1. Tiger Global Rebounds 29% After Hitting Bottom;
2. U.S. Nonfarm Payrolls Beat Expectations;
3. Young Real Estate Agents Face Multiple Challenges;
4. Tesla Recalls 1.6 Million EVs in China;
5. Global VC Fundraising Hits Record Low;
6. Democrats Accuse Trump of Self-Dealing;
7. Citigroup Recommends Buying the Dip.
1. Tiger Global Rebounds 29% After Hitting Bottom
According to sources, Chase Coleman’s hedge fund Tiger Global Management posted a 28.5% return in 2023.
In 2021 and 2022, Tiger Global’s hedge fund lost 7% and 56% respectively, and its long-only fund also fell by more than half.
Finally, from the beginning of 2023 through the end of November, the fund rose 27%, and added another 1.3% in December.
The New York-based Tiger Global did not disclose more details regarding its investment strategy.
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2. U.S. Nonfarm Payrolls Beat Expectations
Today, the U.S. Bureau of Labor Statistics reported that nonfarm payrolls rose by 216,000 in December, with the unemployment rate holding steady at 3.7%, though labor force participation declined. Average hourly wages increased 0.4% compared to November.
The largest job gains were seen in healthcare, government, construction, leisure, and hospitality sectors.
While the Fed’s rate hikes have constrained consumer spending, the strong labor market continues to support economic growth.
Following the release of the new report, the odds of a Fed rate cut in March fell to 50%, and U.S. Treasury yields rose.
Futures markets now expect the Fed to cut rates by 135 basis points this year, down from a previous forecast of 150.
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3. Young Real Estate Agents Face Multiple Challenges
During the pandemic housing boom, when bidding wars were rampant, many Millennials saw an opportunity and rushed to obtain real estate licenses.
But as the Fed’s rate hikes returned the market to normal, many large brokerages began laying off staff.
Now, many young agents just entering the profession are facing a cold market and an uncertain future. Adding to their troubles is the controversy surrounding agent commission structures.
The U.S. Department of Justice is expected to rule on the commission structure this year, which could impact young agents’ income.
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4. Tesla Recalls 1.6 Million EVs in China
Today, China’s State Administration for Market Regulation issued a statement saying Tesla’s Autopilot system increases the risk of accidents and that the company must recall all vehicles sold in China between August 2014 and December 2023.
Tesla will update over 1.6 million vehicles—including locally produced Model Y and Model 3 models and imported high-end versions—via remote software updates.
Ironically, Elon Musk has long claimed that EVs would eventually achieve full autonomy, yet Tesla’s Autopilot still requires drivers to keep their hands on the wheel and stay alert at all times.
Tesla’s stock fell as much as 1.1% in pre-market trading today. Tesla Shanghai has not issued any comment.
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5. Global VC Fundraising Hits Record Low
According to the latest data from PitchBook, U.S. venture capital fundraising totaled $67 billion in 2023—the lowest since 2017 and down 60% from the $173 billion peak in 2022.
Globally, VC fundraising also hit the lowest level since 2015. The 18-month funding drought stems largely from plunging valuations of private tech companies, prompting VC funds to become more cautious.
In addition, LPs such as pension funds, insurance companies, and university endowments are reducing high-risk investments in today’s high-interest environment.
Lux Capital co-founder Peter Hebert said many startups are running out of cash and may have to accept lower valuations and tougher terms to raise capital.
Peter expects many lower-quality startups will be weeded out in 2024.
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6. Democrats Accuse Trump of Self-Dealing
According to a report released today by congressional Democrats, former President Donald Trump received at least $7.8 million in spending at properties he owns—including hotels—from 20 foreign countries during his presidency.
Among them, Saudi Arabia and its royal family accounted for over $600,000 in spending.
After years of investigation, Democrats compiled a 156-page report seeking to determine whether Trump personally profited while in office.
Democrats hope to use evidence of self-dealing to block Trump’s reelection bid.
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7. Citigroup Recommends Buying the Dip
In a note released today, a team of Citigroup strategists led by Beata Manthey wrote that revenue growth and a soft landing for the global economy could help push markets higher in 2024, though overall gains will likely fall short of 2023 levels.
They forecast an 8% rise in the MSCI All-Country World Index and 9% corporate revenue growth—considered conservative in the context of past Fed easing cycles. They recommend buying on dips, but caution against chasing rallies.
Citi’s strategists believe the current economic backdrop favors cyclical sectors like financials and industrials, and also see opportunities in Europe and emerging markets.
Citi maintains a neutral stance on the U.S. market, noting that current valuations already reflect expectations of a soft landing.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.