1. Investors are all-in on US stocks.

US households, mutual funds, pension funds, and foreign investors' financial asset allocations in US stocks hit a record 54%.

On the other hand, allocation to debt instruments like bonds has dropped by 9 percentage points to an all-time low of 18%. At the same time, cash allocation has fallen to 13%, near the lowest on record.

2. The S&P follows the path of earnings.

The next two weeks Q4 reporting season will be in full swing.

Mag-7 is expected to grow earnings 22% yoy in Q4, with the group having beaten expectations for 7 quarters in a row.

The Mag-7 vs rest spread is narrowing, but remains meaningful, with the “S&P-493” expected to grow earnings only 5% yoy in Q4.

3. Intel is rumoured to be acquired as a whole.

Given the size and nature of this transaction, the acquirer would have to be a behemoth in the industry, narrowing it down to just a handful of possible suitors.

However, with the stock heavily beaten down, the rumors were enough to spark an 11% rally. Then again, 11% doesn’t look like much after the meltdown of the last years.

4. Apple stock is now down 8% for the year.

Apple’s iPhone sales in China plunged 18% in the holiday quarter, a major setback for the company in its biggest market after the US.

5. “Das bust”

2024 was a miserable year for the German car industry’s most revered names, having collectively shed hundreds of billions of dollars in market cap.

Europe is set for a resurgence in electric vehicle sales this year with carmakers delivering more than 160 models to the market, but executives warn that profits may fall further because of regulatory costs.

6. US Tech manufaturing on the rise.

“Re-shoring” and “re-industrialization”, even without Trump.

7. The US budget deficit hit a massive $2.0 TRILLION for the full calendar year 2024.

Also, deficit spending rose from 6.4% to 6.9% GDP in 2024.

Such a high percentage has never been seen outside of wars or major economic crises.

The cumulated deficits have ballooned into a record 36 trillion total debt or 123% of GDP.

At an average cost of 3.32%, that makes 1200 billion of interests per year.

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