Beyond the Arches #39: Cooling trends continue after a trail-blazing 2024, but optimism in some markets remains strong. Weather market volatility through diversified investments. 

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While Americans and the wider world were ringing in the new year, the stock market got off to a subdued start, continuing its recent cooling trend across the major indexes. The S&P 500 closed 0.2 percent lower in its first trading session of the new year, which was a more modest decline than the 2.6 percent slide in the overall U.S. market on Christmas Eve. It was the worst closing day for the U.S. stock market since 1952.

Despite the cooling in the public markets, analysts and investors are optimistic about Bitcoin as we head into the new year. Despite its stumble earlier in the month, some analysts suggest BTC could reach new heights – with some estimates seeing it climb to $185,000 in 2025.

Gold ended the year on a cooling note as well, dipping to $2,604.49 per ounce in the 2024 close. The slip is a response to traders awaiting upcoming data from the Fed and Labor Bureau, including potential policy changes from the incoming presidential administration. Despite the recent dip, gold finished the year up nearly 30 percent. 

Three exciting FranShares investment opportunities

• Kidokinetics offers accredited investors the opportunity to participate in a $1M capital raise for this franchisor to fuel expansion and enhance the franchisee network
• Bravehart Development presents accredited investors with the opportunity to invest in the first tranche of an investment featuring 10 Hawaiian Bros brand locations.
• Sloan Capital presents accredited investors with the opportunity to invest in this offering, which includes 24 locations of the brand Everbowl.

On Our Radar This Week

• In another example of cooling markets, the yield on the 10-year treasury lost eight basis points. Despite the declines, the 10-year yield remains robust, rising 3.8 percent in the fourth quarter of 2024. Yield rates are one of the guideposts analysts use to evaluate future recession activity.
  
• An already-struggling Treasury had more issues last week, as Chinese-backed hacking affected its workstations. While the release affected only unclassified documents, the compromised workstations – accessed through a vulnerability in a third-party software service – the hack is treated as a “major cybersecurity incident.” An investigation into the hack is already underway. 
• Home buyers and sellers watching for signs of an easing housing market will have longer to wait, thanks in part to upward shifts in the thirty-year mortgage rate. The average rate reached its highest level since July 2024, climbing to over 6.5 percent.

Macro Bites

• Nvidia stock stalled last week, falling 2.1 percent as investors look ahead to the chip manufacturer’s next launch.
• IBM’s $6.4B HashiCorp deal is in question. The deal has drawn attention and scrutiny from U.K. antitrust regulators.
• Tesla stock drops after first earnings decline in 12 years. Missed sales and production numbers caused the automaker’s stock to dip 1.1 percent. 

Start passively investing in franchises today!

Accredited and non-accredited investors can invest in our latest offering, TNT Franchise Fund Inc., today! 

TNT Franchise Fund Inc. is a diversified portfolio of up to 30 Smash My Trash locations and 25 Teriyaki Madness outlets throughout the United States.

With its patented waste compaction service, Smash My Trash is disrupting the $1.6 trillion waste management sector. By compacting waste in open-top dumpsters to reduce waste volume, customers save money (up to 20% of waste removal costs) and reduce their CO2 emissions by up to 65%.

Teriyaki Madness stands out with its fresh, made-from-scratch meals and a lively, inviting ambiance, revolutionizing the fast-casual Asian dining scene. Its surging popularity is evident on platforms like Yelp, Facebook, and Google, where an increasing community of enthusiasts sing its praises.

Highlights:

• Target locations: Up to 55
• Smash My Trash per-location economics: $885K in revenue with 28% EBITDA after 16 months of operation
• Teriyaki Madness per-location economics: $1.16M in revenue with 20% operating profit

As the Smash My Trash and Teriyaki Madness locations come to fruition, investors in TNT Franchise Fund Inc. can expect to receive excess cash flows from the business operations of the locations on a quarterly basis.

For more information on the offering, contact our team.