Here are this week's investing and economic insights:
#MarketTrends
U.S. Dominates: Is Your Portfolio Ready?
The U.S. dominates global equity markets with a 58.4% share. Japan, the next largest, holds 6.3%.
Despite being the world’s second-largest economy, China accounts for just 3.7%.
Historical shifts in financial power have occurred, with the U.S. surpassing London after WWII.
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The Insight: How To Find The Opportunities
Investment opportunities could lie in economies that are poised for growth.
Given the U.S.'s current dominance, investing in U.S. equities could be a stable choice.
However, considering the historical shifts in financial power, diversifying your portfolio to include shares from emerging markets like China could be beneficial.
Despite being the world’s second-largest economy, China accounts for just 3.7% of the world’s equity market share, indicating potential for growth.
Additionally, markets like Japan, despite experiencing past economic downturns, have shown resilience and potential for recovery.
Therefore, investing in such markets could offer long-term benefits.
Always remember, thorough research and understanding of the market dynamics are crucial before making any investment decisions.
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#QuoteOfTheWeek
“Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.”
- Seth Klarman
Invest wisely and prudently, not greedily or emotionally.
Avoid risky bets and excessive debts that can ruin you.
Seek value and quality, not hype and popularity.
Be patient and disciplined, not impulsive and restless.
Sleep soundly at night, knowing your portfolio is safe and sound.
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#What is happening this week?
How the US Stock Market Outperformed Australia in January 2024
The S&P 500 reached a noteworthy achievement by attaining a fresh all-time high, representing a pivotal moment in the resurgence of the US stock market.
Simultaneously, the Australian economic landscape encountered its own set of difficulties, experiencing the most substantial monthly decrease in full-time employment since the onset of the pandemic.
The Tech Boom That Pushed the S&P 500 to a Historic Milestone
In the US, key indices sustained their upward momentum, with the Dow Jones, S&P 500, and Nasdaq concluding with gains of 0.7%, 1.2%, and an impressive 2.3%, respectively.
This upswing, propelled by the performance of technology stocks, resulted in the S&P 500 hitting a new record peak for the first time in a span of two years.
China’s Population Decline: The End of an Era?
In 2023, China witnessed a second consecutive year of decline in its population, as the country's population growth rate has been on a downward trajectory since 2012, turning negative in 2022.
Anticipated trends, including investor outflows, deflation, an aging population, and a decline in population, suggest that the government will likely persist in implementing structural changes to its economy.
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Best Regards,
James Lim, SFA Founder
Top 3 discussed stocks : $Tesla Motors(TSLA)$ $Pinduoduo Inc.(PDD)$ $NVIDIA Corp(NVDA)$
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