Luca Mulargiu @LucaMulargiu: "POWELL SPEAKS TODAY — BUT..."

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POWELL SPEAKS TODAY — BUT HOW IMPORTANT IS IT REALLY? Today Powell will speak, and markets are expecting a possible 0.25 percentage point cut in interest rates. As always, in the short term we’ll see volatility, knee-jerk reactions, and all kinds of commentary. But the real question, for those who invest with a long-term horizon, is another one: how much does this cut really matter for our investment decisions? Interest rates are obviously important. The cost of money affects the economy, mortgages, corporate loans, consumption, and therefore also corporate results. That’s undeniable. That said, for those who invest in solid companies, tonight’s cut is just one of many we’ll encounter over the years. I aim to build a portfolio made up of companies that structurally generate cash, with solid balance sheets and debt under control. And this is where something interesting happens: for many companies with strong liquidity, high interest rates aren’t even a problem — quite the opposite. Cash is often invested in short-term instruments, such as government bonds, which today offer high yields. In practice, high rates become an additional source of financial income. For this reason, I look for companies where: rising rates don’t destroy the income statement and falling rates aren’t the only driver of growth The core point is another one: macroeconomic issues, in my investments, carry a relatively small weight in my buy and sell decisions. I don’t buy a company because the Fed cuts rates. I don’t sell a company because Powell raises his voice. I focus on: the financial statements the business cash generation competitive positioning management quality If these factors remain solid, a rate cut or a rate hike changes little in the overall picture. In the short term, markets react to macro. In the long term, prices follow earnings. And on those, Powell matters far less than it may seem today. If you’d like to start copying my portfolio, you can do so with the amount you feel comfortable with. Many choose 10%, others prefer a different percentage based on their style. Copying can work like an active ETF, offering an extra layer of diversification compared to a personal portfolio. If you’d like to understand how I work, you can message me anytime. Add @LucaMulargiu to your favorites to stay updated on my activities, news, and the financial education content I share. $TSLA (Tesla Motors, Inc.) $AMZN (Amazon.com Inc) $GOOG (Alphabet) $NVDA (NVIDIA Corporation) $PLTR (Palantir Technologies Inc.)