BBC Business Today: Markets React to Trump’s Pick to Run SEC

December 5, 2024

Joining BBC Business Today with host Richa Gupta, Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, provided his insights into the impact of Paul Atkins’ nomination as SEC Chair on cryptocurrency markets, Bitcoin’s historic surge past $100,000, and the resilience of U.S. equities amid strong corporate earnings.

Landsberg dissected the implications of Trump’s crypto-friendly administration, the potential regulatory shifts under Atkins, and the continued upward trajectory of the stock market fueled by robust earnings growth.

Key Takeaways:

  1. Bitcoin’s Record High Amid Policy Optimism: Landsberg attributed Bitcoin’s rise to over $100,000 to the optimism surrounding Atkins’ nomination as SEC Chair. Atkins’ reputation for being business-friendly and his consulting work with crypto companies signal a more open regulatory approach. “Atkins is a good pick. He’s pro-business, has experience in crypto, and can help secure a seat at the table for asset allocators. This will drive the crypto market in the years ahead,” Landsberg said, emphasizing the significance of institutional involvement.
  2. Impact of SEC Leadership on Regulation: With Atkins’ history as a former SEC chairperson and his advocacy for deregulation, Landsberg believes this nomination could provide stability and legitimacy to the cryptocurrency space. “A seat at the table for asset allocators is critical for driving further adoption and regulation,” he added, stressing the importance of consistent and supportive regulatory frameworks.
  3. Strong Earnings Driving Stock Performance: Highlighting the resilience of U.S. equity markets, Landsberg pointed to the strong year-over-year earnings growth of 8% for the S&P 500 and over 20% for NASDAQ as key drivers. He stated, “At the end of the day, stocks trade on earnings. As long as earnings continue to grow, the market has room to churn higher.”
  4. Cautious Optimism on Market Rally: While acknowledging the market’s continued momentum, Landsberg cautioned against becoming overly optimistic, as risks remain. “If earnings start to decelerate, we’ll need to reassess, but for now, the fundamentals look solid,” he remarked, suggesting that careful monitoring of corporate performance will remain vital in sustaining growth.

Landsberg’s commentary offered a measured perspective on the evolving investment landscape, illustrating how regulatory developments and corporate earnings can shape market trajectories. His insights underscored the importance of aligning investment strategies with policy trends and fundamental economic indicators.

Landsberg Bennett is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC (member FINRA and SIPC). Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC.

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