This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: The Federal Reserve on Wednesday, in a decision with two dissents, held the main interest rate steady at a range between 3.5% and 3.75%, noting robust economic growth and signs of stability in the unemployment rate. Policymakers cautioned that inflation persists above their 2% goal while not expressing the same degree of concern about weak hiring that prompte ...

Core Insights - The U.S. equity markets showed optimism due to potential monetary easing and strong AI-related earnings, but sentiment cooled later in the quarter [1] - The Meridian Contrarian Fund delivered a net return of 2.18% in Q4 2025, underperforming both the Russell 2500 Index (2.22%) and the Russell 2500 Value Index (3.15%) [1] - The firm is focusing on systematic investment strategies to identify opportunities amid macroeconomic uncertainties, particularly with a new Fed Chair and high valuations in AI investments [1] Company-Specific Insights - The Honest Company, Inc. (NASDAQ:HNST) was highlighted as a leading detractor, with a one-month return of -3.10% and a 52-week loss of 60.19% [2] - As of January 27, 2026, The Honest Company, Inc. had a stock price of $2.50 and a market capitalization of $279.477 million [2] - The company is focusing on natural baby-care products and has made strategic decisions to exit less profitable markets, which the firm views positively for long-term growth potential [3]

Market Overview - U.S. equity markets in Q4 2025 were influenced by optimism regarding potential monetary easing and caution related to economic growth and valuations [1] - Early gains were attributed to strong AI-related earnings and a rate cut by the US Federal Reserve in October, but sentiment cooled later due to mixed signals from the Fed [1] - Large caps rose 17.4% for the year and 2.4% in the quarter, while small caps gained 12.8% for the year and 2.2% in the quarter [1] - Value stocks outperformed growth stocks, returning 3.3% versus 1.2% for the quarter [1] Fund Performance - Meridian Growth Fund delivered a return of -0.39% (net) in Q4 2025, underperforming the Russell 2500 Growth Index's return of 0.33% [1] - The firm is monitoring factors that may impact market returns, including changes in monetary policy and the sustainability of AI investments due to high valuations among hyperscalers [1] Company Spotlight: Tandem Diabetes Care, Inc. - Tandem Diabetes Care, Inc. (NASDAQ:TNDM) was highlighted as a leading contributor in the Meridian Growth Fund's Q4 2025 investor letter [2] - The company specializes in technology solutions for diabetes management, particularly advanced insulin delivery systems [3] - Tandem's stock traded between $9.98 and $37.93 over the past 52 weeks, closing at $20.20 on January 26, 2026, with a market capitalization of $1.37 billion [2] - The stock experienced a one-month return of -10.26% but gained 33.77% over the last three months [2] - The company is well-positioned to capture market share in a growing addressable market, as many Type 1 diabetes patients still manage insulin manually [3]

Market Overview - U.S. equity markets in Q4 2025 were influenced by optimism regarding potential monetary easing and caution related to economic growth and valuations [1] - Early gains were attributed to strong AI-related earnings and a rate cut by the U.S. Federal Reserve in October, but sentiment cooled later due to mixed signals from the Fed [1] - Large-cap stocks rose 17.4% for the year and 2.4% in the quarter, while small caps gained 12.8% for the year and 2.2% in the quarter [1] - Value stocks outperformed growth stocks, returning 3.3% versus 1.2% for the quarter [1] Fund Performance - Meridian Growth Fund delivered a return of -0.39% (net) in the quarter, underperforming the Russell 2500 Growth Index's return of 0.33% [1] - The firm is monitoring factors affecting market returns, including potential changes in monetary policy and the sustainability of AI investments due to high valuations among hyperscalers [1] Company Spotlight: Exact Sciences Corporation - Exact Sciences Corporation (NASDAQ:EXAS) is recognized as a leading contributor to the Meridian Growth Fund, specializing in cancer screening and diagnostic test products [2][3] - As of January 26, 2026, Exact Sciences' stock closed at $102.51 per share, with a one-month return of 0.60% and an impressive 85.00% increase in value over the last 52 weeks [2] - The company has a market capitalization of $19.468 billion [2] - Exact Sciences is best known for its at-home colorectal cancer screening test, Cologuard, and saw stock performance improve due to signs of growth and the introduction of a new test [3] - The stock performance was further enhanced by Abbott's announcement to acquire Exact Sciences at a significant premium [3]

