🚨 Market Volatility, Klarna’s IPO, & Is $Costco Overvalued?

• 📈 Market Indices Update

• 📢 Top 3 Market Stories

• 🔎 Rich & Powerful Are Buying

• 🔥 Underrated & Overrated Stocks

• 📊 One Chart

• 🚀 Biggest Market Movers

• 📅 Upcoming Economic Events

• 🤔 Market Trivia

📈 Market Indices Update

Here's a summary of the week-to-date performance across major indices, commodities, and financial instruments:​

Market Indices & Treasury Update

• S&P 500: ↓ 2.3% to 5,638.94 – The index experienced its first correction since 2023, reflecting ongoing market volatility. ​

• Dow Jones: ↓ 3.1% to 41,488.19 – Concerns over trade policies and potential government shutdowns . ​

• Nasdaq: ↓ 2.4% to 17,754.09 – Tech stocks continued with sell-offs. ​

• Gold : ↑ 4.89% to $2,990.00/oz – Investors sought safe-haven assets.

• 10-Yr Treasury Yield: ↓ 0.94% to 4.316% – Investors moved towards safer government bonds. ​

• EUR/USD: 1.0800 (+0.2%) – The euro strengthened against the dollar amid global economic concerns.

• USD/JPY: ¥148.00 (-0.3%) – The dollar weakened against the yen.

• Bitcoin: ↑ 4.41% to $84,060 – The cryptocurrency market saw gains.

Note: All data is as of market close on March 14, 2025.

^{_{Data as of market close, 4:00pm ET}}

📢 Top 3 Market Stories You Should Care About

​1️⃣ Consumer Sentiment Drops – Inflation Worries Up (Source)

• 📉 Consumer sentiment slumps to lowest since 2022 – index falls to 57.9.

• 🔥 Inflation fears surge – expectations jump to 3.9%, highest since 1993.

• 💼 Job market worries grow – uncertainty weighs on spending.

🔎 Why It Matters: Weak sentiment could slow spending & impact Fed rate decisions.

2️⃣ Trade War Fears & Gold Hits Record High (Source)

• ⚠️ Trump threatens 200% tariffs on EU wines & spirits.

• 💰 Gold soars past $3,000/oz – a new all-time high!

• 📉 Stocks tumbled midweek, but recovered Friday.

🔎 Why It Matters: Trade tensions + inflation fears = volatile markets ahead.

3️⃣ Klarna ($KLAR) Files for U.S. IPO (Source)

• 📄 Confidential filing submitted – plans to go public in the U.S.

• 💵 Aiming to raise over $1 billion – targeting a valuation above $15 billion.

• 📈 Reported 24% revenue surge – earnings of $21 million after previous losses.

• ⚠️ Was once a pandemic-era darling valued at $46 billion in a SoftBank-led funding round

🔎 Why It Matters: Klarna's IPO could set the tone for fintech valuations and investor appetite.

🔎 What 5 Rich & Powerful Are Buying

📈 Best Buy CEO Corie Barry – $1M Purchase $BBY ( ▼ 0.52% ) (Source)
→ Acquired 13,500 shares at ~$72.92 each on March 11.​
→ First insider purchase since becoming CEO in 2019.​
→ Stock down 17% YTD amid tariff concerns.

📈 AmEx Director Michael J. Angelakis – $1M Purchase $AXP ( ▼ 0.73% ) (Source)
→ Bought 3,700 shares at ~$269.89 each on March 7.​
→ First insider buy in 2025; stock down 12% YTD.

📈 Control Empresarial de Capitales (Owned by Carlos Slim) – $191M Buy $PBF ( ▼ 0.18% ) 
→ Acquired 4.38M shares at an average of $43.54 each.
→ Now holds 19.9% of PBF Energy.
→ Stock surged +6.8% post-announcement.

📈 Sempra Director James C. Yardley – $500K Purchase $SRE ( ▼ 0.36% ) (Source)
→ Acquired 7,160 shares at ~$69.81 each.
→ Increased holdings by 130.1%. ​

📈 Tenaya Therapeutics 10% Owner – $25M Purchase $TNYA ( ▼ 1.65% ) (Source)
→ Bought 35,714,300 shares at $0.70 each.​
→ Increased holdings by 46.6%

🔥 Underrated Stock of the Week: Yeti Holdings $YETI ( ▼ 0.95% ) 

📚 Company Overview: Yeti Holdings Inc. is renowned for its premium outdoor products, including coolers, drinkware, and gear designed for rugged use. The company has cultivated a strong brand identity among outdoor enthusiasts and is expanding its product lines to cater to a broader audience.​

📊 Key Financials & Metrics:

• Stock Price: $32.17​

• P/E Ratio: 15.7x

• Market Cap: $2.6B

• EV/EBITDA: 8.3x

• Revenue Growth: +5.1% QoQ

• EPS Growth: +5.6% YoY​

• Net Profit Margin: 9.6%​

• Debt-to-Equity (D/E): 23.3%​

• ROE (Return on Equity): 24%

• Beta (Volatility): 2.15x

• Analysts’ 12-Month Target: $43.94 (36.6%)

• 30-Day Change: -15.4% | YTD Change: -16.5%​

💪 Pros:

• Strong Brand Loyalty: Yeti's reputation for quality has fostered a dedicated customer base, supporting consistent sales growth.​

• Product Line Expansion: The introduction of new products, such as backpacks and luggage, opens additional revenue streams.​

• Solid Financial Health: Low debt levels and robust profit margins, stable foundation for future growth.​

💩 Cons:

• Premium Pricing: Yeti's higher price points may limit market penetration among cost-conscious consumers.​

• Competitive Market: The outdoor products industry is competitive, with numerous brands vying for market share.​

💰 Hot Take: Is Costco $COST ( ▼ 0.75% ) Overvalued?

