Here are this week's investing and economic insights:
#MarketTrends
Top Performing Investment Themes of 2023
In 2023, investment themes like Blockchain, Next Generation Internet, and AI/Big Data outperformed the S&P 500’s 24% rebound.
Blockchain ETFs led with 82% returns, driven by Bitcoin’s resurgence.
Nuclear energy ETFs also performed well due to its growing role as a low carbon energy source. Robotics & Automation saw the highest net flows.
image
The Insight: How To Find The Opportunities
The strong performance of Blockchain, AI/Big Data, and Nuclear Energy ETFs suggests potential investment opportunities in these sectors.
The high net flows into Robotics & Automation also indicate a growing interest in this field.
The expanding middle class in emerging markets like India and China presents potential growth opportunities.
Help us spread the word.
Forward this post to your friends and family.
Were you forwarded the post?
Sign up>> here to receive it in your inbox
#QuoteOfTheWeek
“We don't prognosticate macroeconomic factors, we're looking at our companies from a bottom-up perspective on their long-run prospects of returning." - Mellody Hobson
The wisdom derived from Mellody Hobson’s quote is that instead of trying to predict macroeconomic trends, investors should focus on the long-term potential of individual companies.
This “bottom-up” approach involves analyzing a company’s fundamentals, such as its financial health and market position, to assess its potential for future returns.
This strategy can lead to more informed and potentially profitable investment decisions.
What are your thoughts on our newsletter?
Please help us to improve by dropping your feedback at:
info@stewardshipfinanceacademy.com
#What is happening this week?
RBA Holds Rates Steady, ASX 200 Surges!
Following last week's meeting, the Reserve Bank of Australia (RBA) held rates steady as expected by many economists.
The ASX 200 rallied in response, buoyed by robust job additions and a drop in unemployment revealed in February's employment report.
Despite some sectoral fluctuations, market optimism prevailed, with Materials leading gains while Consumer Staples lagged.
Fed Keeps Rates Unchanged, Plans for Future Cuts
The US Fed kept the benchmark Fed Funds Rate unchanged at 5.25 to 5.50% as expected.
Fed officials once again pencilled in three quarter percent rate cuts by year-end , but wouldn’t commit to timing.
Jerome Powell suggested that risks are now balanced between lowering rates too quickly or too slowly.
The Fed also plans to slow the pace at which it is reducing its balance sheet.
Bank of Japan Raises Rates, Ends Negative Interest Era
The Bank of Japan raised rates from -0.1% to a range of 0 - 0.1%.
This was its first rate hike in 17 years and ended Japan’s era of negative interest rates and yield curve control.
Bank officials believe that wage growth will now lead to a virtuous cycle and higher prices after decades of deflation.
PDD Holdings Reports Whopping 123% Revenue Surge
Temu operator PDD Holdings reports a 123% surge in revenue.
Temu’s sales growth was the result of a massive ad campaign that included four, yes FOUR, $7 million Super Bowl spots.
The company reportedly spent $2 billion on advertising on Meta’s websites last year, making it the company’s biggest advertiser.
Temu also became one of Alphabet’s biggest clients in 2023.
It often pays to follow the money and find out who’s benefiting when companies report big numbers like this.
Comments