January 17, 2025
Hi friend 👋🏼
This week, we're looking at significant market trends, portfolio changes, and concerns about global growth this week. From real estate opportunities to the luxury sector’s rebound and a $2 million Mercedes-Benz, we’re connecting the past, present, and future of markets and design.
The Weekly Fun Fact 🤔
A rare 1957 Mercedes-Benz 300SL Gullwing recently turned heads at auction, fetching an astonishing $2 million. This iconic vehicle, celebrated for its unique doors and pioneering design, it’s a symbol of innovation and timeless engineering.
The Gullwing’s value lies not only in its rarity but also in its legacy, capturing the spirit of automotive craftsmanship from the 20th-century. From its sleek silhouette to its record-breaking performance in the 1950s, it continues to hold a special place in car enthusiasts’ hearts.
🔴 Global growth forecast to flatline 📉
The World Bank warns that global economic growth is set to stagnate at 2.7% in 2025, marking one of the weakest performances since 2019, excluding the pandemic.
Concerns are growing due to factors including possible trade tariffs imposed by the United States under President-elect Donald Trump. These tariffs, aimed at boosting the U.S. economy, could block global trade, reducing growth by 0.2% or more if retaliation follows.
As inflation remains over goal rates, global investments and living standards are at risk due to poor growth. Ayhan Kose, the Bank's deputy chief economist, stressed the urgent need for strategic policies, pointing out that there are no short cuts to maintain long-term economic growth.
🟡 Is the 60/40 portfolio a thing of the past? 📊
The traditional 60/40 portfolio — 60% stocks and 40% bonds — has been a staple for decades, but its relevance is now under scrutiny. With fluctuating markets, many investors question if this mix still provides the balance of risk and return it once promised. Alternatives like using bitcoin, real estate, or private assets are becoming more popular as fresh approaches.
Anthony Pompliano discussed whether this change is a short-term reaction to erratic times or a long-term progression in portfolio design. Investors may need to redefine diversification and embrace new asset classes in order to adjust to these developments.
🟢 Can the luxury rebound last? 💎
Since November, luxury stocks rose by 13%, beating the overall market, but whether the rally has sustained itself will be determined by future earnings releases.The sector’s first major test comes with Cartier owner Richemont’s sales report this Thursday, followed by updates from LVMH, Kering, and Hermès in the weeks ahead.
Investors are watching for signs that the challenges of the previous year are behind them and that luxury spending is vital for sustaining growth. For now, optimism remains high, but the results will tell the full story.
Interesting reads
The simplest way to double Market returns every year
Combining dividend stocks with compounding strategies can double yearly market returns.
2025 art Market trends and major exhibitions
Art market predictions and a guide to top museum openings, biennials, and exhibitions.
The best vintage Omega Speedmasters to collect
A look at the top vintage Omega Speedmasters to collect, according to experts.
What Wall Street is watching in 2025
The first bank earnings of 2025 will offer insights into markets, consumer health, and CEO outlooks.
Best countries to invest in Real Estate in 2025
Portugal, Cyprus, Dubai, Spain, and Greece lead 2025 real estate with high yields and benefits.
🎬 It’s a wrap! From financial predictions and investment strategies to iconic market moments, this week highlighted the shifting dynamics of global markets and timeless classics.