Closing Bell Closing Bell: Ringing the Register into 2025 12/31/24
Dec 31, 2024
Charles Cantor, a Senior Portfolio Manager at Neuberger Berman, shares his savvy market insights as the year wraps up. He discusses the impact of policy outlooks on market trends and the performance differences between value and growth stocks. Cantor expresses optimism for 2025, highlighting the importance of strategic investments among the 'Magnificent Seven.' The conversation also dives into tech stock growth potential and the challenges facing key players like Apple amid economic uncertainties and evolving consumer behaviors.
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Market Dynamics
- Recent market action reflects profit-taking in mega-cap stocks.
- This follows a two-year period of strong performance, especially for growth stocks.
Market Volatility
- The S&P 500's maximum decline was only 8.5% in 2024.
- This low volatility occurred despite a turbulent geopolitical environment.
Magnificent Seven Investments
- The Magnificent Seven tech companies invest heavily in R&D (15% of revenue) and capital (10% of revenue).
- This investment provides future optionality and strong moats, contributing to their success.