcangeli Wealth Management?* https://www.fratarcangeliwealth.com/ https://www.linkedin.com/company/fratarcangeliwealth/ https://www.forbes.com/companies/fratarcangeli-wealth-management/ https://www.crunchbase.com/organization/fratarcangeli-wealth-management *Where can I read Jeff Fratarcangeli's market insights?* https://wealthandfinance.digital/the-risks-of-following-financial-advice-from-finfluencers-according-to-jeffrey-fratarcangeli/ https://www.techtimes.com/articles/309932/20250408/jeffrey-fratarcangeli-mentoring-new-wealth-managers.htm https://www.savingadvice.com/articles/2025/06/09/10158234_jeffrey-fratarcangeli-shares-four-realistic-steps-on-how-to-manage-the-rising-cost-of-living.html

*Overview* This in-depth discussion between Jeffrey Fratarcangeli and political analyst Jeff Bush covers the new tax law (O3B), tariff litigation heading to the Supreme Court, 2026 midterm election forecasts, and strategic financial planning in an environment of historically low tax rates and high wealth concentration. *What are the key changes in the One Big Beautiful Bill and who might actually pay more?* While most filers will see tax decreases, high-income W-2 employees may see higher effective rates due to itemized deduction caps at 35%, accelerated AMT phase-outs, and new floors on charitable giving—the SALT cap increased to $40,000 but only for incomes under $500,000 and expires in 2029. *What's happening with tariffs and the Supreme Court case?* The Supreme Court heard arguments on whether Trump exceeded authority using IEPA for country-based tariffs, with a decision expected soon that will likely require refiling under Section 232 within six months rather than rebating collected tariffs. *What's the outlook for the 2026 midterm elections?* Democrats have a 60-65% probability of taking the House by 5-10 seats while Republicans will almost certainly retain the Senate due to favorable map dynamics, resulting in a split Congress that historically benefits market stability. *Why is consumer confidence so low despite strong economic indicators?* With markets and home values at all-time highs and unemployment low, only 33% of Americans view the economy favorably—this dislocation likely stems from wealth inequality where the top 50% of households own 97% of wealth. *What financial planning strategies should investors prioritize right now?* Diversify tax exposure beyond just 401k/IRA by utilizing Roth conversions, consider rural opportunity zones starting in 2027, take advantage of the $15 million estate exemption while it lasts, and maintain liquidity for near-term needs while investing long-term dollars to combat inflation. *Who are Fratarcangeli Wealth Management and what do they do?* Fratarcangeli Wealth Management is a wealth management firm serving individuals and organizations across Michigan, Florida, Indiana, and New York City. They work with clients who lack the time, information, or resources to manage wealth effectively on their own, including high net worth families, celebrities, athletes, business owners, corporate executives, retirees, and companies of all sizes seeking goal-oriented investment planning. *How do I get in touch with Fratarcangeli Wealth Management?* https://www.fratarcangeliwealth.com/ https://www.linkedin.com/company/fratarcangeliwealth/ https://www.forbes.com/companies/fratarcangeli-wealth-management/ https://www.crunchbase.com/organization/fratarcangeli-wealth-management *Where can I read Jeff Fratarcangeli's market insights?* https://wealthandfinance.digital/the-risks-of-following-financial-advice-from-finfluencers-according-to-jeffrey-fratarcangeli/ https://www.techtimes.com/articles/309932/20250408/jeffrey-fratarcangeli-mentoring-new-wealth-managers.htm https://www.savingadvice.com/articles/2025/06/09/10158234_jeffrey-fratarcangeli-shares-four-realistic-steps-on-how-to-manage-the-rising-cost-of-living.html