Government shutdowns in the United States (“U.S.”) are creatures of both constitutional and statutory law. The Constitution states that “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law,” meaning that federal agencies cannot spend funds to operate without the approval of Congress. Under the Antideficiency Act, agencies may not “make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure or obligation” or “ involve either government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law.” In other words, Congress must determine how the government will spend its funds, and a government shutdown ensues if the parties cannot agree on a budget. The current government shutdown occurred on October 1, 2025, as a result of Congress’s failure to reach an agreement for funding federal agencies and programs for the 2026 fiscal year. The previous budget expired on September 30, 2025, and without a new budget or continuing resolution, the government was forced to shut down. One of the biggest hurdles in reaching an agreement has to do with the demands by the Senate democrats. In order to vote for a continuing resolution or extension of the 2025 fiscal budget, the Senate Democrats are demanding in part that Congress resume Medicaid, Medicare and Affordable Care Act premium subsidy policies that open the door for illegal aliens to receive government benefits. Those benefits were terminated when the One Big Beautiful Bill Act (OBBBA)was approved. OBBBA provides eligibility for health benefits only to U.S. citizens, lawful permanent residents, Cuban and Haitian entrants, and lawful residents under the Compact of Free Association. The Senate Democrats’ continuing resolution would repeal changes made by OBBBA. What are the impacts of this shutdown? Members of Congress still get paid during this shutdown. Lawmakers' pay has been funded by a permanent appropriation since 1983, according to a recent Congressional Research Service report , meaning funding for their pay doesn't need to be renewed annually. Other government employees and contractors are not afforded the same luxury. Federal employees, whether they remain on the job or are furloughed do not get paid while the government is shut down. They are also at risk of permanently losing their jobs. For those federal employees who still have their job, they will receive back pay once funding to their agency is restored. But for now, those same federal employees have to work without collecting a paycheck if they choose to keep their job. Government Contractors (1099 contractors, not W2 Employees), those who carried out about $755 billion worth of government work in the last fiscal year, are not guaranteed back pay. They should have a written contract which outlines their pay, and should eventually hold up in a court of law; but how long they have to wait for payment of said contract would remain uncertain. During a government shutdown, the administration retains limited spending flexibility by prioritizing funding for programs that the president deems essential for public safety or national security, such as military operations or emergency services. Agencies may also reallocate available funds to maintain critical operations, provided those actions comply with the Antideficiency Act and other legal constraints. For most companies, one of the biggest hurdles will be navigating a complex regulatory scheme that relies on federal agencies to function. As the shutdowns disrupt these agencies’ operations, businesses and federal employees will be adversely affected. How much individuals will be affected will be largely determined by the duration of the shutdown. The longer government workers and contractors go without paychecks, the more likely they are to start looking for new jobs. A longer shutdown, in addition to possible layoffs and unclear guidance regarding back pay, may leave the government with a substantially smaller workforce post-shutdown. Tickers to consider: JTAI , VNRX , FBRX , POAI , PPCB , Sylva Disclaimer: https://www.sylvacap.com/disclaimer

Digital Asset Treasury Companies (DATCO) are publicly traded firms that focus on accumulating and managing digital assets like Bitcoin and Ethereum as a core part of their business strategy. They provide investors with exposure to cryptocurrencies without the need for direct ownership, often utilizing equity and debt to fund their asset acquisitions. This allows the companies to fund asset acquisitions by borrowing money through loans or issuing bonds, thereby sanctioning the companies to purchase assets without using its own cash reserves. DATCO’s took off in 2020 when Strategy (formerly MicroStrategy) started gobbling up Bitcoin (BTC) as an inflation hedge. In August 2020, Michael Saylor, founder of MicroStrategy, led the company’s dramatic push into becoming a DATCO with the purchase of over 21,000 BTC for $250 million. As of September 15, 2025, Strategy owned almost 640,000 BTC valued at $47.2 billion. During that same period, Strategy’s market value has risen over 2,700% (92.0% annualized), capturing the imaginations of finance and financial technology people alike. DATCO’s differ from crypto miners or exchanges in that they are all about accumulating assets, with digital holdings making up 70-90% of their enterprise value. Below are some key features of DATCO’s: Core Functions: DATCO’s aim is to hold digital assets as the primary function of their business model. Investment Access: DATCO’s provide investors with exposure to cryptocurrencies without the need for direct ownership