📈 The $1.5T Gamble

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Good morning.

From Wall Street’s reaction to Scott Bessent as Treasury pick, the wild ride of Super Micro Computer’s stock, crypto’s big win in Congress, and why the U.S. market rally might have more room to run. Plus, a deep dive into Saudi Arabia’s ambitious Neom project.

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

Markets

📈 Bonds rally, dollar dips on Treasury choice
Wall Street is breathing a sigh of relief as Scott Bessent, a well-known fund manager, gets tapped as the next U.S. Treasury Secretary. Markets like his mainstream vibe, and his tough talk on spending helped push 10-year Treasury yields down by 6 basis points. Whether he can actually cut deficits while dealing with expiring tax cuts? That’s the big question.

🏦 What to know about Scott Bessent, Trump's Treasury pick
President-elect Trump has chosen Scott Bessent as his Treasury Secretary, making him the administration's top economic voice. Known for his expertise in global markets, Bessent brings a solid grasp of bonds, currencies, and a strong rapport with Trump. Recently, he’s been toning down concerns about Trump’s tough talk on trade, here’s everything to know about Scott Bessent.

📊 The biggest comeback chart to watch in 2025
Super Micro Computer has had a wild 2024. Starting the year at $28, it soared to nearly $120 in March before crashing back to square one, even dipping to $21 recently. Now, investors are asking: could 2025 be the start of a big comeback for this volatile stock?

🪙 How the crypto industry bought ‘America’s most pro-crypto Congress ever’
Crypto is getting a seat at the table. Nearly 300 pro-crypto lawmakers are heading to Congress, according to Stand With Crypto, giving the industry its strongest voice yet. After years of setbacks, crypto leaders see this as a make-or-break moment to shape the future of regulation and growth.

🇺🇸 Why the Election Rally Could Continue
U.S. stocks are having a stellar year, up 25% so far, with 4% of that gain coming just last week. While some wonder how long this rally can last, factors like seasonal trends and hopes for fiscal stimulus and regulatory relief could keep the momentum going.

Quick News

• Nick Maggiulli wrote a great blog post on whether you Should You Ever Put More Than 20% Down on a Home?

• Experts predict one of these AI companies could surpass Amazon's success with market caps nine times larger. *

• Shares of tax and accounting software provider, Intuit, fell 6.5% on Friday after weak third-quarter results.

• Charles Schwab’s incoming CEO, Rick Wurster, said the firm is looking to offer spot cryptocurrency trading once US regulations make doing so easier.

• Upstart social network Bluesky is getting inbound interest for a large new investment round. Bluesky has become a post-election refuge for millions of Twitter/X users.

From our partners *

Are Saudi Arabia’s HUGE Projects Viable?

In the vast desert of northwestern Saudi Arabia, cranes and construction vehicles dominate the horizon, shaping what could be the world’s most ambitious urban experiment: The Line. This futuristic city, planned as part of the $1.5 trillion Neom project, envisions housing 9 million people in two parallel skyscrapers stretching 106 miles through the desert. It’s a cornerstone of Vision 2030, Crown Prince Mohammed bin Salman’s blueprint to diversify the kingdom’s oil-dependent economy.

But lofty ambitions come with equally steep costs. Saudi Arabia has swung from a $27 billion surplus in 2022 to a $21 billion deficit in 2023, with forecasts suggesting more years of red ink ahead. Critics question whether the kingdom can sustain the rapid pace of spending required for such projects. Even insiders admit many ventures are "pay now, hope for returns later," raising doubts about financial sustainability.

While some phases of construction on The Line are progressing, analysts like Andrew Leber warn that not all projects will survive. "Saudi Arabia will likely shelve some initiatives to restore fiscal balance," he notes, highlighting the kingdom’s adaptability when economic realities hit.

Still, the Public Investment Fund's pivot to domestic investments signals commitment, with Neom executives assuring that the grand vision remains intact.