The Weekly Update 10/17/2025™

The Cavalry May Already Be Here!

You may choose to listen to your favorite business news, or news in general, but please do it for entertainment not information from which you would make an important decision about your bigger financial future.

To point.  I have not read, heard or seen one piece of news on what I believe is one of the most important changes taking place in our economic policy today. 

Stay with me here, I’ll be concise.  I could make a very strong case that 99 of 100 people could not tell you anything about monetary policy or fiscal policy.

Primmer: monetary policy is like caffeine and fiscal policy is more like a high-powered drug.  In this case a strong stimulant.

Monetary policy – uses lower interest rates to goose up the economy.  Money is available to consumers to borrow from the bank, i.e., loose money.

Fiscal policy puts the money directly into the economy.  Main line stimulant, hits right now.  Think stimulus like the CARES Act and Paycheck Protection Program (PPP) to protect workers paychecks during Covid.

Monetary policy has limited economic impact as it is used by people who “might” want a new home or car, so not an economy wide stimulus.

With Fiscal policy, the government simply gives out money like CARES and PPP or the government can use it to buy things itself.  In so doing they inject currency into the economy through direct transactions with private sector businesses. 

Private sector investments by the government places hundreds of billions, if not trillions, directly into our economy.  This begs this question on why have our news sources not covered the following in much, if any, detail?

• The Trump Administration has invested $8.9 billion into Intel Corporation in 2025, i.e., we the people now own 10% of the entire value of Intel
•  $400 million in MP Minerals, a rare earth mining company.
• Currently under advisement to purchase 15% of the outstanding shares in NIVIDIA and Advanced Micro Devices\
• The government has also purchased a “golden share” in U.S. Steel.  With the government investment, U.S. Steel gave the government veto power on important decisions!
• The current administration has “encouraged” significant private investment in U.S. manufacturing and technology companies.  Noted specifically are Apple, NIVIDIA, Micron Technology, and IBM.

This list is not all inclusive.  There are more and there is more to the story.  The story is the government injecting a ton of money into the economy via companies that it feels are relevant to national security and technology leadership.

I did not say market valuations go straight up, and I did not say without volatility, yet the data flow suggests the good old USA has a very bright outlook.  Think “Five Year Money” (Read it Here).

I’m interested in your thoughts, comments and observations.  Feel welcome to call, email, or stop by the office and say Hi.

 Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

*The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.  Investing involves risk. Loss, including loss of principal, may occur. No strategy assures success or protects against loss. All performance referenced is historical and is no guarantee of future results.  All indices are unmanaged and may not be invested into directly.

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