Proflex Market Update - Wk 50

Dear Subscribers,

Welcome to another weekly review of markets and what to expect in coming days.

The S&P 500 continued its strong uptrend, closing at all time high closing price once more last week. As we approach the end of 2024, markets remain bullish across various asset classes, including stocks, gold and bitcoin.

As discussed during the Investor Day sessions, there’s no immediate reason for concern, but as always, we must remain vigilant for potential grey swan events. Let us review what else is driving markets and what are key attention areas.

Investor Day was awesome!

This past weekend, I had a fantastic time connecting with many of you at our Investor Day event. It’s always a privilege to hear diverse perspectives and interpretations in the ever-complex world of finance. Thanks for taking time out and making it happen.

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Your engagement and curiosity make these sessions invaluable, and I look forward to incorporating your feedback into our future discussions and strategies. Please watch out for our follow up communication regarding sessions slides, recording and our team's efforts to collect feedback for continuing to improve.

Key Economic Data: CPI, PPI, and the Fed’s Next Move

This week’s CPI and PPI reports will be pivotal in shaping the Fed’s views, especially now that the elections are behind us. Inflation data could either bolster the Fed’s case for rate cuts or force a more cautious approach if inflation shows signs of stalling.

The upcoming FOMC meeting is particularly significant, as it will include the final dot plot projections from the current committee before the Trump administration takes office. Cooling bond yields, following November’s surge, are easing pressure on the Fed, but this week’s data will determine their next steps.

Geopolitical Developments: Uncertainty extends further

1. Middle East:

The Asad regime in Syria was overthrown by a rebel government supported by Turkey and armed by the U.S. As the Biden administration winds down, there’s a clear urgency to complete its unfinished geopolitical agendas before Trump takes office. Trump has repeatedly emphasized that the U.S. should reduce its involvement in foreign conflicts, adding pressure on the current administration to expedite military support to allied groups.

2. Russia and Europe:

In Ukraine, Russia continues to gain ground, and Europe faces growing political turmoil as it braces for Trump’s presidency. Trump’s stance that NATO must take more responsibility for its own defense rather than relying on U.S. funds adds further uncertainty to the region.

3. South Korea:

In Asia, political instability in South Korea is rising as the President survived an impeachment vote, sparking massive protests. This unrest has negatively impacted Asian markets, adding to the region’s economic and geopolitical uncertainties.

Bitcoin Surges Past $100k Amid Volatility

Last week, Bitcoin crossed the $100k milestone, an incredible achievement that brought with it the expected volatility around such psychological levels. Bitcoin briefly dipped to $92k before recovering as inflows surged, driven by competition between ETFs, MicroStrategy, and a limited supply on exchanges and OTC desks.
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Adding to the excitement, more state actors are exploring Bitcoin as part of their reserve assets, intensifying the game theory dynamics driving adoption. As we look ahead to 2025, we appear to be entering the next major wave of Bitcoin adoption growth, with the institutional and geopolitical landscape becoming increasingly favorable.

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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