REK Overview

Bond Market Volatility: The bond market is experiencing significant sell-offs and volatility, with long-term Treasury yields rising sharply due to President Trump's tariffs, leading to a decline in traditional safe-haven assets like the iShares 20+ Year Treasury Bond ETF (TLT).

Investment Strategies in Rising Rates: Investors are exploring strategies to navigate the rising interest rates, such as investing in senior loans, floating rate notes, shorting U.S. treasuries, and considering niche ETFs that hedge against rising rates, while also being cautious of sectors that typically perform poorly in high-rate environments.

Legislative Efforts to Reduce Property Taxes: Florida lawmakers are proposing various bills to alleviate the financial burden of property taxes, including a study for potential elimination, a $100,000 tax exemption, and an increase in the homestead exemption.

Potential Revenue Shortfall Concerns: Eliminating property taxes could lead to a significant revenue shortfall of approximately $43 billion, impacting essential services and disproportionately affecting low- and middle-income residents, while Governor DeSantis supports relief efforts without raising state taxes.