The Best Performing Stocks of 2025 (EP. 445) - Animal Spirits Recap
Podcast: Animal Spirits
Published: 2025-12-31
Duration: 56 minutes
Summary
Michael Batnick and Ben Carlson analyze the best and worst performing S&P 500 stocks in 2025, explore booming family offices, and discuss millennial wealth accumulation strategies.
What Happened
This episode delves into the significant performance disparities in the S&P 500 stocks. The best performers have seen increases between 130% to 600%, while the worst have plummeted by 40% to 70%. Fidelity's 2026 Outlook, particularly its 'Riding the AI Revolution' module, is noted for its insights into future investment trends, especially as electricity consumption by U.S. data centers rises sharply.
Michael Batnick and Ben Carlson highlight the impressive performance of international small caps, which have surged by 48% this year compared to a 10% rise in U.S. small caps. This trend underscores the potential in diversifying portfolios internationally. The duo also discusses the growing power and influence of family offices, which are projected to manage $9 trillion by 2030, surpassing hedge funds.
Consumer sentiment in the U.S. is at a historic low, reminiscent of early 1980, reflecting ongoing economic uncertainty. In a lighter segment, Michael shares insights from his family trip to Disney and Universal Studios, noting the exorbitant costs of express passes.
The episode also addresses retirement strategies, with JP Morgan's report suggesting that spending tends to decrease every five years, prompting discussions on the benefits of front-loading retirement expenditures. This ties into the broader theme of financial planning and the importance of timing in managing wealth effectively.
Private credit firms' massive acquisition of consumer debt in 2025, 14 times more than in 2024, is another point of discussion, highlighting shifts in financial strategies and risk management. Furthermore, they touch on the evolving landscape of video gaming, with the Nintendo Switch marking a significant step in family gaming for Michael's children.
Finally, Michael and Ben explore cultural references, such as the unexpected casting changes in 'Shrek' and the overlooked brilliance of 'Four Christmases', illustrating how perceptions and preferences evolve over time.
Key Insights
- The best-performing stocks in the S&P 500 for 2025 have seen increases ranging from 130% to 600%, while the worst performers have experienced declines between 40% and 70%.
- International small-cap stocks have surged by 48% in 2025, significantly outpacing the 10% rise of U.S. small-cap stocks, indicating the potential benefits of international portfolio diversification.
- Family offices are projected to manage $9 trillion by 2030, surpassing the assets under management of hedge funds, highlighting their growing influence in the financial sector.
- Private credit firms acquired consumer debt in 2025 at a volume 14 times greater than in 2024, reflecting a significant shift in financial strategies and risk management.