Group 1 - The core viewpoint is that gold is often sought after by investors during times of inflation fears or volatile equity markets [1] Group 2 - Investors typically turn to gold as a safe-haven asset when economic uncertainty arises [1] - The demand for gold tends to increase as a hedge against inflation and market instability [1] - Historical trends show a correlation between rising inflation and increased gold purchases [1]

Core Viewpoint - The focus is on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors, while also occasionally analyzing large-cap companies to provide a broader market perspective [1]. Group 1 - The research emphasizes the importance of small- to mid-cap companies in investment analysis due to their potential for growth and the lack of attention they receive from larger investors [1].

Core Viewpoint - The equity markets are experiencing continued gains and reaching new index milestones at the start of the new calendar year, despite rising geopolitical tensions [1]. Group 1 - The ongoing run-up in equities indicates a strong market performance [1].

Core Viewpoint - The outlook for equity markets is cautious, with stock picking remaining a potentially rewarding strategy, particularly in monetized and cash-flow backed stocks, while narratives may shift over time [1] Group 1: Market Trends - AI is identified as a long-term supportive factor for the market, indicating a multi-year trend that could benefit certain sectors [1] - Growth in the market may be limited to stocks that demonstrate strong monetization and cash flow, suggesting a focus on fundamental financial health [1] Group 2: Analyst Background - The analyst has over 20 years of experience in quantitative research, financial modeling, and risk management, emphasizing expertise in equity valuation and market trends [1] - Previous roles include Vice President at Barclays, where the analyst led teams in model validation and stress testing, showcasing a strong foundation in both fundamental and technical analysis [1] - The research approach combines rigorous risk management with a long-term perspective on value creation, focusing on macroeconomic trends and corporate earnings [1]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for being a forward-looking technology adopter, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Economic Sentiment and Inflation Metrics - The final December reading for the University of Michigan sentiment index decreased to 52.9%, marking the weakest level since November's 51 [1] - Current conditions also saw a decline, with the index dropping to 50.4%, setting a new all-time low, previously at 50.7% [2] - Expectations fell to 54.6%, the weakest since November when it was 51 [3] - The one-year inflation rate increased slightly to 4.2%, while the 5 to 10-year inflation rate remained unchanged at 3.2% [3] Market Reaction - Despite the weaker-than-expected economic data, equity markets, particularly the Dow Jones Industrial Average, reached new session highs [4] - The University of Michigan sentiment index has not aligned with typical correlations to equity market movements [4]

Inflation Analysis - Inflation is moving in the right direction, but perhaps not as fast as indicated in the report [5] - Shelter costs, a significant component of the consumer basket, are trending lower, supported by Zillow rent indices [2][3] - Imports account for 16% to 20% of goods, while goods excluding food and energy represent only about 20% of the consumer basket [3] - Inflation remains an issue, still a positive number and above the Federal Reserve's target [5][6] Investment and Market Outlook - The market anticipates 2026 to be a good period for the economy, influenced by various factors including starting valuations [7] - The focus is on whether firms can grow into their valuations, leading to a preference for small and mid-cap companies and value stocks [7] - A key aspect for the coming year is the return on invested capital, especially for investments in artificial intelligence and data centers [8] - The tax incentives in the "one big beautiful bill" are expected to drive significant investment spending in areas like data centers, buildings, computers, and machinery [8][9] - The market may react differently to economic news than expected, as seen in 2018 after the 2017 tax bill, where small caps underperformed despite initial expectations [10][12] - The next chapter in AI is about use cases and specific areas where a decent return on investment can be achieved, such as healthcare, the service sector, industrials, and logistics [16][17]

All right. I think all day long we're going to talk about whether this was a hawkish cut. Was it a neutral cut. Was it a dovish cut.What was your take. I I felt like Jac Powell's comments about the the path forward not really being clear. That was a bit hawkish, but at the same time, the bond buying on the short end that seems a bit doubbish.Seems like it has almost the same effect as a rate cut. How did you view it. >> Well, our economists think that it was of course uh less less hawkish than the market ha ...

Core Viewpoint - Many investors are becoming skeptical about the equity markets' ability to sustain a growth rate of over 20% in the coming years [1] Group 1 - There are several valid reasons contributing to the growing pessimism among investors regarding future equity market performance [1]