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- Your Daily Dose Of Knowledge! December 20, 2024 - #234
Your Daily Dose Of Knowledge! December 20, 2024 - #234
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Welcome Back,
Hi there, and happy Friday! I hope you all had a wonderful week. Today we are back to discuss the most recent changes seen in the stock market over the past couple days. Enjoy!
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Stock Market Investing
Market Recap:
Yesterday, the healthcare sector showed significant gains, with the S&P 500 closing up just 0.25%, fueled by less then strong performances from Pfizer (PFE) and Eli Lilly (LLY). Pfizer down 1%, while Eli Lilly saw a 1.4% decrease , energy stocks lagged as oil prices fell to $71.60 per barrel, reflecting growing concerns about global demand. The NASDAQ remained flat, while the Dow Jones saw modest gains.
S&P 500: +0.25%
NASDAQ: +0.1%
Dow Jones: +0.3%
Oil Prices: $71.60 per barrel
Stocks to Watch:
Pfizer (PFE): Down 1% yesterday, Pfizer’s new cancer treatment has shown a 75% effectiveness rate in early trials. Trading at $25/share, analysts predict it could hit $40 by mid-2025 if regulatory approval is granted.
Upstart Holdings (UPST): Shares dropped 7.7% yesterday to $67.66/share, but its AI-driven lending platform has caught analysts’ attention. With increased adoption of AI in fintech, Upstart could rebound and reach $100/share within the next 12 months.
Today’s Stock Market Tip:
Future Stock Predictions:
The renewable energy sector is set for explosive growth as global governments ramp up green energy initiatives. Enphase Energy (ENPH), a leading solar technology provider, could see its stock rise from $66/share to $150/share by the end of 2025 due to increasing demand for solar installations. Similarly, Plug Power (PLUG) is positioned to benefit from hydrogen fuel investments, with potential to grow from its current $2.25/share to $9/share within the next year.
DeFi: Shaping the Future of Finance
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Economic Conditions
The latest Federal Reserve minutes revealed no immediate plans for rate hikes, keeping the benchmark rate steady at 5.5%. However, persistent inflation in core areas like housing and food, up 3.4% year-over-year, is pressuring consumer spending. Despite this, unemployment remains low at 3.9%, signaling a resilient labor market. Retail stocks like Target (TGT) and Walmart (WMT) could be affected as consumer discretionary spending slows.
Is It Time to Buy Small-Cap Stocks?
While large-cap stocks like Apple (AAPL) dominate the market, small-cap stocks often outperform during periods of economic recovery. These stocks, defined as companies with market caps under $2 billion, tend to grow faster when the economy stabilizes.
Similarly, CarParts.com (PRTS), at $.93/share, could benefit from a surge in demand for aftermarket auto parts as people hold onto older cars longer.
However, small-cap stocks come with higher risks. They are more volatile and sensitive to macroeconomic factors. Investors should diversify and avoid putting all their capital into this category. Still, with careful selection, small caps can offer 20-30% returns in a bullish market, making them worth a closer look for those seeking high-growth opportunities.
Key Takeaways:
Market Recap: Healthcare stocks altered the S&P 500 up 0.25%, while oil prices fell to $71.60 per barrel.
Stocks to Watch: Pfizer could climb to $40/share, and Upstart Holdings has rebound potential.
Stock Market Tip: Use moving averages to identify upward or downward trends.
Predictions: Renewable energy stocks like Enphase Energy may see strong growth in 2024.
Economic Update: Inflation remains a concern, but unemployment is steady at 3.9%.
That’s All For Today
I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.
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