📚 Company Overview: Costco Wholesale Corp. operates a global chain of membership-only warehouse clubs, offering a wide range of products from groceries to electronics. Known for its competitive pricing and bulk sales model, Costco has established a strong presence in the retail sector.

📊 Key Financials & Metrics:

• Stock Price: $903.92​

• P/E Ratio: 52.8x (!)

• Market Cap: $401B

• EV/EBITDA: 30.9x

• Revenue Growth: +9% QoQ

• Net Profit Margin: 2.9%

• Debt-to-Equity (D/E): 31%

• Analysts’ 12-Month Target: $1,067 (+18%)

• 30-Day Change: -15.7% | YTD Change: -1.35%​

🐂 Bull Case (Why It Could Keep Rising):

• Resilient Sales Performance: Despite economic challenges, Costco's U.S. same-store sales grew by 8.6% in February.

• Strong Membership Model: The company's membership fee revenue increased by 7% YoY, reaching $1.19 billion, indicating sustained customer loyalty.

🐻 Bear Case (Why It Might Decline):

• Elevated Valuation Multiples: Costco's P/E ratio of 52.8x is significantly higher than industry peers, suggesting a potentially overvalued stock. ​

• Decelerating Growth: The company's revenue growth has slowed to 5.02% YoY, indicating potential challenges.

• Macro Risks: Inflation and tariffs could lead to more cautious consumer spending, impacting Costco's sales and profitability. ​

📊 One Chart That Explains Everything

📈 S&P 500 vs. Stock Picking: Why You Should Just Buy the Index

A lot of people ask: "What stocks should I buy?" But here’s the truth—if you’re in it for the long haul, beating the S&P 500 is insanely hard.

📊 Why the S&P 500 Wins

✅ It goes up over time – 10% average annual return since 1928.

✅ Beats 85% of active fund managers – Even the pros struggle to outperform.

✅ Diversification built-in – 500 top companies = fewer bad surprises.

✅ Low fees & no headaches – No stock research, no stress.

✅ Liquidity – Buy or sell anytime, no waiting for the market to wake up.

🚀 Why Stock Picking & Day Trading Fail

❌ Most traders lose money – Data shows over 90% of day traders fail long-term.

❌ Market efficiency – If a stock is a great deal, big investors already bought it.

❌ Time & effort – Researching stocks is a full-time job.

💡 The Chart That Says It All

Look at the growth of $10,000 invested in the S&P 500 vs. active funds over 20 years.

💰 S&P 500: $46,600
📉 Active Funds: $26,500

Long story short? Stop guessing, start growing. Buy & hold the S&P 500.

🔎 Takeaway

If you're thinking long-term, just buy the S&P 500 and chill. It’s the easiest, smartest, and most proven way to build wealth. To buy the S&P500 index, you can use these ETFs: $VOO ( ▲ 0.12% ) , $SPY ( ▲ 0.13% ) .

🚀 Biggest Market Movers this week

📈 Top 3 Winners

• D-Wave Quantum $QBTS ( ▲ 3.26% ) +95% – Quantum computing hype sent shares soaring.

• Bon Natural Life $BON ( ▲ 6.2% ) +50% – Unexpected rally on new product launch.

• Intel $INTC ( ▼ 4.61% ) +16.5% – New CEO announcement boosted investor confidence.

📉 Top 3 Losers

• Kohl’s Corp $KSS ( ▲ 0.62% )  -34% – Weak consumer spending crushed retail outlook.

• Adobe $ADBE ( ▲ 0.52% )  -12.2% – Disappointing earnings forecast spooked investors.

• Apple $AAPL ( ▼ 0.28% ) -10.7% – Reports of slowing iPhone sales in China weighed on shares.

📅 Upcoming Economic Events to Watch

🚨 Monday:
U.S. Retail Sales (Feb) – Snapshot of consumer spending.
Empire State Manufacturing Survey – Tracks NY factory activity.

💰 Wednesday:
Fed Rate Decision – No changes expected, but watch for signals.
Japan Trade Data – Insight into global demand.

🏦 Thursday:
Bank of England Rate Decision – Could impact the pound.
U.S. Existing Home Sales (Feb) – Housing market check-up.

📊 Friday:
Japan Inflation (Feb) – Key for BoJ’s next move.
Canada Retail Sales (Jan) – Consumer health in focus.

🤔 Market Trivia: Test Your Knowledge!