Summary of J.P. Morgan's China Metals Activity Tracker Industry Overview - **Industry Focus**: Base metals, specifically copper, aluminium, and zinc in China - **Date of Analysis**: Week ended January 16, 2026 Key Insights - **Inventory Trends**: Significant re-stocking of base metals occurred in late 2025 and early 2026, with copper, aluminium, and zinc inventories starting the year at higher-than-average levels [1][8] - **Copper Demand**: Weaker domestic demand for copper in China is attributed to semi-finished product producers halting production due to lower orders and challenges in hedging copper exposure during price rallies [1] - **Copper Inventory Levels**: Copper inventory reached 293,000 tons at the end of the reporting week, the highest for this period since 2021, indicating a continuation of the re-stocking cycle into the Chinese New Year [8][30] - **Aluminium and Zinc Trends**: Similar trends observed for aluminium and zinc, with inventories also above average levels as the Chinese New Year approaches [8] Macroeconomic Context - **Chinese Economic Indicators**: Money supply (M2) increased by 8.5% year-over-year in December 2025, indicating a potential boost in economic activity [2] - **Monetary Policy**: The People's Bank of China (PBOC) implemented monetary easing measures, including a 25 basis point cut for structural policy tools, aimed at supporting policy-driven sectors such as technology and green initiatives [2] Market Outlook - **Copper Demand Outlook**: Positive outlook for global copper demand and mining equities, supported by a projected RMB 4 trillion investment in Chinese grid infrastructure, which is a 40% increase compared to the previous five-year plan [2] - **Substitution Risks**: Analysis suggests that substitution of copper is unlikely to significantly mitigate supply deficits before 2030 [2] Additional Observations - **Steel Production**: China's steel output reached an annualized run rate of 905 million tons, showing a 23% increase compared to the previous period, indicating seasonal acceleration ahead of the Chinese New Year [21] - **Steel Inventory**: Steel inventory levels were flat week-over-week but up 24% year-over-year, starting the year at relatively high levels [28] Conclusion - The analysis indicates a robust re-stocking phase for base metals in China, driven by macroeconomic factors and seasonal demand patterns. The outlook for copper and other metals remains positive, although challenges in demand and production adjustments may impact market dynamics in the near term.

Group 1 - The Federal Reserve is expected to have a stronger bias toward monetary easing in 2026, which may lead to a divergence from other global central banks [3][4] - The Bank of Canada may follow a similar easing direction as the Fed, albeit reluctantly and incompletely [4] - The Bank of Japan is likely to firm its policy rate amid a complicated transition process [4] Group 2 - BNY Investments has released a 2026 outlook, indicating potential shifts in central bank policies [2] - The BNY Enhanced Dividend and Income ETF (BEDY) aims to blend capital appreciation and income through its investment strategy [5] - As of December 31, 2025, BEDY's net asset value (NAV) has increased by 18.24% year-to-date, demonstrating the effectiveness of its equity exposure approach [6]

Core Insights - China's metal markets are experiencing a speculative frenzy, with trading values in Shanghai increasing by over 260% year-on-year, driven by investments in commodities such as copper, nickel, and lithium [1][2]. Trading Activity - Open interest in the six base metals traded in Shanghai has reached a record high, indicating strong investor sentiment amid expectations of global supply tightness and resilient industrial demand [2]. - The total turnover for the six base metals contracts, along with gold and silver futures, hit 37.1 trillion yuan (over $5 trillion) in December, marking a significant increase in trading activity [3]. - December 29 was noted as the busiest trading day for copper in over a decade, reflecting heightened market activity [3]. Market Drivers - The surge in metal prices is supported by monetary easing from central banks, which typically encourages investment in non-yielding assets like metals [4]. - A weaker dollar is also contributing positively to the market, as investors engage in the so-called debasement trade [4]. - Significant macro allocation flows into commodities have been observed, with some equity funds betting on the rise of commodity futures alongside stock prices [5]. Price Movements - Nickel prices increased nearly 6% on the Shanghai Futures Exchange, while aluminum contracts reached their highest levels since 2021. Copper prices surpassed 100,000 yuan per ton, despite some bearish indicators such as rising inventories [6]. Other Exchanges - The Guangzhou Futures Exchange, which includes contracts for lithium, palladium, platinum, and silicon, recorded a turnover of approximately 5.6 trillion yuan in December, more than six times higher than the same month in 2024 [7]. Market Concerns - There are concerns regarding whether the rapid price increases have been excessive, with some new capital being speculative in nature. The market is expected to test trading skills, as easy profits may not be achievable simply by holding positions [8].

