Final Trading Day of the Year 12/31/24
Halftime Report
Deep Dive
Why are Communication Services and Tech sectors leading the market in 2024?
Communication Services and Tech sectors are leading the market in 2024, up nearly 40%, due to a 1990s-style technological revolution driving continuous upside earnings surprises for large, well-capitalized corporations.
What is the significance of the S&P 500's first four-day losing streak to close out a year since 1966?
The S&P 500's first four-day losing streak to close out a year since 1966 is seen as a statistical anomaly rather than a meaningful indicator, with experts advising investors to focus on long-term strategies rather than short-term trends.
What are the key challenges Apple faces in 2025?
Apple faces two key challenges in 2025: navigating President-elect Trump's proposed tariffs on Chinese goods, which could impact iPhone production, and gaining Chinese government approval for Apple Intelligence to launch in China.
Why is the ETF industry experiencing record inflows in 2024?
The ETF industry is experiencing record inflows in 2024, surpassing $1 trillion, due to a shift from commission-based financial advice to fee-based fiduciary relationships, leading to a preference for ETFs over actively managed mutual funds.
What is the outlook for the REIT sector in 2025?
The REIT sector is expected to see a resurgence in 2025, particularly in retail real estate, driven by low vacancies, rising rents, and anticipated Fed interest rate cuts stimulating investment activity.
What is the investment strategy for fintech in 2025?
Fintech is seen as a key opportunity in 2025, with investors expected to shift profits from mega-cap tech stocks to fintech IPOs like Klarna, Stripe, and Chime, driven by the broadening market narrative.
Why is cybersecurity considered a ripe sector for consolidation in 2025?
Cybersecurity is considered ripe for consolidation in 2025 due to the presence of many smaller-cap companies that are likely to be acquired by larger players aiming to become platform leaders, making index-based investments a safer approach.
What is the impact of the Magnificent Seven on the S&P 500's gains since the election?
The Magnificent Seven have accounted for 95% of the S&P 500's gains since the election, raising concerns about concentration risk, but their consistent earnings growth over eight consecutive quarters continues to drive market momentum.
- Santa Claus rally faltered
- First time since 1952 S&P had declines of 1% or more in final five trading days
- Back-to-back years of 20%+ returns
- MAGA-7 stocks in control
- Prudent investors should ignore price targets and rebalance portfolios
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