وَلَا تَقْفُ مَا لَيْسَ لَكَ بِهِۦ عِلْمٌ ۚ إِنَّ ٱلسَّمْعَ وَٱلْبَصَرَ وَٱلْفُؤَادَ كُلُّ أُو۟لَـٰٓئِكَ كَانَ عَنْهُ مَسْـُٔولًۭا
“And do not pursue that of which you have no knowledge. Indeed, the hearing, the sight, and the heart—about all those [one] will be questioned.” (Qur’an, 4:29)
Market Snapshot
▼ S&P 500 -1.94%
▼ SPUS -1.70%
▲ MSCI World Islamic +1.14%
*Market data for last week ending Friday
Last Week’s Review
The Nvidia Keynote at CES
- New GPUs with AI capabilities and significant performance upgrades
- Project DIGITS: A desktop supercomputer for AI developers
- Cosmos AI Platform: A new platform focused on advancing physical AI and robotics.
- Toyota Partnership: Nvidia will power the next generation of Toyota’s self driving
Delta Air Lines Earnings Report
Delta reported a strong Q4, with a 44.5% earnings increase and a 10% rise in revenue. The airline projects a growth of over 10% in EPS for 2025 and anticipates free cash flow of $3-$5 billion annually over the next few years.
This Week’s Outlook
Apple Inc. Earnings Report (January 16):
Apple is set to release its Q1 2025 earnings report, covering the holiday season. Analysts expect a year-over-year increase of 8.26% in earnings per share. The results of Apple’s iPhone 16 sales will be indicative of global discretionary spending.
Curated Reads
Microsoft Leads the AI Revolution with $80 Billion Bet
Microsoft is set to invest $80 billion in AI-enabled data centers by July, with over half of the funds focused on U.S. projects. These centers will support AI training, deployment, and cloud applications, positioning Microsoft at the forefront of the global AI race. This massive commitment reflects the company’s vision of AI as a transformative technology driving productivity and innovation across industries. [Read]
How to See Through Wall Street’s Annual Forecasts
Wall Street’s yearly market predictions are not only wildly inaccurate—they’re also designed to anchor your expectations and generate trades. Forecasting short-term returns for assets like stocks, real estate, or Bitcoin is fundamentally flawed, as these are inherently unforecastable. Instead of relying on these projections, investors should focus on long-term strategies and evaluate assets on their intrinsic merits, not their speculative price targets. Shifting discussions with advisors from predictions to goals can lead to better financial outcomes. [Read]
The Dollar as a Geopolitical Weapon
The U.S. strategy of weaponizing the dollar shows signs of backfiring. While measures like sanctions and asset seizures initially yielded results, they’ve spurred global moves to reduce reliance on the dollar. This policy reflects a broader tension: reliance on financial dominance without addressing deindustrialization. The consequences? Eroding trust in the dollar, emerging financial alternatives, and shifting economic power. [Read]
Chart of the Week
According to McKinsey, >80% of companies with a high ROIC continue to have a high ROIC ten years later.
This chart underscores a critical truth in investing: exceptional businesses tend to stay exceptional. McKinsey’s analysis reveals that more than 80% of companies with a return on invested capital (ROIC) exceeding 25% in 2003 maintained that high level a decade later. This isn’t just a cherry-picked statistic; it’s indicative of the power of capital allocation.
While conventional wisdom often suggests that strong returns will revert to the mean, the data challenges that notion, demonstrating that high-quality companies can sustain their performance far longer than most expect. Identifying these businesses isn’t just about finding temporary winners—it’s about understanding the structural factors that allow them to outpace their peers over time. In a world where durable success is scarce, ROIC becomes a key factor for spotting true long-term compounders.
Your Questions
No new questions this week.
You may ask your questions in our Community or email them to support@muslimxchange.com
Responses