A Very Simple Premise

This Week on The Compound

December 14, 2025

This Week on The Compound

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Josh and Michael were joined on TCAF by Joe Weisenthal and Tracy Alloway, co-hosts of the popular Odd Lots podcast. They discussed Dow 50,000, AI and the market, cash on the sidelines, the Fed's latest move, and 10 years of ⁠Odd Lots⁠. (Listen)

INSIDE THE COMPOUND

So much has been made about the growing concentration of tech stocks, i.e., the Mag 7, in the S&P 500. As with all bull markets, this is a feature, not a bug. Joshua Brown writes: 

This concentration of big winners within a long bull market - be it with oil companies, telecom giants, semiconductor firms, PC makers or software titans - is not bearish or aberrant or in any way unnatural. Nor is it “caused” by passive index flows. Investors are buying shares in these companies at increasingly higher prices because they are the companies earning the most money in the global economy. There’s no conspiracy. What would actually be weird is if they weren’t dominating the indices, given the vast and enduring success of their businesses.

Joshua Brown
Downtown Josh BrownYour friend on the inside

CHART OF THE WEEK

It’s the time of year when Wall Street strategists publish their 2026 outlooks. Everyone focuses on their price targets for the S&P 500. How did they do historically? Matt Cerminaro at Chart Kid Matt takes a look.

Chart Kid MattMost of my charts stay in excel. The best make it to your inbox.

MERCH

The Compound Trucker hats come in two colors, so something for everyone. You can always check out all our cool merch at idontshop.com.

COMING SOON

This week on TCAF, Josh and Michael will be joined by author and journalist William D. Cohan, founding partner at Puck.

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