As traders enter the final trading week of the year, Wall Street is eagerly watching out for the Santa Claus Rally. Going by recent trends, in 2025, the rally seems less like a tech-only celebration and more like a spreading out among sectors.According to Seasonax, the S&P 500 has gained an average of 0.95% during the final trading week of the year over the past 95 years, posting a positive return 71% of the time. The Dow Jones Industrial Average has an even better record, rising an average of 1.06% over 12 ...

Venture capitalist Chamath Palihapitiya issued a stark warning to Silicon Valley this week: the growing “Stop AI” movement, championed by figures like Senator Bernie Sanders (I-Vt.), is not spreading because it is radical, but because it sounds rational to an increasingly squeezed American public.The ‘Rich-People Money Loop’Speaking on the All-In Podcast, Palihapitiya argued that the tech industry faces a catastrophic “perception issue” that threatens to derail progress if leaders do not urgently pivot from ...

There are precious few trading days left in 2025. If history is your guide — and you share the cheery disposition of the season’s round-bellied, red-cheeked representative — you might be in luck. Signs of the year-end, so-called Santa Claus rally may have emerged late last week amid investors’ concern that a rough December would leave them with the proverbial coal in their stock holdings this Christmas. SUBSCRIBE:  Receive more of our free The Daily Upside newsletter. READ ALSO: Backed by ‘Bank of Dad,’ ...

White House AI and Crypto Czar David Sacks has rejected the narrative that artificial intelligence (AI) is a threat to the American workforce, citing new data from Vanguard that suggests the technology is currently a significant driver of hiring and wage increases.Data Contradicts Displacement FearsIn a statement posted to social media platform X, Sacks dismissed the fear of widespread labor displacement as a “hoax,” pointing to statistics showing that occupations with the highest exposure to AI automation ...

LIVE Nasdaq Slides. Tech Stocks Are Falling Again. By Connor Smith The Nasdaq Composite took a plunge on Wednesday amid a flurry of selling among artificial intelligence and Big Tech stocks. The tech-heavy index dropped 1.2%. The S&P 500 fell 0.7%, even though a majority of stocks in the index were actually trading higher on the day. The Dow fell 110 points, or 0.2%, dragged down by Caterpillar and Nvidia. The iShares Semiconductor ETF was down 2.9%, while the Roundhill Magnificent Seven ETF was down 1.5%. ...

Core Insights - The article emphasizes the importance of starting an investment journey with diverse exchange-traded funds (ETFs) to mitigate risks associated with individual stock picking [1][2] ETF Selection - Selecting the right ETFs is crucial as they vary widely in focus, including growth, dividends, or mirroring the S&P 500 index [3] - Recommended ETFs for new investors include the Vanguard S&P 500 ETF, Roundhill Magnificent Seven ETF, and iShares Core High Dividend ETF, which are considered solid options for building a portfolio [4] Vanguard S&P 500 ETF - The Vanguard S&P 500 ETF is highlighted as a strong initial investment due to its representation of leading U.S. stocks and its historical average annual return of 10% [6] - It features a low expense ratio of 0.03%, translating to minimal fees, making it suitable for long-term investors [7] - The ETF offers broad market exposure and diversification, providing a sense of security for investors despite potential short-term market declines [8]

Core Viewpoint - The "Magnificent Seven" companies are pivotal in the tech and AI revolution, representing a solid investment opportunity due to their consistent track records of success [1] Group 1: Roundhill Magnificent Seven ETF - The Roundhill Magnificent Seven ETF (MAGS) is an equally weighted portfolio of Nvidia, Apple, Microsoft, Amazon, Meta Platforms, Tesla, and Alphabet, making it a strategic investment choice [3] - MAGS is priced around $67, allowing investors to enter the market with a modest investment of $500 [3] - The fund rebalances quarterly, implementing a "buy low, sell high" strategy, which can benefit investors [4] Group 2: Market Performance and Valuation - The average forward price-to-earnings ratio for the "Magnificent Seven" stocks is approximately 29, higher than the S&P 500's P/E ratio of 22, indicating premium valuations [5] - Despite high valuations, the long-term potential of these companies remains optimistic due to their involvement in major industries like AI, cloud computing, and semiconductors [6] Group 3: Financial Strength and Competitive Advantages - The "Magnificent Seven" companies have strong balance sheets and generate durable cash flows, providing a cushion against market volatility [7] - These companies possess wide economic moats, including network effects and brand value, which contribute to their competitive advantages [7] Group 4: Investment Considerations - Investors should consider the above-average volatility and concentration risk associated with MAGS, as it may experience significant fluctuations [9] - MAGS has shown a year-to-date return of 22.7%, slightly outperforming the Invesco QQQ Trust's 21.7% return, and has significantly outperformed it since its rebranding [11] - MAGS could be an appealing option for investors looking to increase mega-cap tech exposure, although it may not be suitable to replace an S&P 500 ETF [12]

