Blackstone's Outlook and the Case Against Bonds
Episode publishedPodcast: Lumida Wealth : Non-Consensus...Lumida Wealth : Non-Consensus Invest Beyond the Ordinary
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Welcome to non consensus investing. I'm Ram Alowalia, your host and CIO at Lumida Wealth, where we specialize in the craft of alternative investments. At Lumida, we help guide clients through the intricacies of managing substantial wealth so they don't have to shoulder the burden alone. Through this podcast, we draw back the curtain to reveal the strategies employed by the best in the business for their high net worth clients so that you too can invest beyond the ordinary.
How's everyone doing? It's Monday, 2 PM EST. Hope everyone had a great weekend. I've been slowly installing different toys for my kids. I got them over the holidays. We set up a Nintendo Switch this weekend for my 6 year old and and 4 year old. So playing Mario Kart, they had a lot of fun. I have a 2 year head start on beating them in video games. So I'm gonna enjoy and savor that while I can before they they crush me, and I can never look back. So it's a cool tradition to pass on. I think video games are good for cognitive function. I think they're good for decision making. I think the best v
Microsoft, Meta, Nvidia, Amazon, and Google grew earnings at 44%. In 2024. Stocks were up a lot, but bill earnings were up tremendously. 44% is extraordinary. If you look at the S and P 500 as a whole, because of the tailwind of the Mag 5, the S and P 500 as a whole was up 9%. If you look at the other 495 companies in the S and P, their earnings only grew 2%. So it was pretty anemic earnings growth in the S and P 500 in 2024 relative to the magn five. If you look at it now, what's expected, what the consensus forecast is for 2025. We see the magn five inch growth comes from 44% down to 20%. Ho
much of that has already started, Brad? What do you know what q 4 was? That deceleration. I'm just There
there's certainly a deceleration in these businesses. Remember, they're coming off of easy comps. And by the time you get to 2025, it's very hard comps. It's still growing 20% on the massive earnings and revenue basis these companies do. Pretty pretty extraordinary.
So, yeah, key headlines, Mag 7 is generating earnings. So during the bulk of earnings, the S and P doesn't mean that other companies are not. We owned the app, for example, still own it. There are plenty of other companies generate earnings too. But let's take a look at this other clip too. Actually, before we go there, I'm gonna show this. If you break out where in maximum the earnings growth is coming from, I think that's the question is how do you position because valuations are high. So take a look at this. This is the Mag 7 4 PE, and this line here is called Tesla. So Tesla is once again
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