The SPX chart shows the Keybot the Quant stock market turns in 2025. Equities took the pipe at the start of the year collapsing to the April low. The AI hype, rate-cut joy, QE light, rich people still spending money enjoying the wealth effect, and other happy talk, sends stocks higher with an above-average finish to the year for the SPX up +16.4%.
The Keybot the Quant algorithm program gains +27% and controls the actual trading that generated +35% outperforming the benchmark S&P 500 by more than 2x.
The funny thing about 2025 is how many common folks, with money in the stock market, brag and boast about the +16% return this year but when asked what they thought when they had lost -20% to -30% of their money in April, most are clueless. Some do not even know, or remember, that stocks had crashed in the springtime and others immediately proclaim that the stock market always goes up, as it proved in 2025. Wall Street trained the peons well.
For many decades, the US demographics were in our favor. Families kept expanding and so did technology and job opportunities. Productivity drives stock market gains. America is now an old folk's home. The senior Americans are the ones with all the dough in the stock market and that money will be needed for medical bills as the body gives out.
Further, many parents are helping their children get by in life and that will pull money from the market as the years roll forward. A barista at Starbucks, that they should call Tenbucks because that is what you usually spend when you walk in, is not socking away a couple grand per month into the US stock market going forward, as the wealthy folks pull money out.
Think twice about the standard mantra that stocks always go up going forward. Wouldn't it be interesting if the current highs in the SPX at 6900+, or 6900-7250, serve as a top for the next couple decades or more?
Bulls are in charge to begin 2026 but watch UTIL 1062 (utilities) and XRT 84.97 (retail stocks) since stocks will fall apart if either one is breached; big trouble if both give way.
Keybot the Quant only sees 1's and 0's so hopefully the emotionless robot will lead the way to another successful year ahead regardless of stock market direction. It does not matter which way the stock market goes, up or down; all that matters is that you are on the right side of the trade. Happy New Year and Good Luck in 2026. All is quiet on New Year's Day.... under a blood-red sky..... New Year's Day by U2.
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