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In today’s edition,
- Can Tesla compete in India?
- China’s treasury shift
- Huawei’s OS gamble
- MercadoLibre’s big win
- Institutions bet on BTC
Market Snapshot
U.S. stocks fell as geopolitical tensions, tariffs, and weak consumer sentiment erased early-week gains. The S&P 500 hit record highs on Tuesday and Wednesday, but markets turned lower, with the Nasdaq down 2.17% to 19,524.01, S&P 500 down 1.67% to 6,013.13, and Dow Jones falling 2.89% to 43,428.02.
Walmart’s weak outlook despite strong Q4 earnings drove consumer spending concerns, with its stock plunging 6.53% on Thursday. Tariff fears resurfaced after President Trump announced potential duties on autos, pharmaceuticals, and lumber, adding uncertainty.
Economic data signaled further weakness—the NAHB housing index fell to a five-month low of 42, and housing starts dropped nearly 10% in January. S&P Global’s Composite PMI slid to a 17-month low (50.4), with services contracting. Consumer sentiment dropped 10%, and inflation expectations rose to 4.3%, adding to cost concerns.
Markets shifted from early optimism to caution, with investors watching for further policy updates and economic signals in the week ahead.
Stock market closing data for the week of Feb 17th to Feb 21st, 2025
News Summaries
Tesla is gearing up to enter India, with a few thousand cars expected to land at Mumbai’s port in the coming months and sales beginning in Mumbai, Delhi, and Bangalore by Q3. This follows discussions between Elon Musk and Prime Minister Modi, as India weighs increasing its concessional EV import quota from 8,000 to 50,000 vehicles. The biggest hurdle remains the 110% import duty on Teslas priced above $40,000 (likely to reduce to 15% under new policy), which has kept the company from committing to local production. While a manufacturing setup is unlikely in the near term, Tesla’s initial focus will be on direct imports, with operations run from Pune. If India lowers tariffs, it could reshape Tesla’s long-term strategy, tapping into a growing market of affluent EV buyers. However, the shift to imports could challenge local automakers, who rely on domestic manufacturing. Tesla’s arrival will test whether brand loyalty and premium tech can outweigh steep import costs in one of the world’s fastest-growing auto markets.
China’s reported holdings of US Treasuries dropped by $57 billion in 2024 to $759 billion, their lowest since 2009, as Beijing shifts assets to custodians like Euroclear and Clearstream and diversifies into gold. This move is part of a long-term strategy to reduce reliance on US debt, with China’s Treasury holdings shrinking by $550 billion since 2011. Meanwhile, UK, Belgian, and Luxembourg holdings rose by $34.2 billion, $60.2 billion, and $84 billion, respectively, reflecting capital movements through these financial hubs. While China remains a significant player in US debt markets, it is quietly redistributing exposure across asset classes, including agency bonds and gold, where it added 15.24 tonnes in late 2024. The trend signals a broader push for financial independence, but it also makes tracking Chinese capital flows more complex. As the US grapples with mounting deficits, China’s shift raises questions about how global investors will adjust to changing Treasury demand. A world where China holds fewer US bonds is emerging, but whether it fundamentally alters financial stability depends on who steps in to fill the gap.
Huawei is advancing with HarmonyOS Next, a standalone mobile operating system aimed at reducing reliance on Google’s Android. It will launch with the Mate 70 in December. With nearly a billion users in China, Huawei wants to create a self-sufficient ecosystem for smartphones and smart home devices. The OS looks great and runs major Chinese apps like WeChat, [JD.com](http://JD.com), and Meituan. However, there are gaps. Many work apps, AI chatbots, and popular games like Genshin Impact are still unavailable. Huawei estimates it needs 100,000 fully optimized apps to reach maturity, but only 15,000 were ready by October. While users enjoy the smooth interface and reliable hardware, the lack of software has caused some to return to older versions. Huawei’s biggest challenge is attracting developers—hardware alone won’t keep users loyal. If it can’t quickly fill the app gap, HarmonyOS may end up as a promising but incomplete option, not a real rival to Android.
MercadoLibre posted a record $639 million in Q4 net income, far exceeding the analyst expectation of $406 million. This drove a 14% surge in postmarket stock. Annual profit reached $1.9 billion on $21 billion in revenue, which is a 38% increase year-on-year. Although gross merchandise volume hit $14.5 billion, it fell short of estimates. However, total payment volume rose to $59 billion, and assets under management grew to $10.6 billion. The fintech arm reported 61 million monthly active users. Its expanding ad business now represents 2.1% of GMV. MercadoLibre’s commerce platform surpassed 100 million annual active buyers, processing 57 purchases every second. The company bounced back strongly after a weaker Q3, impacted by logistics and credit investments. This shows that growth in e-commerce and fintech can be unpredictable. The real challenge ahead is balancing expansion with profitability, particularly in unstable Latin American markets.
From the World of Crypto
Bitcoin is no longer just a retail investor’s game—institutions are piling in.
In Q4 2024, holdings in spot bitcoin ETFs tripled to $38.7 billion, up from $12.4 billion just a quarter earlier. More than 1,000 funds now hold BTC ETFs, proving that traditional finance is warming up to crypto in a serious way.
Some of the biggest names are getting involved—Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund, dropped $436.9 million into BlackRock’s BTC ETF, making it one of the top holders.
Big banks are getting their slice of the pie too.
Goldman Sachs now holds $2 billion in crypto ETFs, with the bulk in bitcoin and a solid chunk in Ethereum. The Bank of Montreal increased its BTC ETF position by 1,000% to $139 million, while Barclays added $131 million. These aren’t speculative bets—these are funds managing serious money for wealthy clients, signaling that crypto exposure is becoming a routine part of portfolio management.
Even state pension funds are taking notice.
Wisconsin’s pension fund doubled its bitcoin ETF holdings to $321 million, after initially starting with $160 million. Meanwhile, Michigan, Florida, and North Carolina are considering making moves of their own. And it’s not just bitcoin—Ethereum ETFs saw a big jump in institutional ownership, climbing from 4.5% to 14.8%, while BTC ETF ownership dipped slightly from 22.3% to 21.5%.
So, what’s next? More big players will step in.
Banks will launch more crypto services, and sovereign funds will likely increase their stakes. Bitcoin is creeping deeper into mainstream finance, and 2025 could be a year where institutions make buying BTC as normal as buying stocks or bonds. The question isn’t if they’ll keep buying—it’s how much more they’ll add.
Community Speaks: Insights from Vested Investors
The Vested Community is actively discussing semiconductor stocks, ETFs, and AI-driven growth opportunities. Here’s what investors are watching:
📌 Top 5 REITs to Watch
Investor Ansh_Orbit_448 highlights five REITs with strong potential in the U.S. real estate market:
- Prologis Inc. (PLD) – Specializing in logistics facilities, benefiting from the boom in e-commerce.
- American Tower Corp. (AMT) – A key player in communications infrastructure, owning towers and data centers.
- Simon Property Group (SPG) – One of the largest retail REITs, offering exposure to high-quality shopping and entertainment spaces.
- Realty Income Corp. (O) – Known for monthly dividend payouts, with a portfolio of long-term commercial leases.
- Digital Realty Trust (DLR) – Focused on data centers, supporting cloud computing and digital transformation.
📱 Vested WhatsApp Group—Join the Conversation!
We’re considering launching a Vested WhatsApp Community for real-time discussions on investing, markets, and opportunities. Interested in joining? Drop a comment, and we’ll add you to the group! 🚀
