Trump's Day 1: Incoming President Looks Set to Act on Tariffs, Crypto, Energy and Immigration
Quantum computing, Nuclear Power, Cryptos, cannabis! Retail investors' "beloved" in the USA all fell last night.
① Although the three major stock indices in the USA fluctuated on Wednesday, the S&P 500 Index, which performed the worst, only fell by 0.16%—a performance that cannot be considered terrible. ② However, for many American retail investors who enjoy the thrill of speculating on meme Stocks, this Wednesday seems to have been a disastrous day: because many of their favorite investment symbols experienced a remarkable collapse.
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Federal Reserve meeting minutes: Officials tend to slow the pace of interest rate cuts as inflationary risks increase.
The minutes from the Federal Reserve's December meeting show that officials decided to slow the pace of interest rate cuts in the coming months due to high inflation risks; participants expect inflation to continue approaching 2%, but it may take longer than expected, and the process of returning inflation to target may have temporarily stalled; regarding interest rate cuts, officials emphasized that future policy actions will depend on the development of data rather than a fixed timetable.
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Even the Federal Reserve has issued a rare warning! Understand in one article: How expensive are U.S. stocks right now?
① This Monday, the rare warning from Federal Reserve Governor Cook regarding the "overvaluation of the U.S. stock market" has garnered widespread attention on Wall Street; ② This clearly raises curiosity: from the perspective of the valuation models commonly used by the Federal Reserve, how expensive is the U.S. stock market right now?
The Federal Reserve's hawkish expectations are rising, and inflation and the rate hike trajectory are back in focus!
The ISM Services Index and job vacancies in the USA exceeded expectations, showing resilience in the economy and the labor market, driving the dollar stronger and US bond yields higher. Inflation data from Europe and the Swiss Franc indicates a slowing trend, while the labor market in the Eurozone remains robust. The Global market is sensitive to expectations regarding US policy, with significant impacts on the bond and Forex markets.
Howard Marks: Is there a bubble in the U.S. stock market now?
Max believes that the U.S. stock market may have some bubbles, but it is not out of control. The expected PE for the S&P 500 Index is 23.6 times, and compared to valuation parameters, a more effective way to determine bubbles is through psychological diagnosis. Currently, there is no talk from people saying 'there are no prices that are unreachable,' which is a clear indicator of irrational thinking and a sign of bubbles.
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What will happen to the US stock market and economy in 2025? Research companies warn: the more optimistic, the more dangerous!
BCA Research warns that investors' optimism regarding the USA economy and stock market in 2025 may lead to results falling short of expectations, as 'animal spirits' could drive up inflation, ensuring that interest rates remain high for a longer period. The company also stated that extreme optimism about the USA economy decreases the likelihood of an acceleration in growth for the USA economy in 2025.
The "danger signals" in the US stock market: Why did hedge funds suddenly sell off?
Hedge funds have continuously net Sold USA Stocks for the past five Trading days, with the selling pace being the fastest in over seven months. Goldman Sachs believes this could be an important warning signal for investors.
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