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- 📈 ETFs Smash $10T Ceiling
📈 ETFs Smash $10T Ceiling
China hacks US Treasury, Nvidia entering limitless era, Meta well positioned heading into 2025, Buffet buying up 90s dotcom darling, ETFs continue to grow in popularity
Evelio Silvera
December 31, 2024
Good morning.
⚡ The Fast Five → China hacks US Treasury, Nvidia entering limitless era, Meta well positioned heading into 2025, Buffet buying up 90s dotcom darling, ETFs continue to grow in popularity
🔎 Market Trends → Wall Street ends sharply lower on penultimate trading day of a strong 2024; US Futures Down Slightly Amid Holiday Mood
🎊 Happy New Year → We want to wish all of you a Happy and Prosperous New Year! 2024 was a great year for us at Bull Street thanks to you our loyal subscribers! We have a lot of great things in store for our Bull Street community in 2025, see you again on Friday!
And now…
⏱️ Your 5-minute briefing for Tuesday, December 31, 2024:
MARKET BRIEF
Before the Open
As of market close 12/30/2024.
Pre-Market
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Fear & Greed
Markets in Review
Markets Slide as Investors Wrap Up 2024
The Nasdaq fell 1.2% to 19,486.8, the S&P 500 lost 1.1% to 5,906.9, and the Dow declined 0.97% to 42,573.7. All sectors posted declines, with consumer discretionary and materials leading the way.
The Big Picture:
Markets kicked off the final week of 2024 on a downbeat note, as investors balanced economic resilience with lingering sector-specific headwinds. Pending home sales exceeded expectations, hitting their highest level since February 2023, signaling strength in the housing market as buyers adapt to high rates.
In manufacturing, Texas surprised with a return to growth in production, though forward-looking expectations remain subdued. The report reflects a balancing act between near-term activity and long-term caution as businesses weigh uncertainties heading into 2025.
Oil gained 0.8% to $71.14/barrel, supported by stable demand. Gold slipped 0.4% to $2,621.50/oz, and silver dropped 2%, reflecting a retreat in safe-haven demand.
Market Movers:
Nvidia (NVDA): Rose +0.4%, as ByteDance revealed plans to spend up to $7 billion on Nvidia’s advanced AI chips outside China in 2025. Nvidia also completed its acquisition of Run:ai, bolstering its leadership in AI.
Boeing (BA): Fell -2.3%, weighed down by news of South Korean inspections on 737-800 planes following a crash, raising regulatory concerns.
West Texas Crude: Rose on steady demand dynamics, bolstered by improved sentiment in energy markets as inventory levels remain balanced.
What They’re Saying:
"Economic indicators like housing and manufacturing show resilience, setting the stage for a strong start to 2025. Investors should remain focused on growth drivers like AI and energy while managing short-term volatility," noted Oxford Economics.
WHAT WE’RE WATCHING
Events
There are no events scheduled for today.
Earnings Reports
Today: San Juan Royalty Trust, Luna Innovations, Emcore, Advent Technologies
Tomorrow: The Daily Journal, B. Riley Financial, Spire
MARKET BRIEF
Leading News
ETFs Smash $10T Ceiling: The Great Money Migration Hits New Milestones
Why it matters:
The explosive growth in ETF assets signals a seismic shift in how younger investors are building wealth, with passive vehicles becoming the new status quo for portfolio construction.
Zoom Out:
The ETF revolution just hit a historic milestone, with U.S. assets crossing $10 trillion in November. This isn't just another number – it's a testament to how dramatically investing has democratized since the days when Wall Street gatekeepers charged princely sums for basic market access.
What's particularly striking is the $156 billion November inflow, which some are attributing to the "Trump bump." But beneath the political headlines lies a deeper story about how modern investors are voting with their dollars.
Key Insights:
The S&P 500 monarchy reigns: The index's 24% YTD surge has been powered by the "Magnificent Seven" tech titans. Four of the top 10 ETFs by flows are S&P trackers, with Vanguard's flagship fund (VOO) leading the charge. Consider this: You're now getting Tesla, Nvidia, and Amazon exposure for about the cost of a cup of coffee per year.
Alternatives go mainstream: Alternative ETFs have exploded 93% year-over-year, crossing $400 billion. The real story? About 80% of this is in digital assets and derivative income plays – signs that younger investors are hunting for non-traditional returns.
Crypto enters the chat: Spot Bitcoin ETFs now hold more BTC than Satoshi themselves. The iShares Bitcoin Trust (IBIT) topped the rookie ETF leaderboard, suggesting digital assets are becoming a legitimate portfolio building block.
Market Pulse:
"I think this is a case where SPY probably outperforms the majority of fund managers in 2025," says Malcolm Ethridge, CFP.
Bull’s Take:
The ETF revolution is entering its golden age, with passive vehicles becoming the default choice for a new generation of investors. For millennials and Gen Z building long-term wealth, the message is clear: The tools for sophisticated portfolio construction have never been more accessible or affordable.
Headlines
Nvidia may be entering a 'limitless' era: Investor (link)
China Hacked Treasury Dept. in ‘Major’ Breach, U.S. Says (link)
Meta Seen As Well Positioned To Build On Rally In 2025 Despite Rising AI Costs (link)
Boeing shares fall after South Korea calls for inspection of 737-800 jets (link)
Warren Buffett’s Berkshire Hathaway is buying up shares of a lagging 1990s dotcom darling (link)
Elon Musk's Starlink Signs Major Deal With Ukraine (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to Josh Meyer
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