The bull market is far from over, veteran trader says
Though economists saw elevated risks of a US recession in recent months, stocks are still powering into their third year of a bull market — and they may not be slowing down anytime soon.
Zor Capital portfolio manager Joe Fahmy said on Yahoo Finance's Stocks in Translation podcast that despite the brief period of market volatility, the artificial intelligence boom is likely to keep the bull market going for "another couple of years."
"Throughout history, bull markets are fueled by inventions and innovations that revolutionize our lives," Fahmy explained (see video above or listen below). "Whether it's airlines, whether it's television, internet, smartphones, what they all have in common is increasing productivity. So AI is the new innovation that's leading this bull market because it's obviously increasing productivity."
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Though the market has seen various scares in recent months, between the Trump administration's ever-evolving tariff policies and geopolitical conflicts, Fahmy acknowledged that "the headlines scared a lot of people," but the reactionary dips don't indicate that the US market is weak at the moment.
"If you look at the statistics, a lot of institutions are underinvested right now," he said. "That's why when you have the Iran scare ... everyone's like, 'Oh, the market's going to crash.' But beneath the surface, institutions have to get in when things are dropping. So a lot of institutions right now are offside, and I think that's what's keeping this underlying resilience in the markets."
During other periods of intense uncertainty, like the early COVID-19 era, there were indications that the market was going to take a serious hit — indicators that Fahmy said aren't present in the current market.
Read more: How to protect your money during turmoil, stock market volatility
"When things really started to break down in 2020, where we weren't sure if COVID was going to be a big deal ... that's the market's reaction to the news. When it breaks certain technicals where the institutions normally support, and they're like, we're getting out of it, that's when you have to heed the warning," he continued. "But in the case of the recent Middle East crisis, so far the news has been miserable, but the market's resilient. So that's an example of the markets holding support."
Fahmy has more than 21 years of trading experience. Coupled with his penchant for studying the market throughout history, this made him adamant that the US market is "still strong."
"One thing I've learned from doing this for a while is moves in the market go on way longer than we can expect," he said. "So, in other words, just when you think things can't go higher, they usually do. And just when you have nasty bear market corrections, just when you think they can't go lower, they usually do."Click here for in-depth analysis of the latest stock market news and events moving stock prices
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American Press
an hour ago
- American Press
Louisiana spotlight: Nungesser keeping state top of mind for those ready to explore
Traveling has been significantly increasing since the decline during the COVID-19 pandemic — and Lt. Gov. Billy Nungesser and his team are working hard to keep Louisiana top of mind for those ready to explore. Last year, Nungesser said his office used a U.S. Commerce Department grant to increase awareness of Louisiana as a travel destination in Mumbai and New Delhi, India; Madrid, Spain; and Milan, Italy. In a few months, the team will spend a week in Canada promoting the Bayou State and its French heritage. Canada 'is about 33 percent of our international market,' Nungesser told members of the Rotary Club of Lake Charles Wednesday afternoon. 'Those Canadians love them some Louisiana.' In Paris, the Louisiana Office of Tourism also wrapped taxi cabs serving as rolling billboards to inspire travel to the state and it sponsored the London Jazz Festival last year. Nungesser said Louisiana welcomed 43 million domestic and international visitors in 2023, the most recent data available. Those visitors spent a total of $18.1 billion, an increase of 5.4 percent over 2022. International visitation showed the most significant gain, he said, increasing 16.9 percent in 2023 with spending reaching $1.7 billion. Louisiana has also been on the national stage in recent months with an alligator-themed float that crawled the streets of Pasadena, Calif., for the 136th annual Rose Parade and again as host to the Super Bowl at the Superdome in New Orleans. 'Somebody asked me what do we do better than anyone else and I said Mardi Gras,' Nungesser said. 'So we found out what parades we could go to. We were in the Macy's Thanksgiving Day Parade for three years and now we're in the Rose Parade.' Though the floats are professionally designed, they are decorated by volunteers days before the parade. Every float is covered in flowers, leaves, seeds, bark and other natural materials to honor the Rose Parade's history. Nungesser said volunteers from Louisiana are flown to California and are shuttled between the warehouse where the float is being built to their accommodations. A New Orleans native who now resides in California brings her beignets-only food truck each day to feed the volunteers during their shifts and the best of Louisiana cuisine is served each night. 