The year-end Santa rally? Total no-show. Any hopes for a New Year market rebound? Crushed. The so-called ‘Trump bump’ has dwindled to a measly 1%.
Leading the charge downhill is Tesla, skidding a hefty 20% from its peak. Elon Musk’s bromance with Trump didn’t soften the blow of Tesla’s first annual sales drop in a decade, thanks to Chinese rival BYD swiping the EV crown.
Investors bolted, dumping Tesla shares faster than a Cybertruck.
Tesla isn’t the only one. Other overstretched names like MicroStrategy (Bitcoin on steroids) and Palantir (the overnight AI star) have also seen sharp declines.
Shoutout to us at MONIIFY. We called the Tesla, MicroStrategy and Palantir declines coming weeks back. You are welcome.
It’s not all doom and gloom. Look, when the market overheats, a cooldown isn’t just normal — it’s necessary. So, while the Trump trade hit a roadblock, the bigger picture is still optimistic.
S&P 500 profit forecasts for 2025 look solid at 11% growth, up from 8% this year. That means there’s still an upside if you know where to look.
Read more: #HotStox: No Trump bump for Apple
Goldman’s 2025 cheat sheet
There’s still room for gains, if you play the right set of stocks. Here’s the investment bank breaking down some of the themes to watch in 2025:
- AI (Surprise, surprise!): The focus is shifting from infrastructure to applications. Watch Nvidia, Snowflake, Teradyne, and Sempra.
- De-regulation + M&A: Trump 2.0 could be a windfall for Citigroup, Evercore, and S&P Global.
- Resilient consumer: Kate McShane, a managing director at the bank, put it best: The end of the US consumer is always just around the corner, but no one can reach it. Stocks to watch: Burlington Stores, Norwegian Cruise, Uber, Pinterest, and ConAgra.
Read more: Bitcoin’s Trump bump: $100,000 or bust?
The Wall Street shift
Non-tech sectors are getting their moment. Bank of America is bullish on financials, consumer discretionary, materials, real estate, and utilities.
If you’re playing the S&P 500, go for the equal-weighted index. Unlike its bigger sibling, which throws 30%+ of your dollars at the Magnificent Seven, this version spreads your money across all stocks equally.
The Santa rally might’ve flopped, but there’s plenty to play for in 2025 — if you’re strategic.
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
