Bloomberg Surveillance Outlook for Markets, Consumers, and Tech
14 snips
Dec 27, 2024 
Melissa Otto, Head of TMT Research at Visible Alpha, shares insights on Big Tech's 2025 landscape, discussing upcoming challenges and an anticipated product upgrade cycle. Julie van Ullen, Chief Revenue Officer at Rakuten, analyzes changing consumer behaviors, emphasizing the impact of early holiday shopping and value-driven purchases. They explore the evolving dynamics between e-commerce and brick-and-mortar stores, and how retailers must adapt to meet the demands of savvy consumers, particularly Gen Z.
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Market Divergence
- The S&P 500's 26% gain versus the equal-weighted index's 12-14% gain reveals a divergence.
- This is mainly due to interest rate fluctuations and concerns about smaller companies as rates rise.
Small Caps in 2025
- Consider small caps for 2025 due to potential M&A activity, especially with the change in Washington.
- A broadening market as rates fall and profit margin expansion may also benefit small caps.
Russell 2000 Underperformance
- The Russell 2000's underperformance against the S&P 500 is the worst since 1998.
- This marks the fourth consecutive year of underperformance, raising concerns about smaller companies.