Category: Daily Instagraph

There are no significant updates regarding the valuation of major equity markets. The US market remains highly valued both in historical context and compared to other markets. The MSCI World Index is similarly highly valued, largely due to its over 70% weighting in US stocks. Other markets continue to trade within their long-term valuation ranges. … Continued

Since 1928, the first 15 days of July have consistently been the best two-week trading period of the year for US equities, according to Scott Rubner, Goldman’s Global Markets Division Managing Director as reported by Bloomberg. While the reasons for this pattern are speculative, one possible explanation is that both retail and institutional investors increase … Continued

European beverage stocks faced significant challenges in the stock market over the past year, experiencing declines of 20% to 40%. Several fundamental factors contributed to this downturn, such as the potential imposition of Chinese tariffs on brandy and declining spirit volumes in the US. Additionally, companies like Diageo faced internal issues. As a result, spirits … Continued

Yesterday perfectly illustrated that technical glitches can occur on stock exchanges. Berkshire Hathaway A shares were erroneously shown to have fallen 99.97% to $185.10 at the beginning of the trading session, compared to $627,400 at Friday’s close, resulting in a trading halt at 9:50 a.m. Eastern time. Automated news bots, lacking the ability to judge … Continued

On Friday, S&P downgraded France’s credit rating by one notch to AA-, citing concerns over its management of public finances. France’s general government debt-to-GDP ratio now stands as the third highest in the euro area, following Greece and Italy. The downgrade is attributed to overspending during the pandemic and the energy crisis, coupled with political … Continued

Gold has reclaimed its status as a preferred reserve currency among global central banks, surpassing the euro in international reserves. This resurgence is driven by several factors including increased central bank purchases, geopolitical considerations, waning confidence in the euro, a global move away from the US dollar, and a rising gold price. Given these dynamics, … Continued

Since the end of the Bretton Woods system and the abolition of the gold standard, equities, bonds, and gold have all outperformed inflation. Recently, however, gold has made a significant comeback compared to bonds over the past four years. This has led to the perception that investors would have been better off holding gold instead … Continued

At business school, we learned—and universally agree—that stock splits do not impact a company’s fundamental value. However, the stock prices of companies that undergo splits (such as NVIDIA, which announced a split yesterday) often outperform in the subsequent months. The reasons for this are speculative. Firstly, management typically decides to split the stock following strong … Continued

NVIDIA’s CEO stated yesterday that “the next industrial revolution has begun,” and NVIDIA stands to gain the most. The company’s fiscal Q1 revenue hit $28 billion, beating expectations and driving a 4% after-hours stock price jump, on top of a 92% rise this year. Analysts now forecast 35.8% annual earnings growth for the next five … Continued

An interest rate cut by the ECB in June is becoming increasingly likely. Yesterday, Christine Lagarde remarked to the press, “I’m really confident that we have inflation under control,” adding, “The forecast that we have for next year and the year after that is really getting very, very close to target, if not at target. … Continued