'It's a trip everybody should make,' he said. For more on volunteering, visit Nungesser said participation in the parade 'allows us to drive awareness about our state as a vacation destination to a broad number of attendees, as well as viewers watching from home,' Nungesser said. 'The return on investment for the Rose Parade has been incredible.' Nungesser said the Rose Parade media coverage — thanks to a plethora of morning show interviews aired across the nation as the float is being built — for the past four years reached an estimated 10.4 billion people and was worth $144.9 million. State Parks When Nungesser took office nearly a decade ago, seven state parks were under the threat of closure. 'I was told, 'You don't have the money to keep them open and they're in pretty bad shape,' ' he said. 'Thanks to our sheriffs and local volunteers we were able to do a lot of repair and get them presentable and today those seven parks are making a profit.' The Louisiana Office of State Parks operates 21 state parks, 14 historic sites and a preservation area that comprises 45,000 acres, 110 miles of roads and 1.2 million square feet of rental facilities that welcomed more than 1.75 million visitors last year. He said his new goal is creating resort conference centers within some of the state parks to attract visiting conferences. 'We have over 350 groups that meet every year all over Louisiana,' he said. 'They don't meet in New Orleans because the hotel does not cover their per diem, but they meet everywhere else. There's usually 300-500 people and it's a great opportunity for us and it would be a great for the local economies. One thing we won't do is we won't let anyone open a restaurant (within the conference centers) or anything that would compete with local businesses.' One state park thriving at the moment is Bogue Chitto — a top destination for travelers nationwide for its mountain biking trails, which are maintained by the North Shore Off-Road Bicycling Association. 'A thousand people a month from 10-15 states go to Washington Parish for this mountain bike trail,' he said. 'We also have horseback riding. We brought a gentleman's horses into the park and let him run the business out of the park and he's knocking it out of the park, no pun intended. These two private-public partnerships have put Washington Parish on the map. Before they had very little tourism. It has changed that town forever.' Prime Video just completed a documentary on the mountain bike trails and 25 percent of the proceeds will go into building additional trails. He said the park recently acquired an additional 600 acres to expand the mountain bike and horseback riding trails. Museums Nungesser's office oversees nine museums; the Secretary of State's office and some local cities operate the rest. He said he hopes to introduce a bill next year that would force all museums to be open on the weekends — every museum operated under the Secretary of State's Office are not — when people are off work and more likely to visit. His office has also bought the website and plans to video every museum in the state. 'We did a video about the ghost that's upstairs at the Beauregard Gothic Jail — I don't know if it's there but the lady has me convinced and I'm not going up to check — and we test marketed to people who like ghosts and at Halloween, 4,000 people showed up to find that ghost,' he said. 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Act 47 mandates restaurants serving imported crawfish or shrimp must officially inform their customers on the menu; Act 148 requires restaurants and food service establishments to label on menus all imported seafood as such, not just shrimp and crawfish; and Act 756 transferred the Seafood Safety Task Force to the Louisiana Seafood Promotion & Marketing Board to help in the regulation of imported seafood. 'We want people to ask before they eat. The goal is to prevent imported seafood — which is filled with a lot of antibiotics — to come into this country and to level the playing field for our Louisiana fishermen,' he said. 'If you eat Boudreaux's crawfish tails, they're going to be from Boudreaux's. They're not going to be from Thailand.' Keep Louisiana Beautiful Love the Boot Week is Louisiana's largest litter removal and beautification effort. During 2024, 19,441 people volunteered a total of 100,712 hours at over 760 events, removing a record 347 tons of litter in all 64 parishes. 'It has become a movement,' Nungesser said. Their efforts diverted 293 pounds of aluminum cans and 330 pounds of plastic bottles from the landfill allowing the items to be recycled. Next month, the office will be handing out buckets at marinas around the state, asking boaters and fishermen to scoop up any trash they may see on the waterways and shorelines. 'We're not going to take our foot off the gas until we have no more trash in Louisiana,' Nungesser said.
