22 December Market Analysis (Free)
22 December Market Analysis (Free)
Drew McFinance
December 22, 2024
Hello McFinancers! This week’s market analysis.
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Latest Market Analysis
Index / Item | Last Weeks Price | This Weeks Price | Change |
|---|---|---|---|
S&P 500 1 | $6,051 | $5,933 | 1.95% |
Dow Jones 1 | $43,828 | $42,856 | 2.22% |
Nasdaq 1 | $19,926 | $19,579 | 1.74% |
Bitcoin 1 | $101,200 | $96,609 | 4.54% |
Ethereum 1 | $3,875 | $3,436 | 11.33% |
Gold 1 | $2,675 | $2,643 | 1.20% |
Silver 1 | $31.03 | $30.12 | 2.93% |
USD CPI Rate 2 | 3.11% | 3.01% | -0.10 |
Overall: This week has been challenging for most assets, with prices declining across the board. The Federal Reserve announced a 25-basis-point decrease in interest rates, which might typically signal a boost for asset prices. However, the Fed’s cautious tone about fewer rate cuts in 2025 than the market had anticipated led to the downturn. This serves as a reminder of market volatility and the importance of adopting a long-term perspective when investing. Such price dips often present excellent buying opportunities for disciplined investors. Another noteworthy development this week is Google’s progress in quantum computing. Quantum computing has been a major focus for companies and governments worldwide due to its potential to revolutionize research, operations, and data security. However, it also poses risks, particularly to encryption standards like SHA-256, which underpin many government systems, corporate protocols, and cryptocurrencies. While quantum computing faces challenges such as the need for large numbers of qubits, quantum entanglement, and temperature sensitivity, advancements in these areas are inevitable. Investors should monitor companies developing quantum-resistant encryption technologies, as they are likely to play a crucial role in the future.
Investors should always prioritize risk management strategies to safeguard their portfolios against potential losses. In times like these, a diversified portfolio across different asset classes—such as equities, cryptocurrencies, commodities, real estate, alternative investments, and businesses—can be crucial. It’s also wise to diversify asset types, balancing capital-gain-driven assets with those providing consistent cash flow, to build resilience against market volatility.
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* Investing can be unpredictable and volatile. Investors should always do proper due diligence to determine if assets are right for them. We are not licensed tax or financial professionals.
1 Prices are taken at 4 PM Eastern Time on Friday afternoon
2 CPI Rate is provided by Truflation
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