Day: October 5, 2024

(Bloomberg) — The Federal Reserve’s monetary-easing campaign for 2024 may already be over as the strong labor report Friday underscores the stubborn resilience of the world’s largest economy, according to Wall Street veteran Ed Yardeni.

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Further policy easing would risk sparking inflation just as oil prices rebound and China seeks to jump start its economy, according to the founder of Yardeni Research Inc., who famously coined the “Fed Model” and the “bond vigilante.”

The market prognosticator says the central bank’s September decision to lower rates by half a percentage point — a move usually reserved to tackle a recession or market crash — was “not necessary” with the economy riding high and the S&P 500 hovering near records.

“They don’t need to do more,” Yardeni wrote in an e-mailed response to questions. “I assume several Fed officials regret doing so much.”

Stocks climbed Friday while Treasury yields and the dollar spiked after government data showing the biggest increase in nonfarm payrolls in six months. The report also revised up the hiring numbers for the prior two months and indicated a drop in the unemployment rate.

Yardeni is the latest to chime in on Fed policy after the data on job growth topped all estimates. Earlier Friday, former Treasury Secretary Larry Summers said the central bank’s decision to cut interest rates last month was “a mistake.”

The release also prompted economists at Bank of America Corp. and JPMorgan Chase & Co. to trim their forecast for the Fed’s November interest-rate cut to a quarter-point from a half-point, echoing moves in swap contracts tied to the outcome of future Fed meetings.

Still, calling the Fed to pause completely for the rest of 2024 is out of consensus, to say the least. Many investors consider the Fed’s latest rate cut as a step toward normalizing its policy amid easing inflation after a round of aggressive tightening took the benchmark borrowing cost to a two-decade high.

That said, it’s an idea Ian Lyngen is now mulling. While the head of US rates strategy at BMO Capital Markets is sticking to his forecast for a quarter-point reduction in November, he reckons a slew of data on employment and inflation will determine the Fed’s policy trajectory before its Nov. 7 meeting. Should October’s payrolls report come in comparably strong and inflation prove sticky, US central bankers will likely refrain from rate cuts for now, per Lyngen.

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“If anything, the employment update suggests that the Fed might be revisiting the prudence of cutting in November at all – although a pause is not our base case,” he wrote in a note to clients. “In our endeavor to be intellectually honest, it is worth briefly pondering what it would take for the Fed to pause next month.”

For critics of the Fed’s policy shift, the market has arguably priced in too many rate reductions already. The risk, according to Yardeni, is that additional easing feeds into investor euphoria that will set stage for a painful market event.

“Any further rate cuts would increase the odds of our 1990s-style meltup scenario for the stock market,” he said. In that episode, the S&P 500 lost more than a third of its value from peak to trough.

–With assistance from Sid Verma.

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TORONTO, Ontario, Oct. 04, 2024 (GLOBE NEWSWIRE) — ZenaTech, Inc. ZENA (“ZenaTech”), a technology company specializing in AI (Artificial Intelligence) drone solutions and enterprise SaaS (Software-as-a-Service) solutions, today announced new management team appointments. Craig Passley has been appointed Company Secretary, Sajjad Asif has been promoted to Chief Technology Officer (CTO), and Linda Montgomery has joined the company as Vice President of Corporate Development.

Craig Passley, Corporate Secretary, is a construction management executive at M/I Homes, a leading national homebuilder. Previously he served as Corporate Secretary for publicly traded company, Epazz, from 2005 and 2016, as well as for FlexFridge. Mr. Passley has a bachelor’s degree in engineering from Bradley University, a master’s degree in project management from the Keller Graduate School of Management, and an MBA from Lake Forest School of Management.

Sajjad Asif, Chief Technology Officer, was previously ZenaTech’s Vice President of Technology and has held various leadership roles with the ZenaTech group of companies. His background includes 18 years of professional experience specializing in software and drone technologies. He has served in leadership roles including CTO roles for various European technology companies. Mr. Asif holds a Master of Science in Software Engineering degree from Blekinge Tekniska Högskola (BTH) in Sweden, an MBA from AIOU in Pakistan, and a BS in Computer Science from PUCIT in Pakistan.

Linda Montgomery, Vice President of Corporate Development, has joined the company to lead corporate development. She has a professional career of over 20 years leading investor relations, business development and marketing for international technology companies, and has led investor relations for five IPOs. Ms. Montgomery has two degrees in business and marketing from the University of Manitoba and the University of Winnipeg, and an investor relations professional accreditation (CPIR) from the Ivey School of Business at Western University.

