Should Old Investments Be Forgot?
On The Tape
Deep Dive
What were Jimmy Carter's key contributions during his presidency?
Jimmy Carter appointed Paul Volcker, who played a crucial role in combating inflation during the Reagan administration. He also initiated significant deregulation that continues to impact the economy today. Additionally, Carter's humanitarian efforts earned him a Nobel Prize, making him one of only three U.S. presidents to receive this honor.
Why has passive investing dominated the market in 2024?
Passive investing has dominated due to massive inflows into ETFs, with over $1.2 trillion entering the market. Mega-cap stocks like Apple benefit significantly as they are top holdings in nearly 400 ETFs. This trend has created a supply-demand dynamic that drives stock prices upward, making it challenging to take a bearish stance.
What risks are associated with MicroStrategy's heavy Bitcoin holdings?
MicroStrategy owns 446,400 Bitcoin, valued at approximately $28 billion, with an average purchase price of $62,428. If Bitcoin's price drops significantly, MicroStrategy's stock could face substantial declines, and capital raises could become more dilutive or expensive. The leverage that works in their favor during price increases could reverse during downturns.
Why are treasury yields a critical factor for the economy in 2025?
Treasury yields are crucial because the U.S. economy is not built for higher rates, with 5% being a trigger point for potential issues. Rising yields could indicate concerns about inflation, U.S. debt sustainability, or strong economic growth. The market's reaction to these yields will significantly influence economic stability in 2025.
What potential headwinds could impact the market in 2025?
Key headwinds include potential Federal Reserve policy errors, tariffs under the Trump administration, and the possible unraveling of the AI investment story. Additionally, bond vigilantes and overvaluation in AI-related stocks could pose risks, especially if companies fail to meet high expectations.
What is the outlook for oil prices and energy stocks in 2025?
Oil prices have been flat in 2024, with risks to both the upside and downside in 2025. Energy stocks, particularly those of large companies, remain attractive due to improved balance sheets and fiscal discipline. However, a significant drop in oil prices below $55-$60 could negatively impact the sector.
What are the implications of Boeing's recent plane crashes for its stock?
Boeing's stock has declined following recent plane crashes, with the company facing scrutiny over safety issues. While the exact cause of the crashes is uncertain, Boeing's track record and the potential for further investigations could weigh on its stock performance in the near term.
- Jimmy Carter's appointment of Paul Volcker
- Carter's role in deregulation
- Carter's personal qualities and legacy
Shownotes Transcript