Get Me Out of 2024... I Want Out...

We move to 2025 starting tomorrow with a handful of housekeeping tips for our readers. Our 2025 Outlook will arrive around 12 pm on Wednesday.

Action to Take: As markets stumble into year-end, the cost of 2024's impressive returns comes into focus. While the S&P 500 will close out another year boasting better than a 20% gain, we experienced incredible fiscal spending (above 6% of GDP) and Treasury alchemy to boost markets after April, which required the Bank of Japan to pivot after the August Nikkei crash.

With negative momentum and refinancing challenges ahead, patience is key to achieving our base target of 6,450 in what promises to be a volatile 2025. With markets squarely negative on this final trading day, do nothing and instead take time to digest our complete 2025 outlook, which will arrive in your inbox later this morning. The real work begins Thursday.

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Capital Flows: Market breadth continues to weaken, with 72% of stocks now trading below their 50-day moving average.

On Monday, the S&P 500 fell 1.07%, breaking this key technical level, while the Nasdaq 100 (QQQ) remains the only major index…