Desla's Weekly Market Update: December 18, 2024

Desla's Weekly Market Update: December 18, 2024

 

Nasdaq Composite, AI Sector, Inflation Rates, and Market Reality

Last week, we saw mixed performance in the equity market, with some sectors and stocks performing well and others underperforming. Here are the main highlights: 

 

Market Overview 

 

Nasdaq Composite Index Reaches All-Time-High 

Equity markets had a mixed performance last week. However, the Nasdaq Composite rose, propelled by strong performance in the technology and communication sectors. The technology sector remains a pivotal force in driving markets higher. 

 

AI Powered Growth 

Among growth sectors, technology is leading the way due to advancements in AI. The Nasdaq composite’s growth reflects a market preference for growth stocks, especially in the AI sector.  

 

Tesla Shares Hit All-Time High 

Tesla shares recently soared, fueled by enthusiasm in AI and self-driving technologies. In fact, shares are up more than 75% since election day.

 

Broadcom Reaches Trillion-Dollar Valuation 

Broadcom, a leading semiconductor and software company, reached a trillion-dollar market cap. This achievement points to a rise in AI sales and positive earnings guidance, exemplifying Broadcom as a leader in the tech industry.  

 

Economy Updates 

 

Inflation Rates Nearing Target Levels 

Inflation rates are approaching the 2% target in most advanced economies, thanks to effective measures that have successfully slowed price increases without causing economic disruptions. However, the US and UK still have progress to make and this may delay interest rate cut decisions. 

 

Job Report Suggests Rate Cut 

Job growth and a slight rise in unemployment hint at measures to support economic stability. Moreover, the latest jobs report for November strengthened the likelihood of a December interest rate cut from the Federal Reserve. 

 

Market Reality 

The current market environment emphasizes an important reality: conventional valuation metrics often take a back seat to investor sentiment and future expectations. Some stocks are trading at valuations that appear disconnected with their intrinsic value, yet the market continues to elevate them, driven by optimism and the anticipation of transformative changes.  

 

Desla’s Insight 

At Desla Wealth Management, we don’t just follow trends; we position our clients for sustainable success, ensuring their portfolios are aligned with their long-term goals, no matter the market climate. Our disciplined approach focuses on identifying opportunities where potential returns are backed by fundamentals and strategic insight. This approach enables us to consistently offer clients specific investment strategies that balance growth and stability.  

 

Our Tactical Growth Strategy capitalizes on market trends to maximize gains while mitigating risk. Meanwhile, our Ten Stock Strategy targets mid-to-long term potential, avoiding speculative hype. 

 

Reach out to us to learn more about our investment philosophy and take the next steps towards financial excellence by integrating our investment strategies into your portfolio today. With strong earnings growth and positive earnings guidance driving stock performance, now is potentially a good time to act. 

 

Stay up to date with relevant market and investment news by subscribing to our insights page for weekly updates.  

 

This information is being provided for informational purposes only and is not intended as investment advice. For more information about our services and fees, please consult our Form ADV 2, which is available here: https://adviserinfo.sec.gov/firm/summary/310235 For a list of all recommendations we have made over the past 12 months, please contact us at 515-452-0001.