📈 S&P's Hidden Risk

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Good morning and Happy New Year! 🎉 While 2025 kicks off, the markets aren't celebrating yet, stocks started the year in the red, continuing last year's slump

Grab your cappuccino and let's get into it! ☕️👇️

Markets

📉 Stocks close lower in volatile start to 2025
Stocks stumbled on Thursday, kicking off the new year with more turbulence as the 2024 downturn carried into January. The Dow Jones dropped 151.95 points to 42,392.27, while the S&P 500 and Nasdaq slid 0.22% and 0.16%, respectively, marking five straight losing sessions, their longest slump since April. Early gains evaporated by late morning, reversing a 300-point rally in the Dow.

🛍️ You missed Amazon. You don't have to again
Amazon, once a small online bookstore, grew into a global behemoth, transforming industries along the way. Now, imagine yourself at the forefront of the next revolution: AI. In The Motley Fool's latest report, uncover the parallels between Amazon's early trajectory and the current AI revolution. Experts predict one of these AI companies could surpass Amazon's success with market caps nine times larger. [sponsor]

🪫 Tesla Stock Drops as annual deliveries fall for first time
Tesla reported its first annual drop in deliveries, despite year-end incentives and the highly anticipated Cybertruck launch. CEO Elon Musk had predicted "slight growth" for 2024, offering perks like interest-free financing and free fast-charging to spark sales. However, reduced European subsidies, rising competition from China's BYD, and a U.S. shift toward hybrids took their toll, sending Tesla shares down 6%.

🤔 Is buying an S&P500 Index Fund as safe as people say?
Warren Buffett has long recommended that average investors stick to low-fee S&P 500 index funds for long-term growth. However, venture capitalist Chamath Palihapitiya warns that the index is now heavily concentrated in a few large tech companies, making it a risky, concentrated bet rather than a broad market investment. He pointed out that as of December 20, the top 10 companies comprised nearly 40% of the S&P 500's total market capitalization, a situation he believes "needs to be fixed or it will end in disaster.”. Is he right?

👑 What To Expect from the Magnificent Seven in 2025
The "Magnificent Seven" tech giants—Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta, and Tesla—soared 63% in 2024, building on a 75% surge the year prior. Despite a rocky July, the AI boom kept their momentum strong. After two years of dominance, the big question looms: what’s next for this elite group of market leaders?

Quick News

• AI stocks led markets to new heights in 2024, but some investors are already moving on to the new hotness - quantum computing.

• KoBold Metals closed a $537 million Series C round on Wednesday to help build a multi-billion-dollar mine to exploit a copper deposit it found using AI.

• Financial Samurai ranks the best passive income investments.

• Carvana has been accused accused by prominent short-seller Hindenburg Research of impropriety in a report alleging that the auto retailer’s subprime loan portfolio carries substantial risk and its growth is unsustainable.

• South Korean authorities tried and failed Friday to carry out an unprecedented arrest warrant for President Yoon Suk Yeol.

• Nasdaq to Close on Jan. 9 to Honor Former President Jimmy Carter.

• Can the S&P 500 Continue Rallying in 2025? Here's What History Says.