Top 10 (Part 1)
2024 was another action-packed year, and hopefully, one that was good for your portfolio. The next week will feature some special editions of Wall Street Breakfast, starting with the hottest newsletter stories from the past year. Enjoy the recaps and don’t forget to add your own memories in the comments section!
Record debt: The United States rang in the new year with a lot of red ink as the national debt surpassed $34T for the first time. The debt has since passed the $36T mark and shows no sign of stopping, especially after the latest funding battle in Congress. Will the DOGE help fix it?
Fasten your seat belt: A plane accident that could have ended in tragedy put a spotlight on the aerospace industry as a door plug on Alaska Airlines (ALK) Flight 1282 blew out and caused the cabin aboard the 737 Max 9 to rapidly depressurize. It was bad news for Boeing (BA) shareholders, who saw shares plummet 31% over the course of the year amid production problems, quality issues, a Starliner debacle and the need for a new direction. Is a comeback in store for 2025?
Supply disruption: Cargo is still being rerouted near the port of Baltimore, one of the busiest ports on the U.S. East Coast. The collapse of the Francis Scott Key Bridge killed six people and severed an interstate highway, and it will be some time before the structure is rebuilt (targeted for the end of 2028). The bridge collapsed in the middle of the night after the 95K-ton container ship Dali, chartered by Maersk (OTCPK:AMKBY), collided with one of its support columns following a last-minute distress call.
Coming of crypto age: A decades-long wait ended as the SEC finally approved 11 spot bitcoin (BTC-USD) ETFs after years of rejecting the applications. Next up were spot ethereum ETFs, as well as the Trump Bump, with crypto being incorporated into his election campaign. The developments definitely gave a big boost to the industry after Sam Bankman-Fried, the disgraced founder of FTX, was sentenced to 25 years behind bars.
Cuckoo for cocoa: Traders couldn’t get enough chocolatey goodness, with supply shortages sending cocoa futures (CC1:COM) past $5,000 per ton, and then $6K, $7K, $8K, $9K, $10K, $11K and eventually topping the $12K level. Production was dented by severe weather and crop disease, but the big run-up has also been attributed to speculation, and made cocoa beans more expensive than other popular commodities like copper.
Against the clock: Efforts to outlaw TikTok came in strong and fast as the social media app tries to prevent a ban in the United States. Fears centered around national security risks surrounding data and software, especially if information can be shared with the Chinese government, as well as worries that parent firm ByteDance (BDNCE) could use the TikTok algorithm to track and influence users with selective content promoted by Beijing.
Content rush: The way publishers approached generative AI evolved as the media industry changed its outlook on the technologies of the future. In the early innings of the AI revolution, firms banded together to stave off any threats to their bottom line, but companies later saw lucrative revenue streams in the new era of monetization, though others worried about what it might mean for their subscription-based models. See a broad list of deals inked this year.
Private credit boom: 2024 was all about the private credit market, which consists of private loans made by funds to privately owned companies. Fueling the surge were big banks pulling back on the riskier areas of lending due to increased regulation, and higher capital and liquidity rules. The emerging asset class has grown from around $250B in 2010 to about $2T today, and is set to expand by double-digit percentages in the coming years.
Top of the world: Nvidia (NVDA) surpassed Microsoft (MSFT) and Apple (AAPL) to become the world’s most valuable company. The chip giant’s shares are up 183% YTD, driven by surging demand for its popular GPUs and the generative AI revolution. It’s part of a broader story of the Magnificent 7 group of stocks, whose strength has powered indices like the Nasdaq (COMP:IND) and S&P 500 (SP500) to countless record highs throughout the year.
Social trouble: Blaming social media for a youth mental health crisis, U.S. Surgeon General Vivek Murthy pushed for a warning label on social media platforms, similar to the disclaimers placed on cigarettes 60 years ago. Florida Governor Ron DeSantis also signed a bill banning kids under 14 from joining social media platforms, and required those aged 14-15 to get parental consent before creating an account, while Australia made headlines with its “world leading” social media ban for children.
Stay tuned for Part 2 tomorrow…
Read the full article here
