With three consecutive double-digit return years in the market, many younger investors don't really know much else other than "market go up." Of course, for older investors who have lived through the GFC, dot-com bubble, or previous downturns in the 1990s or 1980s, it's not a straight line higher. And in fact, the longer of a stretch we go with valuation multiples expanding and the economy booming,
Yes, it would have to be rates for some reason or other jumping up. I find that remarkably unlikely. I don't think that would happen. Price growth jumping to a point whereby affordability declines further? I don't see that happening either. So I think all in all, modest improvement across the board is one that is the most likely scenario.
The world's richest individuals accumulated a record $2.2 trillion (£1.7 trillion) in additional wealth during 2025, according to the Bloomberg Billionaires Index, with just eight billionaires accounting for around a quarter of the gains. The surge pushed the combined net worth of the world's 500 wealthiest people to $11.9 trillion, fuelled by booming equity markets, a rally in cryptocurrencies and metals, and renewed investor optimism following Donald Trump's election victory in 2024.
Hedge fund managers delivered another strong year in 2025, rewarding investors who poured hundreds of billions of dollars into the industry. Through November, hedge funds gained 10.8% in 2025, according to industry research firm PivotalPath's composite index, putting the industry on pace to eclipse 2024. Nearly every major strategy posted positive returns. But it wasn't the same story as 2024, when large hedge funds led the way to a stellar year for the industry. This year, it's the small hedge funds that have ruled.
Fueling upside, Nvidia ( NASDAQ: NVDA) is racing even higher after Reuters said the company was looking to start shipments of its H200 chips to China early next year. "The report, which cited people familiar with the matter, said that the shipments are anticipated to total between 5,000 and 10,000 chip modules, or approximately 40,000 to 80,000 of H200 chips, added CNBC."
The kicker for Wednesday was that various media outlets reported that Blue Owl Capital ( NYSE: OWL) may not fund the $10 billion data center for OpenAI, which in turn hammered Oracle Corporation ( NYSE: ORCL). Blue Owl had been in talks with Oracle about funding a 1-gigawatt facility for Michigan, but the spiraling increase in debt was reported to have turned the tables, at least for now. That led to steep losses across the major indices, with the Nasdaq taking the biggest hit, closing down 1.81% at 22,693.
Futures are trading higher on Wednesday as we reach the midpoint of the last full trading week of the year. Sellers once again took their toll on two of the major indices, while the Nasdaq squeaked out a minimal gain after being down around the noon hour. The Dow Jones Industrial Average closed down 0.62% at 48,114, while the S&P 500 was last down 0.44% at 6800. The Nasdaq pulled out a small win for the Bulls, finishing the session at 23,111, up 0.23%.
These institutions are experiencing a golden spring in their businesses. Between Tuesday and Wednesday, Wall Street's biggest banks reported their financial results. These institutions have boosted their profits, exceeding all analysts' forecasts. The sector is experiencing a golden age, thanks largely to the exuberance of the stock market and the boom in corporate dealmaking, despite the uncertainty about the U.S. economy.
On a number of measures, equity market valuations appear stretched, particularly for technology companies focused on Artificial Intelligence, it said. This, when combined with increasing concentration within market indices, leaves equity markets particularly exposed should expectations around the impact of AI become less optimistic.
