Squawk on the Street SOTS 2nd Hour: 2024 Market Recap, 2025 Top Picks, & Apple’s China Headwinds 12/31/24
Dec 31, 2024
Steve Kovach, a tech journalist known for his insights on major companies, dives into the challenges Apple faces in 2025. He highlights the impacts of tariffs and the competitive landscape in China. Kovach discusses how evolving consumer habits and AI service approvals could shift Apple's strategy. Additionally, the conversation touches on broader market trends, emphasizing cautious optimism for financials and energy sectors while examining the year’s biggest stock winners and losers.
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2024 Market Concentration
- Most of the S&P 500's gains in 2024 were concentrated in the first half of the year, driven heavily by mega-cap tech stocks.
- The second half saw less concentration, with broader market participation but also increased difficulty for active stock picking.
2025 Market Mechanics
- Consider laggards as potential outperformers in the early part of 2025, similar to the trend observed in the previous year.
- Be aware of elevated market expectations, which might make the market harder to please in the coming year.
2024 Value vs. Growth
- Despite expectations of a catch-up trade, value stocks and small caps underperformed the NASDAQ and S&P 500 in 2024.
- The market-cap weighted indexes significantly outperformed other strategies, highlighting the difficulty of active management.