Core Insights - Goldman Sachs forecasts a modest annual return of 6.5% for the S&P 500 over the next decade, prompting a consideration for a more active investment approach rather than a passive one [1] - Despite a long-term muted return outlook, Goldman Sachs anticipates 2026 to be a strong year for American stocks, projecting a target of 7,600 for the S&P 500, with potential for an 11% gain in the year [3] Investment Strategies - Investors are encouraged to explore opportunities outside the U.S. market and consider mid- and small-cap stocks for better returns [2] - The iShares Core S&P Small-Cap ETF is highlighted as a valuable option for gaining exposure to small-cap stocks, especially as the Fed lowers interest rates and M&A activity increases [5][6] - The Vanguard FTSE Developed Markets Index Fund ETF outperformed the S&P 500 with nearly 31% gains last year, suggesting international markets may offer attractive investment opportunities despite potential challenges in maintaining such performance [7][8] Valuation Considerations - The Vanguard FTSE Developed Markets Index Fund ETF has a trailing price-to-earnings (P/E) ratio of 17.1, which is appealing for value investors compared to the higher P/E ratios associated with the S&P 500 [9]

Market Performance - Wall Street ended 2025 positively, with the S&P 500 gaining 16.39%, marking its third consecutive year of double-digit gains [1] - The Nasdaq Composite surged 20.36% due to ongoing enthusiasm for artificial intelligence (AI), while the Dow Jones increased by 12.97%, impacted by its limited exposure to technology stocks [1] Market Recovery - The strong year-end performance indicates a recovery from a significant sell-off at the beginning of 2025, which was driven by low-cost AI initiatives from China, Trump tariffs, persistent inflation, and high interest rates [2] - In April 2025, the S&P 500 had dropped nearly 19% from its February peak, briefly falling below the 5,000 mark, narrowly avoiding bear-market territory [3] Economic Factors - Market stability returned in May after a turbulent April, which was marked by tariff-related issues [2] - The Federal Reserve implemented three rate cuts in 2025, starting in September, but momentum was disrupted by a prolonged U.S. government shutdown and concerns over AI overvaluation [4] Year-End Trends - The anticipated "Santa Claus" rally did not materialize, as the final trading days of 2025 were characterized by profit-taking, reflecting investor caution regarding AI overvaluation and related concerns [5] Dividend ETFs - In a volatile market, dividend ETFs have become attractive, as investors seek income amidst uncertainty [6] - Not all dividend stocks serve the same purpose; high-yield stocks provide current income, while those with dividend growth indicate quality investing [7] Top Performing Dividend ETFs - First Trust STOXX European Select Dividend ETF (FDD) increased by 56.1%, with an annual yield of 3.99% [9] - iShares International Select Dividend ETF (IDV) rose by 44.2% [10] - WisdomTree International High Dividend ETF (DTH) gained 37.3%, yielding 3.80% annually [13] - First Trust Dow Jones Global Select Dividend ETF (FGD) increased by 36%, with a yield of 5.62% [14] - SPDR S&P International Dividend ETF (DWX) rose by 26.1%, yielding 4.44% annually [15]

Group 1: Vehicle Deliveries - In the fourth quarter, Tesla's total vehicle deliveries were 418,227, representing a 15% decline from 495,570 vehicles delivered in the same period last year [1] - For the full year, Tesla delivered 1.64 million vehicles, which is an 8% decrease compared to 2024, marking the second consecutive year of annual sales declines [2] - Tesla's fourth quarter delivery total fell short of Wall Street forecasts, which were just under 423,000 vehicles [1][2] Group 2: Market Analysis - Analysts speculated that Tesla's early release of delivery estimates was a strategy to mitigate the impact of a poor delivery report [3] - Cox Automotive's Kelley Blue Book estimated that Tesla's US sales fell to 125,900 units in the quarter, down 22.4% [4] - The loss of the $7,500 EV tax credit at the start of the quarter contributed to the decline in deliveries [3] Group 3: Future Prospects - Despite the smaller-than-expected fleet size, the narrative around Tesla's robotaxi remains strong, according to analysts [5] - Tesla's CEO Elon Musk mentioned plans for 1,000 vehicles in the Bay Area and over 500 in Austin, although tracking suggests these levels may not be achieved [6] - Analysts believe that the transition to an AI-driven valuation for Tesla is beginning, with significant developments expected in full self-driving and autonomous services [7]

