Stocks have risen sharply over the last year, helping the Dow Jones finally break the 36,000 barrier.
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1. Young people will carry the bull-market torch for a decade. That’s according to Fundstrat’s Tom Lee — he said the stock market is on track for a decade-long bull market. The S&P 500, according to Lee, could hit a monstrous 19,349 by 2029 as the most populous American generation enters its prime earning years and forms families.
“We have this 14-year window ahead of us where we have a demographic tailwind,” Lee said. “If this plays out we still have a very strong bull market ahead.”
His bull thesis is supported by demographic data. Many mega-cap companies today — Costco, Cisco, Oracle and others — were founded by business leaders who were in their 30s. Plus, US patent issuances tend to spike when the country sees a surge of 30 to 50 year olds.
Similarly, the current metaverse boom, which is fueled in large part by young people, gives investors another reason to be eager for the future.
Numbers to know:
- Lee’s price target represents a potential market upside of 313%.
- He estimates a compounded annual growth rate of 20%, well above the market’s historic average of between 7 and 10%.
- The most populous age in America right now is about 31 years old.
2. U.S. stock index futures are up slightly following the holiday weekend. But airline stocks fell in premarket trading after thousands of cancellations amid the rising Omicron variant and bad winter weather.
3. Holiday sales rose 8.5% despite supply issues and Omicron. Shoppers spent their dollars at the fastest pace in 17 years, even amid higher prices and product shortages. More on the holiday spending spree here.
4. Top strategists from Goldman Sachs, JPMorgan and elsewhere sounded off on their predictions for the S&P 500 next year. Some believe the market will continue to rally, though others voiced concern over a coming pullback. Here’s how the firms say you should invest your money.
5. Earnings on deck: Shimamura Corp., Okuwa, and Sanyo Shokai, all reporting.
6. Many on Wall Street are pumped about the metaverse, but some remain less enthusiastic. Critics say the idea is hugely overhyped, and question whether the idea can really take off. Others are even calling the metaverse a regulatory minefield.
7. The market for NFTs exploded in 2021, but this is just the beginning, according to Nifty Gateway creator Griffin Cock Foster. He said the long-term picture for these digital assets is strong — and NFT naysayers will come around soon, just like they did with the internet.
8. Chamath Palihapitiya’s four blockbuster SPAC mergers have tumbled 32% this year. Investors have cooled on growth stocks in 2021, and even the exec once dubbed the SPAC King has felt the slump. Other star stock-pickers like Cathie Wood have also faltered in their stock bets.
9. UBS analysts zeroed in on the best opportunities in the stock market. They compiled a unique list of stocks based on risk/reward skews and sector weightings. See the list of 22 picks here — and why each pick is a compelling name to buy heading into the new year.
10. The crypto research analyst who predicted the rise of the metaverse broke down why he expects bitcoin to hit six figures in 2022. He also anticipates ethereum to surpass $9,000 mid-year. The digital asset pro also shared the 16 high-conviction altcoins on his radar.
Compiled by Phil Rosen. Feedback? Email firstname.lastname@example.org or tweet @philrosenn.
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