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Micron Technology shares have roughly tripled in value in 2025

Key Takeaways

• Memory chip maker Micron Technology was among the best-performing stocks in the S&P 500 Monday afternoon, along with hard drive makers Western Digital and Seagate Technology.
• Mizuho analysts told clients in a note Monday that they see the outlook for Micron's high-bandwidth memory chips remaining strong into next year and 2027.

Memory and data storage stocks led the tech sector higher Monday amid optimism about growing AI-driven demand.

Shares of memory chip maker Micron Technology (MU) were up 7% around $254 in afternoon trading, making it one of the best-performing stocks in the S&P 500, along with hard drive makers Western Digital (WDC) and Seagate Technology (STX). The gains helped power the major indexes higher, as hopes an end to the record U.S. government shutdown could be near boosted sentiment.

Bullish analysts at Mizuho told clients in a note Monday that they see the demand outlook for Micron's high-bandwidth memory chips remaining strong into next year and 2027, with potential for margin upside on strong pricing. That could mean further room to rise for the Nvidia (NVDA) and Advanced Micro Devices (AMD) supplier's stock, they said, and reiterated a price target of $265.

Wall Street analysts are overwhelmingly bullish on Micron's stock, with nine of the 10 analysts with current ratings compiled by Visible Alpha calling it a "buy," though it has already outstripped their mean target with its recent gains on booming demand for AI hardware. Analysts also lean more bullish than bearish on Western Digital and Seagate shares.

Why This Is Significant

Big stock gains for Micron, Western Digital, and Seagate underscore how demand for memory and data storage solutions to support AI has helped send shares of the companies that make these products soaring this year.

With Monday's gains, Micron shares have roughly tripled in value in 2025. Western Digital shares have nearly quadrupled, and Seagate is up about 240%, leaving all three stocks among the best-performing stocks in the S&P 500 for 2025.

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Palantir was the best-performing stock in the S&P 500 Monday afternoon.

Key Takeaways

• Major U.S. equities indexes rose Monday afternoon amid optimism Congress could soon agree on a spending plan to end the record U.S. government shutdown.
• Palantir Technologies shares surged, as the provider of software for government agencies stands to benefit from the end of the shutdown.
• Health insurance stocks dropped after President Trump suggested federal health insurance subsidies could go directly to Americans instead of insurers.

Major U.S. equities indexes climbed Monday afternoon amid optimism Congress could soon agree on a spending plan to end the record U.S. government shutdown. The S&P 500 was up close to 1%, and the Nasdaq rose over 1%. The Dow was higher as well.

Palantir Technologies (PLTR) was the best-performing stock in the S&P 500, as the provider of software for government agencies stands to benefit from the end of the shutdown.

Shares of Micron Technology (MU) also took off following positive comments from Mizuho Securities, which said the chipmaker could get a boost from higher demand and pricing.

Eli Lilly (LLY) shares climbed after the drugmaker struck a partnership with Insilico Medicine to use artificial intelligence to discover new medicines.

Shares of Centene (CNC) and rival health insurance providers slumped after President Trump suggested federal health care money should circumvent insurers and go directly to people.

Metsera (MTSR) shares plunged after Novo Nordisk (NVO) didn’t raise its bid to purchase the biopharmaceutical firm that’s developing diabetes and weight-loss drugs, allowing Pfizer (PFE) to complete its $10 billion acquisition. Shares of Pfizer dropped as well.

Ball (BALL) shares fell as the maker of consumer packaging products announced CEO Daniel Fisher is stepping down, to be replaced by Chief Supply Chain and Operations Officer Ronald Lewis.

Oil futures ticked lower, while gold prices advanced. The yield on the 10-year Treasury note gained. The U.S. dollar was up on the euro, pound, and yen. Most major cryptocurrencies traded in the green.

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United Health Group and other health insurers saw shares decline after President Donald Trump's comments about payments

Key Takeaways

• Shares of health insurers tumbled after President Donald Trump called on Congress to change the way the federal government helps Americans pay for health insurance.
  
