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Hi and welcome back to a Sunday stock market update. Today we will be discussing what important changes we saw on Friday as well as a few things to keep in mind as we enter the new year. Enjoy!

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Stock Market Investing

Market Recap:

Friday, the energy sector took the spotlight as oil prices surged, with Brent crude closing at $74.75 per barrel, bolstered by OPEC’s announcement of production cuts. The Dow Jones gained 0.5%, driven by strong performance in energy stocks like ExxonMobil (+0.2%) and Chevron (+0.1%). Meanwhile, the NASDAQ slipped 0.2%, weighed down by tech stocks such as Amazon (-0.8%) and Meta (-0.8%) due to concerns over rising Treasury yields. The S&P 500 was flat, reflecting mixed investor sentiment across sectors.

S&P 500: +0.0%
NASDAQ: -0.2%
Dow Jones: +0.5%
Oil Prices: $74.75 per barrel

Stocks to Watch:

ExxonMobil (XOM): Closing up +0.2% Friday, ExxonMobil benefitted from rising oil prices and continued optimism around energy sector demand. Trading at $106.6, analysts suggest it could reach $130 if oil prices maintain upward momentum.
AMD (AMD): Down -0.1%, AMD’s recent dip follows cautious guidance on semiconductor demand. However, with upcoming product launches in AI-focused chips, some see this as a buying opportunity. Current price: $126.
Costco (COST): Down -0.23%, Costco reported slightly lower membership renewal rates. Its current price of $956 is near its all-time high, but analysts still see long-term growth.

Today’s Stock Market Tip:

Future Stock Predictions:

The renewable energy sector is expected to experience significant growth over the next five years, driven by $1 trillion in projected global investments and government subsidies in the U.S. Analysts predict stocks like NextEra Energy (NEE) could climb from its current price of $72 to $110 by the end of 2025 as solar and wind energy projects scale. Similarly, Enphase Energy (ENPH), currently at $74, could see gains as demand for home energy storage systems rises, with a target of $120 in 12 months.

Economic Conditions

The U.S. economy continues to grapple with rising interest rates, with the Federal Reserve signaling no rate cuts in 2024. The 10-year Treasury yield hit 4.9%, pressuring growth stocks, particularly in the tech sector. However, job growth remains robust, with unemployment at 3.9%, signaling resilience in labor markets. Inflation, at 4.2% YoY, continues to challenge consumer purchasing power, particularly in sectors like real estate and consumer goods.

The Case for Investing in Renewable Energy Stocks Now

The global transition to renewable energy is accelerating, offering a prime opportunity for investors. Countries worldwide are committing to aggressive clean energy targets, with the U.S. aiming for 50% renewable energy by 2030. This shift is driving demand for solar, wind, and battery storage technologies, making companies like NextEra Energy and Enphase Energy highly attractive.

Unlike traditional energy companies, renewable firms benefit from government incentives, such as tax credits for solar panel installations or grants for wind farms. Analysts estimate the sector could grow at a CAGR of 11% over the next decade, creating trillions in new market opportunities.

However, the sector is not without risks. Regulatory changes, high capital requirements, and competition are challenges to consider. Diversifying your renewable energy portfolio by including both established giants like First Solar (FSLR) and emerging players can mitigate risk while maximizing potential returns. As the world races to achieve net-zero emissions, early investors in this sector stand to benefit significantly.

Key Takeaways:

• Market Recap: Oil surged, boosting the Dow Jones by +0.7%, while tech dragged the NASDAQ down -0.5%.

• Stocks to Watch: ExxonMobil, AMD, and Costco offer diverse opportunities based on energy trends, AI, and retail strength.

• Stock Tip: Use sector rotation to adjust your portfolio based on economic cycles.

• Future Predictions: Renewable energy stocks like NextEra Energy could rise significantly by 2025.

• Economic Conditions: Inflation and rising interest rates continue to pressure growth sectors.

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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