Beyond the Arches #38: The Dow’s 10-day losing streak rehashes a rare economic phenomenon. Diversified assets offer a potential buffer against volatility in the public markets.

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The Dow Jones Industrial Average has achieved a dubious milestone not seen since 1974. The average fell more than 2.3%, crossing the threshold of a 10-day down streak on news that the Fed had cut interest rates 25 basis points. The last planned rate cut for the year has had a widespread cooling effect on the public markets, taking a particularly significant bite out of many of the Magnificent 7 stocks. Tesla saw an 8% decline, with Apple, Microsoft, and Amazon suffering losses in the 2–4% range. 

Bitcoin and other cryptocurrencies are feeling the pressure as well, coming down from soaring highs over the last few months. Bitcoin tumbled nearly 5%, landing at $101K. It’s important to note that the coin has seen impressive growth over the last month, surging to a then-high over $87K in the wake of the 2024 presidential election. The incoming administration has taken a decidedly warmer approach to cryptocurrency despite hesitancy from the Federal Reserve and SEC. Fed Chair Jerome Powell threw cold water on the concept of a BTC Strategic Reserve, citing restrictions in the Federal Reserve Act.

Three exciting FranShares investment opportunities

• Kidokinetics offers accredited investors the opportunity to participate in a $1M capital raise for this franchisor to fuel expansion and enhance the franchisee network
• Bravehart Development presents accredited investors with the opportunity to invest in the first tranche of an investment featuring 10 Hawaiian Bros brand locations.
• Sloan Capital presents accredited investors with the opportunity to invest in this offering, which includes 24 locations of the brand Everbowl.

On Our Radar This Week

• Inflation continues to dog the U.S. economy heading into the new year with a November report of the annual inflation rate accelerating to 2.7%. Though analysts expected the reported acceleration, the news complicates the Fed’s calculus on short- and long-term rate cuts. 
• Economists and political analysts turn their attention to Europe after the German Government Collapse and the reality of an impending snap election in the wake of Olaf Scholz’s no-confidence vote. The tension in Germany echoes turbulence in other Western governments. This is largely due to the ongoing Ukraine conflict and the potential for a U.S.-instigated tariff war with historical allies like Mexico and Canada.
• The surprise collapse of the Assad regime earlier this month ushered in uncertainty for Syria, and the push for legitimacy and changes to its global economic fortunes. The EU has intimated its willingness to normalize relations and ease sanctions, with the caveat that Syria sever its ties with Russia. The global balance of power and economic factors in the Middle East mean Syria’s burgeoning freedom (and its ability to participate in global commerce and commodities through oil production) will have larger economic and foreign policy implications for the West. 

Macro Bites

• Alphabet stock jumps after Google touts “breakthrough” quantum chip. Quantum computing represents the next evolution of processing standards as chip-makers test the limits of conventional processing power and shrinking chip size.
• Memory chip maker Micron secures $6.1B grant. The funding, facilitated through the Department of Commerce under the CHIPS Act, will fuel more commercial fabrication facilities. 
• A Honda-Nissan merger would be a sign of things to come. Shifts in the auto industry prompt Japan’s two largest auto manufacturers to consider a future of cooperation over competition. 

Start passively investing in franchises today!

Accredited and non-accredited investors can invest in our latest offering, TNT Franchise Fund Inc., today! 

TNT Franchise Fund Inc. is a diversified portfolio of up to 30 Smash My Trash locations and 25 Teriyaki Madness outlets throughout the United States.

With its patented waste compaction service, Smash My Trash is disrupting the $1.6 trillion waste management sector. By compacting waste in open-top dumpsters to reduce waste volume, customers save money (up to 20% of waste removal costs) and reduce their CO2 emissions by up to 65%.

Teriyaki Madness stands out with its fresh, made-from-scratch meals and a lively, inviting ambiance, revolutionizing the fast-casual Asian dining scene. Its surging popularity is evident on platforms like Yelp, Facebook, and Google, where an increasing community of enthusiasts sing its praises.

Highlights:

• Target locations: Up to 55
• Smash My Trash per-location economics: $885K in revenue with 28% EBITDA after 16 months of operation
• Teriyaki Madness per-location economics: $1.16M in revenue with 20% operating profit

As the Smash My Trash and Teriyaki Madness locations come to fruition, investors in TNT Franchise Fund Inc. can expect to receive excess cash flows from the business operations of the locations on a quarterly basis.

For more information on the offering, contact our team.