• A Washington think take estimated this year health insurers received $138 billion in federal payments.

Centene (CNC), HCA Healthcare (HCA) and Molina Healthcare (MOH) are among the worst-performing stocks in the S&P 500 Monday after President Donald Trump suggested federal health care money should circumvent insurers and go directly to people.

Trump wrote on his social media platform Truth Social over the weekend that he’s recommending the Senate and House change funding covered by the Affordable Care Act (ACA), or Obamacare, so that it “BE SENT DIRECTLY TO THE PEOPLE SO THAT THEY CAN PURCHASE THEIR OWN, MUCH BETTER, HEALTHCARE, and have money left over.”

Why This News Matters

President Donald Trump's comments are reigniting the debate over the Affordable Care Act and federal health insurance subsidies, rattling investors. His proposal to redirect federal funds to individuals would dramatically shift how the ACA marketplace operates. 

The president blasted the insurance companies, calling them “money sucking” and said the U.S. should “take from the BIG, BAD Insurance Companies, give it to the people, and terminate, per Dollar spent, the worst Healthcare anywhere in the World, ObamaCare.”

The Washington think tank Committee for a Responsible Federal Budget earlier this month estimated that the subsidies paid to insurance companies this year have a gross cost to the federal government of $138 billion, up from $53 billion in 2020.

Centene shares were down more than 8% in midday trading, while Molina tumbled nearly 7% and HCA dropped 5%. Shares of United Health Group (UNH), Cigna Group (CI) and other health insurers fell as well.

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Fed officials are divided about whether to cut rates to boost the job market, or keep them higher for longer to fight inflation.

Key Takeaways

• The Federal Reserve will meet on Dec. 9 and 10 to decide whether to cut the fed funds rate for a third consecutive meeting.
  
• Both sides of the Fed's "dual mandate" are worsening, and the Fed also lacks data because of the government shutdown.
  

The Federal Reserve's policy committee meets next on Dec. 9 and 10, and officials are expected to cut the central bank's key interest rate to lower borrowing costs in an effort to stabilize the deteriorating job market.

What To Expect From The December Meeting

The Federal Open Market Committee will meet to consider whether to cut the federal funds rate from its current range of 3.75% to 4%. The Fed cut its interest rate by a quarter of a percentage point at each of the previous two meetings in an effort to prevent the recent job market slowdown from turning into a serious increase in unemployment.

As of Monday, financial markets were pricing in a 63% chance of a rate cut in the wake of data showing employers ramped up layoffs in October, and the public is getting more pessimistic about the job market, according to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

However, a rate cut is not a done deal. Speaking at a press conference following the FOMC's most recent meeting last month, Fed Chair Jerome Powell said the central bank was not guaranteed to cut rates, and noted the 12-member panel that votes on rate changes is divided about whether to cut rates to preserve the labor market, or keep them higher for longer to combat inflation.

What This Means For The Economy

The Fed aims to stabilize the job market by lowering interest rates, but too many cuts too soon could stoke high inflation. The Fed faces a difficult balancing act in managing the risks of cutting too soon or too late.

Fed's Data Blackout Complicates Its Decision

The government shutdown that began Oct. 1 makes the Fed's decision more difficult because it has shuttered the government's statistical agencies. Without critical information about inflation and the job market, Fed officials have less to go on when deciding whether inflation or the job market is the more pressing problem to solve.

Monthly reports for September and October from the Bureau of Labor Statistics and other agencies have been delayed. The longer the shutdown drags on, the lower the chance the Fed will see any data at all before its December meeting. In the meantime, Fed officials have relied on data from private sources that is generally considered by economists less reliable than the "gold standard" reports from the BLS.

How Are Employment and Inflation?

The Fed faces challenges on both sides of its dual mandate.

Recent indicators show the job market is slowing down. Private employers laid more people off in October than in any October in more than 20 years, according to consulting firm Challenger, Gray & Christmas. The most recent job market report from the BLS showed the U.S. economy added just 22,000 jobs in August, a significant slowdown from the six-digit job gains of last year.