About ZenaTech

ZenaTech ZENA is a technology company specializing in AI drone solutions and enterprise SaaS solutions for mission-critical business applications. Since 2017, the company has leveraged its software development expertise and grown its drone design and manufacturing capabilities through ZenaDrone, to innovate and improve customer inspection, monitoring, safety, security, compliance, and field service processes. With over 100 enterprise software customers using our branded solutions in law enforcement, government, and industrial sectors, and drones being implemented in these plus agriculture, defense, and logistics sectors, ZenaTech helps drive exceptional operational efficiencies and cost savings. The company operates through six offices in North America, Europe, and UAE, and a growing global partner network.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Contacts for more information:

Company, Investors and Media:
Linda Montgomery
ZenaTech
312-241-1415
investors@zenatech.com

Investors:
Michael Mason
CORE IR
investors@zenatech.com

Safe Harbor

This press release and related comments by management of ZenaTech, Inc. include “forward-looking statements” within the meaning of U.S. federal securities laws and applicable Canadian securities laws. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. This forward-looking information relates to future events or future performance of ZenaTech and reflects management’s expectations and projections regarding ZenaTech’s growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. In some cases, forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “aim”, “seek”, “is/are likely to”, “believe”, “estimate”, “predict”, “potential”, “continue” or the negative of these terms or other comparable terminology intended to identify forward-looking statements.  Forward-looking information in this document includes, but is not limited to ZenaTech’s expectations regarding its revenue, expenses, production, operations, costs, cash flows, and future growth; expectations with respect to future production costs and capacity; the ability to deliver products to the market as currently contemplated; ZenaTech’s expectations regarding its revenue, expenses, and operations; ZenaTech’s anticipated cash needs and it’s needs for additional financing; ZenaTech’s intention to grow the business and its operations and execution risk; expectations with respect to future operations and costs; the volatility of stock prices and market conditions in the industries in which ZenaTech operates; political, economic, environmental, tax, security, and other risks associated with operating in emerging markets; regulatory risks; unfavorable publicity or consumer perception; difficulty in forecasting industry trends; the ability to hire key personnel; the competitive conditions of the industry and the competitive and business strategies of ZenaTech; ZenaTech’s expected business objectives for the next twelve months; ZenaTech’s ability to obtain additional funds through the sale of equity or debt commitments; investment capital and market share; changes in the target markets; market uncertainty; ability to access additional capital; management of growth (plans and timing for expansion); patent infringement; litigation; applicable laws, regulations, and any amendments affecting the business of ZenaTech. 

Forward-looking statements are based on certain assumptions and analyses made by the management of ZenaTech in light of its experience and understanding of historical trends and current conditions and other factors management believes are appropriate to consider, which are subject to risks and uncertainties. Although ZenaTech’s management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and actual results may vary materially from the forward-looking information presented. Given these risks and uncertainties underlying the assumptions made, prospective purchasers of ZenaTech’s securities should not place undue reliance on these forward-looking statements. 

Further, any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, ZenaTech undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors and to assess in advance the impact of each such factor on ZenaTech’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. Potential investors should read this document with the understanding that ZenaTech’s actual future results may be materially different from what is currently anticipated.

By Suzanne McGee

(Reuters) – U.S. exchange-traded funds (ETFs) that invest in dividend-paying stocks have enjoyed a rush of inflows since the Federal Reserve kicked off its rate cutting cycle last month, though a jump in U.S. Treasury yields could slow the deluge of investor funds.

The group of 135 U.S. dividend ETFs tracked by Morningstar pulled in $3.05 billion in September, the same month the Fed cut interest rates by 50 basis points, its first reduction since 2020. That compares to average monthly inflows of $424 million in the first eight months of 2024.

Their newfound popularity has been driven by investors seeking income-generating products ahead of declines in yields that are expected to occur as the Fed continues cutting interest rates.

“The pivot in monetary policy translates into cash looking for new homes, and dividend-yielding stocks will be one of the beneficiaries,” said Nick Kalivas, head of factor and equity ETF strategy at Invesco.

Whether the trend continues remains to be seen: benchmark 10-year Treasury yields have shifted higher in recent weeks and hit two-month highs on Friday, after a blowout U.S. employment number pointed to a resilient economy that likely does not need the Fed to deliver more large cuts this year.

Still, Josh Strange, founder and president of Good Life Financial Advisors of NOVA, said the revival of interest in dividend stocks is a reaction to rising valuations in sectors such as tech as well as in broader markets, in addition to shifts in monetary policy.

At 21.5 times future 12-month earnings estimates, the S&P 500’s valuation is near its highest level in three years and is well above its long-term average of 15.7, according to LSEG Datastream.

“The S&P 500 has become increasingly concentrated in just a few names, and the momentum has all concentrated around AI, making these stocks look frothy,” Strange said.

Yields offered by dividend ETFs vary by strategy, but can range from just under 2% to as much as 3.6%. By comparison, benchmark 10-year Treasuries yield fell to around 3.6% in September.

Energy and financial stocks often appear in dividend ETFs, including Chevron Corp., JP Morgan Chase and Exxon Mobil. But they also feature pharmaceutical companies like Proctor & Gamble, utilities such as Verizon (VZ.N> or Southern Co. and retailers like Home Depot.

“If you seek out high dividend payouts, you’re making a tradeoff: you also want to own companies that will grow and be capable of increasing those payouts,” said Sean O’Hara, president of Pacer ETFs, discussing the outlook for dividend ETFs and related products in the latest edition of Inside ETFs.

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To lessen the risk of owning companies with deteriorating fundamentals, Pacer builds ETF portfolios based on companies’ free cash flows, such as the $24.8 billion Pacer US Cash Cows ETF, launched in 2016. It has attracted $7.1 billion in inflows in the last 12 months.

(Reporting by Suzanne McGee; Editing by Ira Iosebashvili and Deepa Babington)