Key Market Movements: Microsoft, Retail Sales, and Trump's Crypto Project

1. Microsoft's Massive Buyback & Dividend Increase:
$Microsoft (MSFT.US)$ announced a $60 billion stock buyback program, its largest ever, alongside a 10% dividend increase. Additionally, it is introducing new AI features like Copilot Pages in Office 365, enhancing collaboration tools and AI agent-building capabilities.

2. Retail Sales & Rate Cut Sentiment:
Recent retail sales data came in slightly above expectations, but The Arora Report believes it doesn’t support the prevailing wisdom of a 50 bps rate cut. This data is critical ahead of the Fed's upcoming rate decision.

3. Amazon Back to Office:
$Amazon (AMZN.US)$ 's return to requiring employees to work in-office five days a week is seen as a return to pre-pandemic norms.

4. Crypto Surge from Trump’s New Project:
Former President Trump launched World Liberty Financial, a crypto project with 63% of coins available for public purchase. This news has boosted the broader crypto market, including Bitcoin.

5. Protection Bands for Investors:
Investors should consider maintaining a protection band of cash and hedges based on risk preferences. High-risk investors may opt for tactical stock moves, while low-risk investors should hold more cash or short-term bonds.

6. Traditional 60/40 Portfolio:
With inflationary pressures, long-duration bonds may not be ideal. The focus should be on high-quality, short-term bonds or tactical bond ETFs instead of long-term strategic bond allocations.