2024’s Winners and Losers

Ricky Mulvey and Asit Sharma review the top performers of the S&P 500 in 2024, identifying key players such as Palantir (+350%), Vistra (+264%), Nvidia (+177%), United Airlines (+130%), and Axon Enterprise. They interpret these results through the lens of generative AI's influence on market behaviors, revealing a strong trend toward investments in companies overlooking traditional tech criteria. The discussion highlights the impact of clean energy on Vistra’s success and critiques United Airlines, explaining their turnaround despite skepticism.

The episode shifts focus to underperformers in 2024, with Walgreens Boots Alliance experiencing a staggering decline of 64%, followed by Intel and Moderna. The hosts delve into the intense competition faced by Walgreens from big-box retailers and the challenges in the pharmacy industry. They also reflect on Intel's struggle, which, despite favorable conditions for a comeback, has seen substantial stock losses due to management issues and a shift away from innovation.

Mulvey and Sharma discuss broader trends in the market, including the rise in popularity of gold and Bitcoin, driven by investor concerns regarding fiat money and inflation. They speculate on how 2024 was characterized by an influx of speculative investments as investors sought alternative assets, with Bitcoin gaining 120% and gold up 25%. The conversation also reviews the shifting dynamics within the US equity market, drawing attention to the steep concentration of investment capital in US markets.

In a reflective segment, both hosts share their personal investment insights from the past year. Sharma discusses exploring AI applications in investment strategies, specifically highlighting Notebook LM by Alphabet, a tool for analyzing documents. Meanwhile, Mulvey highlights the utility of tracking insider trading activities to gauge confidence in corporate leadership. They both encourage listeners to stay curious and agile in their investment approaches.