Meanwhile, inflation is running hotter than the Fed's goal of a 2% annual rate, and private price data suggests it's still heading in the wrong direction.

Tariffs have pushed up prices and stoked uncertainty among business leaders that has slowed down hiring. Meanwhile, President Donald Trump's immigration crackdown has also slowed down job growth, and multiple companies have announced layoffs and hiring freezes attributed to the adoption of artificial intelligence.

How The Federal Reserve Works

The Federal Open Market Committee (FOMC) is the body that sets the fed funds rate for the Federal Reserve System, the United States' central bank. It holds eight regularly scheduled meetings each year, which are not open to the public. The Fed's use of interest rates to influence the economy is called monetary policy.

The FOMC consists of 12 voting members: the seven board governors, the Federal Reserve Bank of New York president, and four other regional bank presidents who serve rotating one-year terms.

At each FOMC meeting, the committee members discuss economic and financial conditions and decide whether and how much to change the fed funds rate. The FOMC issues a public statement about its decision at 2 p.m. on Wednesday when the meeting concludes. The Fed chair, currently Jerome Powell, typically hosts a press conference afterwards to explain the decision.

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CoreWeave on Monday will report earnings for just the third time since going public in March.

Key Takeaways

• Options pricing suggests traders anticipate shares of CoreWeave could rise or fall up to 14% this week.
• The cloud computing company is expected to say its losses narrowed and revenue more than doubled from last year when it reports third-quarter earnings after the closing bell on Monday.
• CoreWeave has only reported earnings twice since going public in March; the stock, after big run-ups into those prints, fell on both occasions.

CoreWeave (CRWV) is slated to report third-quarter results after the closing bell on Monday, with traders expecting a big post-earnings move for the stock. 

Options pricing suggests traders anticipate shares of CoreWeave could move up to 14% in either direction by the end of this week. A move of that size would push the stock up to $118.70 at the high end, erasing some of the losses incurred amid last week’s slump in tech stocks, or drag it down to $89.30, its lowest price since early September.

CoreWeave has only reported quarterly results twice since it began trading, and neither has helped the stock. In May, shares fell more than 2% the day after the company's earnings were released, despite better-than-expected results, with revenue increasing more than 400% year-over-year. Shares tumbled more than 20% after earnings in August, when the company reported a wider-than-expected loss.

Why This Is Important

CoreWeave shares have soared since debuting in March, with investors looking past the company's unprofitability to focus on surging revenue driven by AI demand. How investors react to the company's results on Monday could reflect Wall Street's risk appetite and sentiment pertaining to the AI stock rally.

Granted, CoreWeave's shares advanced considerably leading up to both prints. The stock gained nearly 70% between its late-March IPO and May’s report, and rose about 120% heading into August’s results. This time could be different. Leading into Monday's session, CoreWeave shares were down about 30% since its last earnings. 

CoreWeave's revenue has soared in the last year and a half amid a surge in demand for AI-enabling cloud computing platforms. The company landed several major customers last quarter, signing a $14 billion deal with Meta Platforms (META), a $6 billion deal with Nvidia (NVDA), and a $6.5 billion expansion of its existing agreement with ChatGPT maker OpenAI.

The cloud computing provider is expected to report a third-quarter net loss of $284.4 million, narrowing from a loss of $359.8 million in the year ago quarter. Its revenue is projected to jump 120% year-over-year to $1.3 billion, according to analyst estimates compiled by Visible Alpha.

Wall Street is split on the outlook for CoreWeave’s stock, with five of the 10 analysts with current ratings tracked by Visible Alpha calling the stock a “buy,” and the other half assigning it a “hold” rating. Their mean target of $158.83 represents about 53% upside from the stock’s closing price last Friday. 

News of the day for Nov. 10, 2025

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Investors are keeping close tabs on developments in Washington D.C. amid hopes that lawmakers will pass measures needed to reopen the government in the coming days.