Vox
4 hours ago
- Vox
The real reason we tip
is the host of Explain It to Me, your hotline for all your unanswered questions. She joined Vox in 2022 as a senior producer and then as host of The Weeds, Vox's policy podcast. We've all been there. Maybe it's when you grab a coffee in the morning or when you finish up a dinner out with friends. Maybe it's when you least expect it, like at the merch table at a concert. You tap your card, only to be confronted with the dreaded tip screen. There's a lot of talk about how much to tip and if you even should tip (more on that later), but why do we add gratuity in America in the first place? Nina Mast has the answer. She's an analyst at the Economic Policy Institute, a left-leaning think tank in Washington, DC. The point of the tip is to make up the difference between the minimum wage and the tipped minimum wage. 'The tipped minimum wage is the lower minimum wage that employers can pay tipped workers with the expectation that tips will bring their pay up to the regular minimum wage rate,' she says. 'Under federal law, the tipped minimum wage is $2.13 an hour. So tipped workers need to earn an additional $5.12 in tips to bring them up to the federal minimum wage, which is $7.25 an hour.' On this week's episode of Explain It to Me, Vox's weekly call-in podcast, we find out how this system began and why we still have it. Below is an excerpt of our conversation with Mast, edited for length and clarity. You can listen to the full episode on Apple Podcasts, Spotify, or wherever you get podcasts. If you'd like to submit a question, send an email to askvox@ or call 1-800-618-8545. Where does tipping in America come from in the first place? Tipping goes back to the pre-Civil War times in the US. There were wealthy Americans who were vacationing in Europe, and they noticed this practice of tipping where if you had good service, you gave a small extra fee on top of what you paid. Then, tipping started to fade as a practice in Europe but persisted in the US. We can tie that back to the abolition of slavery. Once slavery was abolished following the Civil War, workers who were formerly enslaved in agriculture and domestic service continued to do these same jobs, but employers didn't want to pay them. So instead of actually just paying them their wage, they suggested that the customer paid a small tip to Black workers for their services. That's how tipping started proliferating across service sector jobs and became the predominant way that workers in these jobs were paid. How did the restaurant industry start to do this? It really goes back to the formation of the National Restaurant Association. From the very beginning, going back to the early 1920s, they united around a common goal of keeping labor costs low, essentially lobbying against any efforts to raise wages for tipped workers and to eliminate the tipped minimum wage. It sounds like this whole policy is a direct legacy of trying to keep Black people from getting the same minimum wage as other workers. When were service sectors included in the national minimum wage? It wasn't until the mid-1960s that tipped workers got the same rights as other workers under changes to the Fair Labor Standards Act. In the mid-1960s — this is during the civil rights movement, a few years after the March on Washington, which called for stronger minimum wage protections — amendments to the Fair Labor Standards Act established a wage floor for tipped workers. It also increased protections for workers in agriculture, schools, laundries, nursing homes — a lot of sectors in which Black people were disproportionately employed and in which workers of color are still overrepresented even today. This was a big deal. Something like a third of the Black population gained protections under the Fair Labor Standards Act through these amendments in 1966. Even after these amendments, the FLSA continued to exclude farm workers from overtime protections, and domestic workers didn't gain rights until the 1970s. It was a significant change, and a big deal, for tipped workers to be covered, but there was a huge catch in the amendment. It established a lower minimum wage that tipped workers could be paid through the creation of the tip credit system. And that's still what is in use today. This tip credit essentially allowed employers to count the tips that were received by their staff against half of the minimum wage that they were required to pay. In 1996, the FLSA was amended again to raise the minimum wage federally from $4.25 to $5.15. Essentially, that froze the tipped minimum wage at $2.13 an hour, while the non-tipped minimum wage continued to go up. The tipped minimum wage has been stuck at $2.13 an hour since 1991, even though the federal minimum wage has been increased multiple times. And that's still the situation we're in now. Why hasn't this changed? It seems like it would be easier to give everyone the same minimum wage, and you wouldn't have to worry about tipping. I think that's in large part due to the lobbying and advocacy efforts of the National Restaurant Association, its affiliates — groups like the US Chamber of Commerce — and other employer groups that have fought tirelessly to prevent the minimum wage from being raised, both for tipped workers and for other workers. There is a proposal in Congress to raise the minimum wage to $17 an hour by 2030, and it would completely phase out this tipped minimum wage so tipped workers would receive the same minimum wage as everyone else. Some states have already eliminated the tipped minimum wage, but a lot more states haven't been able to do so yet. In most states, the minimum wage for tipped workers is still less than $4 an hour. How does the tip credit system work in practice? Employers are legally required to make up the difference if workers aren't receiving enough in tips to get them up to the regular minimum wage. But in practice, it's extremely difficult to enforce that rule. It's largely left up to the workers themselves to track their hours, their tips, and make some complicated calculations about what they're actually earning per hour per week. Then they have to confront their employer if it seems like they're not actually receiving the minimum wage, which obviously introduces a whole host of issues related to power dynamics. Not only is it difficult to calculate and keep track of, but it's also difficult for workers to demand what they're owed. As a result, it's largely not enforced. Workers who are already earning much lower wages than workers in non-tipped occupations are highly at risk of wage theft. I think as consumers, we're initially taught that tips are a way to reward good service. How should we think about tipping? I think this is a big misconception. People don't realize that they're actually paying the lion's share of their server's wages through their tips. Unfortunately, when you fail to tip your server, you're actually denying them their wage. We don't have the luxury in the US of having the system that you describe where you can pay a tip for particularly good service or pay a smaller tip to indicate that you didn't get good service. How much do you typically tip? I tip 20 percent as a standard, and sometimes, for a really good service, I'll tip more. I think that's basically the standard at this point in the US. It does get tricky, because we've seen a proliferation of tipping across lots of different transactions where a service wasn't necessarily rendered.
CNBC
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- CNBC
Stocks Jefferies' analysts like going into earnings against the Wall Street consensus
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