Proflex Market Update - Wk 49

Dear Subscribers,

Welcome to another weekly review of markets and how we are seeing the tape.

The S&P 500 continued its strong uptrend, closing above the 6000 mark for the first time.

Markets are benefiting from a Goldilocks environment, where GDP growth remains robust, interest rates are being cut, and corporate earnings, while slowing, still show upside potential driven by the AI trade and favorable economic policies.

While inflation remains a risk, there are no immediate signs of it accelerating significantly, leaving investors in a sweet spot for now.

Holiday Week Boosts Consumer Confidence

The holiday season brought great news for markets, with consumers turning out in record numbers. According to Mastercard, Black Friday online sales rose 14.6% year over year, while in-store sales saw a modest increase of 0.7% year over year. These figures highlight the growing dominance of e-commerce and the resilience of consumer spending, a critical driver of economic growth as we head into December.

Sector Review: Post-Election Shifts

Since the election, we’ve observed notable changes in sector performance:

• Consumer Discretionary and Financials are leading the way, buoyed by expectations of robust consumer spending and a more favorable regulatory environment under the new administration.

• Tech and Energy have taken a backseat, with slowing momentum in AI-driven stocks and a pullback in oil prices.

• Healthcare is under pressure, with fears mounting around the Trump administration’s policies, which are perceived as anti-big pharma. Investors are closely watching how these policy changes may unfold in the coming months.

Crypto Enthusiasm Grows with Pro-Crypto Sentiment

The crypto sector is buzzing with optimism following the Trump administration’s pro-crypto stance. While details are still emerging, there is significant hope for new ETFs, tax benefits, and a more favorable regulatory landscape.

The announcement of Gensler’s resignation has added to the excitement, as the crypto community eagerly awaits Trump’s pick for the next SEC chair. This shift marks the end of the Biden administration’s hawkish stance on crypto, and while it’s too early to predict exact outcomes, the industry is clearly gearing up for a more supportive environment.

Bitcoin is consolidating below $100k mark and inflows continue to mount. Traditionally, holiday season is great for Bitcoin in a bull run and with altcoins picking up steam, we are seeing bulls gaining confidence.

Looking Ahead

With markets at record highs, strong consumer spending, and optimism across key sectors, the tone is positive as we enter the final month of 2024. While risks like inflation and geopolitical tensions remain on the radar, the current environment offers plenty of opportunities for investors. Stay tuned for more insights and actionable ideas in the weeks ahead!

Proflex All-Access Performance Hits New Highs

Proflex Growth Gazette, the flagship portfolio in All-Access, has performed exceptionally well, achieving more than 2x of S&P500 returns in consecutive years. And Proflex Crypto Pulse is having second year with triple digit returns.

This success underscores the importance of our growth-focused strategies and proactive risk management during both bullish and uncertain market periods.

Best regards,

Raman Bindlish

Editor-in-Chief,

Blockstart Research

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