The Magnificent 7 is becoming the Magnificent 4
Source: Beth Kindig
The US monetary base has been rising significantly recently.
In the last 12 months alone, there has been a rise of $420 billion, primarily fueled by bank reserves. While the Fed should not classify this as QE due to mechanical differences, it seems to echo the patterns of previous periods of monetary stimulus following the Global Financial Crisis. The economy (and markets) are addicted to liquidity. Source: Bloomberg, Tavi Costa
What‘s wrong with Europe in one chart.
These European companies have been in the automotive business for decades. Why are they so painfully slow to adapt to new reality? Source: Michel A.Arouet, Bloomberg
Nvidia options signal nearly $200bn swing after earnings.
Prices for short-term calls and puts imply a 10.6% move in the chipmaker’s shares on Thursday. Source: Bloomberg, HolgerZ
Should you exit equities (or avoid investing into equities) when they hit all-time high?
The answer is 'NO'. Returns have been higher than average, following all-time highs. More importantly, exiting at all-time highs is disastrous for your return! Massive chart by Duncan Lamont / Schroders thru Jeroen Blokland.
Nvidia : Place Your Bets
Nvidia is expected to report earnings Today after market close. Wall Street consensus for adjusted Q4 EPS is $4.60 a share, up more than 700% from 65 cents a year ago. Q4 revenue is expected to be $20.43 billion. A miss in earnings or lower forward guidance is likely to cause a wave of profit taking in the technology sector and drag the broader market with it. A stronger than expected report could add fuel to upward momentum and draw in more investors who are already experiencing some degree of FOMO from the stock’s dazzling performance. Nvidia stock price is up 46.6% so far in 2024, adding to its 238% gain in 2023. Source : forbes
UBS hikes its S&P 500 target to 5,400, highest on Wall Street
UBS raised its S&P 500 year-end target for the second time in little over a month, from 5,100 to 5,400. It argues that hot inflation driven by strong demand is actually positive for stocks. The new target, which is roughly 9% above current levels, is the highest on Wall Street. Source : ubs
Visualizing the Most Valuable Brands in 12 Countries
At the start of 2024, Apple was found to be the world’s most valuable brand, with a value of $517 billion—a 73.6% increase over the previous year. China may have 20 brands in the top 100, but South Korea’s Samsung trumps it for second place outside of the U.S. with a value of $99 billion. Overall, Asian brands have attained significant value in recent years. China’s TikTok (along with its domestic counterpart, Douyin) is well known all around the world and had a value of $84 billion, while Japan’s Toyota and Saudi Arabia’s Saudi Aramco had brand values of $53 billion and $42 billion respectively. Europe’s most valuable brand is Germany’s Deutsche Telekom at $73 billion, while French luxury fashion house Louis Vuitton had a value of $32 billion. source : visualcapitalist