Group 1 - Venture Global, Inc. (NYSE:VG) is considered one of the best stocks under $25 to buy now, despite Wells Fargo reducing its price target from $11 to $8 while maintaining an Equal Weight rating [1] - The company is expected to incur cash operating expenses of $462 million in Q4 2025 and $2.0 billion in 2026, which are influenced by its expanding asset base, including vessels, trains, and customers, as well as rising labor prices and development costs related to CP2 and the Plaquemines expansion [1][2] - Venture Global has signed a long-term LNG sales and purchase agreement with Japan's Mitsui & Co., following two other long-term LNG deals with European partners, including a 20-year agreement with Atlantic-See LNG to purchase at least 0.5 million tons per annum (mtpa) of U.S. LNG starting in 2030 [3] Group 2 - The company is actively involved in the construction and development of liquefied natural gas production, with projects including Calcasieu, Plaquemines, CP2, CP3, and Delta [4]

Core Insights - Distributed Energy Resources (DERs) are increasingly recognized for their ability to enhance grid reliability and resilience, particularly during peak load periods, thereby reducing the risk of brownouts and blackouts [2][3] - The integration of advanced technologies, including artificial intelligence (AI) and vehicle-to-grid (V2G) systems, is facilitating the optimization of energy consumption and the deployment of DERs [6] Group 1: Benefits of DERs - Utilities can benefit from Demand Response (DR) and Demand-Side Management (DSM) by lowering operational costs and avoiding expensive peaker plants, while also providing potential equity ownership opportunities for customers [1] - DERs support peak-shaving and improve overall reliability, with virtual power plants (VPPs) effectively managing load resources to respond to grid conditions [1][2] - The global market for battery energy storage systems (BESS) is projected to grow to over $120 billion to $150 billion by 2030, with more than $30 billion expected in the U.S. alone [4] Group 2: Role of Microgrids - Microgrids are essential for deploying DERs, offering real-time monitoring and rapid response capabilities to grid events, thereby enhancing overall performance [3][4] - San Diego Gas & Electric has launched four microgrids to improve grid reliability, demonstrating the practical application of energy storage in supporting critical infrastructure [3][4] Group 3: Advanced Technologies - Advanced technologies such as smart thermostats and electric water heaters are crucial for managing energy consumption based on grid conditions, promoting the adoption of DERs [6] - Vehicle-to-grid (V2G) technology allows electric vehicles to act as mobile distributed energy resources, providing power back to the grid during peak demand periods [6]

Group 1: Global Equity Funds - Global equity funds experienced significant inflows of $26.54 billion in the last week of 2025, driven by optimism regarding AI-driven market gains and a positive corporate earnings outlook [1] - The MSCI World Index achieved a 20.6% increase in 2025, marking its strongest annual performance since a 24.05% gain in 2019 [1] - Over the past year, global equity funds recorded approximately $239.76 billion in net inflows, a decrease from roughly $453.58 billion in 2024 [2] Group 2: U.S. and International Equity Funds - U.S. equity funds saw an addition of $16.89 billion, marking the second consecutive week of net purchases, while European and Asian equity funds attracted inflows of $5.75 billion and $2.67 billion, respectively [3] - Sectoral equity funds gained a net inflow of $1.73 billion, with financial, real estate, and industrial sectors attracting net inflows of $574 million, $413 million, and $337 million, respectively [3] Group 3: Global Bond Funds - Global bond funds faced net outflows of $1.97 billion, marking their first weekly sales since April 16, despite attracting $891.74 billion in net inflows in 2025 [4] - Short-term bond funds experienced withdrawals of approximately $5.23 billion, following a significant net purchase of $10.16 billion the previous week [5] Group 4: Money Market and Commodity Funds - Investors allocated $79.4 billion into money market funds, ending a three-week selling trend [5] - Gold and precious metals commodity funds continued to attract interest, with net weekly inflows of roughly $2.03 billion for the eighth consecutive week [6] Group 5: Emerging Markets - In emerging markets, bond funds recorded a net outflow of $1.1 billion, ending a five-week buying trend, while equity funds saw purchases worth $242 million [8]

