Bulls and bears traded blows that resulted in multiple 4% round trips during the week
August 2, 2024
The to and fro of US markets last week resembled the titanic struggle between Nadal and Medvedev with bulls and bears trading blows that resulted in multiple 4% round trips during the week.
The main news of the week happened as the European market closed. An unequivocal warning by US intelligence that a Russian invasion of Ukraine might be imminent.
In what has become a familiar pattern, markets rose in the early part of the week amid signs that Putin’s aggressive posturing towards Ukraine might be just that, only to fall back as he appears to up the ante yet again.
Investors attempt to price in the invasion and the ensuing sanctions on Russia
August 2, 2024
After repeated warnings from Western intelligence, which most geopolitical experts were skeptical of, Putin invaded Ukraine. Markets fell sharply, especially in the US, but later rebounded and ended the week flat (or up by 2% in the case of the US).
Commodity markets continue to climb and push on inflation
August 2, 2024
It was another volatile week for stock markets, and even more so for commodity, currency and bonds as investors struggled to digest the implications of expelling Russia from the global economy.
SVB bankruptcy triggers swift response from the Fed
August 2, 2024
On Friday morning Silicon Valley Bank (SVB) had been the 16th largest US bank and a successful S&P 500 company, but by Saturday morning it was bankrupt after a sudden run on its deposit base had rendered it unviable.
Oh what a week! The Four Seasons hit might seem a bit upbeat for the occasion of a banking crisis, but the market has at least got its mojo back in the last few days.
Markets have calmed down a great deal in the last two weeks and more recently have mounted a bit of a recovery, with US tech and emerging markets leading the way.
Markets have mixed feelings about a slowing US economy
August 2, 2024
With many markets closed for a few days either side of the weekend and market liquidity very low, financial news has been mercifully subdued. There was mini-scare at the end of last week as a number of jobs-related reports came out which suggested that the overheating US economy might be slowing down.
Weak economic data, banking turmoil, and strong earnings results
August 2, 2024
After a relatively quiet few weeks the financial newswires have sprung back into life with positive US earnings surprises, another distressed US bank and an Australian inflation print that appears to have something for everyone.
Carbon credits and investing – is it the outcome we expect?
August 2, 2024
ETFs that invest in carbon credits are now available. Why should we assume that their price will go up over time? And does buying a carbon credit ETF actually contribute positively to emissions reduction? Will it actually generate the outcome investors are expecting? This article explores the issues around investing in carbon credits.
Better World makes a difference with investment in renewables
August 2, 2024
There are many direct assets and funds that contribute positively to climate action within the InvestSense Better World Portfolios. Meridian Energy is one of the stand-out direct assets in the portfolio with a climate energy focus.
In recent years professional investors have got increasingly used to the fact that good news is bad news for markets because higher interest rates are likely to be necessary, and of course vice-versa. However, last week the effect was stronger than ever and stocks rallied mid-week amidst reports of widespread lay-offs and expectations of a weak US jobs report.
The US market finally market caught a bid last week. Early in the week the market was down few percent after an earnings miss by ad dependent social media platform Snap (of Snapchat fame) combined with weak guidance raised more doubts about the economy and economic resilience of tech companies.
US momentarily dips into official bear market territory
August 2, 2024
The seventh negative week in a row for the US sent it briefly into official bear market territory before it recovered slightly late on Friday. The world’s largest stocks (Apple, Microsoft Amazon and Google) are all down 25%.
How Mark Lewin saved 13 hours a week with Managed Accounts
August 2, 2024
Mark Lewin was a financial planner, but is now the Director of Back Office Heros. In his planning business he gained significant efficiencies by recommending and implementing managed accounts for his clients. He tells us how...