Stock futures are surging this morning after U.S. lawmakers passed a key procedural hurdle as part of an agreement that could bring an end to the shutdown that has lasted nearly six weeks; President Donald Trump has proposed issuing $2,000 “dividend” checks to Americans that would be funded by revenue from tariffs; AI data center firm CoreWeave (CRWV) is set to release its quarterly results after the closing bell today; and shares of Metsera (MTSR) are plunging after the weight-loss drug maker announced that it would be acquired by Pfizer (PFE) after a bidding war with Novo Nordisk (NVO). Here's what you need to know today.

1. Stock Futures Rise Amid Hopes for An End to U.S. Government Shutdown

Stock futures are pointing to a higher open for major indexes after the Senate passed a key procedural vote as part of an agreement to end the more-than-month-long U.S. government shutdown. Futures tied to the Dow Jones Industrial Average and the S&P 500 were recently up 0.4% and 0.9%, respectively, while those linked to the tech-heavy Nasdaq jumped 1.5%. The major market indexes lost ground last week amid cooling momentum behind the AI trade and heightened worries over the shutdown. Bitcoin was at nearly $106,000 in recent trading, up from a low over the weekend of around $101,500 and trading at its highest level in a week. Gold futures rose more than 2% to a two-week high of just above $4,100 an ounce. The yield on the 10-year Treasury note, which influences a range of consumer loans, was at 4.13%, up from Friday's close of 4.09%.

2. Senate Passes Key Vote That Could Pave Way for Government to Reopen

The Senate on Sunday passed a procedural hurdle that could clear a path for the government to reopen after the longest shutdown in U.S. history. The Senate voted 60-40 on a measure that allows other votes on an agreement that could restore funding to government agencies that have been shuttered for more than 40 days. Eight Democrats joined Republicans in supporting the agreement that would open the government through the end of January. While the agreement doesn’t address the healthcare funding cuts that were at the center of the shutdown, news reports said that there will be a vote on the subsidies in December. One consequence of the shutdown has been a freeze on economics reports from government statistical agencies, which could affect reports this week on inflation and retail sales. Government officials also began restricting some air travel last week amid staffing issues for air traffic controllers.

3. Trump Proposes $2,000 Tariff ‘Dividend’ Payments

President Donald Trump proposed issuing a $2,000 stimulus payment to Americans, saying in a social media post that tariff revenues could be used to fund the checks. “We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion,” Trump wrote in a post on Truth Social. “A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.” In his post, Trump defended his tariff policies, which are currently being challenged in a Supreme Court case that challenges his authority to issue the import taxes. Earlier this year, allies of President Trump had proposed a "DOGE dividend” from savings from spending cuts.

4. CoreWeave Expected to Report Big Revenue Jump

Artificial intelligence data center firm CoreWeave (CRWV) is scheduled to release its quarterly earnings report after markets close today, giving investors another look at the AI trade amid recent volatility. CoreWeave recently has announced a handful of deals with top tech firms, including a $6.3 billion initial order with AI chipmaker Nvidia and a $14.2 billion agreement with social media giant Meta.  CoreWeave is expected to report that its revenue more than doubled over the year-ago period to $1.3 billion, according to analysts surveyed by Visible Alpha. The firm is expected to post an adjusted loss per share of $0.35. Shares of CoreWeave, which have gained 160% since the company's initial public offering in March, were up nearly 5% in premarket trading.

5. Metsera Shares Plunge After Drugmaker Announces Acquisition by Pfizer

Shares of Metsera (MTSR) are plunging after the weight-loss drug maker announced that Pfizer (PFE) has agreed to acquire the company. Metsera said that it struck the deal with Pfizer after U.S. regulators raised worries that an offer from Danish pharmaceutical firm Novo Nordisk (NVO) would create antitrust issues. The deal follows a reported bidding war between the two drug makers for New York-based Metsera. Pfizer will pay $86.25 per share in the transaction, which is reportedly valued at more than $10 billion. Metsera shares were down 15% ahead of the opening bell, while Pfizer shares ticked higher.