Core Viewpoint - The recent drop in silver prices presents a favorable entry point for investment, despite a significant increase in prices throughout 2025 [1][11]. Price Movement - Silver prices surged from approximately $30 to an all-time high of $80 in 2025, but experienced a sell-off with a decline of up to 10% on December 29 [1][2]. - The iShares Silver Trust (SLV) saw a rise of 162% during the year but fell by about 8.5% on the same day [2]. Market Dynamics - The sudden drop in silver prices is attributed to concerns of a speculative bubble and profit-taking by traders [3]. - The current price of SLV is $64.42, with a day's range of $63.53 to $66.88 and a 52-week range of $26.57 to $71.22 [3]. Demand Factors - Silver's industrial applications are significant, particularly in AI data centers, electric vehicles, solar cells, batteries, and medical equipment [4][5]. - The demand for silver is expected to rise due to the ongoing expansion of AI infrastructure and electric vehicle production [5][8]. Supply Factors - There is a supply crunch for silver, with the U.S. Department of the Interior designating it as a critical mineral due to its importance in AI and other technologies [7]. - The global electricity consumption for data centers is projected to increase significantly, indicating a growing demand for silver [8]. Economic Environment - The Federal Reserve's easing monetary policy is favorable for silver prices, as it boosts industrial activity and weakens the dollar [9]. - The accessibility of silver compared to gold makes it a more attractive investment for retail investors during precious metal rallies [10]. Investment Outlook - The expectation of continued interest rate cuts by the Federal Reserve, along with the ongoing growth in AI and renewable energy sectors, positions silver as a strong investment opportunity for 2026 [11].

Core Viewpoint - The article identifies 13 beaten-down stocks recommended by analysts for investment, highlighting the potential for recovery amid a strong market outlook driven by the AI boom and favorable monetary conditions. Market Overview - The S&P 500 has shown strong double-digit gains, averaging 13% growth per year over the last decade, while the Nasdaq has increased by over 18% due to the performance of key tech stocks [2] - Wall Street strategists predict continued strong market performance in 2026, with JPMorgan forecasting a 13% to 15% rise in the S&P 500, supported by corporate earnings growth [2] - UBS Group AG anticipates the S&P 500 could exceed 7,500 next year, driven by robust US earnings growth and increased capital flow into tech stocks [3] Stock Performance Insights - Despite overall market gains, some stocks have underperformed, with certain stocks dropping to 52-week lows, losing over 30% of their value [3] - John Stoltzfus from Oppenheimer Asset Management suggests that recent declines in stock prices are minor adjustments rather than signs of a significant downturn [4] Methodology for Stock Selection - The selection of the 13 best beaten-down stocks involved screening companies trading within 0%–10% of their 52-week lows and down more than 30% year-to-date, focusing on those popular among hedge funds in Q3 2025 [6] Individual Stock Highlights - **Snap Inc. (NYSE:SNAP)**: Current share price is $7.60, with a year-to-date loss of -33.26% and an upside potential of 27.94%. Analysts expect Snap to reach 474 million daily active users in Q4, despite a slight decline [9][11] - **PayPal Holdings, Inc. (NASDAQ:PYPL)**: Current share price is $59.86, with a year-to-date loss of -30.17% and an upside potential of 30.19%. PayPal is seeking to establish a bank in the US to enhance its lending operations and reduce reliance on third parties [13][15][16]

Group 1: Market Performance - Mexican financial assets are experiencing one of their strongest years in decades, significantly outperforming Wall Street benchmarks [1] - The iShares Mexico ETF surged more than 50% year to date, marking its best year since 1999, while major U.S. benchmarks like the Vanguard S&P 500 ETF gained roughly 17% [2] - The Mexican peso appreciated by over 14% against the U.S. dollar, on track for its best annual performance since 1993 [3] Group 2: Monetary Policy Impact - The Bank of Mexico (Banxico) has cut interest rates by 300 basis points since the start of the year, reducing the policy rate to 7%, which has supported asset prices and investor confidence [4] - The aggressive monetary easing has helped offset trade-related uncertainties and injected liquidity into the economy [4] Group 3: Individual Stock Performance - Several individual stocks in Mexico have shown remarkable returns, with Industrias Peñoles S.A. de C.V. surging over 260%, Gentera SAB DE CV climbing over 100%, and both CEMEX SAB DE CV and Grupo México SAB DE CV rising more than 80% [5] Group 4: Economic Context - Despite the booming markets, Mexico's underlying economy is contracting, with GDP falling 0.2% in the third quarter after flat growth in the second quarter [7] - Banxico has revised its 2025 growth outlook down to 0.3%, projecting a gradual rebound to 1.1% in 2026 and 2% in 2027, indicating fragile near-term economic momentum [7]