Closing Bell Closing Bell: Big Tech Tumbles, Double Digit Upside in 2025? 12/27/24
Dec 27, 2024
Gene Munster, managing partner at Deepwater Asset Management, shares his expertise in the tech sector and AI’s market influence. He discusses recent downturns in major tech stocks like Apple and Microsoft, analyzing profit-taking and economic indicators. Munster delves into AI's competitive landscape, emphasizing the need for business skills. He also explores strategies for navigating market volatility and highlights the shift from tech to cyclical sectors as investors prepare for 2025. His insights provide a roadmap for those keen on adapting to the evolving market dynamics.
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Tech Sell-off and Market Rebalancing
- Big Tech's recent market dominance might reverse in the coming weeks.
- This reversal is expected to be a short-term rebalancing, not a permanent shift.
Market Drivers and Tech's Continued Importance
- Four key market drivers will persist into 2025: economic soft landing, contained inflation, AI momentum, and strong earnings.
- Tech's importance in market returns will remain significant despite an expected broadening.
Market Nervousness and Investor Anxiety
- The market pullback is due to nervousness and a search for reasons to correct, exemplified by reactions to Micron and Fed news.
- Tech investors are anxious, especially given the upcoming CPI numbers before big tech earnings.