or management of the assets. This makes it an attractive alternative for investors who want crypto exposure but prefer not to hold tokens directly. Revenue Generation: DATCO’s can generate income through various means, including lending services and decentralized financial protocols. The uniqueness of a DATCO lies in its dual nature. It is simultaneously a publicly traded company and a capital markets vehicle for direct exposure to a specific digital asset. For investors, this offers a compelling alternative to owning the asset directly or through an exchange-traded fund (ETF). There are several rewards associated with investing in DATCO’s. Investors benefit from the expertise of professionals who specialize in managing digital assets. DATCO’s often adhere to regulatory standards, providing for a safer investment environment. Finally, DATCO’s ensure liquidity for their digital assets, which makes for easier transactions. DATCO’s come with their own set of challenges and risks. For example, the Stock Market’s Volatility can significantly fluctuate the value of digital assets, impacting the financial stability of DATCO’s. Additionally, changes in regulations can affect operations and the profitability of DATCO’s. Lastly, funding can be a big risk when it comes to DATCO’s. Most DATCO’s rely on external capital to fund their asset accumulation strategies. This can be very risky in volatile markets. The true strength of a DATCO will be measured not by the size of its digital asset holdings at a bull market peak, but by its ability to navigate volatile markets, manage funding costs prudently, and build sustainable business models that can withstand the inevitable digital asset market downturns. The companies that master this balance will not only survive but will cement their place as true pioneers in the next generation of finance. The rise of these companies into DATCOs helps to foster a more efficient, transparent, and accessible financial system. This benefits business investors, broadens the economy, and encourages individuals or investors to participate in DATCO investments. Tickers to consider: JTAI , VNRX , FBRX , POAI , PPCB , Sylva Disclaimer: https://www.sylvacap.com/disclaimer

The Federal Fund rate, which impacts interest rates, can potentially be cut at the Fed’s policy meeting this month. Cutting interest rates can potentially stimulate the economy by making borrowing cheaper, which encourages spending and investments. However, some experts believe that rate cuts may not be enough to boost the current economy. According to the CME FedWatch tool, investors are quite certain that the Fed will cut interest rates in September by at least 25 basis-points. There are several benefits that could arise from reducing interest rates. Loans would become cheaper for consumers and businesses. Consumers may be more inclined to borrow money for larger purchases, such as a home or a vehicle. Lower rates can finance business operations and expansions, leading to the creation of more jobs. There are a few who don’t believe cutting interest rates will help the current state of our economy. David Kelly, the chief global strategist at JP Morgan Asset Management, stated that interest rate cuts are inevitable, but “that’s not going to fix anything.” Morgan discussed three reasons why he does not see rate cuts helping the economic picture with CNBC. Lower interest rates could cut income for retirees. Retirees tend to store a larger chunk of their savings in safer assets, like US Treasurys, which are tied to interest rates in the broader economy . If the interest rate goes down, then the interest income decreases. Hesitant borrowers might make cutting rates have a backfire effect. Hesitant borrowers tend to “wait and see” if the rates will drop even further before taking the plunge to loan money just to make sure that they are getting the best rate possible. Kelly speculates that borrowers will be incentivized to wait for rates to drop further before taking out loans. There is still a looming uncertainty of how much the Trump administration’s tariff policy and immigration policy will affect the economy. Lowering interest rates will not remove this uncertainty. Lastly, there is always the concern that lowering interest rates will actually boost inflation in an already elevated state. If consumer demands increase too quickly due to lower rates, then the result is inflation. This would undermine the purpose of the rate cuts. In short, lowering interest rates may temporarily boost the economy. But the long-term effects of reduced interest rates are affected by many other factors that might limit their effectiveness in the current economy. Economic uncertainty, borrower behavior and inflation risks can complicate the benefits of monetary policy actions. Tickers to consider: JTAI , VNRX , FBRX , POAI , PPCB , GRCE Sylva Disclaimer: https://www.sylvacap.com/disclaimer