Core Insights - Mega-cap growth stocks have been among the top performers in the stock market [1] - The Roundhill Magnificent Seven ETF (BATS:MAGS) includes the seven largest publicly traded corporations [1] - This ETF has consistently outperformed the S&P 500 since its inception [1]

Core Insights - Investment in AI is on the rise, benefiting top tech stocks known as the "Magnificent Seven" which include Alphabet, Apple, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla [1] - The Roundhill Magnificent Seven ETF has outperformed the S&P 500, rising approximately 21% since the start of the year compared to the S&P 500's 14% gain [2] - Despite high valuations, the long-term growth potential of the Magnificent Seven stocks remains strong, with all stocks showing positive performance over the past five years [3] Performance Analysis - Over the last five years, Amazon has increased by around 47%, while other Magnificent Seven stocks have at least doubled, with Nvidia leading at over 1,100% returns [3] - The Roundhill ETF provides a simple way to gain exposure to these high-performing stocks, which are considered blue-chip investments [5] Valuation Considerations - High valuations can pose risks; for instance, Palantir Technologies trades at over 400 times its trailing earnings, raising concerns about investment viability [6][7] - Some stocks within the Magnificent Seven have price-to-earnings ratios exceeding 50, which could negatively impact overall returns if market conditions change [8] Investment Strategy - While the Roundhill ETF has performed well, it may be prudent to consider individual stocks that are not excessively overpriced rather than investing in the ETF as a whole [11][14] - The ETF's focus on only seven stocks may limit diversification, suggesting that investors could benefit from selecting the best-priced stocks individually [13]

Core Viewpoint - Mohamed El-Erian, chief economic adviser at Allianz, warns that investments in AI-related companies may lead to significant losses, describing the current market as a "rational bubble" with a limited number of winners [1][2]. Group 1: AI Market Dynamics - El-Erian characterizes AI as a "major transformational general purpose technology," similar to electricity, but notes that the current market frenzy is lifting weaker companies alongside a few strong performers [1]. - He emphasizes that the AI boom is rational due to the substantial potential payoffs, but cautions that this will result in a relatively small number of successful companies, leading to inevitable losers [2]. Group 2: Risks Associated with AI - El-Erian identifies four major risks that the U.S. is not managing effectively: the absence of a "diffusion policy" for productivity, the threat posed by "bad actors," the management of the AI bubble, and the focus on labor displacement versus enhancement [3]. - He warns that if the emphasis remains on labor displacement, public support for AI technologies could diminish [3]. Group 3: Market Sentiment and Comparisons - The warning from El-Erian comes amid a broader debate, with figures like Michael Burry suggesting that avoiding investment may be the best strategy, while others liken the current market to a "Dotcom on steroids" [4]. - In contrast, some industry leaders, such as JPMorgan's Jamie Dimon, dismiss bubble concerns, comparing AI's potential to the early days of the internet, while Goldman Sachs defends high valuations based on strong fundamentals [5]. Group 4: Investment Opportunities - A list of AI-linked exchange-traded funds (ETFs) is provided for investors, showcasing their year-to-date and one-year performance, indicating a range of investment options in the AI sector [6][7]. - The market remains volatile, with the S&P 500 showing a year-to-date increase of 16.25% and reaching a new 52-week high, while the tech-heavy Nasdaq 100 experienced a decline of 1.47% recently [7][8].