Economy
Featured Posts
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
Bitcoin’s price has dropped by more than 70% in a single quarter, but new ETFs are helping investors reduce the risk of those wild swings. Here’s how. For everyone, this volatility makes it hard to justify adding cryptocurrenices to their portfolios. Just look at Bitcoin's price
The U.S. job market bounced back in November, adding 227,000 jobs, strengthening the case for a Federal Reserve rate cut in December.
Meanwhile, corporate buybacks help drive stock prices higher, and data from Bloomberg reveals which sectors thrive—and struggle—after rate cuts. Here’s everything you need to know, explained in 4 charts.
1. Today's Jobs Report
November’s payrolls climbed 227,000, jumping from October’s low figures. While unemployment ticked up slightly, wages rose 4.1% year-over-year. This balance of job market resilience and mild cooling gives the Fed space to lower rates by 25bp this month.
2. Are Stocks Overheating?
The S&P 500 edged higher this morning on rate-cut expectations, but its price-to-book ratio of 5.3x is concerning. That level hasn’t been seen since the 2000 tech bubble. Crypto markets also rallied, despite Bitcoin already hitting $100k earlier this week.
💵
Stocks are expensive, and optimism may be too high.
3. Buybacks at Record Highs
Corporate America spent $924 billion on buybacks in 2024, just shy of the $950 billion record set in 2022. Projections for 2025 suggest buybacks will surpass $1.08 trillion, the highest ever, according to Goldman Sachs.
4. Where to Invest with Rate Cuts
Not all sectors benefit from falling rates. Here's what some historical data tells us:
- Winners: Utilities (+5%) and Staples (+4%) had solid gains.
- Neutral: Health Care (+4%) and Materials (+2%) were stable.
- Losers: Tech (-6%) and Financials (-2%) struggle during these periods.
What It All Means
- November’s job gains support a December cut
- S&P 500 and crypto surging signal potential overheating
- There were $924b in buybacks for S&P 500 this year, and $1.08t expected in 2025.
Did you like this post? For $1/month—less than a WSJ subscription—you'll get even more content like this. If you're interested, click the button below.