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President Trump continues to discuss the idea of a tariff dividend check.

Key Takeaways

• President Donald Trump on Sunday once again raised the possibility of a tariff dividend to Americans.
• In a message on Truth Social, Trump suggested that a check could be worth "at least" $2,000 per person, though "high income" earners would not be eligible.

The president says he still wants to get you tariff money.

President Donald Trump in a Sunday morning message on Truth Social said a "dividend of at least $2000 a person" would be paid to "everyone." Further details regarding timing and eligibility were not immediately available, and the White House did not respond to emailed questions in time for publication, but Trump in his message said "high income" earners would not receive the payment.

"People that are against Tariffs are FOOLS! We are now the Richest, Most Respected Country In the World, With Almost No Inflation, and A Record Stock Market Price," Trump's message read. In a Sunday interview with CBS, Treasury Secretary Scott Bessent said he hadn't discussed the proposal with Trump but suggested that the dividend could come as a result of the administration's policies, arriving "in lots of forms and lots of ways."

Why This Matters to Americans

President Trump and other leaders continue to talk about the possibility of sending money directly to Americans; some states are already doing it in different forms. Whether federal checks will arrive, and in what form, remains an open question.

Trump's statement advanced a notion that has made the rounds in different forms this year, with members of Congress at times discussing the possibility of stimulus checks. New York state is sending "inflation refund" checks to some residents.

The president himself has discussed the topic, though a payment at or above $2,000 would be higher than some amounts he has mentioned. Earlier this year, the idea of "DOGE dividends" was also floated.

The Supreme Court last week heard oral arguments in a case that raised questions about Trump's authority to levy tariffs in the fashion his administration has adopted in his second administration.

The case has raised questions not only about presidential power but about what might follow if some of Trump's tariffs are overturned on legal grounds, injecting fresh uncertainty into the outlooks of companies, economists and investors as the fourth quarter begins its home stretch.

U.S. stock markets slid last week, pulled lower in part by trade questions, though job-market concerns and high share valuations, as well as questions about the path forward for interest rates, also played a part.

This article has been updated since it was first published to incorporate the comments from Bessent and other information.

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Walt Disney is expected to report earnings on Thursday.

Get ready for a four-day trading week—if you trade bonds.

With several key economic reports expected to be delayed by the government shutdown, investors will this week focus largely on corporate earnings reports. And some will get a short break: Bond markets, banks and government offices will close Tuesday for the Veterans Day holiday, though stock markets will remain open.

Earnings from Walt Disney, CoreWeave, Sony, Cisco, and Applied Materials highlight this week’s corporate calendar. The small business optimism survey for October comes as market watchers are paying attention to how economic pressures are impacting small firms. The monthly federal budget report from the Treasury Department is expected to show how much revenue is coming from tariffs.

Read to the bottom for our calendar of key events—and one more thing.

Disney, CoreWeave Earnings Among Reports to Watch

Earnings from artificial intelligence data center firm CoreWeave on Monday will likely keep investors' focus on the technology that has helped drive markets higher over the past few years. After going public earlier this year, CoreWeave shares have more than doubled. Deals with chipmaker Nvidia and social media giant Meta are driving optimism in the firm's business.

Nuclear power provider Oklo's report on Tuesday is expected to show growth tied to the electricity needs for AI data centers. Network infrastructure provider Cisco's report on Wednesday comes after it nearly doubled its AI sales target in the prior quarter. On Thursday, Applied Materials is due to report as the chipmaking equipment supplier faces restrictions on its sales to China. 

Walt Disney’s report on Thursday follows the company’s recent launch of its ESPN sports app and plans to purchase the NFL network.  Other noteworthy earnings this week include stablecoin provider Circle Internet Group, FanDuel-parent Flutter Entertainment, satellite launch firm Rocket Lab, and sneaker maker On Holdings.

But there's more on tap than earnings, and that includes Tuesday, when chipmaker Advanced Micro Devices is set to hold an analyst day at which CEO Lisa Su is expected to offer more details on the company’s artificial intelligence roadmap. (You can watch the stream, scheduled for 1 p.m. ET, here.)

