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Understanding The Next Epoch And Functional Immortality
Over the upcoming holidays, we won’t be sending you our regularly scheduled research and insight… instead, we’ll be celebrating the "12 Days of Christmas" from December 23 through January 6 by having members of the Porter & Co. share a favorite (generally investment-related) essay, article, speech, book excerpt, or other text – and their reflections on how it inspired them. Each one will hit your inbox at our usual publication time of 4 pm ET. We hope you enjoy these. Have a wonderful holiday season.
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Table of Contents
Three Things You Need To Know Now:
1. The Fed cuts again. As expected, this afternoon the Federal Reserve cut interest rates by another 25 basis points – its third cut this year – to 4.25%-4.50%. However, in his post-meeting press conference, Fed Chair Jerome Powell pushed back on the likelihood of further cuts for the first time. He noted that with today’s cut, he views the Fed’s policy as “significantly less restrictive,” and said the central bank would be “more cautious” when considering further cuts next year. In short, with inflation remaining “sticky,” we may have just seen the last rate cut of this cycle.
2. Honda and Nissan feel the squeeze. As we wrote on Monday, China is eating the world’s auto market. Within the past four years, China has gone from an afterthought to being the biggest auto exporter… and meanwhile, three in five auto buyers in China are choosing a domestic brand – more than at any point since China became the global economy’s biggest auto market. And so it’s no surprise that Honda (HMC) – one of the world’s top 5 automakers – and fellow Japanese car company Nissan (NSANY), which has been struggling for years, are in merger talks. Among the losers if the two combine? Struggling American automakers, who have for decades failed to make cars people want at prices they can afford.