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Berkshire Hathaway's Big Win
Hope you're having a great Sunday! ☕📈
Here’s your weekly market recap, bringing you the biggest updates in stocks, crypto, and the economy—quick, clear, and to the point.
Stock Market
Index | Week | Month | Year |
|---|---|---|---|
DOW | -2.51% | -2.55% | +10.98% |
S&P 500 | -1.66% | -1.73% | +18.16% |
NASDAQ | -2.51% | -2.64% | +22.05% |
FTSE 100 | -0.84% | +1.10% | +12.37% |
Euro Stoxx 50 | -0.32% | +4.95% | +12.38% |
Nikkei 225 | -0.98% | -2.94% | -0.80% |
Stocks Headlines
Berkshire Hathaway (BRK-B, BRK-A): Warren Buffett announced that Berkshire Hathaway's 2024 performance exceeded expectations, with operating income rising 27% to $47.4 billion. The company now holds a record $334 billion in cash reserves, reflecting a cautious investment approach amid high U.S. stock valuations.
Alibaba (BABA): Alibaba's stock surged over 8% following reports of a partnership with Apple to introduce AI features in China. This collaboration aims to integrate advanced AI capabilities into iPhones, enhancing user experience and solidifying Alibaba's position in the AI sector.
Palantir (PLTR): Over the past three months, Palantir CEO Alex Karp has sold approximately 40 million shares, totaling $1.9 billion; this includes over 18 million shares worth more than $1 billion sold in just two weeks. These sales represent about 20% of his total ownership in the company.
Walmart (WMT): Walmart's stock recently declined 6.5% after reporting strong holiday quarter profits but issuing weaker-than-expected future guidance. Despite robust performance, analysts express concerns over high expectations and potential challenges impacting profitability.
Spotlight
Apple's (AAPL) new iPhone 16e brings an A18 chip, Face ID, and USB-C, ditching Touch ID. Priced at $599, it ships February 28 and supports Apple Intelligence features.
Crypto
Asset | Week | Month | Year |
|---|---|---|---|
Bitcoin | -1.04% | -7.08% | +90.29% |
Ethereum | +2.70 | -17.15% | -5.36% |
XRP | -6.78% | -17.44% | +382.12% |
Crypto Radar
Bybit suffered a hack, losing around $1.5 billion in ether, believed to be perpetrated by North Korea’s Lazarus Group. The exchange's assets dropped from $16.9 billion to $11.2 billion. CEO Ben Zhou revealed that 70% of client ether was stolen, triggering a surge in stablecoin withdrawals.
SEC Commissioner Hester Peirce aims to provide greater clarity for the crypto industry, seeking a legal framework that is consistent and accessible without excessive legal costs. She now heads a crypto task force at the SEC, with the potential to influence future policy.
Bitcoin mining is projected to remain profitable for at least 12 more years, as Bitcoin's price continues to outpace mining difficulty. However, as mining rewards decrease due to halvings, miners will need to depend more on transaction fees or higher Bitcoin prices to sustain operations. The increasing dominance of large institutions in mining highlights the need for more retail participation to maintain decentralization in the network.
Economy
Region | GDP Growth | Inflation Rate | Interest Rate |
|---|---|---|---|
United States | 2.30% | 3.00% | 4.50% |
United Kingdom | 0.10% | 3.00% | 4.50% |
Euro Area | 0.00% | 2.50% | 2.90% |
Economic News
The Federal Reserve's preferred inflation gauge, the PCE price index, showed an uptick, indicating persistent inflation above the Fed's 2% target. This has raised concerns about rising inflation expectations and the potential risk of stagflation, prompting the Fed to consider stricter monetary policies. The central bank is closely monitoring inflation trends to balance controlling inflation with sustaining economic growth.
Crude oil prices are set for a weekly advance, supported by concerns over supply disruptions and improving demand from the U.S. and China. Despite fluctuations, with West Texas Intermediate (WTI) oil prices closing slightly lower, the market remains volatile, driven by factors like cold weather increasing natural gas prices and potential supply constraints from Russia. This dynamic, alongside rising demand, has pushed oil prices up in recent days.
The cost of groceries has risen significantly, with the average weekly grocery spend increasing by 33% from 2014 to 2024, placing financial pressure on households. This has led to increased credit card usage and the postponement of major life events, particularly among millennials, who also face rising inflation and stagnant wages. Despite these challenges, millennials are prioritizing financial wellness, with increased savings deposits and a focus on building emergency funds while managing debt.
Disclaimer:
We are not financial advisors, and the information provided in this newsletter is for educational purposes only. Always conduct your own due diligence and consider what makes sense for your individual financial situation. Investing involves risks, and there is no guarantee of making money. In fact, you may lose money. We aim to provide you with the tools and insights to help you make informed decisions, but the ultimate responsibility lies with you.