Quick Links: Recap Last Week’s Trading | Read Investopedia’s Latest News

This Week’s Calendar

Monday, Nov. 10

• Key Earnings: CoreWeave (CRWV), Occidental Petroleum (OXY), Rocket Lab (RKLB), AST Space Mobile (ASTS), Tyson Foods (TSN)

Tuesday, Nov. 11

• Veterans Day holiday - Bond markets, banks, federal government closed; Stock markets open
• AMD (AMD) 2025 analyst day
• NFIB small business optimism (October)
• Key Earnings: Sony Group (SONY), Oklo (OKLO), Nebius Group (NBIS)

Wednesday, Nov. 12

• Key Earnings: Cisco Systems (CSCO), Manulife Financial (MFC), Flutter Entertainment (FLUT), Tencent Music (TME), Circle Internet Group (CRCL), On Holding (ONON)

Thursday, Nov. 13

• Monthly U.S. federal budget
• Data Delayed by the Shutdown: Consumer Price Index (October), Initial jobless claims (Week ending Nov. 8)
• Key Earnings: Walt Disney (DIS), Applied Materials (AMAT), Brookfield (BN), JD.com (JD)

Friday, Nov. 14

• Data Delayed by the Shutdown: Retail sales (October), Producer Price Index (October), Business inventories (September)
• Federal Reserve Officials Speaking: Kansas City Fed President Jeff Schmid, Dallas Fed President Lorie Logan

One More Thing

If you rely on the Affordable Care Act for health insurance coverage, you’re likely to see a big increase in premiums, the key issue behind the current government shutdown. Investopedia's Jeanine Skowronski has more insight into whether you should enroll now or wait to see if the shutdown fight ends in restored subsidies. 

Photo by Spencer Platt / Getty Images

Key Takeaways

• GMO, founded by veteran value investor Jeremy Grantham builds investment strategies on the premise that all asset classes eventually revert to their historical means.
• Co-head of asset allocation John Thorndike says investors don't need to "hide out," but should avoid the most expensive parts of the global market.

Last week's action in stocks illustrated investor worries about high valuations. Those worries are reasons for restraint, a fund manager told Investopedia, but not alarm.

"High valuations offer both lower expected returns and higher risk than fairly valued or cheap markets," said John Thorndike, a portfolio manager at GMO, in an interview with Investopedia. "Although valuation is not a great short-term predictor of market moves, it's no surprise that an expensive market can decline with the slightest whiff of investor concern."

One way to deal with valuation anxiety, and the growing chorus of investment professionals warning of a potential market pullback, is to invest away from richly priced stocks. The GMO Dynamic Allocation ETF (GMOD), an actively-managed strategy that shifts into asset classes that present relatively higher returns as suggested by their valuations, aims to make that easier.

The October-launched fund is the latest from GMO, co-founded by veteran value investor Jeremy Grantham, who predicted both the Dotcom crash and the 2008 financial crisis. Grantham's investment wisdom—that all asset classes eventually revert to their historical means—underpins the strategy through the firm's asset class forecasts, which projects potential real returns over a seven-year horizon.

For example, U.S. large- and small-cap stocks were projected to deliver negative returns as of the end of September.That explains the fund's underweighting in U.S. stocks.

Why This Matters to Investors

The way an investor divides their investments across assets—stocks, bond, commodities, alternatives and cash—largely determines results. The default is a 60/40 portfolio, though different versions of that allocation can work better in some periods over others.

Thorndike, who manages the fund with Ben Inker, says the fund has about 60% of its assets parked in stocks and 40% in bonds. Right now, it's biased toward quality and value stocks, both in U.S. and non-U.S. stocks, and overweight Japan, emerging markets excluding China, and intermediate-term bonds.

An edited transcript of Investopedia's interview with Thorndike follows.

Q: What is GMO's view of the market now?

