Squawk on the Street SOTS 2nd Hour: Holiday Retail, Commercial Real Estate & Qualcomm vs. Arm Trial 12/16/24
Dec 16, 2024
Investors face a critical week with the Federal Reserve's final rate decision of 2024 looming. SoftBank's CEO, Masa Son, announced a massive $100 billion investment in the U.S. aimed at creating 100,000 AI-related jobs. In commercial real estate, post-pandemic office leasing hits new highs. Retail trends reveal strong holiday sales among accessories and beauty products, while the marketplace shifts from mutual funds to active ETFs. Key legal battles, particularly between Arm Holdings and Qualcomm, could shape the future of AI technology.
AI Snips
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Transcript
Episode notes
Fed's Rate Decision
- The Federal Reserve is likely to cut interest rates this week, but the decision is not straightforward.
- Some officials are concerned about persistent inflation and a still-strong job market.
Rate Cut Projections
- Goldman Sachs predicts fewer rate cuts next year than previously anticipated, removing January's projected cut.
- The market anticipates even fewer cuts than Goldman Sachs, suggesting a potential misalignment with the Fed's projections.
Diversification Strategy
- Diversify investments away from the dominant MAG-7 stocks.
- Consider fixed income, value stocks, and non-U.S. stocks for better diversification.