Bloomberg Surveillance Bloomberg Surveillance TV: January 3, 2025
Jan 6, 2025
Liz Young Thomas, the Head of Investment Strategy at SoFi, shares her outlook on equities in 2025, emphasizing potential choppiness ahead. Meanwhile, David Malpass, former President of the World Bank, analyzes the economic and geopolitical landscape under a possible second Trump administration. They discuss the rising importance of healthcare investments, the implications of tariffs, and the challenges posed by national debt. Additionally, they critique the Federal Reserve’s communication and suggest ways to enhance transparency in these uncertain times.
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Explore Non-Tech Sectors
- Re-evaluate buying opportunities beyond tech stocks, as they are not all at all-time highs.
- Consider healthcare, materials, and industrials for potential growth in 2025.
Yields and Growth Stocks
- Rising yields, particularly above 4.5% on the 10-year, negatively impact growth stocks due to higher discount rates.
- This makes current prices less attractive compared to lower discount rate scenarios.
Market Sentiment and Nuance
- Current market sentiment is driven by momentum and FOMO (fear of missing out), rather than nuanced analysis.
- This often leads to overlooking important details in favor of following trends.