Thorndike: This [market] isn't like 2007, or 2008 when everything was expensive and you needed to hide out in the safest assets. Today, you just need to avoid the most expensive part of the market, but otherwise can be fully invested.

In the U.S., growth stocks and certainly some of the AI-related comes with very high valuations and expectations. That's the part of the market worth avoiding, or at least underweighting depending on your risk tolerance, while value stocks in the U.S. trade at a discount almost as wide as we've ever seen. We see opportunities both in the U.S. and outside of the U.S.—outside of the U.S. is where we see the highest expected returns.

Q: Is there anything that happened this year that gives you conviction that relatively undervalued, or quality stocks will outperform in spite of the current junk-fueled rally?

A: The Magnificent Six [GMO says "Tesla doesn't make the cut on Magnifence"] has continued to generate fantastic fundamental returns, and their ability to do that has really delivered for investors.

What's changed? These companies were often considered capital-light. They had great free cash flow. They didn't have to make a ton of investments back into their business. Now they are all investing a lot of money in real-world investments, building out data centers, etc. That capex is going to have to earn a great return to justify their valuations, and that's a change in what you need to believe about those stocks from here, relative to what they've delivered over the past few years.

Q: Has there been any sort of allocation recommendation shifts around the expectation of the Federal Reserve's lowering rates?

A: It hasn't been a big driver of portfolio changes this year. The job of fixed income is to earn you some income and to help protect you in a bad economic event where you expect equities to go down. The higher the yield, the better chance fixed income has in doing those jobs.

Today, you've got a real yield on the 10-year [Treasury] that's somewhere between 1.5% and 2%—that's perfectly acceptable. If the Fed cuts rates to the point where you no longer get that yield, then fixed income becomes less attractive. Remember when the 10-year yield was trading at 60 basis points nominal? Well, that basically gives you no income, and it had no chance of appreciating. In that environment, we held no fixed income duration, whereas today we have a couple years worth.

Q: Looks like GMOD is split 60% stocks and 40% bonds. That reads neutral on stock exposure given the ETF can own as little as 40% or as much as 80% in stocks.

A: Because our equity book looks markedly different than a cap-weighted index, we are comfortable owning a normal weight in equities. The equities we own offer an attractive risk premium over bonds, unlike the expensive parts of the U.S. equity market.

Q: What corners of the global stock markets look the most attractive right now?

A: Japan is particularly cheap and we have quite a bit of our portfolio invested there. It's a market that a lot of investors ignore, or at least shy away from, given it produced very poor returns on capital for a very long time. They've seen improving returns on capital and shareholder friendliness from both management teams and policymakers And of course, as a U.S. investor, you can buy into the Japanese market at a very attractive exchange rate.

Q: So the dollar's decline makes non-U.S. stocks more attractive?

A: Not so much with the dollar's decline, but the dollar's valuation. An expensive dollar tends to make non U.S. equities look more attractive for U.S. investors for one of two reasons—either a currency appreciates [against the dollar] so you get that windfall, or the companies benefit from the competitive currency and see faster earnings growth.

The fact that the U.S. dollar is quite expensive relative to almost any other currency should be [a] tailwind for non U.S. equities, and the fact that the dollar has weakened over the course of this year has helped returns for non U.S. stocks, but it's the valuation that determines the forecast.

Q: What would happen in the event that U.S. equity markets fell significantly—not asking for a prediction, but if the 7-year forecast completely changes its recommendation, does the fund have the ability to change its entire portfolio?

A: So not a prediction, but—if equity markets fell significantly, we would also expect fixed-income yields to fall, especially in Treasurys. That would bring their prospective returns down. Meanwhile, your equities'—as long we we're talking something like a recession but not a depression—fundamental intrinsic value wouldn't have gone down that much, and their prices would have gone down a lot. Equities would look a lot cheaper, and fixed income less attractive.

GMOD has the ability to be as much as 80% in equities, okay? I can't tell you exactly what we would do, because we don't know how [a downturn] would manifest. We like to buy things that look cheap and sell things that look expensive.

