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- 😐 How Stubborn Inflation Is Threatening The Market Rally
😐 How Stubborn Inflation Is Threatening The Market Rally
Plus, where the real smart money is investing, and more
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Happy Friday Eve! Markets shot up after Trump’s election, but now the Fed is warning that inflation is still here - which may slow down rate cuts, and thus slow down the rally. Meanwhile, here’s where the real smart money is investing.
—Josh Enomoto
Plus, if you’re interested in directional wagers on index options, check out today’s sponsor.
MARKET RECAP
Yesterday: Stocks dipped as Target’s weak outlook weighed on the consumer sector, while European shares rose. Nvidia posted Q3 revenue of $35.1B, up 94% YOY and beat earnings expectations, driven by strong AI demand.
On Our Radar: Key economic data ahead in December with jobs and inflation data that might sway the Fed to cut rates or not on December 18. But today, numbers on existing home sales will give a preview of how hot the economy is running.
TOP STORY
Fed Governor Michelle Bowman just said that inflation is still high, and warned against cutting interest rates again.
As Wall Street has been pushing stocks higher on the promise that rate cuts were coming, here’s what the return of inflation fears means for investors.
FIVE ZINGERS
AI Dominance: While machine intelligence may seem like a narrative that’s long in the tooth, tech giant Nvidia continues to impress. Here’s why the CEO believes the enthusiasm for AI is only beginning.
Taking Off: Delta’s Investor Day revealed the company’s three-to-five-year financial framework. Here’s why investors might want to add to their frequent flyer miles.
High Times: TV personality Dr. Mehmet Oz is a curious nominee to lead Centers for Medicare and Medicaid services. Cannabis investors especially may want to read between the lines on this one.
Decentralizing Policy: With a new administration comes the possibility of significant fiscal reforms. Here’s why that makes Coinbase CEO Brian Armstrong bullish for cryptocurrencies.
Boxed In: The recent boxing match between Jake Paul and Mike Tyson appears to have been little more than a cynical cash grab. Netflix may be stuck paying the price.
BENZINGA ADVERTISEMENT
Editor’s Note: Every quarter, Tim Melvin tracks the 13F filings at the SEC. These are the reports filed by money managers of all stripes that show what the funds owned during the most recent quarter. By comparing the current list to the prior quarter, Tim comes away with a clear picture of what institutions are buying. Here’s what he’s seeing the real smart money doing right now:
When I started in the business, it took several days past the deadline to get a copy of 13f filings. I would go through the current and previous filings with a ruler and a yellow highlighter to track the changes. It was laborious but profitable. Today, the filings are made available instantly, and the portfolios and changes are posted to the internet right away.
The Thundering Herd of Wall Street and the Instant Experts of the Internet will flock to read the filings of the best-known money managers and investors. Obviously, Warren Buffett gets a lot of attention. So do Carl Icahn and Cathie Wood. Bill Ackman also garners some attention. The number of people who dig deeper to find managers that are doing business away from the spotlights and consistently delivering high returns is small.
The famous investors are famous because they did well over time. However, they now manage billions of dollars, and their opportunity set is limited to large-cap stocks. You can do okay with their stocks, but if you want better than okay, you have to dig deeper.
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