May 14, 2025

I recently learned that Goldman Sachs has raised its S&P 500 targets, showing optimism towards tariff relief. The bank’s strategists have increased their six-month forecast to 6,100, citing lower tariff rates, better economic growth, and reduced recession risk. Additionally, the chief economist has lowered recession odds to 35%, attributing it to a smaller hit to GDP growth and reduced risk of higher Sino-U.S. tariffs causing production delays. Other Wall Street analysts have also raised their S&P 500 forecasts, with Ed Yardeni and Wells Fargo Securities’ Christopher Harvey predicting higher finishes for the index in 2025.

NRG Energy has made a significant AI bet by acquiring an asset portfolio valued at $12 billion from private equity firm LS Power, reflecting confidence in the growth of generation demand, especially from AI data centers. This move has led to a positive response from investors, boosting NRG Energy’s shares by 26% to an all-time high. In other news, Basic Capital is offering a platform that allows savers to borrow $4 for every $1 saved in their retirement accounts to diversify their investments. This innovative approach focuses on leveraging retirement funds for investments beyond traditional options like stocks and bonds.

A new trend in leveraging retirement accounts for investments has emerged, with Basic Capital offering a platform that allows savers to borrow funds for additional investments. The use of leverage to buy bonds and stocks is highlighted, with a focus on generating positive carry to cover interest payments. Additionally, the concept of Bitcoin treasury companies, where public companies accumulate Bitcoin to invest further in digital assets, is gaining traction. The article also touches upon carbon credits and the challenges of measuring and verifying the impact of conservation projects on carbon emissions, raising ethical and operational concerns.

In the finance industry, there are various paths to success, with individuals starting early in trading stocks or stumbling into finance after pursuing other interests. The competitive nature of the industry is evident in intense recruitment processes for university finance clubs, where membership can lead to coveted internships and job opportunities. Within investment banking, a clear mentorship structure exists, with each level guiding and mentoring the one below it. The competitive nature is also seen in the race to recruit talent earlier, with students preparing for club admissions as soon as they enter college. Recent news includes UnitedHealth’s CEO replacement, softer-than-expected inflation figures, and developments in the tech and healthcare sectors, shaping the future of the financial industry.

Stay Well!