HAPPY FRIDAY TO THE STREET
Hedge fund returns are in, and the results are “solid” — a word which here means, “some even edged out the broader market!”
Of the funds tracked by Business Insider, only six outperformed the S&P 500’s 16% gain in 2025, with the top performer, AQR Apex, coming in just under 20% annually. Meanwhile, some of the biggest names, such as Citadel and Millennium, fell far short, each notching yearly yields of just over 10%.
Look, we’re not saying we could do what they do. But when money parked in an index fund performs decisively better on the year, we do start to wonder why they even try. Work smarter, not harder, right?
🟥 | US stocks were mixed to start 2026 as chip gains lifted the S&P, while weakness in software and EVs led to a red day for the Nasdaq Composite.
📈 | One Notable Gainer: Sable Offshore $SOC ( ▲ 30.04% ) popped after a federal court denied efforts to block its California pipelines.
📉 | One Notable Decliner: AppLovin $APP ( ▼ 8.24% ) shares fell after breaking $700 support amid profit-taking and technical selling.
— Brooks & Cas
Presented by Wall Street Zen
The headline pretty much says it all. Wall Street Zen is offering free and immediate access a new special report:
The sad fact is that most Wall Street analysts are very bad stock pickers. On average their recommendations do a whopping 26% worse than the S&P 500.
Gladly, with access to the right data we can measure the performance of all analysts. This led us to discovering an elite group whose Buy rated picks actually beat the market by 98.4% last year.
If you want to know what they are recommending now, just click the link below...
MARKET SNAPSHOT
All Stock Heatmap. Credit: Finviz
Market Movers
SANDISK, ASML, BAIDU
Sandisk $SNDK ( ▲ 15.95% ) amid strong data center demand.
ASML $ASML ( ▲ 8.78% ) extended momentum from last year despite no clear catalyst.
Baidu $BIDU ( ▲ 15.03% ) announced plans to spin off its chip unit and list it in Hong Kong.
Wayfair $W ( ▲ 6.13% ), RH $RH ( ▲ 7.96% ), and Williams-Sonoma $WSM ( ▲ 5.19% ) rose after President Trump delayed a planned tariff hike on upholstered furniture.
TSMC $TSM ( ▲ 5.17% ) was granted its annual US license to import equipment into China.
To monitor hot stocks in real time, check out The Street Feed.
Tomorrow's Trade Idea, Today
GLOBAL STOCKS HAD A BIG YEAR
A Strong Year Outside The US
Global diversification paid off in 2025. Non-US stocks outperformed US equities by a wide margin, catching many investors by surprise after years of American dominance.
At first glance, the explanation seemed simple. The dollar weakened, lifting foreign returns when translated back into dollars. But while the currency tailwind mattered, according to the Wall Street Journal, it doesn’t tell the whole story.
Strip out the dollar’s move, and many overseas markets still delivered stronger gains than the US.
Earnings And Valuations Did The Heavy Lifting
Strategists who broke down global returns found a common driver across regions. Valuations expanded meaningfully outside the US as investors reassessed earnings durability.
Markets like Japan and South Korea delivered strong local currency returns even without help from foreign exchange. Parts of Europe also posted sizable gains on the back of earnings growth and higher multiples, not just a stronger euro.
The valuation gap tells the story. The premium investors were willing to pay for US stocks narrowed meaningfully in 2025, though US equities still trade at a richer multiple than the rest of the world. According to WSJ, that leaves room for further normalization, if global earnings remain resilient.
Diversification Is Broader Than Geography
Global exposure does not mean avoiding technology. The largest non-US equity benchmarks still feature major tech companies, from chipmakers to platform businesses.
But in 2025, technology stocks moved less in lockstep across regions, making diversification within tech itself more valuable. Picking individual winners became harder, while owning a broader mix reduced risk.
Whatever comes to pass in 2026, the lesson from 2025 is simple: global diversification does not rely on one factor working perfectly. Its strength comes from not needing everything to go right at the same time.
Presented by Wall Street Zen
The headline pretty much says it all. Wall Street Zen is offering free and immediate access a new special report:
The sad fact is that most Wall Street analysts are very bad stock pickers. On average their recommendations do a whopping 26% worse than the S&P 500.
Gladly, with access to the right data we can measure the performance of all analysts. This led us to discovering an elite group whose Buy rated picks actually beat the market by 98.4% last year.
If you want to know what they are recommending now, just click the link below...
OVERHEARD ON THE STREET
CNN: China’s BYD overtook Tesla $TSLA ( ▼ 2.59% ) as the world’s top EV seller after 2025 sales surged, while Tesla deliveries fell.
CNBC: Stellantis $STLA ( ▲ 4.87% ) revived the V-8 Ram TRX, planning a $100K 2027 model launch late 2026 amid easing emissions rules.
Axios: The US scaled back proposed tariffs on Italian pasta, cutting threatened duties above 100% to roughly 24%–29%.
TechCrunch: India ordered X to restrict Grok after obscene AI content complaints, threatening loss of legal protections.
GuruFocus: Rivian Automotive $RIVN ( ▼ 1.52% ) delivered 42K vehicles in 2025, missing forecasts as deliveries fell 18% amid weakening EV demand.
WEDNESDAY’S POLL RESULTS
Are you bullish or bearish on the market in 2026?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐂 Bullish — “I am always bullish, but that does not mean the market’s gonna go up all the time.”
🐻 Bearish — “A bad December will continue into the new year.”