Bloomberg Surveillance Bloomberg Surveillance TV: December 30, 2024
Dec 30, 2024
Patrick De Haan, an analyst at GasBuddy, delves into the oil market's complexities and predicts a tough year ahead in 2025 for energy prices amidst geopolitical tensions. Terry Haines, founder of Pangaea Policy, reflects on Jimmy Carter's often-overlooked legacy, emphasizing how his presidency taught that there are limits to executive power and discussing the careful balance in economic policy during his term. Together, they explore the interplay between historical insights and contemporary market dynamics.
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Narrow Market Breadth
- Market breadth has been narrow because earnings growth has also been narrow, not just valuation.
- The market's narrowness is driven by a few key stocks with strong earnings, while others lag.
Recession Risk Priced Out
- Recession risk is effectively priced out of the market, and even out of investors' minds.
- Despite strong economic growth, average stocks haven't performed well, possibly due to pandemic overhang and overextended margins.
Look for Value, Prioritize Quality
- Value stocks might be poised for a snapback due to poor relative performance.
- Focus on quality stocks with high free cash flow, good return on invested capital, and strong balance sheets.