The US stock market continues to trend higher after overcoming a challenging period earlier this year. On April 7, 2025, the S&P 500 hit an all time low. Since then, it has gained more than 28% in value and repeatedly reached all time highs. On Friday, Aug. 1, 2025, US stocks dipped after President Trump hit every US trading partner with sweeping tariff hikes and the July jobs report showed signs of a labor market slowdown. President Trump refuted the July jobs report, stating that the Bureau of Labor Statistics Commissioner manipulated prints for political purposes. Despite the August 1 dip and the July jobs report, on Monday, August 4, 2025, Wall Street stocks rallied as investors jumped on a market pullback, shrugging off economic worries and focusing on the rising odds of Federal Reserve interest rate cuts. S&P 500 gained 1.5 per cent to 6,329.94, while the tech-rich Nasdaq Composite Index jumped 2.0 per cent to 21,053.58. The August 4th trading session effectively reversed the losses from August 1, 2025. It can be speculated that the volatility of the market can be linked to the uncertainty of the effects of the Trump trading tariffs on the economy. However, it appears as though investors are shrugging off those worries of economic uncertainty and focusing on the likelihood that the Fed will cut rates in September. Mr. Steve Sosnick of Interactive Brokers stated, “Traders and investors have made a lot of money by deciding that tariffs won’t matter.” According to Sosnick, the bias of most investors is “Let’s not think about tariffs as being a problem until they actually prove that they are.” Regardless of the reasoning, the market is up. Overall, year to date, the major stock market indexes are showing positive gains in 2025: the S&P 500 is up 7.86%, the Dow Jones Industrial Average is up 4.2%, and NasDaq is up 9.19%. The rollercoaster ride of the market may continue. But so far, under Trump’s economic policies, it appears as though the market is fairing well. Tickers to consider: JTAI , VNRX , FBRX , POAI , Sylva Disclaimer: https://www.sylvacap.com/disclaimer

The US job market continues to chug along despite heightened uncertainty about the economy and how President Donald Trump’s tariffs could shake out.According to the June jobs report, Job growth was solid at 147,000 and the unemployment rate was at 4.1%, down from 4.2%.  Despite the continuation of fairly solid monthly employment gains, the jobs report showed several potentially concerning signs. N early half of the jobs added were from the government sector. Private industry showed only the smallest gains in the last eight months . Additionally, the reduction in the unemployment rate was in part due to the fact that some people left the labor force, whether to retire, or voluntarily quit their jobs. Finally, the average work week for all private non-farm payrolls fell to 34.2 hours in June, down from 34.3 hours in May. This suggests that employers are reducing the hours of their employees. If this is the case, it is likely to see weaker job growth in the months ahead. Perhaps the biggest negative in this report is a slowing in the pace of wage growth. The annualized rate of growth comparing the last three months (April-June) with the prior three (January-March) is just 3.2 percent, down from 3.7 percent year-over-year. According to Brian Bethune, an economics professor at Boston College, "The private sector was clearly losing momentum in the latter part of the second quarter, which does not augur well for the performance of the economy in the third quarter.” Are these potentially concerning issues a real threat to the economy, or is it a necessary “hiccup” required to correct the problems caused by Biden-economics and the inflation that has ravaged the country since 2020? The policies that were implemented during the Covid Pandemic, in which the government paid people to stay home and not work has crippled this economy. Five years later, employers are struggling to find skilled workers who will work for a reasonable wage. In fact, they are struggling to find people who will just show up to work. This has created extreme wage hikes just to get people to show up to work, which is costly to the employer causing him to limit the number of hours his employees can work. For example, pre-Covid, unskilled construction laborers made an average wage of $10-$12 hour depending on their level of skill. Today, that same unskilled worker will not show up to work for less than $25/ hour. This creates an extreme burden on the employer, who now can either only hire one worker instead of two, or has to raise his rates to his customer in order to meet the demand of payroll. Another problem is the inflated interest rates that occurred during the past 5 years. This has caused increases to mortgage payments for those who are purchasing homes. This in turn increases the rent that a landlord has to charge in order to make his rental property pencil out. In Bend, Oregon, an average monthly rent payment for a 3 bedroom/ 2 bath 1500 sq. ft. home pre-Pandemic was between $1200-$1500/ month. Today, that same home would rent for $3000/ month. We all know that the cost of food and groceries have gone through the roof in recent years. The high cost of living makes it almost impossible for workers to accept a “reasonable” wage. They simply cannot live on less than $25/ hour due to the high cost of living. A correction needs to occur in order to get things under control. Wages, rents, mortgages and food needs to become more affordable and reasonable. How this will occur has still yet to be answered. Maybe reducing the work week hours, and reducing wage growth is a start. But the government needs to do their part by not making it so easy for people to not go to work. There are a lot of people who choose to not go to work, because they make more off of their unemployment check than they would going to work. That has to stop! That will just promote laziness and lead to higher unemployment. Both are detrimental to the economy and the country as a whole. Tickers to consider: JTAI , VNRX , ZVSA , FBRX , POAI , PPCB Sylva Disclaimer: https://www.sylvacap.com/disclaimer