Bloomberg Opinion columnist analyzes Tucker Carlson's interview with Putin and shares thoughts on Israel-Hamas war. H&R Block CEO discusses earnings and tax season. Chief Market Strategist talks about the S&P hitting 5,000 milestone. Co-Founders of Heron Finance explain blockchain technology for private credit deals.
The S&P 500 breaks through 5,000, signaling optimism and potential short-term volatility in the market.
Huron Finance utilizes blockchain technology to make private credit assets more accessible to investors, targeting $25 million in assets under management.
Investors are allocating more funds to the stock market, anticipating another positive year for equities with strong earnings reports and positive revisions.
Deep dives
The S&P 500 reaches and exceeds 5,000 for the first time, driven by strong earnings
The S&P 500 has broken through the 5,000 level, reaching a new all-time high. This milestone comes after strong earnings reports for the fourth quarter and positive earnings revisions. The market has seen a surge of optimism as investors readjust their portfolios and increase their exposure to equities. The NASDAQ has been the outperformer, up over 1% today. However, the market is currently overbought and may experience some short-term volatility in the coming weeks.
Huron Finance offers robo-advisory access to private credit through blockchain technology
Huron Finance provides accredited investors with the opportunity to invest in portfolios of private credit deals through a robo-advisory platform. The use of blockchain technology ensures transparency and interoperability, allowing investors to see on-chain transactions and verify loan repayments. The platform works with syndicate partners and invests in a range of low and middle market companies in various industries. The aim is to make private credit assets more accessible to a wider investor base. The platform has seen significant interest and is targeting $25 million in assets under management by the end of the year.
Investors become more optimistic as money flows back into equities
After being underweight equities last year, investors are now becoming more optimistic and allocating more funds to the stock market. Historically, the second year after a bear market sees money flowing back into equities, and this trend is expected to continue this year. Strong earnings reports and positive earnings revisions are supporting the market's rally. However, the second year tends to be more volatile, and the market may experience short-term overbought conditions. Despite short-term concerns, this year is expected to be another positive year for equities.
The appeal of private credit grows as investors seek higher returns
Private credit, with its double-digit yields, is attracting investors seeking higher returns. The market is expected to grow significantly, with forecasts predicting it could reach $3.5 trillion in the next five years. Huron Finance aims to democratize access to private credit by offering a robo-advisory platform that allows accredited investors to invest in portfolios of private credit deals. This provides investors with diversification and simplifies the investment process. The use of blockchain technology offers transparency and interoperability, making it easier to verify transactions and track loan repayments.
Microsoft continues to be favored by investors, despite its high valuation. The success of its co-pilot feature, which is expected to be embraced by users more quickly than anticipated, is likely to drive the stock even further. While caution remains among Wall Street analysts, the positive outlook for Microsoft's earnings and user adoption is expected to outweigh valuation concerns. Microsoft's stock has reached another record high and is up 12% year-to-date.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Opinion International Affairs Columnist Marc Champion discusses Tucker Carlson’s interview with Russian president Vladimir Putin. Marc also shares his thoughts on the Israel, Hamas war. H&R Block CEO Jeff Jones talks about the company's recent earnings and the start of tax season. Ryan Detrick, Chief Market Strategist at the Carson Group, shares his thoughts on the S&P flirting with 5,000. Blake West and Mike Sall Co-Founders of Heron Finance explain using blockchain technology to provide access to portfolios of private credit deals. And we Drive to the Close with Andrew Slimmon, Senior Portfolio Manager at Morgan Stanley Investment Management. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.