Group 1 - AT&T Inc. is recognized as one of the 7 Best Fortune 500 Dividend Stocks to invest in currently [1] - The company operates as a major telecommunications provider in the US, offering services such as mobile wireless (5G and 4G), fiber and broadband internet, enterprise communications, and entertainment [2] - Citi has reduced its price target for AT&T from $32 to $29 while maintaining a 'Buy' rating, anticipating solid Q4 results and alignment with its fiscal 2025 outlook [3] Group 2 - The Federal Communications Commission (FCC) approved AT&T's acquisition of wireless spectrum licenses for $1.02 billion, which is expected to enhance network coverage, capacity, and performance [4] - The approval was contingent upon AT&T's commitment to discontinue its diversity, equity, and inclusion programs, a requirement imposed by the FCC since the Trump administration [5]

Core Insights - The Vanguard S&P 500 ETF (VOO) is highlighted as a strong investment option, particularly in light of rapid advancements in AI technology [1] - The long-term performance of a stock is closely tied to the underlying business's return on capital, with examples illustrating the impact of different capital returns over extended periods [1] - The effect of taxes on investment returns is emphasized, showing how tax treatment can significantly alter the effective annual return over long holding periods [1] Investment Analysis - A business that earns 6% on capital over 40 years will yield similar returns for investors, regardless of initial purchase price [1] - Conversely, a business with an 18% return on capital over 20 to 30 years can provide substantial returns even if purchased at a high price [1] - The difference in effective returns due to tax treatment can be substantial, with a 3.5% difference in annual returns over long periods being particularly impactful [1]

Core Viewpoint - Piper Sandler's Craig Johnson predicts a modest upside for the S&P 500, estimating a target of 7,150, which represents a 5% increase, but anticipates a choppy market ahead that will test investor patience [1][4]. Group 1: Market Outlook - Johnson expects the S&P 500 to experience a "jump, slump, and pump" pattern rather than a smooth upward trajectory, even with the influence of AI on stock prices [3][5]. - The market is anticipated to grind higher throughout the year, but not in the manner most investors desire, as early momentum may fade into a weaker middle period due to political noise and investor fatigue [4][5]. Group 2: Historical Context and Volatility - Midterm election years are historically volatile for U.S. stocks, with turbulence linked to political power shifts and policy uncertainty [7]. - The S&P 500 has shown an average return of 14% with a split Congress, compared to nearly 10% under unified Democratic control since 1932, indicating that political dynamics significantly impact market performance [7]. - The pre-midterm period typically sees weak gains, with the S&P 500 averaging only 0.3% in the 12 months leading up to midterms, which is significantly lower than the long-term average of 8.1% [7].

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is highlighted as a leading investment opportunity in the AI sector, with strong growth potential despite its already significant market position. Group 1: Company Overview - TSMC is the world's largest foundry, holding approximately 72% of the global foundry market share by revenue as of Q3 2025, with Samsung as the closest competitor at 7% [5] - The company has a market capitalization of $1.6 trillion, with a current stock price of $303.88 and a gross margin of 57.75% [6] Group 2: Market Position and Growth - TSMC has increased its market share from 65% in mid-2024 amid rising demand for AI chips, indicating its strong competitive position [6] - The company is expected to continue benefiting from Nvidia's substantial order backlog of $500 billion, which is likely to drive TSMC's revenue growth [9][12] Group 3: Financial Metrics - TSMC's price-to-earnings ratio is just under 30 times the full-2025 earnings estimates, with analysts projecting an average earnings growth of nearly 29% annually over the next three to five years [13] - The price/earnings-to-growth (PEG) ratio of approximately 1 suggests that TSMC is attractively valued at its current price, making it a compelling investment [14] Group 4: Strategic Partnerships - TSMC has a close partnership with Nvidia, which is crucial for the production of advanced graphics processing units (GPUs), including upcoming architectures like Rubin [8][11]