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Pop Mart, the company behind Labubu, has gained traction with consumers of different ages

Key Takeaways

• Adults are a growing audience for toy and game companies, which are catering to them with products that nod to popular movies and bands from the '80s and '90s.
• Social media and packaging that masks which version of a product a shopper is buying have fueled the phenomen, as have hot markets.

Do you remember the good old days? Game and toy makers are counting on it.

Companies are embracing their adult customers, announcing releases that evoke nostalgia for cultural touchstones of the '80s and '90s. Nintendo is reviving games designed for the tabletop Virtual Boy console. Lego is releasing a set inspired by the 1985 movie "The Goonies." And Mattel (MAT) captured the "Home Alone" movie series and Backstreet Boys band in figurine sets.

Older generations—from college students attaching Labubu dolls to their backpacks to grandfathers putting model cars on display—are fueling the industry’s growth, with many funding their spending with gains from hot markets. Adults spent more money on toys for themselves than any other age group in 2024, according to market research group Circana. Shopping for adults continued to outpace buying for youth in the toy and game category in the first half of 2025, Circana said.

“Pop toys,” such as the small plush Labubu and Wakuku dolls, have gone from “niche items into lifestyle essentials for adults and millennials,” QuantaSing Group (QSG) CEO Peng Li said on a conference call this fall. (Labubu is a big-hearted, magical monster with a toothy grin, while Wakuku is a wild child-like character with round cheeks.)

Consumers "are seeking comfort, identity, a firm affirmation, and connection through their purchases, and pop toys deliver exactly that," Li said during a June call, according to a transcript made available by AlphaSense. (China-based QuantaSing obtained the property rights to Wakuku through an acquisition announced earlier this year.)

What This Means for Investors

Adults have a range of reasons for buying things like toys, games and collectibles that are typically aimed at children. Some, however, are looking for rare versions that may appreciate in value, often dropping cash they came into as markets have risen. In some cases, that has put new distance between the toy and game segment and its traditional audience.

Adults are often inspired to buy toys by the sense of nostalgia they evoke, according to surveys from consumer insights group CivicScience. But some shoppers are collecting items to join a community of fans or make a financial investment, the survey found.

Retailers and brands are eager to capitalize on a cohort they’ve taken to calling "kidults," who executives say are ready to spend. Mattel is looking to adults to revive sluggish Barbie sales after older consumers lifted Hot Wheels sales, the company said on an October conference call.

Etsy (ETSY) has a “millennial toy” tag, while Build-a-Bear Workshop (BBW) runs an 18-plus e-commerce platform selling stuffed animals sipping margaritas and a Bloody Mary bear.About 40% of Build-a-Bear business now comes from teens and adults, the company said this spring.

Working with influencers and building a social media following helped Build-a-Bear reach “the growing kidult market, who often tend to be higher-value collectors, gift givers and viral product purchasers,” CEO Sharon Price John said this summer.

Labubu also came to prominence through the social media circuit. Shoppers don’t know which Labubu model they have bought until they remove its packaging, which can compel people to keep buying until they unwrap what they want. So-called "blind box” packaging has contributed to the rise of other viral items, such as Sonny Angel figurines and Pokémon cards.

Pokémon sales on eBay (EBAY) have increased exponentially in recent quarters, prompting the platform to host live shopping events focused on the trading cards, eBay executives said in October.

The anime cards are so sought-after that Costco Wholesale (COST) CEO Ronald Vachris cited them while explaining why the wholesaler is adding a waiting room to its e-commerce platform.

Waiting rooms for "high-velocity items, such as Pokémon cards" can "reduce the traffic from bots, increase the opportunity for members to purchase high-demand items, while improving the speed and the stability of the site during peak traffic periods," Vachris said on a conference call this fall, according to a transcript.

Rising stock markets that have some investors flush with cash are likely fueling the popularity of some adult splurges. "Everything speculative is up right now: The stock market. Bitcoin. Trading cards," said Jason Masherah, president of trading card company Upper Deck in a recent LinkedIn post. "It's pricing some collectors out."